Two GLS sites to adopt PPVC

Posted on 13 Nov 2014 | Comments Off on Two GLS sites to adopt PPVC

Two upcoming Government Land Sales (GLS) sites at Yishun Avenue 4 and Jurong West Street 41 will need to adopt Prefabricated Prefinished Volumetric Construction (PPVC), an advanced technology in construction.

These sites are scheduled to be released for sale in November and December 2014 respectively.

This is in line with the revised Building Control (Buildability and Productivity) Regulations announced by the Building and Construction Authority (BCA), which now requires using labour-efficient construction methods and building design to improve construction productivity.

From 1 November 2014, projects are required to use prefabricated and standardised components. Specifically, all non-landed residential developments are required to adopt drywall as internal partitions for dry areas. New projects will also have to be built based on standardised floor heights and building components (such as precast staircases, precast refuse chutes and doors).

Next, they have to meet higher minimum Buildable Design and Constructability standards to make buildings easier to construct and encourage the use of efficient construction methods and processes.

Lastly, residential non-landed sites, including Executive Condominiums (EC), and the residential component of mixed-use sites sold under the Government Land Sales (GLS) programme will have to adopt productive technologies for projects, such as using Prefabricated Bathroom Units (PBUs, pictured).

The adoption of PPVC will also be imposed on selected GLS site.

PPVC involves assembling whole rooms or apartment units complete which are produced off-site and installed on site in a Lego-like manner. PPVC also enhances worksite safety as prefabrication of the building modules are done in factories.

Other projects which have adopted PPVC include a student hostel at Nanyang Technological University (NTU) and a building extension to the Crowne Plaza Changi Airport Hotel.

An upcoming Executive Condominium (EC) in Sembawang by City Developments Limited (CDL) will also be built using PPVC, making CDL the first developer in Asia to adopt PPVC for a large-scale residential project.

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4% rate cap not feasible: moneylenders

Posted on 13 Nov 2014 | Comments Off on 4% rate cap not feasible: moneylenders

While licensed moneylenders in Singapore admit there is a need to cap loan interest rates, they argue the four percent monthly rate put forward by an advisory committee is rather unreasonable, reported the media.

They insist they should be allowed to charge 15 to 20 percent per month in order for them to survive.

Notably, the committee announced on Monday five draft recommendations, which include the four percent monthly rate as well as limits on loan amounts.

Formed in June, the 15-member panel, initiated by the Law Ministry, was tasked to review the licensed moneylending industry in view of complaints relating to high interest rates and excessive borrowing.

Commenting on the four percent figure, Moneylender’s Association of Singapore’s Assistant Secretary Wayne Ng said the proposal shocked moneylenders.

Ng revealed he made a presentation to the committee two or three months ago in which he detailed the costs of operating a moneylending business.

“I don’t know how the panel came up with four percent even after we shared our operating costs. Four percent is totally not feasible.”

For example, Ng, who runs a moneylending company in the heartland, said he pays each of his three employees an average salary of $2,000 a month on top of the $7,000 monthly rent that he pays.

“Assuming I managed to loan $100,000 in one month and everyone pays me back in full within the month, at four percent interest I would make a gross profit of S$4,000. That’s not even enough to cover my rental,” he said.

Meanwhile, David Poh, the association’s president, said he will hold a meeting with all his members to consolidate data from them, which he will submit to the committee for review.

Poh, who is on the committee, noted moneylenders generally serve high-risk borrowers who are unable to secure loans from banks, with at least 20 percent of them defaulting on payments.

“It’s a high-risk business and moneylenders rely on short-term interest gained from the loans. Hence, they would need to charge a higher interest rate to sustain their businesses,” said Poh.

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Posted in Loan / Mortgage / Finance

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