In his speech at the opening of the Terminal 4, Transport Minister Khaw Boon Wan took care not to reveal the pricing of the Terminal 5. The corrupted millionaire minister from Malaysia Penang said Singapore has to pay regardless the amount because they have to “build ahead of demand”:
“Building ahead of demand is indeed one of Singapore’s economic success factors. We applied it, not only in aviation, but also in maritime and industrial development. For global business, if you don’t have the capacity to serve, you lose business to your competitors. It’s as simple as that.”
Transport Minister Khaw Boon Wan then started praising himself for “sound judgement” and refuse to address any opposition to the Terminal 5 construction:
“Nevertheless, this requires sound judgement. It is not simply ‘build and they will come’. There are unpredictability of the aviation industry in particular, which is subject to many disruptions, including oil prices and at times, unhelpful Governmental interventions. Adhering to straight line projections may end up in tears. We must be sensitive to potential disruptions and be ready to make strategic changes promptly when warranted.”
Minister Khaw Boon Wan also admitted that the upcoming GST increase will be used to fund the Terminal 5 construction, which Minister Lawrence Wong had earlier in Parliament denied so:
“There is the need to find new sources of revenue to fund ever-growing investments, the Government has previously flagged infrastructure expenditure, along with social and healthcare spending, as its big ticket items in the coming years.”
Despite having already started construction of Terminal 5, the Singapore government still does not have a projected budget for it. According to an earlier press release by the Land Transport Authority, Terminal 5 costs “tens of billions”. The Singapore government had since raised airport taxes and resorted to borrowing to fund Terminal 5. This is also the first time Singapore is currently in debt for overspending, however, the Ministry of Finance refuse to disclose how much have been borrowed.