SINGAPORE: A new Changi Airport Development Fund (CADF) will be set up to help in the building of Terminal 5.
Presenting the Budget in Parliament on Monday (Feb 23), Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said an initial S$3 billion will be injected into the fund. This can be topped up subsequently when Singapore's fiscal position allows.
Changi Airport’s Terminal 5 will be able to process up to 50 million passengers a year - more than Terminal 2 and 3 combined.
"This will be a major outlay for the Government over the next 10 to 15 years. It is right and prudent to set aside monies today for this large investment, while we have the resources to do so,” said Mr Tharman.
In 2017, the new Terminal 4 is expected to be ready. Another key project is Jewel Changi Airport, a S$1.7 billion mixed-use project that will open in 2018.
Mr Tharman said the development of the Tuas seaport will also secure Singapore's place as a logistics hub in the region.
Improvements are also being made in public transport - with more lines, trains and buses added to the network.
"About S$14 billion has been deployed to the public transport system over the past five years, and another S$26 billion has been committed for the next five years."
Singapore's healthcare infrastructure will also be expanded. There will be more beds in acute hospitals, community hospitals and nursing homes.
The last time Singapore made such significant investments in infrastructure was in the 1990s. Some of the investments then included the development of Jurong Island, the North-East MRT Line, the Light Rail Transit network and Changi General Hospital.
"Just as these investments two decades ago laid the foundations for better living standards over many years, we must now invest in the next era of jobs and incomes, and a higher quality of life," said Mr Tharman.
Mr Tharman said Singapore's spending on infrastructure will be increased by 50 per cent to about S$30 billion by the end of this decade. This is about 6 per cent of the country's gross domestic product.
"As we embark on large infrastructural projects, we are placing great emphasis on optimising project design and cost efficiency. Overall, we must spend judiciously, achieving value-for-money and providing subsidies to Singaporeans in a fair and targeted manner,” added Mr Tharman.
Mr Tharman said all developments will be complemented by the country's Smart Nation initiative to improve the quality of life of citizens.
Professor Lee Der Horng from National University of Singapore's Department of Civil and Environmental Engineering said the increased amount of investment in the transport system in the next five years is a "very necessary" move. He added that it is still too early to tell if the cost of the investment will be passed on to commuters.
- CNA/xq