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G.1. The Resilience Package provides a further boost to investments in making Singapore an extremely liveable global city and the best home for Singaporeans.
G.2. We are pushing ahead in four areas:
- First, we will expand and accelerate public sector infrastructure spending.
- Second, we will develop suburban nodes and rejuvenate our neighbourhoods.
- Third, we will push ahead on sustainable development.
- Fourth, we will spend more on our education and health infrastructure.
Expanding and accelerating infrastructure spending
G.3. We will increase public sector construction spending significantly in 2009. We will proceed with contracts worth $18 billion to $20 billion this year, significantly higher than the $15 billion contracted in 2008 and $6 billion in 2007.
G.4. The significant ramp-up in spending this year reflects plans that the Government had already formulated such as for MRT and road networks, which we are proceeding with despite the crisis.
G.5. We are also bringing forward $1.3 billion of government projects to 2009. We had previously deferred some of these projects to avoid exacerbating the over-heating construction sector and adding pressure to construction costs for the economy. Others are projects which had been due over the next 2-3 years that we have decided to bring forward. The projects will comprise smaller infrastructural contracts worth up to $50 million each, which can be taken up by our small and medium-sized contractors. This segment of the industry is already seeing significant softening in demand.
G.6. The projects we brought forward are wide-ranging – from HDB lift upgrading to building of park connectors and upgrading of military facilities. The Government will continue to monitor construction capacity closely in order to adjust the pace of public sector construction projects.
Developing suburban nodes
G.7. We will continue to develop both a distinctive business hub in the centre of the city and new suburban hubs that will de-centralise economic activity and create jobs closer to home.
G.8. In addition to Marina Bay, we will invest in new regional commercial nodes such as Jurong Lake District, the new Kallang Riverside and Paya Lebar Central. We will also rejuvenate our public housing neighbourhoods including enlivening the public spaces within our estates and pushing ahead with the ABC Waters programme. We are also linking together all parts of the island through a comprehensive road and rail network. And we will spend more to maintain and upgrade the plumbing of the city – the basic amenities such as our drainage and sewerage network.
Sustainable development
G.9. The Government has over the last year been developing our sustainable development blueprint for Singapore. MEWR and MND will be discussing our thinking and plans in further detail during the COS.
G.10. Sustainable development is not new to Singapore. We have always had to work within the constraints of being a city state with no natural resources and a high population density. Over the years we have developed expertise in areas such as urban planning, water and waste management and green technologies. Organisations like the World Bank and the Asian Development Bank are now working with us to share our expertise with other countries.
G.11. However we will have to invest more in sustainable development in the coming years to provide Singaporeans with a high quality living environment while our economy continues to grow. To achieve both these objectives, we need to optimise the use of key resources such as land, energy and water.
G.12. There is also an economic imperative for sustainable development. We need to ensure that our use of scarce resources such as water and energy is efficient so that we can reduce costs and our susceptibility to global energy shocks. Investing in energy-efficient technology will reap cost savings for companies and households in the long run.
G.13. However, the upfront investments sometimes deter the private sector from making investments that are cost-saving over the long term. The Government will therefore provide incentives where necessary to encourage companies and individuals to invest in economically viable technologies. The Government itself will spearhead investments in improved energy efficiency for its own buildings.
G.14. In total, we plan to spend $1 billion over the next five years on sustainable development initiatives. The funds will support programmes such as energy efficiency for industry and households, green transport, clean energy and the greening of our living spaces.
G.15. In so doing, we hope to catalyse the growth of a vibrant cluster of firms with expertise and capabilities in these areas, complementing our R&D efforts. Already we have a base of global alternative energy companies like Neste Oil, who are locating their operations in Singapore. New players are also sprouting up. Like JOil, which has developed elite and high yielding Jatropha seedlings using locally developed plant genetics technology. It has secured a multi-million dollar partnership with Tata Chemicals to market the seedlings in India and East Africa as an economical and sustainable starting source for the production of bio-diesel.
Best place for families
G.16. The best home for Singaporeans must be the best place to start families, to help them nurture their young and to look after their old.
G.17. We will be spending $1.6 billion this year, and about the same amount in each of the next three years to support marriage and parenthood – with initiatives such as government-paid maternity leave, and infant-care and childcare subsidies. We are also going to be investing significantly more in education and health.
Enhancing school education
G.18. We are upgrading both the hardware and software of the education system. We are providing better facilities for an all-round education in every school and accelerating some projects like the roll-out of indoor sports halls. More importantly, MOE is enhancing both the size and quality of the teaching force and bringing in many others into our schools to collaborate with teachers in providing better attention for every child. Looking at recurrent spending alone, we intend to spend an average of $9,200 per student in our schools each year over the next five years – or an increase of about 60% compared to the previous five years.
Expanding healthcare capacity
G.19. We are committed to a substantial expansion of the healthcare sector. Over the next five years, we will invest $4 billion in healthcare infrastructure, which will include the redevelopment of older hospitals, medical centres and a new hospital in the west, as well as seeing through existing projects like the Khoo Teck Puat Hospital in the north.
G.20. MOH is also developing an electronic health records system accessible to authorised medical practitioners at our hospitals and polyclinics, and eventually extending to the community care sector. It will allow for more effective treatment of patients who may receive a spectrum of healthcare services from different providers. We will be spending about $200 million to get this project launched over the next two years and will be among the first in the world to implement such a system nation-wide.
G.21. We are doing more to help those who fall ill in old age. We are building new community hospitals and boosting capabilities in treating chronic diseases such as stroke, heart and kidney failure, and other age-related conditions such as dementia. We are also enhancing the capabilities for long-term care, including rehabilitation, home care and palliative services after patients have been discharged from hospitals. This will help support family members and caregivers. We will spend $500 million over the next five years on these measures to improve long-term care for elderly Singaporeans.
SUPPORTING FAMILIES |
SINGAPORE'S FISCAL ADVANTAGE |
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