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Minister K Shanmugam transfers Astrid Hill GCB to UBS Trustees for S$88 Million following Ridout Road controversy

In August 2023, Minister K Shanmugam transferred ownership of his Good Class Bungalow at 6 Astrid Hill for S$88 million. This transfer followed shortly after his parliamentary address, where he addressed questions about his rental of the state-owned Ridout Road property.

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In August 2023, records from the Singapore Land Authority (SLA) revealed that Minister for Home Affairs and Law, K Shanmugam, transferred ownership of his Good Class Bungalow (GCB) at 6 Astrid Hill to UBS Trustees (Singapore) Ltd, for a staggering S$88,000,000.

UBS Trustees, acting as a trustee for The Jasmine Villa Settlement, is a trust company licensed under the Trust Companies Act 2005.

The transaction was facilitated by Ms Ho Sheau Farn on behalf of UBS Trustees and Mr Ho Kin San representing Mr Shanmugam, both lawyers from Allen & Gledhill, the law firm where Mr Shanmugam previously practised.

The property, spanning 3,170.7 square meters, was originally purchased by Mr Shanmugam in December 2003 for S$7,950,000, reflecting a significant increase in value over two decades. Located in District 10, which is commonly associated with Singapore’s most affluent residential estates, the property’s value aligns with the area’s reputation for high-end luxury homes and prime real estate.

S$150 Million Total Cost for UBS Trustees Property Transfer

The transfer of the property valued at S$88,000,000 to UBS Trustees would involve significant stamp duties. Based on current buyer’s stamp duty (BSD) rates, the BSD alone amounts to S$5,219,600.

Additionally, given the 65% additional buyer’s stamp duty (ABSD) applicable for such transactions, UBS Trustees would have to pay an additional S$57,200,000. In total, the transfer would require UBS Trustees to pay a staggering S$150,419,600, including the property price, BSD, and ABSD.

However, UBS Trustees may also be eligible to seek a remission of the 65% additional buyer’s stamp duty (ABSD) under certain conditions.

If the property is held in trust for identifiable individual beneficiaries, part or all of the ABSD (Trust) paid could be refunded. The amount refunded would depend on the difference between the 65% ABSD (Trust) paid and the ABSD applicable based on the highest profile of the individual beneficiaries.

To qualify for this remission, the application must be submitted within six months of the transfer’s execution, and the beneficiaries must meet strict criteria.

For instance, beneficiaries must be explicitly named in the declaration of trust and must have irrevocable beneficial ownership of the property. The remission process does not apply to individuals with contingent or discretionary interests, or those entitled only to income from the property.

It is unclear whether UBS Trustees applied for or was granted any remission of the 65% ABSD under the outlined conditions.

Despite the high-value transaction, the transfer between Mr Shanmugam and UBS Trustees did not appear in the Urban Redevelopment Authority’s (URA) Private Residential Property Transactions database and was not reported by property market monitors, possibly due to the nature of the transaction involving a transfer to a trust.

Such trust arrangements are commonly used for asset management and estate planning purposes, though they can raise questions about the tax implications of transferring high-value properties through these structures.

According to available records, the mortgage on the property was fully paid off by Mr Shanmugam by the end of 2008. Notably, no mortgage was taken by UBS Trustees following the transfer, which suggests that the payment for the property may have been made in cash.

Sale of GCB following explanation by Minister of his Ridout Road rental

This transfer came just weeks after Mr Shanmugam’s ministerial statement in July 2023, where he addressed concerns raised by Members of Parliament (MPs) regarding his rental of the state-owned property at 26 Ridout Road, a black-and-white colonial bungalow leased from the SLA.

MPs questioned his decision to rent the property, seeking details about the rental price, the size of the land, and any potential conflicts of interest, particularly as Mr Shanmugam, in his capacity as Minister for Law, oversees the SLA, which manages these properties.

In his statement, Mr Shanmugam explained that as he approached his 60s in 2016, he reviewed his finances and realized that too much of his savings were tied up in his family home.  As a result, he put the property on the market and moved into a rental home.

“I did not consider selling my own home because of financial need,” he emphasized, explaining that his decision was based on prudent financial planning. He also clarified that while he rented 26 Ridout Road, he was renting out his family home but was not profiting after factoring in property taxes and other expenses.

The fact that Mr Shanmugam transferred his home for S$88 million after expressing concerns about his financial situation raises questions about how much of his savings were truly tied up in the property, considering the substantial value of the transfer. However, it is important to note that the transfer occurred in August 2023, after his ministerial statement in July, meaning his remarks were accurate at the time.

Regarding the Ridout Road property, which Mr Shanmugam rented for S$26,500 per month, the land size increased from 9,350 square meters to 23,164 square meters—significantly larger than the 3,170.7 square meters of the Astrid Hill GCB that he transferred to UBS Trustees.

This expansion was a result of negotiations between Mr Shanmugam and SLA.

According to the Corrupt Practices Investigation Bureau’s independent investigation, Mr Shanmugam initially offered to maintain the adjacent land at his own cost if SLA cleared the vegetation. However, he preferred to exclude the land from his tenancy, as including it would impose legal obligations on him, such as responsibility for mosquito breeding or other maintenance issues.

SLA, on the other hand, preferred to include the adjacent land within the property boundary to ensure that the tenant bore responsibility for its maintenance and legal obligations. SLA negotiated an agreement with Mr Shanmugam in which the adjacent land was included within the property boundary, and the tenant was made responsible for maintaining it. This arrangement was said to ensure that the legal responsibilities were clear, with the tenant assuming both the cost and the liability.

Given Mr Shanmugam’s role overseeing the SLA, concerns about a potential conflict of interest were raised. However, in a parliamentary statement delivered by Senior Minister Teo Chee Hean in July 2023, it was clarified that Mr Shanmugam had recused himself from the decision-making process.

SM Teo stated:

“Minister Shanmugam had removed himself from the chain of command and decision-making process entirely… CPIB established that there was no matter raised by SLA to MinLaw [Ministry of Law] and hence, to any of the Ministers during the entire rental process.”

SM Teo also noted that the Chief Executive of SLA had declared in March 2018  to the then Permanent Secretary of MinLaw that the rental process for 26 Ridout Road was carried out properly and that the rental price was in line with market rates, as assessed by SLA valuers.

Mr Shamugam’s wife, Mrs Shanmugam, signed the Tenancy Agreement for 26 Ridout Road in June 2018, with a lease term of 3+3+3 years. After the first three-year term, the tenancy was renewed in 2021, with the rent maintained at S$26,500 per month, in line with market conditions as determined by SLA.

The Online Citizen has reached out to Mr Shanmugam for comments on the transfer of his property. As of the time of publication, no response has been received. Should further remarks be provided, this article will be updated accordingly.

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Lee Hsien Loong warns of limited political space if election margins narrow

Senior Minister Lee Hsien Loong warned that shrinking electoral margins could limit the government’s ability to make long-term decisions, emphasizing the importance of collaboration between political leadership and the public service to maintain Singapore’s success.

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SINGAPORE: Senior Minister Lee Hsien Loong has warned that shrinking electoral margins may constrain the government’s ability to make long-term decisions.

Speaking at the Annual Public Service Leadership Ceremony, SM Lee Hsien Loong warned that if the People’s Action Party (PAP) continues to lose electoral support, the government will have “less political space to do the right things.” He explained that as electoral margins narrow, it becomes increasingly difficult to ignore short-term pressures, which could significantly change the political landscape.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed. He pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens. As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.” He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

The PAP saw a marked drop in its vote share in the 2020 General Election, securing 61.24% of the vote and 83 out of 93 seats, down from 69.9% in 2015. A significant loss was that of Sengkang GRC to the Workers’ Party (WP), where the PAP’s team, led by former Minister Ng Chee Meng, was defeated.

Fiscal Responsibility and Governance

Reflecting on Singapore’s governance, SM Lee credited its success over the past six decades to good policies, political leadership, and a strong public service. He emphasized the need for cooperation between the public service and ministers to maintain stability, noting, “This is how we have been able to maintain political stability and deliver good government.”

SM Lee contrasted Singapore’s approach with that of other countries, where politicians often avoid difficult decisions to retain support, leading to populism. “Thankfully, Singapore has been an exception to this rule,” he said.

He pointed to the government’s decision to raise the Goods and Services Tax (GST) as an example of responsible governance. While acknowledging that the two-stage increase—from 7% to 8% in 2023 and from 8% to 9% in 2024—would likely cost the ruling party votes, SM Lee explained that it was necessary to fund rising healthcare costs for an ageing population.

“It was a political decision to minimise the impact on the public, even though it created twice the administrative overheads. But doing it in two steps acknowledged the public’s concerns about the tax increase,” SM Lee said. However, public perception holds that the phased hike led to greater price inflation than if it had been implemented all at once.

Public Service and Leadership

In his speech, SM Lee also called on the public service to remain committed to its mission of serving Singaporeans. He urged public service leaders to lead by example, saying, “You have to set the tone and direction in your respective organisations.” He emphasized that the public service and political leadership must continue working together to address key challenges, including public transport, immigration, and income inequality.

SM Lee concluded by underscoring the importance of maintaining high-quality political leadership and a dedicated public service to ensure Singapore remains exceptional. “Together, the political leadership and the public service can come up with good policies, persuade Singaporeans to support them, and make the policies succeed,” he said.

Head of Civil Service Leo Yip echoed SM Lee’s concerns about shrinking political margins and praised his leadership in creating the political space necessary for difficult decisions. Yip stressed that the public service must support the government’s longer-term objectives, even amid increasing complexity.

“Senior Minister Lee led the way in convincing Singaporeans about the tough choices we had to make,” Yip said, emphasizing that it is the public service’s duty to think beyond their respective organisations and act in the national interest. “Our role is to steer and guide our colleagues to think and act as One Public Service,” he added.

Sengkang GRC and Political Opposition

The PAP’s defeat in the newly introduced Sengkang GRC marked a significant moment in the 2020 General Election, with Associate Professor Jamus Lim of the Workers’ Party winning a seat.

During a live debate, Assoc Prof Lim openly challenged SM Lee’s assertion that the election would give the PAP a mandate to lead the country through the crisis.

“The truth is, the PAP, in all likelihood, would have this mandate by the end of this election,” Assoc Prof Lim said, drawing laughter from those present.

He clarified that the WP was not trying to deny the PAP its mandate but rather prevent it from receiving “a blank cheque” in Parliament. “That is what I think this election is about,” he remarked.

Despite losing Sengkang GRC and securing 61.24% of the vote, the PAP continues to hold a super-majority in Parliament (over two-thirds of the seats), ensuring it cannot be blocked from amending the Constitution.

Assoc Prof Lim’s perspective may have contributed to WP’s success in Sengkang, as residents saw the election as an opportunity to ensure greater accountability from the ruling party. His team’s victory underscored the growing desire among voters for more balanced representation in Parliament.

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Power fault disrupts Circle Line train services, sparks public outcry over communication and delays

A power fault on the Circle Line caused widespread disruption on 17 September 2024, leading to stranded commuters and sparking public outcry over SMRT’s handling of the situation. Frustrated passengers criticized poor communication and linked the issue to dissatisfaction with recent fare hikes.

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Commuters faced major disruptions during the evening peak hour on Tuesday (17 Sep), when a power fault briefly halted train services on Singapore’s Circle Line. The fault, which occurred just before 6pm, led to train stoppages in both directions, affecting passengers across multiple stations.

SMRT reported that the fault was resolved within 15 minutes, stating in a 7.30pm update, “Fault cleared, train services are progressively returning to normal. Free regular buses are still available for all Circle Line stations.” However, passengers took to social media, criticizing the handling of the situation and the accuracy of updates provided by the transport operator.

Public Frustration Over Delays and Poor Communication

Many commuters who were stranded during the disruption shared their frustration on SMRT’s Facebook page.

Some accused the operator of providing inaccurate information regarding the resumption of train services.

A user at Paya Lebar station commented, “According to the staff, there is still no train service. Why can’t they stop people from tapping in? We only know about it when we reach the platform. AND WE NEED TO APPLY FOR OWN REFUND for tapping in.”

Others questioned the claims that services had resumed and that free bus services were available.

One passenger, who was stuck on a train between Tai Seng and Bartley from 5.45pm, wrote, “What free regular bus service? 15 minutes resolved? Some of us were stuck in the train… only reached Serangoon MRT at 6.45pm to find no free bus service.”

Further comments highlighted the ongoing delays and lack of communication, with a commuter noting at 6.50pm, “We are all still stuck in the train!! For 30 minutes!”

Another passenger reported a second stoppage, stating, “Got on Circle Line 15 minutes ago at Botanics after disruption, and it’s now at a standstill again. No one is communicating what’s happening or how long the delay might be. It’s a crowded train with young babies at risk.”

Growing Discontent Over Fare Increases and Service Reliability

In the midst of this disruption, SMRT faced a wave of public backlash over the recent public transport fare increases announced by the Public Transport Council (PTC).

Many passengers linked the service breakdown to broader dissatisfaction with the fare hikes.

One user commented, “SMRT still dare to ask PTC for a fare increase. Profits rather than commuters,” while another echoed the sentiment, “Increased fare should be given to reliable MRT or public transport. Just how appalling things are managed.”

Others questioned the adequacy of fare increases to maintain the rail infrastructure, with one user stating, “This shows that the price increase is not enough to sustain repair and maintenance. I suggest increasing prices by $1.”

Delayed Commuter Journeys and Stranded Passengers

Throughout the disruption, announcements were made advising commuters to alight from trains and seek alternative transportation, though some passengers reported confusion at several stations.

Commuters at Pasir Panjang station, for example, were told to disembark and find other means of transport, while passengers at Buona Vista were directed to the East-West Line.

Social media was flooded with accounts of passengers stuck in trains for extended periods.

One user described being stranded between Haw Par Villa and Kent Ridge for 20 minutes before another delay en route to Caldecott.

Passengers expressed frustration at the lack of clear communication and the difficulty in finding alternative routes. “Add 30 minutes? It’s a lie. Can add up to 1 hour and more depending on which station you’re going. Still wanna increase fare?” one commuter complained.

Commuter Experiences During the Breakdown

Despite SMRT’s reassurances that services were returning to normal, commuters reported longer-than-expected delays.

Quoted by Channel News Asia, Ms Felicia Ng, who experienced a 20-minute delay, boarded a train at Buona Vista station at 5.50pm, only for the lights to go out partially before passengers were instructed to alight at Pasir Panjang. After waiting for 15 minutes, she resumed her journey, finally reaching her destination at HarbourFront station at approximately 6.30pm.

Meanwhile, passengers on platforms like one-north and Payar Lebar reported large crowds and confusion as train services remained suspended for longer than initially announced. With social media platforms buzzing with complaints and calls for better management, the disruption has intensified calls for improved service reliability, especially in light of recent fare adjustments.

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