Plans to Increase Grants to Town Councils to Cope with Higher Costs

Mr Gerald Giam Yean Song asked the Minister for National Development whether the Ministry has any plans to increase its grant to Town Councils to cope with higher costs, including for electricity and other Town Council contracts.

Town Councils (TCs) are autonomous legal entities formed under the TCs Act and managed by elected Members of Parliament. The TCs are responsible for their financial sustainability, through managing their income and expenses prudently.

We understand TCs face higher costs due to higher energy prices, manpower costs and costs of maintenance services. Such cost increases are not unique to Singapore and the Government has taken steps to partially cushion the impact on residents. To help TCs cope with costs, the Government provides grants such as the Service and Conservancy Charges (S&CC) Operating Grant, Lift Maintenance Grant, GST Subvention Grant and Lift Replacement Fund Matching Grant. Collectively, these grants to TCs amount to about $239 million a year.

The Government will continue to monitor the larger macroeconomic environment, cost drivers affecting TCs, their income sources and overall financial positions, and assess if further funding support is required.