OLD MARKET PLACES AND TWO-STOREY SHOPHOUSES (Upgrading)

[Mr Speaker in the Chair]

Mrs Yu-Foo Yee Shoon asked the Minister for National Development whether the Government will extend its proposal to refurbish old Housing and Development Board estates on a cost- sharing basis, to include old market places and two-storey shophouses.

The Minister for National Development (Mr S. Dhanabalan): Mr Speaker, Sir, the Government's first priority in the upgrading programme is to upgrade the old HDB flats. The upgrading of commercial premises, including markets/shops, is a separate matter. HDB will consider such upgrading if it is necessary to raise the quality of the total environment. Since these are commercial premises, HDB must recover the cost of upgrading from the tenants or purchasers.

Dr Koh Lam Son (Telok Blangah): Can I ask the Minister how this proposal will affect the privatization plan which was announced earlier by the Minister for the Environment?

Mr Dhanabalan: As I have mentioned, Sir, if we do upgrade commercial premises, we will recover the additional cost by increased rentals until such time as the shops are sold. When they are sold they will be sold by tender, and I assume the tender will reflect the higher quality of the commercial premises.