Fees collected by govt agencies legal and proper, even though not set out in law, says MND
MND has ruled out refunds for fees collected by four government agencies without proper legislative backing, saying the collections were legal and returning the money would mean taxpayers subsidising services already rendered.
The Ministry of National Development said on Tuesday that fees collected by four of its agencies over the years were legal and properly administered, pushing back against suggestions by the Workers' Party that the collections may have been unlawful.
In a statement issued on 12 May 2026, MND said the fees — which Parliament validated under the Statutes (Miscellaneous Amendments) Bill passed on 7 May — were charged on a cost-recovery basis for services rendered and had clear legal basis.
"The Government's position is that the fees and charges were legally and properly collected," MND said.
"The Government reviewed all relevant advice and concluded that they were legally and properly collected."
The ministry also ruled out refunds.
Returning the fees would amount to taxpayers subsidising services already performed for specific users, MND said, adding that this would be unfair to other Singaporeans.
The fees validated under the bill include charges for expedited building inspections and processing of Temporary Occupation Permits by the Building and Construction Authority, fees for species certification and expedited licence processing by the National Parks Board, administrative fees by the Housing and Development Board in compulsory acquisition cases and for transactions such as resale and subletting approvals, and recovery of expenses by HDB and the Urban Redevelopment Authority for the immobilisation and towing of illegally parked vehicles.
MND said these fees and charges were publicly known and properly administered to recover operational costs incurred by the agencies.
The ministry acknowledged, however, that it would be better for such fees to be provided for in legislation.
"As these fees and charges were for carrying out statutory and regulatory functions, the Government has also acknowledged that it would be better to provide for them in legislation, even though the agencies can prescribe such fees, without such legislation," it said.
The new law was meant to put the legal position beyond doubt and provide greater clarity, transparency and certainty for future transactions, MND added.
The ministry's statement came in response to a social media post by the Workers' Party on 11 May, in which the opposition party said it could not have supported amendments that validated what it described as administrative errors.
"The Workers' Party cannot support a provision that retrospectively validates money collections not provided for by legislation, removes legal rights from citizens without providing Parliament with the full facts," the party said.
During the parliamentary debate on 7 May, WP MPs had asked the government how much money had been collected under the affected fees and how many Singaporeans were affected.
Senior Parliamentary Secretary for National Development Syed Harun Alhabsyi said he did not have the full figures. Minister for National Development Chee Hong Tat stepped in to explain that some fees had been collected since independence and that full records may not be available.
All 11 WP MPs present voted against the bill. Associate Professor Jamus Lim was not in the chamber.
MND on Tuesday said good governance meant constantly reviewing and improving laws and systems, and proactively bringing matters of public interest to Parliament.
"This was about clarifying and strengthening the law to ensure certainty, fairness and transparency for Singaporeans," the ministry said.
