The Singapore government will implement more measures to stabilise the property market if needed.
The assurance came from National Development Minister Mah Bow Tan in Parliament on Friday.
Mr Mah said the government will go also go ahead with multi-billion dollars worth of infrastructural projects.
Marina Bay, Singapore’s new premier business district, is taking shape.
So far, the government has invested S$5.7 billion on infrastructural works there.
And it is set to pump another S$1 billion into developing the area over the next 10 to 15 years.
Mr Mah said: “We are also pressing on with the infrastructure development for new regional commercial hubs at Jurong East, Paya Lebar and Kallang that were earmarked for development in URA’s Master Plan 2008.
“A total of S$2.9 billion will be invested to implement essential infrastructure works for the progressive development of these three new growth areas.”
These include the upgrading of existing transportation system, and building works for commercial developments, a hospital and the Science Centre.
More money will also be channelled to give public housing estates a facelift.
The government has spent S$2.4 billion on upgrading programmes over the last five years. And it has committed to invest another S$4.6 billion for the next five years.
With the global economic slowdown, demand in the construction sector is expected to moderate to about S$20 billion to S$29 billion over the next three years.
Still, the government is optimistic about prospects ahead.
Grace Fu, Senior Minister of State, National Development, said: “For 2009 alone, the value of government projects to be awarded will reach between S$18 billion and S$20 billion. This will make up for the slack in private sector demand.”
These projects include upgrading of community clubs and roads and building of new rental flats.
These are valued at between S$15 million and S$50 million each.
The government has previously announced a slew of measures to help developers and the construction industry ride out the tough times.
These measures include initiatives to ease the cash-flow of developers, and giving them more flexibility to stage the sale and construction of their developments in accordance with market conditions.
In addition, it is also promoting prompt and more frequent payment for public sector projects, as well as undertaking higher risk by lowering the security deposits for construction projects.
Source : Channel NewsAsia – 6 Feb 2009