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Aljunied-Hougang Town Council appoints new Managing Agent

The following is a statement from the Aljunied-Hougang Town Council.

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Aljunied-Hougang Town Council (AHTC) has appointed FM Solutions and Services Pte Ltd (FMSS) as its Managing Agent (MA), for a period of one year from 15 July 2011.

After the General Elections in May 2011, AHTC was legally constituted on 27 May.  Under the timeline drawn up by the Ministry of National Development, the handover of management to new Town Councils was to be done by 1 August 2011.

Sometime in early June, following discussions initiated by the incumbent MA for Aljunied Town Council, it was mutually agreed that AHTC would in due course release the incumbent MA from further performance of the existing MA agreement.

AHTC also had the task of putting in place new computer and accounting systems, and time was needed for hardware procurement and software development.

Given the urgency of the timelines above, and the overriding concern that Town Council services should not be disrupted to the detriment of the Aljunied-Hougang residents, AHTC determined that the best course of action was not to call a tender for MA services for the transitional period, as there was insufficient time.  Instead, AHTC decided to identify a service provider who was qualified and in a position to commence work immediately on taking over all aspects of MA services.

FMSS is a company incorporated in Singapore in May 2011.  Its key management and staff are qualified and experienced in estate and township management, with proven track records.  Its key directors have been in the field for an average of 20 years.  FMSS has re-employed all 22 staff formerly working at Hougang Town Council and expanded to cater for the increased scope of works at AHTC.  In that connection, it was made known to the incumbent MA that all employees who worked at the former Aljunied Town Council were welcome to apply for positions relating to AHTC

FMSS currently has 73 staff.  No Workers’ Party member has any interest in FMSS.

AHTC does not incur additional MA fees from appointing FMSS, as FMSS has agreed to assume the scope of works and pricing of the former MA for Aljunied Town Council, with only necessary adjustments made due to the electoral boundary changes from the inclusion of Kaki Bukit Division (formerly under the charge of Marine Parade Town Council) and the handing over of flats in Hougang Avenue 8 to Ang Mo Kio Town Council and Pasir Ris-Punggol Town Council.  FMSS has also agreed to take over the Hougang Town Council staff only at reimbursement costs, without any profit element.

In addition, at the request of AHTC, FMSS has agreed to undertake the MA appointment for one year only, which AHTC believes is a shorter than usual term for an MA, given the outlay required by the MA.  AHTC expects that the operations in AHTC should be stable within one year, after which the MA contract would be up for tender.

AHTC has proceeded on this course as it is of the view that the above transitional arrangement is necessary and in the best interests of residents in Aljunied-Hougang.

Sylvia Lim
Chairman, AHTC

5 Aug 2011