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New Paper
6 days ago
- Health
- New Paper
Ong Ye Kung 'dismayed' at $52k bid to rent Tampines HDB clinic
Health Minister Ong Ye Kung said he was "dismayed" at the $52,188 monthly rental bid for a general practitioner (GP) clinic in a Tampines HDB estate as it may lead to higher healthcare costs for residents. Going forward, bids for future HDB GP clinics will be assessed using a model that focuses less on price, and more on quality of care, he said in a Facebook post on June 4. Mr Ong said the high rental bid would "translate to higher cost of healthcare one way or another" and negate the Ministry of Health's (MOH) efforts to keep the cost of primary healthcare affordable. "More importantly, higher rental bids do not necessarily translate to the best healthcare that the community needs," he added. I-Health Medical Holdings had won the tender to operate the 52 sq m ground-floor unit at Block 954C Tampines Street 96 in March. But the issue recently came to public attention after a doctor called the $52,188 monthly rent "obscene" in a LinkedIn post. It sparked discussion over rising rentals and healthcare costs. Mr Andrew Chim, 37, the co-owner of I-Health Medical Holdings, had told The Straits Times that his bid was justified because of the attractive attributes of the area. The unit is in the middle of five Build-To-Order projects with 5,000 households, and near upcoming developments like a new mixed-use project and a shopping mall, he said. On June 4, Mr Ong pointed to the new tender approach for GP clinics that MOH and the Housing Board had launched at the Bartley Beacon development in May. Under this new "price-quality evaluation model", quality of care will account for 70 per cent of tender evaluation, and rental price for the remaining 30 per cent. The Bartley Beacon tender closed on May 29 with a total of 18 tenderers. Mr Ong said MOH received proposals with rental bids significantly below that for the Tampines site. MOH and HDB are assessing the proposals and aim to award the tender by August. Mr Ong noted that the tender for the Tampines clinic was launched in December 2024 and awarded in March 2025, before tenders took on the price-quality evaluation model. The new model, which will be the norm moving forward, will shift the focus away from rental rates. "It will be a meaningful shift, both in improving primary care and ensuring greater affordability," Mr Ong said. Responding to media queries, HDB said in a statement that the bid of $52,188 is significantly higher than the average tendered rent of around $9,800 a month for similar-sized clinics let by HDB in 2024. It also said the bid for the Tampines clinic is the highest per sq ft (psf) rent that HDB has received for GP and dental clinics of this size to date. At 52 sq m, or 560 sq ft, the rent for the unit works out to around $93 psf. HDB said all tenders awarded for GP clinics to date are based on tendered price, and the submitted bids are business decisions influenced by factors such as location, shop size, trades and market conditions. "The rental for this Tampines clinic does not set any price requirements for future tenders by HDB, and it also will not affect the rentals that HDB is charging other existing clinics," it said. HDB added that it is committed to ensuring residents have affordable and quality healthcare services in the heartland. GPs who run clinics in HDB estates either rent directly from the state, or from landlords who own HDB commercial units. GPs whom ST spoke to felt the $52,188 rental was too high to be sustainable. Some doctors who rented from private landlords described a volatile rental market that has seen prices rising after the pandemic. Dr Conrad Chin, who runs E. L. Chin Family Clinic and Surgery in Clementi, said he thought the rental amount was outrageous. "Most older doctors do not pay above $2,000 for rent. I doubt that the ($52,188) price is sustainable in the long term," he added. Dr Wong Choo Wai, who runs two HDB clinics in Bedok and Jurong, said that if rent is not sustainable, the clinic will have to pass on the cost to patients. Dr Wong, who rented before buying his own units in 2009 and 2015, said the rental market has been volatile. "When the clinic starts doing well, private landlords may jack up the rent," he said. In 2009, the landlord for his Bedok unit asked for a 40 per cent increase in rent. As the rent "did not make sense" for the clinic, Dr Wong bought a neighbouring unit for about $750,000. "I'm thankful I made the decision to buy, or else I would be at the mercy of the landlord," he added. A doctor who runs a clinic in Clementi, and declined to be named, said he hopes the $52,188 rent will not trigger rent hikes as small businesses are already struggling with rentals. "Anything over $10,000 would be difficult for me to run the clinic. As solo GPs, we don't make that kind of money to justify the rental," he said. Parkway Shenton chief executive Tay Wee Kai said that rents at its clinics in HDB estates have increased across the board after Covid-19. "This is partly due to inflation and also due to some landlords adopting a 'catch-up' mentality and expecting higher rent," he said. Mr Tay added that during the pandemic, rents remained stagnant and even went down at some locations. Its branches in HDB estates comprise about half of its more than 30 clinics.
Straits Times
6 days ago
- Business
- Straits Times
Ong Ye Kung ‘dismayed' at $52k bid to rent Tampines HDB clinic
I-Health Medical Holdings won the tender to operate the 50 sq m ground-floor unit at Block 954C Tampines Street 96 in March. ST PHOTO: ARIFFIN JAMAR SINGAPORE - Health Minister Ong Ye Kung said he was 'dismayed' at the $52,188 monthly rental bid for a general practitioner (GP) clinic in a Tampines HDB estate as it may lead to higher healthcare costs. He pointed out that going forward, bids for future HDB GP clinics will be assessed using a model that focuses less on price, and more on quality of care, he said in a Facebook post on June 4. Mr Ong said the high rental bid 'must translate to higher cost of healthcare one way or another, and negate the effort of Ministry of Health (MOH) to try to keep the cost of primary healthcare affordable'. 'More importantly, higher rental bids do not necessarily translate to the best healthcare that the community needs,' he added. I-Health Medical Holdings won the tender to operate the 50 sq m ground-floor unit at Block 954C Tampines Street 96 in March. Bidding on the unit had closed in January. Mr Andrew Chim, 37, the co-owner of I-Health Medical Holdings, had said his bid was based on the attractive attributes of the area. He pointed out that the unit is in the middle of Tampines West where there are five Build-To-Order projects with 5,000 households, as well as other upcoming developments like a new mixed-use project and a shopping mall. Mr Ong said on June 4 that the role of a GP is increasingly important as the population ages. It is also key in developing a relationship of trust with patients, and the vital link to connect patients to acute hospital care and preventative community care. MOH and HDB in May launched a new tender approach for GP clinics at the Bartley Beacon development, where quality of care will account for 70 per cent of tender evaluation and rental price will be 30 per cent. The tender closed on May 29. MOH had received proposals with rental bids significantly below that for the Tampines site, Mr Ong added. He noted that the Tampines clinic launched for tender in December 2024 and was awarded in March 2025, before tenders took on the price-quality evaluation model. The new model which will be the norm moving forward. 'It will be a meaningful shift, both in improving primary care, and ensuring greater affordability,' Mr Ong said. The $52,188 rent came to public attention on May 31 after healthcare practitioner Hisham Badaruddin took to professional networking platform LinkedIn to say this was an 'obscene' amount to pay for rent for a clinic in an HDB estate. General practitioners who run clinics in HDB estates either rent directly from the state, or from landlords who own HDB commercial units. GPs that the The Straits Times spoke to felt the $52,188 rental was too high to be sustainable. Some doctors that rented from private landlords described a volatile rental market that has seen prices rising after the pandemic. Dr Conrad Chin, who runs the E. L. Chin Family Clinic and Surgery in Clementi, said he thought the rental amount was outrageous. 'Most older doctors do not pay above $2,000 for rent. I doubt that the ($52,188) price is sustainable in the long term,' he added. Dr Wong Choo Wai, who runs two HDB clinics in Bedok and Jurong, said if rent is not sustainable the clinic will have to pass on the cost to patients. Dr Wong, who rented before buying his own units in 2009 and 2015, said the rental market has been volatile. 'When the clinic starts doing well, private landlords may jack up the rent,' he said. In 2009, the landlord for his Bedok unit asked for a 40 per cent increase in rent. As the rent 'did not make sense' for the clinic, Dr Wong bought a neighbouring unit for about $750,000. 'I'm thankful I made the decision to buy, else I will be at the mercy of the landlord,' he added. A doctor who runs a clinic in Clementi, and declined to be named, said he hopes the $52,188 rent will not trigger rent hikes as small businesses are already struggling with rentals. 'Anything over $10,000 would be difficult for me to run the clinic. As solo GPs, we don't make that kind of money to justify the rental,' he said. Parkway Shenton chief executive Tay Wee Kai said that rents at their clinics in HDB estates have increased across the board post Covid-19. 'This is partly due to inflation and also due to some landlords adopting a 'catch-up' mentality and expecting higher rent,' he said. Mr Tay added that during the Covid-19 pandemic, rents remained stagnant and even went down at some locations. Their branches in HDB estates comprise about half of their more than 30 clinics. Isabelle Liew is a journalist at The Straits Times. She covers housing issues in Singapore, with a focus on public housing. Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
6 days ago
- Business
- Business Times
Ong Ye Kung dismayed by S$52,000 clinic rent bid; HDB to roll out new tender approach for GP clinics
[SINGAPORE] Minister for Health Ong Ye Kung has expressed his dismay at the S$52,188 bid that a GP clinic in Tampines received in a tender which closed in January this year. In a Facebook post, the minister said the monthly rental for the clinic – which would amount to more than S$1,000 per square metre (psm) – would translate into higher cost of healthcare one way or another, and negate the Ministry of Health's (MOH) efforts to keep the cost of primary healthcare affordable. 'More importantly, higher rental bids do not necessarily translate to the best healthcare that the community needs,' he noted. The S$52,188 bid was put in by I-Health Medical Holdings for the unit at Block 954C Tampines Street 96. There were 13 bids in total for the clinic which made waves online over the weekend. The role of a GP is increasingly important, as our population ages, Ong said. 'The GP is key in developing a relationship of trust with patients, and to guide them towards better health. He or she is the vital link to connect patients to acute hospital care, preventive community care and social prescriptions.' A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Ong went on to add that this is why in May, MOH and the Housing and Development Board launched a new tender approach for GP clinics at Bartley Beacon. Quality of care will account for 70 per cent of the tender evaluation, and rental 30 per cent, he added. The unit is a larger unit, about 100 sq m, twice the size of normal clinics, and suitable for clinics that intend to provide multi-disciplinary care and try out new models of care, Ong said. 'Through this price-quality evaluation model (PQM), we can shift the competitive focus away from rental rates to better care models – including preventive care, chronic disease management and mental health,' Ong said. 'The tender was closed on May 29. I understand from my MOH officers that we have received interesting proposals, with rental bid prices significantly below the Tampines site in psm terms. We are currently assessing the proposals.' The Tampines clinic was tendered in December 2024 and awarded in March 2025, before MOH embarked on the PQM model, Ong said. 'Going forward, and given the encouraging response to the Bartley Beacon site, we will make the new PQM approach the norm, when tendering our GP clinics in our HDB heartlands,' Ong added. 'It will be a meaningful shift, both in improving primary care, and ensuring greater affordability.'
Business Times
6 days ago
- Business
- Business Times
Ong Ye Kung dismayed by S$52,000 clinic rent bid, HDB to roll out new tender approach
[SINGAPORE] Minister for Health Ong Ye Kung has expressed his dismay at the S$52,188 bid a GP clinic in Tampines received in a tender which closed in January this year. In a Facebook post, the minister said the monthly rental for the clinic, which would amount to over S$1,000 psm, would translate into higher cost of healthcare and negate the Ministry of Health (MOH)'s efforts to keep the cost of primary healthcare affordable. 'More importantly, higher rental bids do not necessarily translate to the best healthcare that the community needs.' The S$52,188 bid was put in by I-Health Medical Holdings for the unit at Block 954C Tampines Street 96. There were 13 bids in total for the clinic which made waves online over the weekend. The role of a GP is increasingly important, as our population ages, Ong said. 'The GP is key in developing a relationship of trust with patients, and to guide them towards better health. He or she is the vital link to connect patients to acute hospital care, preventive community care and social prescriptions.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up This is why in May, MOH and the Housing and Development Board launched a new tender approach for GP clinics at Bartley Beacon. Quality of care will account for 70 per cent of the tender evaluation, and rental 30 per cent. The unit was a larger unit, about 100 sq m, twice the size of normal clinics, and suited for clinics which intend to provide multi-disciplinary care and try out new models of care, Ong said. 'Through this Price-Quality evaluation Model (PQM), we can shift the competitive focus away from rental rates, to better care models, including preventive care, chronic disease management and mental health,' Ong said. 'The tender was closed on 29 May. I understand from my MOH officers that we have received interesting proposals, with rental bid prices significantly below the Tampines site in psm terms. We are currently assessing the proposals.' The Tampines clinic was tendered in Dec 2024 and awarded in Mar 2025, before MOH embarked on the PQM model, Ong said. 'Going forward, and given the encouraging response to the Bartley Beacon site, we will make the new PQM approach the norm, when tendering our GP clinics in our HDB heartlands. It will be a meaningful shift, both in improving primary care, and ensuring greater affordability.'
Online Citizen
7 days ago
- Business
- Online Citizen
Clinic defends S$52k Tampines rent amid trend of high HDB tender bids for GP clinic spaces
SINGAPORE: A record-breaking rental bid for a general practitioner (GP) clinic space in a Housing and Development Board (HDB) block in Tampines has sparked concern among Singaporeans and online commentators. The winning tender of S$52,188 per month, awarded for a 50 square metre ground-floor unit at Block 954C Tampines Street 96, was submitted by I-Health Medical Holdings. The bid was finalised after a sealed-envelope tender process that closed on 14 January 2025. The result, disclosed by HDB in March, quickly drew public attention after being highlighted on LinkedIn by Dr Hisham Badaruddin, who described the sum as 'obscene'. His post was later shared on Reddit's r/singapore forum on 1 June, triggering widespread concern about possible knock-on effects on healthcare affordability. Bid based on location strategy and future demand, says I-Health co-owner Andrew Chim, 37, co-owner of I-Health Medical Holdings, defended the bid in an interview with The Straits Times on 3 June. He explained that the decision was grounded in business logic and a comprehensive assessment of the unit's value and strategic location. Chim said the Tampines unit was the most attractive of all recent HDB offerings for GP clinics. He cited the presence of five Build-To-Order (BTO) projects housing around 5,000 households, as well as upcoming developments like a mixed-use project and a shopping mall, as reasons for the premium price. 'Our assessment is based on our understanding of the number of units in the area and the surrounding competition,' said Chim. He noted that there are around five other clinics nearby. Consultation fees to stay competitive despite record rental cost Despite the high rent, Chim confirmed that consultation fees at the Tampines clinic will remain competitive—ranging from S$30 to S$35, comparable to other heartland clinics. 'Our pricing will be commensurate with other clinic chains' – it has to be because Singaporeans are value-conscious,' he added. The Tampines clinic is scheduled to open on 26 June. It will operate from 8.30am to 3pm and 5.30pm to 10pm, including weekends and public holidays—offering more extensive hours than some nearby clinics. I-Health expects the clinic to reach 70 to 90 patients per day within a year. At that point, a second doctor will be deployed. Chim projects the clinic will become profitable within one-and-a-half to two years. This marks the first successful HDB tender for I-Health. The firm previously attempted to secure units in Bidadari and Tampines North but lacked sufficient cash flow at the time. 'Now that we have sufficient cash flow, we have confidence to go after the best locations,' Chim said. Responding to concerns that such high bids could inflate rents across the industry, Chim argued that landlords may still struggle to find tenants willing to match these prices. HDB tender records show rising rents for clinic spaces across estates The S$52k rent is not an isolated case. A review of recent HDB tender results reveals a pattern of high rental bids for clinic units. In January, a unit at Block 235B Tengah Garden Walk attracted a winning bid of S$40,088 from Dr Daphne Lee, beating seven other bidders. That same month, Caring Medical Clinic successfully secured a unit at Block 666 Tampines Street 64 with a S$25,388 bid. In another tender that closed in March, Normanton Healthcare Pte Ltd emerged as the sole bidder for a unit at Block 88A Telok Blangah Heights, winning the lease at S$16,800 per month. Meanwhile, a December 2024 tender for a unit at Block 568B Champions Way drew nine bids, with Caring Medical Clinic securing the lease for S$26,900 per month. Public voices concern over clinic rent sustainability and potential impact on healthcare access These figures underscore a growing trend of rising bidding for clinic spaces in HDB estates—likely reflecting increased demand for medical services in densely populated residential areas. While public reaction to the Tampines bid remains mixed, the underlying dynamics suggest a competitive healthcare property market where bidders are willing to pay a premium for strategic locations. Concerns have emerged online about the sustainability and implications of the record S$52,188 rent for the Tampines clinic. Some comments on The Straits Times Facebook page questioned whether such high bids are only viable for large, well-funded medical groups. One netizen calculated that if the clinic averages 100 patients daily, over 20% of an S$80 consultation fee would go towards rent. This sparked debate on whether such cost distribution is acceptable in the context of public healthcare. Another comment criticised the justification for the rent, arguing that high prices risk excluding patients who cannot afford care. An FB user estimated that with 70 patients daily and typical staffing costs, the clinic would need S$36 per patient just to break even. A self-identified real estate agent questioned why the government has not acted to stabilise rising clinic rents, despite success in cooling property prices. New rental tender approach for GP clinics On 8 May, Ministry of Health (MOH) and Housing Board announced a pilot scheme to jointly evaluate GP clinic tenders based not just on rental offers but also on service quality. Under the new Price-Quality Method (PQM), now being piloted at Bartley Beacon in the Bidadari estate, 70% of the evaluation will be based on the quality of the proposal, and only 30% on the rental amount. Factors such as care models, staffing standards, and operating hours will be assessed. To accommodate more comprehensive care services, the Bartley Beacon unit will be approximately 100 square metres—double the size of a typical HDB clinic space. The clinic is expected to begin operations in Q4 2025. MOH stated that the pilot aims to enhance healthcare accessibility and better serve residents under the Healthier SG initiative. Depending on its success, the approach may be extended to other clinic sites in the future.
