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A section of Telok Blangah Road sank by about 20cm on Saturday evening, creating a depression measuring 7m by 7m.
The sunken section, spanning two lanes, is near the junction of Telok Blangah and Alexandra Road, close to the Port of Singapore Authority Building.
The affected stretch of road is actually a temporary diversionary route created to facilitate the construction of the future Labrador MRT station.
Traffic had to be diverted after the sinking occurred at 9.25pm.
No vehicles were damaged in the incident.
Land Transport Authority (LTA) spokesman Naleeza Ebrahim attributed the ground settlement to the work on the MRT station, which is part of the future Circle Line.
It was an anticipated event, she said.
The LTA had planned to divert traffic back to the original Telok Blangah Road ahead of the sinking, but the ground settlement happened earlier than expected.
'We would like to assure the public that there is no need to be alarmed about it,'she said.
Incidents of ground settlement are not uncommon and structures around the depression are safe, she added.
Circulars were sent out last Tuesday informing residents in the area to expect a traffic diversion as a result of the work.
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