Singapore Government Press Release
MINISTRY OF NATIONAL DEVELOPMENT
PRESS STATEMENT
THE CONTROL OF RENT (ABOLITION) BILL 2001
The Minister for National Development, Mr Mah Bow Tan, introduced the Control of Rent (Abolition) Bill 2001 for its first reading in Parliament on 23 Feb 2001. The Bill seeks to provide for the abolition of rent control.
Rent Control was introduced in 1947 to restrict a landlord’s right to increase the rent of or remove the tenant from a rent controlled property. This was to protect tenants from unscrupulous landlords during the housing shortage of post-war years. The current Control of Rent Act was enacted in 1953.
As the reach of the public housing programme progressed, the need for rent control has decreased. Thus, the Controlled Premises (Special Provisions) Act was introduced in 1970 to allow a landlord to recover his rent-controlled property for purposes of redevelopment by compensating the tenants for vacating the premises. To do so, the landlord has to first apply to the Tenants’ Compensation Board to recover the rent controlled property. The Board may require the landlord to compensate his tenants and occupiers if they are eligible for such compensation. At the same time, the government had also provided avenues for tenants to seek alternative public housing.
With this in place, the Government had announced on 3 April 1997 that rent control would be abolished on 1 April 2001.
Hence, the Control of Rent (Abolition) Bill 2001 is introduced to deal with the abolition of rent control in 3 stages:
(a) Firstly, the Bill repeals the Control of Rent Act with effect from 1 April 2001 and thus, immediately abolishes rent control in Singapore.
(b) Secondly, the Controlled Premises (Special Provisions) Act will remain in effect but the Bill will amend the Act to make it clear that the Tenants’ Compensation Board will continue to function only for the purpose of settling its outstanding matters (e.g. outstanding part determined applications, reviews and enforcement of its Orders).
(c) Thirdly, the Bill will repeal the Controlled Premises (Special Provisions) Act on a date to be determined by the Minister, after the Tenants’ Compensation Board has settled its outstanding matters. The Tenants’ Compensation Board will be dissolved with the repeal of the Act.
The second and third readings of the Control of Rent (Abolition) Bill 2001 will be read in March 2001.
ISSUED BY
MINISTRY OF NATIONAL DEVELOPMENT
23 FEBRUARY 2001