Straits Times 7 Aug 11;
President S R Nathan's office has been approving the use of past reserves to fund land reclamation projects since 2001 and land acquisition for the Selective En-Bloc Redevelopment Scheme (Sers) since 2002.
Mr Nathan and his advisers have judged that these projects do not deplete the reserves because the resulting increases in land value ultimately add to the reserves.
According to the Constitution, all state land and buildings are considered part of past reserves.
In an interview with The Sunday Times, Mr Nathan revealed that, in general, projects resulting in the creation or enhancement of usage of land can be considered for funding from past reserves. Such projects include Sers and land reclamation.
Before 1999, such projects were funded out of current reserves, even though the government of the day would usually not benefit from them. Mr Nathan noted that infrastructure projects often span across terms of government, which may disincentivise the government of the day to undertake them using current reserves, even though they benefited Singapore in the long term.
Therefore, if a project enhances the value of land through intensification or redevelopment, there are merits in considering funding out of past reserves.
Acquisition cost for Sers and direct land reclamation cost fall in this category, he said.
The President has approved the use of past reserves for the acquisition of land in 27 Sers projects since 2002.
The approvals were given only when the gross plot ratio of the projects could be increased by at least 30 per cent after acquisition.
Land reclamation projects, such as the ones in Tuas and Jurong Island, have been approved since 2001.
Mr Nathan said the president's office and the relevant government departments have agreed upon a set of guidelines for processing all such cases of land development.
The latest disclosure highlights the efforts to set out working principles between the elected presidency, a 20-year-old institution, and the government of the day.
The previous milestone came in 1999, when the Government and then President Ong Teng Cheong agreed upon a White Paper that set out, among other things, procedures for a draw down on past reserves.
Elgin Toh
