Redas president calls for more financial support to green developments

THE Real Estate Developers’ Association of Singapore (Redas) is urging regulators and financial institutions to provide developers with more support in greening Singapore’s urban landscape. 

This could be in the form of tax reliefs, grants, incentives and consumer buy-in, said Redas president Tan Swee Yiow at the association’s Mid-Autumn Festival lunch on Tuesday (Sep 17). 

“We recognise that sustainability is here to stay, but the path towards it comes with challenges, especially in today’s high interest-rate environment,” said Tan. 

For one, the financial strain can be challenging, particularly for existing buildings, he said. This is further compounded by rising construction and labour costs, along with the “substantial upfront expenses required for green development”. 

Financial support will help offset these costs and encourage green financing, said Tan. 

To further incentivise “ambitious” green projects, Tan suggested that regulators and financial institutions consider expanding their framework to reward those “going the extra mile to push the boundaries of sustainability”. 

“Whether it’s through tax incentives, capital relief for banks, or sandbox initiatives, we need solutions that make green financing more accessible,” Tan said. 

With this, he believes Singapore has the potential to lead the way as a green financing hub, to attract investments and drive sustainability across sectors. 

Streamlining processes

Also speaking at the Redas lunch, Minister for Transport Chee Hong Tat said businesses, developers and building owners will soon see less red tape and shorter approval times when working on various projects.  

This is part of the government’s review of existing rules and work processes to identify areas for improvement, said Chee. “By simplifying regulatory processes and reducing red tape, we can help our companies focus their resources on innovation and translate their ideas into business outcomes.” 

For instance, the Land Transport Authority (LTA) is developing a set of road design templates, which establishes the guidelines and required details to be presented for road layout submissions. 

Chee said these templates, which will be released by November this year, will serve as a reference for applicants, providing clear regulatory guidance upfront while still leaving room for developers to be creative in the design process. 

Currently, some submissions are received with missing details or do not comply with the guidelines; requiring several rounds of revisions to finalise these applications. 

The aim is to streamline and shorten the application process for road and building works, reducing the number of iterative revisions and ensuring consistency with regulatory requirements, he said. 

LTA is also developing an artificial intelligence (AI) chatbot with knowledge of the agency’s regulations across different types of proposals, Chee said. 

The chatbot can then provide tailored advice to industry professionals as they refine their development proposals, he said.

The agency will be engaging the industry through the Transport Infrastructure Collaboration Panel to bring more partners on board the AI chatbot pilot in the next few months, he said. The panel comprises representatives from the Association of Consulting Engineers Singapore; the Institution of Engineers, Singapore; Redas; Singapore Institute of Architects; and LTA. 

Launched in March 2021, the panel’s key focus is to simplify the application and approval processes for building and construction of transport infrastructure, while ensuring that technical and regulatory needs are met. 

Additionally, from Oct 1, companies will no longer need to seek approval from the Civil Aviation Authority of Singapore for solar panel installations around the airport. 

Currently, any solar panels installed around the airport must be assessed and approved by the agency, to ensure that there are no safety risks for pilots or air traffic control officers. This is due to concerns that the glare from solar panels may affect their visibility, said Chee. 

The existing process could take two months to complete and costs around S$3,500 for a consultant’s assessment report, he said. 

But thanks to improvements in solar photovoltaic technology, new panels have reduced glare, and panels installed within critical areas close to airports were also assessed to have minimal risk to airport operations, said Chee. 

The change in requirements will mean time and cost savings for businesses and building owners looking to install solar panels outside the airport’s boundaries, he said. 

Chee said: “By reviewing existing rules and streamlining our procedures, we can better support the seamless integration of new technologies and encourage future innovations.” 

This is especially crucial in land scarce Singapore, where the use of urban spaces is managed carefully to unlock value and maximise its potential, he said.  

While each rule review may seem small on its own, these changes can collectively contribute to a “broader business-friendly environment” and reinforces the importance of adopting a pro-business mindset, Chee added. 

It will also allow the government to continuously refine its approach, ensuring that Singapore’s regulatory framework remains “agile, supportive and aligned with industry needs”, he said.