Revised Land and Pricing Allocation Framework for Place of Worship Land

1. Good afternoon to you. 

2.  Thank you very much to the Singapore Buddhist Federation for inviting me to this year's Vesak Day celebration. As Venerable pointed out, this is the first time after several years that we can come together in person, celebrate, enjoy each other's fellowship and to really celebrate this occasion in Singapore as it is meant to be.

   • Vesak Day is the most significant day in the Buddhist calendar – to commemorate the birth, the attainment of enlightenment, and the nirvana of Lord Buddha.

   • So, I am very honoured and privileged to join all of you today.

3. A central tenet of Buddhism is compassion – desiring for others to be free from suffering.

   • This teaching has been foundational in encouraging Buddhists in Singapore, to reach out and lend a helping hand to anyone in need, regardless of race or religion.

   • This has helped to strengthen ties, and foster harmony within the community, and consequently leading to a more peaceful and cohesive society.

   • So, I would like to take this opportunity to thank the Singapore Buddhist Federation and the Buddhists for all that you have done, living the faith and impacting everyone in our society.

4. This principle of compassion lies at the heart of many religions too.

   • Our religious organisations are always ready to step forward to show care and concern, and to support the disadvantaged in the society.

   • And this includes working with other religious organisations – not just of the same faith, but also different faiths – as well as the government.

5.  It is heartening, to say the least, to see this empathy and kindness among our religious organisations, as well as day by day, in our lived experiences, the strong bonds, trust and camaraderie that they have amongst them.

   • I am proud of how we respect and live with other religions, and how we achieve our religious harmony.

6. We do not take this for granted.The Government values very much the close partnerships that we have enjoyed with the religious organisations, through various platforms, such as:

   •  The National Steering Committee on Racial and Religious Harmony (NSC), of which Ven Kwang Phing is a very valuable member.

   • The Inter-Religious Organisation (IRO), who is present today – thank you very much for coming and joining in these celebrations!

   • And the Racial and Religious Harmony Circles, which aim to strengthen ties and build mutual trust among our ethnic and religious communities in every constituency, in every part of Singapore, so that our lived experiences are not just what we say, but what we do.

7. These platforms have allowed us to work closely with religious organisations on issues that impact them, and their communities.

   • For example, in 2019, we brought the religious leaders together, and they put together a document called the “Commitment to Safeguard Religious Harmony”. This Commitment affirms our society's shared values to safeguard our religious harmony, and the norms of social interaction across religions, to foster a cohesive and closer society. Over 750 religious organisations, including Buddhist temples, have affirmed this Commitment.

   • More recently, we have started to refresh our Harmony Circles, by helping them to digitalise and diversify their composition. This is to ensure that our Harmony Circles continue to be relevant and effective at fostering harmony within our communities.

8. I cannot emphasise too much the importance that religion and religious organisations play in strengthening our social fabric in Singapore day by day, to make a truly multi-cultural and multi-religious Singapore.

9. We, in the Government, want to continue to support all our religious organisations, to continue their good work.

10. One concern that has come up in many discussions we have had with religious organisations is to be able to continue having a place to practise their religion.

    • This has become an issue because land prices for places of worship (PW) have risen sharply over the years, as a result of competitive bidding.

    • These higher prices, not only affect the new sites being tendered out, but also the premiums for lease renewals, as these take reference from the latest PW land prices in competitive tenders.

    • As a result, the religious organisations have to spend more time and effort to do fundraising, which may sometimes distract them from the core work to serve society and promote religion.

    • The situation, however, is different with regards to PW land for mosques. This is because the Islamic Religious Council of Singapore (Muis) centrally coordinates mosque development. Hence, the Government directly alienates the sites to them, at a pre-determined price set by the Chief Valuer at fair market value.

11. The Government has therefore been reviewing the PW land allocation and pricing framework for the other religious organisations, to see how we can better address their concerns, while balancing our other land use needs in land-scarce Singapore.

12. Over the past few years,

    • We have consulted with many religious organisations at various points, to better understand their concerns and issues that they face.

    • We also advised religious organisations whose leases were expiring to take up short-term tenancies, whilst this review was ongoing, so that they would not make a long-term decision, with the old framework in mind, and without knowing the options they have under the revised framework.

13. We have since completed the review, and are now ready to roll out the revised framework.

    • We will change the framework from a competitive price tender to a fixed price ballot.

14. Under the previous competitive price tender,

    • Religious organisations, who were interested in the site, had to demonstrate that they needed the space, and that they contributed to the community.

    • The eligible religious organisations would then put in their bid, and the site was awarded to the highest bidder.

    • This often resulted in bidders trying to outbid each other, and the price being pushed up consequently.

15. Under the new fixed price ballot,

    • Religious organisations, who are interested in the site, still have to demonstrate that they need the space, and that they contribute to the community. There is no change to this.

    • But there will no longer be any price bidding. Instead, the price associated with the site will be published upfront, and the eligible religious organisations will then ballot for the site. In other words, the allocation will be done through a balloting exercise, rather than price.

    • The price of the site will be determined by the Chief Valuer based on fair market value.

    •  Given that we are fundamentally changing the allocation framework for PW land, there is a need for a different basis to determine the fair market value of such land.

    • The government has discussed this with the Chief Valuer (CV), and the CV intends to use as reference the price of PW land which had not been tendered before.

    • On that basis, we can expect the prices of PW sites under the revised framework to be generally lower than the prices of similar sites that were recently tendered out.

    • Of course, the actual price or fair market value of any site will depend on its individual characteristics, such as its location, lease tenure, and other specific features relevant to the site.

    • This will be determined independently by the CV, based on established and accepted valuation principles.

    • With this revised framework, religious organisations will have greater certainty upfront on the price of the site. They can decide for themselves whether it is within their budget, before taking part in the ballot.

    • It is also more equitable, for religious organisations who have less resources, and hence, have lower chance of winning a competitive price tender.

16. This revised framework will also apply to those religious organisations renewing their leases.
    

    • To be clear, the process for applying for lease renewal will largely be the same as it is today.

    • In other words, they will not be subject to the ballot system for lease renewals.

    • The change is that the lease renewal premiums for PW land will be in line with the new pricing framework, and hence, they are similarly expected to be lower than what they are today.

17. We hope that the new framework will give greater assurance to religious organisations, so that they can focus on what they do best, which is serving the community and promoting religion, and not have to worry too much about land prices.

18. MND will be sharing the details on the new PW land framework and upcoming launches of PW sites shortly.

19. I would like to thank all the religious organisations for their support in this review. We've had very detailed discussions with them to understand the concerns and issues that they face, and we thank them for being very candid and frank in the discussions.

    • This review has taken some time because it is a big change for us.

    • So, we need to study the implications carefully, and consult the relevant groups and individuals before coming to a position on the new framework.

20. The Government is committed to work with the religious organisations, to meet the religious needs of Singaporeans, and to improve the welfare and harmony of our society.

    • Religion is an important part of our social make-up, it is who we are, and it makes Singapore special. We, in the Government, will give it our full support.

21. Before I end, let me wish all our Buddhist friends a very blessed Vesak Day. May you enjoy the celebrations.

22. Thank you very much once again for having me.

ANNEX

MND's press release