HOUSING AND DEVELOPMENT BOARD UPGRADING PROGRAMMES

Mr Chuang Shaw Peng asked the Minister for National Development whether, in the light of economic recovery, there will be plans for more upgrading programmes for Housing and Development Board estates.

Mr Mah Bow Tan: The upgrading programmes are part of our Estates Renewal Strategy to rejuvenate older HDB estates while keeping the community ties intact. The Main Upgrading Programme (MUP) aims to improve the living conditions of the older HDB estates and bring them closer to the standards of the latest HDB housing developments. The Interim Upgrading Programme (IUP) allows residents living in HDB blocks that are more than 10 years old to enjoy some form of upgrading to the common areas before the blocks are due for MUP. Both these upgrading programmes are heavily subsidised.

The Government will maintain the IUP at 18 precincts for 1999 to allow residents to continue to enjoy the benefits. This takes into account the resources of the Town Councils. Increasing the number of precincts will lead to slower and less than satisfactory implementation of the projects. The current programme of 18,000 dwelling units per year is just right for the Town Councils to comfortably handle.

As for MUP, it was earlier announced that the programme will be scaled down to 5 precincts in 1999 from 10 last year in view of the economic uncertainty then, and the fact that we will be having a budget deficit in FY99. Should the economy continue to show clear and sustained signs of recovery, my Ministry will review the programme with a view to increasing the number of precincts for MUP next year.