Time-limited Special Funding Support for Town Councils to Deal with Higher Cost of Maintenance

Mr Murali Pillai asked the Minister for National Development whether he can provide details of the time-limited special funding support for Town Councils announced on 2 March 2023 to deal with the higher cost of maintenance and external factors, such as the spike in energy prices.

To offset the costs of estate maintenance for Town Councils and residents, the Government has been providing substantial grants of around $240 million a year to Town Councils via the Service and Conservancy Charges (S&CC) Operating Grant, the Goods and Service Tax Subvention Grant, the Lift Maintenance Grant and the Lift Replacement Fund Matching Grant.

Given the sharp and steep cost increases faced by Town Councils due to external factors, such as COVID-19, the Russia-Ukraine conflict and global supply crunch, the Ministry of National Development had provided additional funding support to Town Councils for projects under the Neighbourhood Renewal Programme and Community Improvement Projects Committee in May 2022.

In addition to the above support measures, the Government is prepared to provide further support to Town Councils considering the exceptional and sustained cost pressures faced by Town Councils. As mentioned during the Committee of Supply debate on 2 March 2023, to support Town Councils that need to adjust their S&CC rates to meet long-term financial sustainability, the Government will provide a time-limited, special funding support to cushion the potential impact on residents. More details will be shared with Town Councils when ready.