Commencement of sale of the NEW CEPAS-Compliant ez-link card

EZ-Link will start selling its new ez-link cards which are CEPAS compliant on Monday 29th December 2008 , making them the first company to adopt the new Singapore Standard for Contactless ePurse Application. Being CEPAS-compliant, the new ez-link card can also be used with any other systems built on CEPAS across the transit and non-transit space giving their customers more payment options in 2009. Cardholders will be able to distinguish the new card from the existing ez-link card by the new card face design as well as the CEPAS logo which appears on the reverse of the card.

Starting with its anchor application - payment for public transport fares, EZ-Link together with its partner QB will progressively extend its payment services of the new card to all its current non-transit and retail payment applications like McDonalds, 7-Eleven and SMRT Taxis. The new ez-link cards can eventually be used in the next generation In-vehicle Unit for Electronic Road Pricing transactions and parking payments at Electronic Parking System (EPS) carparks. In preparation for the expected increased usage, the new card can store a value of up to $500.00, as compared to the maximum $100.00 stored value for the existing card. The increase in capacity for the stored value component of the new card enables users to have a multi-purpose card for use in the sectors of public transport, retail, ERP and parking at EPS carparks.

Population grew to 4.84 million, boosted by strong non-resident growth

Singapore's population hit 4.84 million in June this year, marking a 5.5 per cent increase from a year before. The figure is buoyed by an increasing number of foreigners in the country, boosted by strong economic growth over the past few years.

The number of non-residents grew by 19 per cent, while the resident population went up by a mere one per cent.

The National Population Secretariat said foreigners increasingly view Singapore as an attractive place to relocate.

Most come from neighbouring Asian countries.

There are also more new Permanent Residents (PRs) and citizens. In the first half of this year, 34,800 were granted PRs. That's up by some 20 per cent from the same period last year.

Meanwhile, 9,600 were granted citizenship, up by some 30 per cent, compared to the year before.

And nearly seven in 10 new PRs aged 20 and above had post-secondary qualifications.

Moving forward, the Secretariat said integration would be a key challenge.

It added that the government will also continue to exercise discretion and facilitate the naturalisation of foreigners who can add value and contribute to Singapore socially and economically.

Roy Quek, director, National Population Secretariat, said: "Integration is not just about what the government can do because the government is limited in terms of its ability to reach out to everyone. Integration happens all the time, in our schools at the workplace, in our local community, in the neighbourhoods."

Mr Quek added that a strong non-resident presence in Singapore is also testament to the country's good growth.

"In a way it's a compliment to Singapore that we have a place where others want to come to, that we have economic opportunities, we have enough jobs not just for locals but also for people who are willing to come in to spend time here.

"So the key is not to look at it as competition for jobs but adding value to Singapore's economy and ultimately contributing to a better life for all of us in Singapore," he said.

The number of Singaporeans grew to 3.16 million due to the higher number of citizen babies and more PRs taking up citizenship.

There were some 18,000 births registered in the first half of this year, slightly higher than the numbers registered the same period last year.

So while Singapore is on track for another historic high fertility rate, the biggest concern is still about making babies.

The country's total fertility rate was 1.29 in 2007, far below the replacement level of 2.1.

Mr Quek said: "Of course, it's going to be an uphill task but we are hopeful at least of crossing the 1.3 level at some point in the future."

As for overseas Singaporeans, more are making their homes abroad either for work or study.

As of June 2008, there're about 153,500 overseas Singaporeans compared to 147,500 a year ago.

The countries with a high concentration of overseas Singaporeans are Australia, the UK, US and China.

Bus and train fares up on October 1

SINGAPORE - Most bus and train journeys except those for children, students and national servicemen, will see fare changes from 1 October 2008.

The Public Transport Council (PTC) has given the green light for an overall net fare adjustment that will result in fare changes that will range from a 7-cent reduction to a 4-cent increase per journey.

Adult EZ-Link fares on buses and trains and the senior citizen concession EZ-Link fare, will see a flat increase of 4 cents per ride.

However, this will be offset by the 15-cent increase in transfer rebate from the current 25 cents to 40 cents.

Public transport operators have also decided that they will bear 10 cents out of the 15-cent increase in the transfer rebate.

Therefore, fares for most adult or senior citizen concession journeys will see a range of adjustments, from an increase of 4 cents for a direct journey with no transfer, to a reduction of 7 cents for a journey with one transfer.

According to the PTC, journeys with more transfers will see a greater fare reduction, ranging from 18 cents for a journey with two transfers and 29 cents if there are two transfers.

To fund the higher transfer rebate, transport operators will give up more than $30 million in fare revenues annually. As for the remaining 5-cent increase in the transfer rebate, the PTC said it will be redistributed amongst commuters, as they will benefit from it.

Chairman of the PTC, Gerard Ee said "by raising the transfer rebate this year and making the operators absorb a larger part of the cost, we managed to strike a balance and keep the overall net fare adjustment to just 0.7%, much lower than the fare cap of 3%."

“This decision comes after careful deliberation, testing many permutations and scrutinising the impact on both operators and commuters."

In a news release, the PTC also announced a new maximum EZ-Link fare-band, with an additional 5-cent increase for long-distance rides on buses and trains.

As for cash fares for adult bus and train rides, which have not been adjusted since 2005, they will increase by 10 cents across the board.

The PTC said that it considered during its deliberations, Singapore’s economic outlook, the affordability of public transport and the fare review mechanism adopted since 2005.

It noted that the public transport affordability indicator had been on a down-trend over the past five years, indicating that fares have remained affordable for most commuters.

To further safeguard commuters’ interests, the PTC said it checked on the ROTA (Return-On-Total-Assets) of transport operators and was satisfied that their profit levels were not excessive compared to other industries with similar risk profiles.

The PTC believes that the changes to distance-based fares with transfer rebates will impact 64 percent of commuters based on the current pattern of public transport journeys made using EZ-Link cards.

Most public transport users should see an adjustment in their weekly public transport expenditure that could range from an average increase of 18 cents per week, or about $10 a year; to even a reduction in expenditure.

As for the rest of commuters who typically make direct journeys, they should see an average increase of 23 cents a week, or $12 a year.

HDB rents still well on the rise

Demand still there with expats on smaller housing allowances and those priced out of condo market

By Fiona Chan, PROPERTY CORRESPONDENT

Rents at many condominiums in Singapore appear to be peaking, but landlords of Housing Board flats are still riding the cash wave.

HDB rents continued their steady rise in the second quarter of this year, increasing across all flat types and most towns as renters sought cheaper alternatives to increasingly costly condos.

Owners of four-room flats benefited the most, with average monthly rents climbing almost 10 per cent to $1,750, from $1,600 in the previous three months, according to the latest data from HDB.

In terms of towns, Bukit Batok, Central, Serangoon and Hougang saw major rent rises across all flat types.

Generally, HDB rents have been increasing because rents of private apartments 'have hit a level too high for many to afford', said Mr Chris Koh, director of real estate agency Dennis Wee Properties.

'Those who used to be renting a condo at $2,000 to $2,500 a month find they have very few options when they want to renew their lease because their landlords have increased rents to $3,000 to $3,500.'

Many of these displaced tenants work for smaller firms and do not have the flexibility of higher rent budgets, so they turn to HDB flats, Mr Koh said.

Some new tenants are also S-pass holders with smaller budgets that can only fit HDB flats rather than condos, added Dr Tan Tee Khoon, head of KF Property Network, a subsidiary of Knight Frank.

He also noted that the stock of HDB flats for rent remains fairly constant, unlike that of condos. Supply of HDB flats is also limited because of the conditions imposed on owners who want to lease out their flats.

Rising across the board

Between April and June, eight out of every 10 towns saw higher rents for four-room flats, with Jurong East experiencing jumps of up to 21 per cent.

The priciest place to rent a four-room flat is now Bukit Merah, where the average monthly rent is $2,300. Close behind are flats in the Central area, Toa Payoh and Bishan, which command $2,000 or more.

'Bukit Merah has become popular with foreign nurses who work at Singapore General Hospital, and Jurong East is getting a lot of foreign students from Nanyang Technological University and foreign factory workers working in the west,' explained Mr Koh.

He added that Toa Payoh seems to attract expatriates working in the city as well as foreign nurses from Thomson Medical Centre and Mt Alvernia Hospital.

Landlords of other types of HDB flats are also seeing a tidy profit. Monthly rents of three-room and five-room flats went up by $100 on average to $1,500 and $1,900 respectively.

For three-room flats, the biggest growth was in Hougang, where rents soared 40 per cent to $1,400 a month. They also saw sizeable increases of more than 10 per cent in Geylang, Bukit Batok, Ang Mo Kio, Serangoon and the Central area.

For five-room flats, Bukit Timah, Jurong West and Hougang were especially in demand. But the most expensive five-room flats are still in Marine Parade and Central, where they go for $2,550 and $2,400 a month, respectively.

Steady in the short term

Rentals for HDB flats are likely to hold steady or even rise for the rest of the year as they remain much more affordable than condos, predicted Mr Koh.

KF's Dr Tan also believes HDB rents will rise a further 10 to 15 per cent in the next six months.

'As more new condos are completed next year and the year after, rents of condos will ease and then only will we see HDB rents easing off as tenants will have more choices,' Mr Koh said.

Transport operators to press for fare hikes

But increase is expected to be smaller than last year's.
By Christopher Tan

TRANSPORT operators SBS Transit and SMRT Corp on Friday submitted applications for fare hikes, but insiders are not holding their breath for any measurable increase this year.

This is because the Public Transport Council declared last month that the fare adjustments were likely to be far smaller than last year's average 1.8 per cent increase.

PTC chairman Gerard Ee said the council would aim to keep any rise 'below one per cent'.

In a statement on Friday, SBS Transit said it is applying to raise bus and train fares because of fuel and energy costs have 'increased significantly in the last year''.

But it would keep concession, children and student fares unchanged.

SMRT explained that even if fares were raised by 3 per cent, it 'will not fully mitigate cost increases due to an inflationary and higher operating cost environment.'.

The company which posted record net profit of $150 million last year added that 'the operating environment continues to be challenging'.

While the PTC's decision will only be announced next month, indications are that commuters who make transfers, say, from train to bus or bus to train or bus to bus, will see their travel expenses fall when new fares kick in on Oct 1.

This is because the Government has decided that fares should be purely distance-based, regardless of whether a journey involves transfers. Currently, a journey with transfers costs more than a similar one without transfers.

SMRT said it supports this move.

But commuters who enjoy direct services may end up paying more.

Four in 10 commuters today make at least one transfer a day.

As before, any fare adjustment is likely to hit commuters who pay in cash hardest. For one, the fare system can only 'recognise' transfer trips via the ez-link fare card.

That is, if a commuter transfers from a bus to a train within a specified time, the system considers it a transfer trip and charges him less for it. For cash payments, the system has no way of knowing.

But on the whole, the PTC has committed to keeping the average fare hike to one per cent or less.

SMRT Taxis to introduce 30-cent fuel surcharge

Singapore's second largest cab operator, SMRT Taxis, will introduce a 30-cent fuel surcharge for all diesel taxi rides from July 26.

SMRT Taxis, which has a fleet of 3,000 cabs, says the surcharge will apply to all flag-down trips, as well as call centre and advanced bookings.

The company says it will continue to help the taxi drivers cope with rising operating costs, by offering diesel subsidies and low rental packages.

SMRT Taxis says it will remove the surcharge when diesel price drops to S$1.19 per litre, which was the market rate in December last year.

It is the third taxi company to announce the fuel surcharge.

Singapore's biggest taxi operator, Comfort DelGro, was the first to implement the surcharge on July 17.

SMART Automobile will start the surcharge from August 1.

ComfortDelGro taxis to impose 30-cent surcharge from July 17

From July 17, passengers on Comfort and CityCab taxis will have to pay a 30-cent surcharge per journey.

Singapore's largest taxi group, ComfortDelGro, said this is to help its cabbies cope with increases in diesel costs.

Open market pump prices for diesel have risen by more than 50 per cent in the last six months, and ComfortDelGro said it has been subsidising the cost so that its cabbies can enjoy diesel prices at S$1.19 per litre.

But despite these subsidies, cabbies still have to cough up an average of S$15 a day extra for fuel.

So with the new surcharge, cabbies making at least 30 trips can make S$9 or more each day. But some cabbies said it is still not enough.

One of them said, "(If we get about) S$17, S$18... extra, (then) it's okay."

Others do not think the surcharge will benefit them. One cabbie said, "(It) doesn't help. (It will) frighten people from taking a taxi."

Passengers also had mixed views. One said, "I'm already taking a cab during the peak hour, so 30 cents doesn't matter actually."

Another said, "I'm not all right with that. Because basically we already have the 35 per cent surcharge for peak hour."

A third noted, "I think it's quite reasonable. At least you pay the cabbie, because I think the other surcharges, what we pay, I don't think it reaches them."

Some passengers, however, worry this will set a precedent. One passenger said, "What happens if the petrol price increases again? Are you going to increase the surcharge?"

ComfortDelGro said the surcharge will be removed when pump prices fall back to S$1.19 per litre - the market price last December.

For now, there has been no word from other taxi operators on whether they will introduce a similar surcharge.

CPF, Medisave minimum sums raised from July 1

There will be changes to the CPF Minimum Sum, the Medisave Minimum Sum and the Medisave contribution ceiling from July 1.

The CPF Board said the new CPF Minimum Sum will be S$106,000 – up from S$99,600 currently. CPF Members who set aside this amount will get a monthly payout of S$910 from age 64 for about 20 years.

The new Medisave Minimum Sum will be S$29,500, up from S$28,500.

The Medisave contribution ceiling, which is the maximum balance a CPF member may have in his Medisave account, will be raised from the current S$33,500 to S$34,500.

Any amount in excess of this will be transferred to the Special Account if the member is below 55 years old.

The CPF Board said these revisions are to ensure that Singaporeans have sufficient savings for their retirement and to meet their hospitalisation expenses.

The amounts have also been adjusted for inflation.

HDB revises flat application rules

The Housing & Development Board (HDB) has revised the application process for its Build-to-Order (BTO) and Balloting Exercise (BE) modes of sale to address recent increases in non-selection of new HDB flats. The changes will take effect from the May 2008 BTO exercise.

Under the revision, first-timer applicants who reject two chances to select a flat will have their first-timer priorities removed for a one-year period in HDB's sales exercises.

This means that they will be treated like second-timer applicants, and will no longer be able to ballot for the 90% of publicly available flats which HDB safeguards for first-timers. They will also not be eligible for the Married Child Priority Scheme which gives them two additional tries.

Additional chances for repeatedly unsuccessful first-timers - that is those not invited to select a flat - will be limited to only BTO exercises in non-mature estates. No additional chance will be accorded if they participate in the BE or the Quarterly/Half-Yearly Sales Exercise, where the supply of flats is limited.

The additional chances will be accorded to first-timer applicants who had been unsuccessful twice (that is, starting from the third try), instead of the existing practice where additional chances are only given starting from the fifth try.

HDB said the above measures will encourage applicants to consider their options carefully before participating in an HDB sale exercise. The measures will also help to minimize non-selection of HDB flats by applicants who repeatedly participate in sales exercises and thus divert HDB's time and resources from those with urgent housing needs.

Recent launches of Build-to-Order flats have seen an overwhelming number of applications, especially those in mature estates, leading to speculation that there is a shortage of new flats. But HDB said, on the contrary, the bulk of applicants often do not end up making a purchase.

The recent Coral Spring project, for instance, saw about 30% of flats not taken up even after all applicants had been invited to book a flat.

HDB said in the last four Build-to-Order exercises, about 50 to 70 percent of applicants rejected their chance to book a flat, citing reasons like location and cost. However, HDB said such information was readily available to applicants when the projects were first announced.

It said it had considered other options - such as raising the administration fee and reverting to the old queue system. However, these measures are not necessarily effective deterrents, and in the case of the latter, may in fact lead to an over-supply.

Reactions to the changes were mixed, with most first-timers cheering the increased priority.

"For a first-time buyer, to get a flat is very important. For second-time buyers, maybe they already have a flat... but (for first-time buyers like us), we are just starting to build a family, so we should have more priority," said a flat applicant.

For those who have rejected the allocated flats, some said the HDB should consider such applicants on a case-by-case basis.

Eric Chong, a first-time flat buyer, said: "There must be a reason why people want to reject, because they might not like a second-floor flat, or other reasons. I must purchase the one that I like most, because it's a big investment."

The new rules kick in with HDB's latest BTO projects - Compassvale Pearl in Sengkang, and Punggol Sapphire. These will add another 1,485 new flats to the market.

Including upcoming projects in Punggol, Sengkang, Woodlands and Bukit Panjang, to be launched in the second half of this year, the total planned supply for 2008 is 8,000 flats. The number is more than the 6,000 in 2007 and 2,400 in 2006.

Fare evaders will be fined from 1 July

Commuters who are caught not paying or under-paying bus and MRT fares will face a S$20 fine, starting this July. Those who misuse concession cards will also face a S$50 penalty.

The Public Transport Council (PTC) said this move is to stop dishonest passengers from getting away with free rides.

Unlike bus services, train services already have existing regulations to deal with passengers who evade fares.

Some passengers said they have witnessed how others try to avoid paying bus fares.

One said: "He cut a one-dollar note into two, rolled half of it and used it to pay for a ticket. He would then use the other half another time."

"They just board the bus without tapping their EZ-link cards," another said.

Some adult train passengers have also resorted to using their children's cards.

The PTC said it will launch an awareness programme later this month to inform commuters of the penalty fee for fare evasion before it kicks in on July 1.

Under this programme, posters and brochures will be displayed at bus interchanges.

While most Singaporeans agree that the fines imposed are reasonable, some want to know what happens to those who have made a genuine mistake.

The PTC said commuters may seek recourse on the penalty fee if they feel they have been wrongly penalised.

They can fill up an appeal form which can be downloaded from www.ptc.gov.sg and submit it to the PTC within 14 days from the date of the imposition of the penalty fee.

Fees can be paid on-the-spot to Public Transport officials or at top-up machines in bus interchanges and MRT stations, as well as at the TransitLink Ticket offices.

The West also rises with Jurong East makeover

With malls, hotels, offices and entertainment outlets, the sleepy charms of the area around Jurong East MRT Station are poised for a stunning makeover. The place - called Jurong Gateway - will be turned into the biggest regional centre on the island.


Add to this the land and water development around the nearby Jurong Lake - with kayaking, dragon boating and a lakeside village - and the transformation that melds business opportunities with leisure pursuits will be complete.

Jurong Gateway will provide 5.4 million sq ft gross floor area of new office space and 2.7 million sq ft of retail, F&B and entertainment area - more than 2.5 times the current size of Tampines Regional Centre, Minister for National Development Mah Bow Tan announced yesterday.

The time frame for development will be about 10-15 years and sites in the location are likely to be tendered out for private sector development based on market demand and pace of take-up.

The 70-hectare Gateway will also have at least 1,000 new private homes as well as 2,800 hotel rooms - roughly the same quantum as the Singapore River hotel belt.

Meanwhile, the Lakeside precinct around the Jurong Lake has been earmarked as a new waterfront playground spread over 220ha of land and 70ha of water. It is envisaged as a major leisure destination for Singaporeans and tourists, with about four or five proposed new attractions.

Jurong Gateway and Lakeside together make up Jurong Lake District, the blueprints for which were revealed by Urban Redevelopment Authority (URA) yesterday.

The 360ha total potential area for development is close to the size of Marina Bay.

In his speech at URA's corporate plan seminar, Mr Mah stressed the importance of decentralisation as a key planning strategy to maintain balance between supporting economic growth and a high-quality living environment.

While Marina Bay and the city remain Singapore's main commercial centre, new commercial hubs like Jurong Gateway will be developed outside the city centre to provide more choices of attractive business locations and bring jobs closer to homes. URA has also earmarked the area around Paya Lebar MRT Station for development into an alternative business hub.

URA said Jurong Gateway will be ideal for company headquarters, business services as well as companies in the science and the research and development (R&D) fields. Such companies will be able to tap a large labour pool from a one million-population catchment in Jurong East and West, Clementi and Bukit Batok, enjoy proximity to a cluster of over 3,000 companies in the International Business Park and Jurong and Tuas industrial estates. Jurong Gateway is also a major transport hub, with Jurong East MRT Station and a bus interchange. The area around the MRT station is designated for development into an integrated commercial and transport hub with white use - allowing office, retail, residential and hotel use. A short distance away, at Jurong Town Hall Road, sites have been designated for high-rise office use.

The tallest buildings in Jurong Gateway will be 35 storeys high but building heights will step down towards Jurong Lake, allowing most developments to have panoramic views of the lake.

A new big-box retail format incorporating consumer electronics, furniture and hypermarket being developed by TT International will add about 34,000 sq m of retail space when completed by end-2009.

Mr Mah also stressed that Singapore's long-term approach to planning - encompassing the Concept Plan and Master Plan process - is a fundamental part of the republic's sustainable development effort. He noted that Singapore's physical resources, especially land, are able to support a long-term population planning parameter of 6.5 million.

The minister also touched on how the influx of foreigners is making some Singaporeans uneasy. 'They find the competition for jobs and school places tough. They see themselves priced out of the housing of their choice.'

Highlighting the contribution of foreigners to various tiers of the Singapore economy and society, Mr Mah said: 'We must . . . convince our people that at the end of the day, if we want to have a good life, we must learn to accept the foreigners in our midst.'

Withdrawal of deferred payment scheme for property purchases

The Government announced today the immediate withdrawal of the Deferred Payment Scheme (DPS) for property purchases in view of the strong economic and property market conditions.

Deferred Payment Scheme

In Oct 1997, the Government allowed developers to offer to purchasers of uncompleted private residential, commercial and industrial properties the option to defer part of the progress payments due after the initial 20% downpayment, to a later stage.

In Nov 2001, the Government further allowed developers to defer up to half of the initial 20% downpayment up to the issue of Temporary Occupation Permit or any time before that. These DPS were introduced at a time when the property market was lacklustre and the economy was in recession.

Buoyant property market and strong economic growth

The property market has since recovered and has been growing strongly in the last few years, driven by economic fundamentals including our robust economic growth and rise in wages. In view of the current buoyant property market, the Government has decided to withdraw the DPS for the sale of uncompleted private residential, commercial and industrial properties* with effect from 26 Oct 2007.

The removal of the DPS will also encourage greater financial prudence, as buyers will have to ensure that they have sufficient funds or are able to secure adequate loans from banks before they commit to buying a property.

* Refers to projects where the Certificate of Statutory Completion and Certificates of Title or Subsidiary Strata Certificates of Title have not been issued.