Golden Shoe Redevelopment- Government’s role in redevelopment mechanism
The economic success of the Golden Shoe as a pilot projects can be accredited to its mechanism to a considerable extent. The Government developed an interactive mechanism that required the joint effort of State Power and public sector after balancing between letting its masterplan take full control and serving only as a passive welfare role.
Government took the initiatives, as described by Chua, “The government’s role was to prepare a master plan for redevelopment, clear the slums, assemble and develop the land with the requisite infrastructure, and provide necessary guidelines to achieve planning and urban design objectives, then release the land” (Chua, 1989). To further stimulate private sectors, incentives (including requiring only 20 percent of premium as down payment while the remaining 80 percent to be paid in interest-free instalments over period of 10 years and tax reduction from the normal charge of 36 percent to 12 per cent for a period of 20 years after a project was completed.) were provided. Private sectors stepped in through government Land Sale with their proposals and based on criteria including premium offered, level of capital investment involved, number of jobs generated, revenue potential and architectural merits, sites were tendered out on 99 years lease. “Private enterprises would construct economically viable projects such as hotels, office buildings, shopping centers and better-class apartments.” (Chua, 1989).
While urban development monopolized by government is doomed to fail due to its ignorance of the law of value, lack of diversity and vitality, the one completely dependent on market behavior would end up in chaos and soaring land price. The cooperative efforts between state power and public sector enabled economic growth and urban development in a sustainable and participatory manner, mobilizing resources and capitals held by private sectors under the discipline and guidance of government.
Chua, Beng Huat., and Gretchen. Liu. The Golden Shoe: Building Singapore’s Financial District. Singapore: Urban Redevelopment Authority, 1989.