HOUSING AND DEVELOPMENT BOARD SHOPS (Sale to doctors for use as medical clinics at preferential rate)

Dr Toh Keng Kiat asked the Minister for National Development whether he will consider the sale of Housing and Development Board shop premises to doctors for use as medical clinics at a preferential rate, subject to restrictions, as a measure to contain cost of healthcare.

Mr Lim Hng Kiang (for the Minister for National Development): Mr Speaker, Sir, HDB cannot give preferential terms to doctors who wish to buy HDB shop premises for use as clinics. Those who require HDB shop premises can bid when HDB offers new shops for sale by public tender.

The cost of premises is not a major component of the operating costs of medical clinics. Thus, selling shops at preferential rates to doctors will not necessarily reduce or limit healthcare costs. More importantly, if HDB were to sell shops to doctors at preferential rates, then it would be hard put not to give similar concessions to others who could also claim that it will help bring down the general cost of living. If all such requests were to be acceded to, the end result would be a gross distortion of the forces of demand and supply in the market for HDB shops, without residents benefiting in any way from lower healthcare or other costs.

The present system of selling HDB shops by public tender ensures that sale prices are determined by market forces. Competitive tendering also makes it likely that services most needed by residents, such as medical services, are provided efficiently and at affordable prices. As such services would be viable, those intending to provide them will be able to pay the market rate for such premises.

Any concern that the tendering system will result in residents of HDB estates having inadequate access to medical services is misplaced. There are a total of 643 clinics in HDB estates. This gives an average of one clinic to every 1,000 dwelling units. Their distribution reflects the population catchment of Singaporeans in HDB estates. Even Lim Chu Kang, the smallest HDB estate, with 93 dwelling units and a population of about 400, has a clinic. Apart from these private clinics, there is at least one Government polyclinic in each HDB new town. Residents in HDB estates thus enjoy convenient access to inexpensive medical care.

Dr Toh Keng Kiat (Nominated Member): Sir, contrary to popular perception, I think the rentals which the doctors have to pay for their shop premises do play a major part in the costing of the medical bills for the patients. I have here a report of an economic survey on the medical health services -

Mr Speaker: Dr Toh, are you making a speech?

Dr Toh Keng Kiat: No, I am going to ask a supplementary question.

Mr Speaker: Ask your supplementary question.

Dr Toh Keng Kiat: Would the Minister please reconsider my proposal because I have found that recent prices in the open tender system have resulted in bids which have gone beyond $1 million for a mere 100 square metres of shop space in an HDB estate?

Mr Lim Hng Kiang: I think it is very difficult to convince the public that doctors are less able to tender for shops than a barber shop or a provision shop. The services that the doctors provide to the estates are viable services and they should be able to tender competitively for their premises.

Mr Chia Shi Teck (Nominated Member): Sir, will the Minister assure the public that there will be sufficient doctors in the estates should this tender system reach a price that doctors cannot afford them?

Mr Lim Hng Kiang: Sir, together with the Ministry of Health, we will always monitor the level of provision of medical services to Singaporeans and if it comes a time when medical services are not provided adequately at the HDB estate level, then we will consider other measures to ensure that this service is provided.