MAIN UPGRADING AND INTERIM UPGRADING PROGRAMMES

Dr Ker Sin Tze asked the Minister for National Development whether he will consider speeding up the Main Upgrading Programme and Interim Upgrading Programme for Housing and Development Board flats in order to stimulate and promote more economic activities.

Mr Lim Hng Kiang: The Main and Interim Upgrading Programmes were introduced as part of the measures to share the nation's wealth with Singaporeans. They are highly subsidised and are funded from budget surpluses. Thus, it would not be appropriate to speed up the programmes in view of the current economic uncertainty and the fact that the Government is likely to incur budget deficits in fiscal years 1998 and 1999.

At present, MND is preparing its FY99 budget plan for submission to the Ministry of Finance. Given the budgetary constraints, we have to manage our limited financial resources carefully according to the country's priorities. These priorities will take into account, amongst other things, what are the most effective measures to stimulate the economy, and will be coordinated across the various ministries in a concerted effort to achieve maximum impact.