Concessionary Rental Rates of State Land for Government Agencies

Mr Png Eng Huat asked the Minister for Law (a) what is the basis for giving Government institutions a concessionary rental to use state and reserve land for recreational and commercial activities; (b) which other Ministries benefited from such concessionary rentals; and (c) whether the land at the old Ministry of Defence and Central Manpower Base along Holland Road is still leased to the Ministry of Defence (MINDEF).

The Government's policy is to charge market rates for the use of state land and properties. Typically, where the land or property is used for commercial purposes, such as office or food and beverage establishments, the rental payable is determined by the market through a public tender. Where the use is institutional in nature, such as those by voluntary welfare organisations for community or social purposes, the rate would not be pegged to the commercial rates but will be based on institutional use.

Singapore Land Authority, as the custodian of state land and properties, applies this policy to all users of state land and properties under its charge, including Statutory Boards. Government Ministries may be allocated state land and properties at no cost to carry out their functions. For example, the Ministry of Education is allocated land for Government schools. However, if Ministries rent out their land or properties to other users, the policy of charging market rate applies.

The site of the former Central Manpower Base along Holland Road was returned by the Ministry of Defence (MINDEF) in the 1990s and was progressively rented out in separate parcels through open tender to the public. MINDEF is no longer the lessee. The site is now collectively referred to as Tanglin Village.