The Workers' Party application to merge the Punggol East town council functions with the existing Aljunied-Hougang Town Council has got the green light from the Ministry of National Development (MND).
The new entity will be called the Aljuined-Hougang-Punggol East Town Council. This follows the Workers' Party win in last month's by-election in Punggol East.
MND said in a statement on Friday that the town of Pasir Ris-Punggol, which previously included Punggol East, will be reconstituted to comprise only the PAP-held Pasir Ris-Punggol GRC.
The WP had said previously the merger was for the sake of economies of scale and cost savings.
The handover date is set for May 1, after consultation with the chairmen of both town councils, MPs Sylvia Lim (Aljunied GRC) and Zainal Sapari (Pasir Ris-Punggol GRC), the MND added.
The Pasir Ris-Punggol Town Council will continue to be liable for maintenance and management of common properties within Punggol East until April 30.
Under the Town Councils Act, when an area within one town is being transferred to another, the Minister for National Development may specify that the town council of the first town continue to maintain and manage the area for a period not exceeding 90 days.
"MND encourages both town councils to work together to ensure a smooth transition, so that the needs of all residents can continue to be served," it said in its statement.