Shanmugam Reveals Why He Moved from GCB to Rental Black-and-White House on Ridout Road

Law and Home Affairs Minister K. Shanmugam shared in Parliament on July 3 that he chose to rent a state property on Ridout Road after placing his Good Class Bungalow (GCB) on the market. He emphasized that he did not profit from this rental arrangement.

This statement comes amid ongoing public speculation regarding the Singapore Land Authority’s (SLA) leasing of the state properties to him and Foreign Affairs Minister Vivian Balakrishnan. Investigations by the Corrupt Practices Investigation Bureau (CPIB) found no evidence of corruption or preferential treatment for either minister, while a separate review led by Senior Minister Teo Chee Hean confirmed that the rental processes adhered to SLA guidelines.

In his address, Shanmugam explained that he reassessed his financial situation in 2016 as he approached his sixties, realizing that too much of his savings were tied up in his family home, which he had purchased with his income as a lawyer. He noted, “I was advised that it would be wiser not to have most of your savings in one asset,” prompting him to sell the GCB.

Shanmugam clarified that his decision was not driven by financial necessity and expressed no regrets about leaving his high-earning position as a Senior Counsel to serve in public office, stating, “It’s a privilege to be in public service.”

Regarding the black-and-white bungalow, he revealed that he has always had an appreciation for such properties. In January 2017, he inquired about rental options and ultimately decided on 26 Ridout Road in 2018, initially offering $25,000 monthly. After negotiations, the rental was set at $26,500, which he accepted.

Shanmugam further asserted that there was no financial gain from renting the bungalow. He explained that there was a net deficit after accounting for property taxes and income tax on rental income, saying, “I am essentially using my previous lawyer’s income to pay for the rental.”

Additionally, he disclosed that he invested over $500,000 of his own funds into improving the bungalow, understanding that he would not benefit from these enhancements after the lease ended.

Addressing the increase in the property’s land size from 9,350 sqm to 23,164 sqm, Shanmugam noted that he raised concerns about the overgrown vegetation posing public safety risks. Although he initially offered to maintain the adjacent land at his own expense, he did not seek it as part of the lease, stating, “I didn’t need the land, and I didn’t want it.”

In closing, Shanmugam expressed regret for the time Parliament had to dedicate to this issue stemming from his personal choices. He reiterated his commitment to serving Singaporeans and addressing their concerns.

Senior Minister Teo Chee Hean indicated that the Ridout Road case would be used as an example to reinforce the importance of integrity among public officers. He mentioned that all public officers are required to take an annual Code of Conduct quiz and make necessary declarations regarding their financial situations and property investments.