Reply by SMS Sim Ann, in response to adjournment motion by MP Murali Pillai on “A case to review the model of estate management for public housing in Singapore”
May 9, 2022
Mr Speaker, Sir, I thank Mr Murali Pillai for sharing his views on how we can improve the way we manage our HDB estates.
Objective of Town Councils
Let us revisit the rationale for forming Town Councils (TCs) back in 1989. The purpose was to give elected MPs the autonomy to run their own towns, and thereby allow towns to develop distinctive characters, guided by the needs of residents. It is also a testing ground for MPs to win and retain the confidence and trust of their residents. Not only are MPs expected to represent voters in Parliament, they are also required to pay close attention to the management and maintenance of our HDB estates. This is a role that comes with custodial and financial responsibilities. It is a uniquely Singapore approach to governance.
Relationship between TCs and Government
The simplest way to describe the relationship between HDB and TCs is that the former builds while the latter does everything else - manages, maintains, replaces and repairs. To fund these activities, the TC collects Service and Conservancy Charges (S&CC) from HDB households.
But that leaves out many important nuances.
First, the Government does not leave it to TCs to raise the funds required, from HDB households alone. We support them through S&CC operating grants. In FY 2020, the Government provided $146 million in operating grants to TCs. In addition, the Government also provides about $135 million worth of S&CC rebates according to flat types to help residents pay for their S&CC. The number of months of rebates are tiered according to flat type. This compares against a total S&CC collection of $770 million for that year.
Second, the Government provides additional funding for replacing or maintaining major infrastructural items such as the Lift Replacement Matching Grant and Lift Enhancement Programme (LEP).
Third, major efforts to renew HDB towns are heavily funded or even undertaken by the Government through dedicated programmes like the Neighbourhood Renewal Programme (NRP) or Remarking Our Heartlands.
It is understandable for TCs to question whether the parameters under which they operate are fair and reasonable. After all, they have important responsibilities. They are subject to laws and regulations and are also accountable to residents. I see the Honourable Member’s speech in this light, and welcome it.
The key points raised by in the Member are: i) Tension between HDB’s role in building and TCs’ role in maintaining public housing estates; and ii) Whether HDB or Government can undertake the maintenance of public housing estates. I will address these; and other points made by the Member about TCs’ challenges and financial sustainability.
Tension between building and maintaining HDB estates
First, the Member expressed concerns about maintenance costs of features in new BTO developments, some of which have higher maintenance costs, due to the need for specialist contractors or equipment.
Sustainability and maintainability are factors HDB considers when designing new BTO projects. BTO projects adopt Design for Maintainability principles, including the appropriate choice of materials and finishes, and proper detailing for durability and maintenance. HDB also seeks TCs’ feedback on whether there are features that may affect maintenance. That said, many other factors besides downstream maintenance costs are considered at the design stage. Otherwise, we would end up with cookiecutter precincts that cannot reflect the aspirations of homeowners, or the changing demands of urban living. The building of skyrise greenery is a good example. Incorporating more greenery into our compact and high-rise urban environment is an important solution for tackling urban heat. But such features must also be thoughtfully designed to keep maintenance costs manageable.
The key is to ensure good feedback loops between HDB and TCs pre-tender and during construction, so that adjustments can be made promptly to address potential maintenance issues. Such feedback loops should continue after residents move in, and add to HDB’s experience when designing subsequent projects.
We value the Member’s feedback and will review our processes to ensure that ease of maintenance is given priority. We also agree that HDB should deal with design issues that might not have been evident upstream, and which present themselves upon project completion promptly.
Regarding the dislodged pavers that the Member has mentioned, indeed, there were issues. While HDB had tested the pavers for durability prior to approving their usage, following feedback from the Town Council, HDB investigated and found the profile and interlocking effect of these pavers to be not as effective as the typical interlocking tiles.
Hence, HDB will be replacing the pavers and bearing the costs fully. HDB has incorporated this learning and will avoid using such pavers in future projects.
Town Councils’ responsibility for cyclical maintenance
The Member has suggested that the Government should fund the costs of replacing infrastructure beyond its life cycle, and repairs to infrastructure damaged because tolerance limits are exceeded.
Today, TCs can already fund such cyclical works through the Sinking Fund and for lifts, through the Lift Replacement Fund. TCs have to apportion at least 40% of their income to these funds, and a similar percentage of Government grants are also channeled to these funds. Hence the Government already co-funds such infrastructural works.
The use of S&CC to defray cyclical maintenance and replacement costs in HDB estates is no different from the practice in private condominiums, where maintenance fees are used to pay for the cyclical maintenance and replacement of infrastructure. Except that the Government provides significant support for public housing – both in terms of funding and otherwise. TCs should thus continue to set aside funds from S&CC collected for long-term cyclical replacement works.
Town Councils’ financial sustainability and S&CC increases
The Government is committed to continue to work with TCs to ensure their long-term financial sustainability. We provide substantial grants to TCs, with government funding amounting to about 1.2 billion dollars over the last five years. We further provide S&CC rebates directly to residents, to help those who require more assistance.
We recognise that TCs face various cost pressures, due to a mix of internal and external factors, including tightening manpower, economic uncertainties caused by the pandemic, and global supply chain disruptions.
These inflationary pressures affect all sectors, including the Government who also has to manage a tight fiscal situation. Hence, the solution cannot simply be for the Government to take over estate management, or to fully fund cost increases.
Ultimately, any long-term increases in costs will have to be borne in one way or another by all of us. TCs, being responsible for estate maintenance, play an important role in managing cost increases and apportioning costs among different households. This is why TCs have the full autonomy to set S&CC rates – including differentiated rates – to achieve both financial sustainability as well as equity.
Nonetheless, let me assure the Member that the Government will continue to partner TCs closely in this endeavour. MND will be open to consider appropriate further measures if necessary to cushion the impact of rising costs on residents, especially those in need of greater help. We will also review the structure of S&CC operating grants regularly to ensure that it reflects the profile of our public housing stock.
Human resource issues
The Member has highlighted high turnover of Town Council property officers, due to tough working conditions and lack of career prospects.
We empathise with this. Manpower challenges are not unique to TCs, and faced by organisations across Singapore including the public sector. We recognise the demanding nature of property officers’ work – they need to have the technical competency to maintain infrastructure, and also soft skills to manage multiple stakeholders.
The Government has thus been providing significant support to help TCs’ officers acquire the necessary skills to handle their work. These include: regular training and sharing sessions to deepen their technical and case management skills; providing technical advice for complex maintenance cases; and establishing clear progression pathways for the facilities management (FM) workforce, including TCs’ property officers. Under the Built Environment Skills Framework, FM workers can improve competencies in key transformation areas through training, and advance to higher wage bands.
As some maintenance issues like cleanliness are attributable to human factors, we also strive to tackle these upstream and promote positive behavioural norms. For example, the Municipal Services Office has been coordinating public education efforts, this includes strengthening norms that discourage high-rise littering and pigeon feeding.
Conclusion
Mr Speaker, the Town Council concept goes beyond the physical management of a Town. It represents an important partnership between the elected MPs and the residents in co-creating their living environment. An effective Town Council can build a Town into a distinctive, cohesive, and vibrant community, with a unique identity that is endearing to its residents. I am heartened that the Member seeks to improve upon our unique approach to local governance and set out his views in a detailed and thoughtful speech.
However, we would think very carefully before re-centralising township maintenance, as the Member has suggested, because devolution is at the heart of the Town Council concept.
But the Member has provided very helpful reminders to HDB and MND on: i) Giving due priority to maintenance costs when designing and building HDB towns; and ii) Keeping close track of how the costs of running HDB estates should be managed, and apportioned between different stakeholders. We are committed to doing both.
Township management is perhaps not the most exciting of topics, but one that affects the day-to-day experience of many Singaporeans. I thank Mr Murali Pillai again for the opportunity to respond to his ideas and set out MND and HDB’s thinking on this subject.