Lawrence Wong
Singapore
“Sir, we will provide more information. I see the value of getting Ministries to put out more information, to share more about how their resources are being used and what outcomes they have achieved.”
“Sir, I agree fully with Mr Azhar that human capacity, human capital is critical. In fact, I would say the long-term potential of Singapore, how far we go really depends on us being able to maximise our human potential. That is key and that is why we have long invested in education. And it is not just about the investments.”
“Sir, we have been maintaining that commitment of 1% for some time now. I do not think it is about saying that we just have to do more and spend more. As many have highlighted, we want to ensure good outcomes from our R&D spending as well. So, we will continue if the outcomes are good.”
“This has never been the case. Temasek, when it started, was always very clear about its mandate from the very beginning – commercial, not doing national service, focused on commercial outcomes.”
“Sir, the MOF economists when they look at fiscal projections use Government's forecast of the economy, which is also published. We would typically use the mid-point of the range and then, of course, because these are in nominal terms, you have to factor for that. And the projections are done on those basis.”
“Sir, I was relieved that Mr Loh said he only has one question, but he asked the most difficult question. To answer the question, we will continue to monitor cost of living across all segments of society.”
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“In the longer term, we have two major sites for future redevelopment. These are at Paya Lebar and the Greater Southern Waterfront. At Paya Lebar, the relocation of the airbase will free up 800 ha of land and remove current height restrictions around the area. It is a new area, bigger than the size of Ang Mo Kio Town, for both public and private housing. For the Greater Southern Waterfront, the movement of ports will free up 1,000 ha. In addition, there are non-port areas like the Pasir Panjang Power District, Keppel Club and Sentosa, which contribute another 1,000 ha. Altogether, the footprint of the Greater Southern Waterfront is 2,000 ha of prime waterfront land, six times the size of Marina Bay. These are long-term developments. For the Paya Lebar site, work will only start after 2030. For the Greater Southern Waterfront, the project will take more than 20 years, but we will make some moves within the next five to 10 years. For example, in Pasir Panjang, we will push the existing substation there underground. Singapore Power (SP) is working on this and it will be the largest underground substation in Singapore. We will repurpose the former power station buildings and open up the area to the public. We will enhance green spaces in Mount Faber and develop the Pasir Panjang Linear Park. And in the area where Keppel Club is today, we will develop new housing and residential options after the land is returned to the Government. Over time, we will redevelop and stitch together the entire waterfront from Pasir Panjang to Marina East. It will be an exciting new waterfront development with green and blue spaces for all to enjoy. Mr Chairman, let me conclude. Over the last 50 years, Singapore has transformed way beyond what anyone could have imagined.”
“4-km stretch of Orchard Road offering more diverse and vibrant lifestyle destinations so that we can make Orchard Road one of the great streets of the world. Nearby, we have the Civic District, Fort Canning Park, Bras Basah and Bugis. We can connect all of these together to create an expanded arts, cultural and heritage precinct. Within the city, the core area is the Central Business District (CBD). Downtown CBD – Raffles Place, Tanjong Pagar/Maxwell, Robinson/Shenton – is largely dominated by older office developments, single-use offices, quite unlike the Marina Bay CBD extension which was planned as a mixed-use district. Most of the buildings in the CBD are privately owned. We have an existing scheme to allow intensification of commercial buildings through bonus plot ratios. Most eligible buildings have already made use of this to maximise their development. So, it is timely for us to review. We will explore new incentives to better support rejuvenation in CBD. Specifically, we want to encourage more mixed uses in CBD, such as residential and hotel, so that there will be activities beyond office hours. This will also better optimise and intensify the use of prime CBD land. Then we can make our CBD not just a place to work, but also an attractive and vibrant place to live and play. Our plans are not just confined to the main island we live in. Singapore is made up of more than 60 offshore islands. We have major development plans for Sentosa and Brani to offer new attractions for tourists and Singaporeans alike. We have started reclamation work in Pulau Tekong for military training. We will also carry out improvement works on Pedra Branca. These works will enhance maritime safety and security in the area, and provide more rapid response for search and rescue.”
“Imagine what this means for our little red dot which is low-lying and surrounded by water. So, climate change is not a remote issue. It is an existential threat. That is why we have been carefully studying the risks and impact of sea level rise and looking at detailed measures to protect our coastal areas. Major investments will be needed in the form of reclamation, sea walls or pumping stations. The Dutch are used to this. Many of them are living below sea level today in Rotterdam and we are learning from their experience with our polder project in Pulau Tekong. We are sizing up the full extent of the infrastructure that is needed. These are long-term investments, but we are preparing well ahead and putting in place the necessary protective measures within the next 20 to 30 years. Remaking our city is not just about preparing for challenges. There are also many exciting opportunities ahead and we have plans to make Singapore stand out as a leading city for Asia and the world. We are planning for three major gateways in the East, West and North. These key developments will help support our growth and create more jobs across the island. So, there will be more opportunities for Singaporeans to live and work closer to their homes. Of course, we also have to focus on the centre. We have plans for the East, West and North, but the centre and the South cannot be neglected. So, we will rejuvenate our city centre. This has historically been at the heart of economic, civic and cultural activities, and we will ensure it remains attractive and vibrant. We have just revealed exciting plans for Orchard Road. We want it to be more than just a shopping destination. There are different precincts along the 2.”
“These are all examples of what we are doing to be a leading sustainable city. Technology is a major gamechanger here. That is why we are also investing in research and development in a whole range of urban solutions, from building materials to smart sensors to underground space. For example, we are trying out coatings or construction materials that absorb less heat and that can help lower the ambient temperature. And once proven to be technically feasible and cost-effective, we will look into implementation of these and other technologies. So, let us be very clear. Our next phase of development cannot just be a continuation of business-as-usual practices. We will set higher eco-friendly standards and new urban practices for sustainable living. That is also how we can stay relevant and useful to many other cities around the world, all of which are grappling with similar issues. Even as we do all this, we recognise that tackling climate change requires a concerted global response, and there is no certainty how this will evolve in the years to come. According to projections by the United Nations panel, if global emissions continue on their current trajectory uncurbed, sea levels could rise by around one metre in 2100. Even if countries pursue all the measures committed under the Paris Agreement – and that is a big "if" – sea levels are still going to rise, albeit at a lower level of around 0.7 metres. Of course, there are many uncertainties surrounding these projections. But I would say there are more downside risks than upside. For example, if the Antarctic ice sheet melts faster than expected, the sea level would rise dramatically and it may well happen earlier, causing significant global impact by 2050, and that is just 30 years from now.”
“The world is warming up, and it is happening sooner and more rapidly than people had expected. That is why we are redoubling our efforts to make Singapore one of the greenest cities in the world. Several Members have raised this, and I am glad they did because it is a critical part of our development plans. When we say we are not done building Singapore, we are not just referring to more buildings and physical infrastructure. A major part of this effort is to actively green Singapore for future generations. That means conserving and enhancing existing greenery, as well as safeguarding spaces for greenery even as we continue to develop. A greener Singapore will, in turn, help to mitigate extreme temperatures and provide a natural respite from traffic, noise and congestion. 12.00 pm Today, we have more than 4,000 hectares (ha) of gardens and parks, 3,300 ha of nature reserves, all linked together with park connectors. As Minister Desmond Lee highlighted yesterday, we are continuing to maintain and enhance our greenery. We are continuing to expand our green spaces and our network of park connectors, for example, with the Coast-to-Coast trail and first segment of the Round Island Route ready this year, and we are working to ensure seamless connection along a large stretch of the rail corridor up to Tanjong Pagar by 2021. The entire Rail Corridor is 24 kilometres (km) long. So, you can run up and down and do more than a marathon. We are embracing green in the broader sense, not just biodiversity and greenery, but also advanced clean-tech solutions, be it solar panels, electric buses, autonomous shuttles, zero-energy buildings or district cooling systems. We are testing out sustainable technologies at both the building and the district levels.”
“When I joined politics in 2011 and served in Boon Lay in the west, many residents in the west have a close affinity for the area and have many special memories growing up there. Now, I am a Member of Parliament in Marsiling-Yew Tee, in the north. My residents are proud to be in the north. They call Woodlands the star destination and I have come to grow fond of the area, too. Are there price differences in flat values between the different parts of Singapore? Yes, there are. But the residents in each area take great pride in where they stay. It is about the memories they have of the place, the sense of community, the connection and identity with where they grew up, and you cannot attach a price tag to these. So, we have to continue working hard to make sure that every HDB town, every precinct, is kept liveable and vibrant, both now and in the future. Besides upgrading our housing estates, we will also remake our city. Every major city in the world is constantly inventing and reinventing itself. That is the only way for cities to survive and thrive. Indeed, throughout history, cities have risen and fallen. Detroit was once the envy of the world, one of the most prosperous cities in the United States (US), they call it the Paris of the West, and then it went into decline and became bankrupt. Today, we enjoy high international standing as a modern liveable city, a beautiful city in a garden. But what we have today can be easily replicated in other cities, and they can very likely do it better as they have more space and more natural endowments. So, we cannot afford to stand still. As we remake our city, we must also prepare ahead for new challenges and threats. One major challenge is climate change. The scientific evidence here is clear.”
“As Mr Chong Kee Hiong said, this ought to be done not just at the individual block but also at the precinct level. We are planning well in advance for this because we do not want public housing in Singapore to degenerate into urban slums like what has happened in other cities. Public housing must continue to integrate Singaporeans of all backgrounds. We must never become segregated by class, race or income. This also relates to the point made by Assoc Prof Walter Theseira about the differences in the prices of HDB flats across the island and whether this would lead to more social stratification. The Member has raised valid concerns. It is something we are aware of and are continuing to watch out for, including looking at different ways in which we can mitigate against this. In the longer term, the best way to tackle this is to ensure that every part of Singapore is well developed, and that every HDB precinct has good amenities and facilities, convenient access to the transport network as well as job centres closer to home. That is what we have been doing and the upcoming Masterplan will continue with more efforts in this direction. It does not mean that we can automatically equalise property values. But at least we can temper some of the excesses in the market. I should also say, when you speak to Singaporeans, you find that they have an attachment to a particular place and it often goes beyond monetary value. I grew up in the East, and my friends and neighbours will always say the East is special, we will never move. Indeed, many of them still stay there, their children are still staying there.”
“Meanwhile, we have explained in this House that for those who are in urgent need of direct lift access due to medical conditions or disability, they may approach HDB for assistance. Er Dr Lee Bee Wah and Mr Png Eng Huat asked about our plans for HIP, particularly the next phase of HIP. We have ramped up the pace of HIP to complete upgrading for flats built up to 1986. All such flats will be announced for HIP by end of this year. Not completed construction, because that will take a while, but we will have announcements by end of this year. So, the big question is: what about HIP for the blocks built between 1987 and 1997? I am happy to share that we will start selecting the flats for this batch of HIP from next year onwards. The scope of works will be the same as the existing HIPs. There will be an essential component, covering things like spalling concrete, waste pipe replacement, electrical load upgrading which will be fully paid for by the Government and there will be an optional component covering bathroom upgrading and door replacement, which will be highly subsidised. There are a total of 230,000 flats in this batch, so we are starting the announcement next year. It does not mean that everything will be completed next year. It will have to be done in phases over a period of time, but we will commence the process from next year onwards. As Er Dr Lee Bee Wah highlighted, we also upgrade private estates through the Estate Upgrading Programme (EUP). We will select estates for the next batch of EUP by the second half of this year and we will continue to review and see what more can be done for private estates. Beyond upgrading, we are looking at VERS and longer-term plans to systematically redevelop and rejuvenate our older HDB towns.”
“It is waterfront site, next to a Light Rail Transit station. We could have sold this to a private developer, but we decided that it is central to the neighbourhood, we want to make it an HDB neighbourhood centre. So, HDB develops it as a neighbourhood centre with integrated facilities, rooftop gardens, greenery, play areas and lots of common spaces for residents to interact with one another. If you get feedback and responses from the residents, it has certainly been very positive. So, this is the first of our new generation neighbourhood centres and we will be doing more in the coming years. I would like to assure Dr Tan Wu Meng that the HDB is continually looking at ways to improve the design of new flats so that within the flat itself, there will be more common spaces to facilitate interaction among residents. For our older towns, we have various upgrading plans in place. At the flat and precinct level, we have the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme. Mr Png Eng Huat highlighted some issues with the quality of HIP workmanship and some projects as well as the issue of clothes drying rack on the lower floors. So, we will look at these specifically on these particular issues. Er Dr Lee Bee Wah offered several suggestions, such as using Community Improvement Projects Committee (CIPC) funds for designated smoking points, smoke-free flats and Temporary Occupation Licence charges for essential services. Again, these are all suggestions we will look into. Mr Png Eng Huat asked about lift access for blocks without LUP. I think the Member and several Members have asked this question before. We are continuing to explore technical solutions for the remaining blocks where lift upgrading is not viable today.”
“We will take in feedback and views from the discussions and ensure that seniors will welcome such an option, and that the model will be sustainable for the service providers. We will work towards the launch of our assisted living pilot site for public housing at Bukit Batok next year. We have also been exploring such retirement housing models for private residential sites. We are studying potential sites to pilot these assisted living typologies which include, as suggested by Mr Murali Pillai, the option of converting vacant school sites into retirement homes. The key here is that, when we put out these sites for private developers or private players to bid, we do not want it to be simply a property play. We do not want them to take the site, build something and sell the units because, with assisted living, these have to be a package of services plus residential combined together. We will need to craft the appropriate rules and safeguards to ensure that this happens. We are working on them and will provide details when we are ready. Besides the three priority areas I have just outlined, many Members highlighted the importance of ensuring that our homes and estates remain liveable and vibrant, and I fully agree with them. HDB takes its role as master developer and planner very seriously. For new towns, much effort goes behind the scenes in planning and developing our estates and ensuring the town has a full range of amenities and facilities. And HDB is always looking to improve, taking in feedback, suggestions and how the next project can be done better. For example, I visited Punggol recently where we opened the new neighbourhood centre at Oasis Terraces. This is a prime site where the neighbourhood centre is located.”
“If that is done, then we can relax CPF usage rules, even if the remaining lease is less than 60 years. I have explained the thinking behind how we intend to change the CPF restriction. The details are being worked out, and we will announce them soon for implementation in May this year. As seniors right-size, we will provide more housing options for them. There are 2-room flexi flats with shorter leases which have proven to be very popular among seniors. As far as possible, we are building these flats with convenient access to amenities, for example, in Kampung Admiralty. Assoc Prof Daniel Goh, Mr Gan Thiam Poh and Mr Murali Pillai also noted that some seniors are looking for alternative residential options like assisted living. Senior Minister of State Amy Khor shared about this yesterday. Assisted living means "home and care" combined. So, that is why MND and the Ministry of Health must come together to offer assisted living. It is not something that one Ministry can do. When you go for assisted living, you are not just buying a flat, but a package of care services tied to the assisted living flat. That is very important. It is not just the hardware, it is the flat plus the services combined as one package. Typically, in such assisted living apartments, there will be more communal and shared spaces for residents to interact with one another, there will be services that are part of the package and the individual living units will be a bit smaller. That is a typical typology of an assisted living apartment. As the assisted living model is new, we will conduct focus group discussions to seek views on the proposed concept for assisted living in public housing.”
“So, it is an effective way for those who wish to monetise and unlock the value of their flats for retirement. LBS is available for all elderly HDB flat owners. We understand that LBS may not be an option suitable for everyone. Some may wish to right-size and move to a 2-room flexi flat and so the options are available. Mr Saktiandi Supaat asked if MND can facilitate the sale of flats if seniors face difficulties, be it due to market sentiments or the Ethnic Integration Policy. We have discussed this before in this House, we recognise the concerns and HDB will continue to do its best to assist them, including by deferring key collection and giving them more time to sell. One issue with regard to the purchase of older HDB flats is CPF rules, specifically the restriction in CPF usage for flats with less than 60 years of lease remaining. Some banks also take reference from these CPF restrictions when assessing how much loan to extend. As a result, both the CPF and loan quantums may be reduced for the purchase of such flats. The CPF rule is intended to safeguard the retirement adequacy of buyers who purchase older flats, but its design has led to some unintended consequences. For example, if a buyer would like to buy a 39-year-old flat, they can use full CPF, but one year later, because you hit this "less than 60" years requirement, the amount of CPF will be restricted. There is no good reason why this should be so just because the flat became one year older. MND and the Ministry of Manpower (MOM) have been studying the issue. In fact, the focus should not be on the remaining lease of the flat. What we want to ensure is that buyers purchase flats with leases that are long enough to last them for life.”
“So, HDB will make available these partitions for all JSS units, in both existing and new rental blocks. Our third priority area is to better meet the needs of our elderly, especially with the rapidly ageing population in the coming years. Mr Saktiandi Supaat and Mr Alex Yam asked about the monetisation and housing options available for seniors. One scheme, of course, is the Lease Buyback Scheme (LBS). Earlier this year, we extended the LBS to 5-room and larger flats, and the response has been positive. In January and February alone, just within these two months, some 160 households from 5-room and larger flats have applied for LBS. And I agree with Mr Alex Yam that we have to do more to raise awareness of this scheme. And that is why my MND colleagues and I, over the past few months, have been going around, constituency by constituency, reaching out to grassroots leaders and residents to explain to them what are the schemes available. More seniors are aware of LBS and various monetisation options today, but we will continue to do more to raise public awareness. 11.45 pm One couple who have applied for LBS is Mr Mohamed Salleh and Mdm Normah. They opted for LBS for their 4-room flat, as they wanted to retain their flat to host their four children and 11 grandchildren when they visit. They prefer to keep their flat rather than move to a 2-room flexi. On top of that, they have been living in the estate for the past 32 years and are familiar with the surroundings. So, with LBS, after keeping 25 years of their lease and selling the remainder to HDB, they were able to top up their respective CPF Retirement Accounts, which means they get a payout of about $950 per month for life. On top of that, they received their LBS bonus and cash proceeds of $110,000.”
“We will support them in the transition. HDB will work closely with partners, including local service providers, to ensure a smooth handover of services provided for the tenants. We will provide details on the selected sites when we are ready. All this will take time. Meanwhile, as the Senior Parliamentary Secretary shared just now, we will continue to maintain and improve our existing rental flats. That is something which Mr Saktiandi Supaat and Miss Cheryl Chan also highlighted. Sometimes we have this misperception that rental flats are not eligible for upgrading, unlike sold flats. Let me be very clear that that is not true. All rental blocks older than 30 years have undergone upgrading programmes, such as the Main Upgrading Programme (MUP), Home Improvement Programme (HIP) and Lift Upgrading Programme (LUP). In fact, we do more with rental flats with specific improvement works that go beyond the scope of HIP, such as the installation of new tiles and new windows. We also provide Enhancement for Active Seniors (EASE) and repairs of spalling concrete and ceiling leaks for free. As the Senior Parliamentary Secretary shared just now, for some of the older blocks, we will do more to improve the ventilation and lighting along the corridors. Beyond looking at the designs of the blocks, we will also improve the design of the flat itself to better meet the needs of tenants. Singles in public rental flats currently share a 1-room rental flat under the Joint Singles Scheme (JSS). We recognise that some tenants prefer privacy. So, we have tried out partitions in some of these new rental flats to create separate sleeping areas for each tenant. The feedback from these tenants has been positive.”
“We will also broaden the scope of the grant. Currently, it is limited to 3-room new flats in non-mature estates. But some households may prefer to purchase a resale flat, as we just discussed. So, we will allow the SUHG to be used when households upgrade to 2-room or 3-room flats in non-mature estates, be it new or resale. So, it is really an expansion of the grant in terms of the people who can apply for it as well as extending the scope of the grant to resale flats. The expansion of SUHG is part of our broader efforts to help our rental families progress. We have seen some positive outcomes. As Members heard just now, the number of public rental households progressing to home ownership has almost doubled over the last five years from 700 to 1,300. With the above measures, we will try our best to help more public rental households achieve their aspirations of home ownership. Even as we do more on this front, we will also take care of those who continue to live in public rental flats and ensure they have a good living environment. As several Members highlighted yesterday, new rental blocks are better designed and also better integrated with the rest of the precinct. Now, we even have sold and rental flats within the same block, and on the same floor. But this is not the case for the older rental blocks. Some of these blocks were built 40 or 50 years ago to meet the housing needs of the post-war population, and there is a need for redevelopment of these rental blocks together with the rest of our housing stock. With redevelopment, we can move some of the tenants in the older rental blocks to newer flats where they can enjoy a better living environment. Relocation is not easy, especially for the elderly and those with young children.”
“Today, about one in four first-timer families buy a resale flat because the grants have been enhanced and people can see that between BTO and resale, many still want BTO, but resale is quite an attractive option now with the enhanced grants. So, we will continue to monitor the market closely and review the quantum of grants to ensure this right balance between BTO supply and resale flats. Overall, our priority here is to ensure that HDB flats remain affordable and accessible for Singaporeans. Our next priority is to support lower-income and vulnerable families, particularly those who are in public rental housing today. Several Members have asked if MND can do more to help these families own their own homes. We have been and will continue to do so because we believe that home ownership remains central in providing stability and progress for families. The Senior Parliamentary Secretary has shared several initiatives that we are doing, including the setting up of the Home ownership Support Team and the changes to the Fresh Start Housing Scheme. Even with these changes, Fresh Start remains a targeted scheme for a select group of families with young children. There are others in rental flats who do not qualify for Fresh Start but would still benefit from some help to purchase their own homes. Today we have a Step-Up CPF Housing Grant (SUHG) of $15,000, which is a specific scheme to help households who own 2-room flats in non-mature estates who wish to buy a larger 3-room flat. We will expand the Step-Up Grant to cover second-timer families in rental flats because we want to do more to help these families move back to home ownership. So, we will extend the grant to those who can benefit from it and are ready to purchase their own homes.”
“I thank Mr Yee Chia Hsing for his "sales pitch" to his residents to buy flats from the resale market. As he rightly noted, we cannot simply meet demand through new BTO flats entirely because there may be a risk of over-supply of such new flats. So, we always have to find the right balance between new flats and the resale market. That is why we have been enhancing the grants for resale flats significantly over the recent years. We have enhanced the CPF Housing Grant for first-timers, the Proximity Housing Grant for those who live near or with their parents. In total, grants of up to $120,000 are available for some families buying a resale flat. These grants could help subsidise almost half the price of their flat. One couple who chose to purchase a resale flat and benefited from these grant enhancements are Mr Sean Morier and Ms Shannon Tan. They purchased a 5-room resale flat in Simei last year to live together with Shannon's father, Mr Tan Choong Ngiak. So, they benefited from both the CPF Housing Grant and the Proximity Housing Grant, totalling about $70,000, a significant help for their purchase. As Members can see, the couple have five children, including a recent addition to the family. So, it is a big family and I am glad they also have a bigger home now to raise their family and to have closer intergenerational family bonding. With the enhanced grants, resale flats have become more attractive, and there are 5% more transactions in 2018 than the year before. To give an illustration, five years ago, one in 10 first-timer families bought a resale flat.”
“Based on our experience so far, applicants on these priority schemes generally have a good success rate. Last year, we launched the first batch of shorter waiting time flats, where the waiting time is reduced to two to three years by bringing forward the construction timeline. Mr Gan Thiam Poh also asked if we can do more. Indeed, we would like to do so and are doubling the number of shorter waiting time flats to 2,000 this year. As I have explained, there will be a limit to how many such flats we can offer due to factors like site availability. But we will continue to review how much more we can do and whether we can compress the timeline further. Those who need flats more urgently can go for the Sale of Balance Flats (SBF) or the Re-offer of Balance Flats (ROF). So, SBF and now we have ROF, where the flats that were not taken up under SBF goes into the ROF pool. Last month, I shared that we will be allowing flat buyers to book flats from an open ROF pool at any time of the year. This will start from June this year, and we will share the details of how to go about the application process in due course. This will help buyers with urgent housing needs to secure a flat quickly because they do not have to wait for the next sales exercise, and the ROF pool will be there for them anytime of the year. But as Mr Alex Yam cautioned, we have to also make sure that the process is fair for everyone. We are starting with a small number of ROF flats in this open pool. We will study the effectiveness and response to this new option and continue thereafter to improve HDB’s sales processes. Of course, besides buying new flats from HDB, there are also many options from the resale market.”
“Very often, potential buyers want to know the planned locations of future BTO sales exercises, not just the present one, so that they can decide whether to put in an application now or hold back and wait for a subsequent sales exercise. We have been careful about revealing too much information on future sales, not because we want to withhold the information but because there will always be unexpected changes to building plans, for example, due to changes in market conditions or demand. But I understand why buyers would like more information to plan ahead. So, we will now share upcoming BTO projects half a year in advance. This means that for the upcoming BTO exercise in May, we will share the list of BTO sites for both the August and November 2019 launches. I hope this change will help flat buyers make more informed choices on their application. We have also been studying ways to improve our BTO application processes. I spoke about this last year and I challenged HDB to shorten the balloting time. So, I am very happy to share that HDB has done a fundamental review of its processes and it has succeeded in reducing the time taken from six weeks to three weeks. This will take effect from the May 2019 BTO exercise onwards. Mr Gan Thiam Poh asked for more support for first-timers to live near their parents, and also for families with children. These are, indeed, groups that we look out for. So, HDB will continue to offer more 3Gen flats to facilitate intergenerational living. We also offer various priority schemes, like the Married Child Priority Scheme, Multi-Generation Priority Scheme, Parenthood Priority Scheme for first-timer parents, and Third Child Priority Scheme, a long list of priorities targeted at the groups that Mr Gan Thiam Poh mentioned.”
“Internationally, when they look at housing affordability, they would typically look at the servicing ratio of around 30% to 35%. So, we are keeping well below that, not to mention that the vast majority of these first-timers are able to service their loans entirely with their Central Provident Fund (CPF), that means, with zero cash. And even for those who use cash, the amount is very little. So, these are indicators which we track and our commitment is to ensure that HDB flats remain accessible and affordable for all young Singaporeans. As highlighted by Mr Alex Yam, we will continue to provide affordable housing options for different flat buyer profiles as well. We have flats of different sizes for first-timer and second-timer families and also 2-room flexi flats for singles and the elderly. We monitor the application rates closely to ensure sufficient supply. The application rates for singles are still high, as Er Dr Lee Bee Wah mentioned. But I would assure the Member that we are trying our best, and they have come down. When we started, application rates were about 38 times. Now, the application rates for singles are slightly over four times. So, we are determined to continue to bring it down and we will build more 2-room units to meet the demand. We are also very mindful of the needs of our vulnerable families, including divorcees and single parents, and Senior Parliamentary Secretary Sun Xueling has just shared how we will continue to help them. In short, we will strive to meet the housing needs of Singaporeans in different life stages. We will ensure that no Singaporean is left without adequate housing. For first-timer couples, applying for a BTO flat is a major decision. One consideration is the location of the flat.”
“Today, all first-timers applying for a BTO flat in a non-mature estate are successful within two to three tries. Mr Png Eng Huat highlighted the example of someone who had applied six times but was still unable to get the flat. I am sure for such cases, because I have seen some of them myself, they would have applied for BTO flats in mature estates or balance flats. I cannot stop people from trying these flats, that is, balance flats or flats in mature estates. But given the limited supply of these flats, and the limited space we have in these areas, we really cannot meet all of the demand. So, those who wish to try for a balance flat or a flat in a mature estate, will have to try their luck and hope for the best in the ballot. But if they go for a BTO flat in a non-mature estate, all of them are able to get it within two to three tries. In fact, the vast majority get it within two tries and 100% within three tries. We continue to price these BTO flats at significant discounts to market, and we offer generous grants of up to $80,000 for first-timers. 11.30 am The mortgage service ratio for first-timers in these non-mature estates is less than 25%. It is significantly below what it used to be in the past. I asked my parents who bought their HDB flat in the 1970s. They said that, indeed, at that time, when they bought their first HDB flat, it was about $25,000, which was about the price in the 1970s. But at that time, their combined income was less than a thousand dollars per month, just a few hundred dollars, and they had to fork out almost 50% of their income every month for mortgage servicing. Today, the mortgage servicing ratio is less than 25%, below what it used to be in the past, and it is also well within international benchmarks of affordability.”
“Why is it so much more expensive today, compared to in the past?" But remember, incomes have also risen considerably over this period. And we really have to look at a broader range of affordability indicators, not just a headline price. The Ministry of National Development (MND) monitors these indicators closely and we are committed to ensuring the affordability and accessibility of HDB flats. With your permission, Mr Chairman, may I display some slides on the LED screens?”
“Last year, we announced some significant long-term projects to rejuvenate our HDB flats and estates as they get older. They include initiatives like the Home Improvement Programme (HIP) 2 and Voluntary Early Redevelopment Scheme (VERS). These are major long-term undertakings and will need time to work out the details, taking feedback and suggestions, and we will provide an update when we are ready. Meanwhile, we are working hard to address several more immediate concerns. Today, I will focus on three key priorities. First, we will keep public housing affordable and accessible. Getting a home to settle down and start a family is a key milestone for many young couples. These aspirations are shared by couples all over the world. But in many other cities, they face big obstacles. I watched the Hong Kong documentary recently. It is called, "有楼万事足". One couple in their late 20s wanted to purchase a home but could not find something suitable within their budget. Private apartments are too expensive, and public housing options are limited. For every subsidised flat that is put out, there are close to 60 applicants vying for it. And the cheapest 3-room unit is S$440,000. That is double the price of a 3-room flat in Singapore which is also larger in size. Flats in Singapore are larger in size and much cheaper. Not to mention that our application rates are also far lower. Housing is a major challenge in Hong Kong. And it is so in virtually all cities around the world. But in Singapore, young couples can realise their dreams of owning their own homes. Of course, from time to time, you would hear comments where people say "Don't compare to other cities. How about the price of HDB flats today compared with that in the 1970s and 1980s?”
“Mr Chairman, we are commemorating the bicentennial this year because the arrival of the British marked the major turning point in our history. The British also put in place our first town plans. They provided some basis to guide our urban development. But these plans were limited in scope and were unable to address our growing housing and employment needs. And that is why after Independence, we established our own long-term urban plans for the whole of Singapore. And we have been updating these plans over the years to guide our development. Each time, it gets more comprehensive in order to meet our growing needs and now, we have even started planning for underground spaces. The Urban Redevelopment Authority (URA) will launch the Draft Master Plan 2019 exhibition later this month and we look forward to public feedback and inputs on these plans. Our ability to do such detailed long-term planning is a major asset which few other countries or cities are able to do. And that is why, every year, we host thousands of visitors at the Singapore City Gallery in the URA building because they are keen to come and learn from us. Beyond planning, implementation is also important and that is why we are doing more to coordinate the implementation of new infrastructure, especially transport infrastructure, which takes time to build. And that is something which Mr Png Eng Huat highlighted earlier. So, we have good planning, long-term planning, and with effective implementation, we can continue to build a better city for Singaporeans, both now and in the future. Let me start with what we are doing for our HDB estates, because this is where many Singaporeans live and we want to ensure a first-class living environment for everyone.”
“Former school sites and other Government buildings that are no longer needed to serve their original purposes will be returned to the State for interim uses that are compatible with the surrounding uses until the land is required for other longer-term developments. The site next to 202 Marsiling Drive was only recently vacated in end 2018, while the other two sites next to 149 Woodlands Street 13 and 215 Woodlands Lane were returned to the state in 2017. The Urban Redevelopment Authority (URA) is working with other Government agencies to explore suitable interim uses for these sites. Agencies are also reviewing the longer-term development plans for the area, including all three sites. They will be reflected in URA's Draft Master Plan 2019 for the area, which will be exhibited to seek public comments soon.”
“Mr Chairman, actually I believe we had answered a Parliamentary Question on this some time back. I have not looked at the latest data, but at the time of that question, when we looked at the figures, the utilisation rate was, indeed, in line with projections as of that time. But these things can change. We make assumptions on these projections and so we will continue to monitor the utilisation, the assumptions that we have used and whether they are still relevant, and we will continue to do so.”
“Mr Chairman, I have to confirm. But I do not believe it has fully accounted for the effects that the Member has described. So, the Member is right. We do need to do more detailed studies and we will engage in this.”
“Mr Chairman, I can confirm to Mr Ang Hin Kee that it is not just a sense. I do share and understand what the drivers have to go through. That is why MOF works very closely with the private hire car drivers and the taxi drivers earlier on when we amended the Income Tax Act to allow for deductions and for it to be done on a deemed expense basis. So, as I have said, there are many ways in which we can look at this. Not all of the levers are with the Government. Taxi companies and operators can do their part, too, as Mr Ang Hin Kee has suggested. So, the Government will continue to work with the companies, the associations and the unions to see how best we can help our drivers who are impacted.”
“Cat-related nuisance feedback in Housing and Development Board (HDB) estates is tracked by individual Town Councils. The Agri-food and Veterinary Authority (AVA), in its role as First Responder for animal-related feedback, receives cat-related nuisance feedback from across Singapore. The AVA started tracking such cat-related feedback from 2016. Stray cat-related nuisance feedback across Singapore increased from around 2,300 cases in 2016 to 3,600 cases in 2018. Pet cat-related nuisance feedback increased from around 500 cases in 2016 to 900 cases in 2018. Cat nuisance feedback in Chong Pang constituency has remained relatively constant over the same period.”
“Mr Speaker, the Government sells residential land to private residential developers through the Government Land Sales Programme. For public housing developments, state land is sold to the Housing and Development Board (HDB) at the market value assessed by the Chief Valuer. The valuation is done in accordance with market conditions and established valuation principles. Land for public housing has a lower valuation, compared to land zoned for private housing. Excluding the Core Central Region, the average price of land paid for private housing developments bought through the Government Land Sales Programme between 2015 and 2018 was about $7,000 per square metre (psm). In the same period, HDB paid an average of about $2,000 psm for land for public housing in mature estates.”
“The National Parks Board (NParks) works with its stakeholders and the community to promote the safe and orderly use of park connectors (PCs). First, NParks implements safety measures, such as installing additional lighting, speed regulating strips, and advisory signs at high usage parks and PCs. In 2018 alone, NParks installed over 2,000 advisory signs. Second, NParks conducts outreach programmes to raise awareness on PC etiquette, including the need for users to keep left and give way to others. For example, NParks and its volunteers produced and released the "PMDs in Our Parks" video on social media in May 2018. Third, NParks and the Land Transport Authority conduct joint enforcement efforts against errant Personal Mobility Device users, such as those who exceed the speed limits or ride recklessly. In 2018, 56 enforcement exercises were conducted at popular parks and PCs.”
“Mr Speaker, so long as the flat owner, regardless of whether they are new, first-timers or existing flat owners, when they would like to make a purchase of a new flat, the downpayment is an indication of commitment and an indication that the person is seriously making a commitment to purchase a flat because if they were to simply put in a free option and then renege on that option later on, they are, in fact, depriving other potential flat buyers from purchasing that flat. It will be an opportunity cost. So, we do want a downpayment policy and we want potential flat buyers to take the purchase of their flat seriously. As I mentioned earlier, we do have the SDS to help both young couples, as well as flat owners of all ages who are rightsizing. So, those are specific instances where we allow for staggered downpayment and, if there are other flat buyers who have difficulties, they can approach HDB and we can help them on a case-by-case basis.”
“Zero downpayment for all purchases of all HDB flats?”
“So, the Member is asking whether we need a downpayment to begin with?”
“Mr Speaker, I am afraid I have lost the Member. Was the Member asking a specific question again?”
“Mr Speaker, the Housing and Development Board (HDB) requires new flat buyers to pay a downpayment of 10% or 20% of the flat price when they sign the Agreement for Lease within four months of booking a flat, to ensure that applicants are financially ready to commit to the flat purchase. The balance flat price is then payable when they collect the keys. Deferred downpayment is a specific scheme for seniors and it is meant to facilitate the right-sizing process. Specifically, elderly flat owners aged 55 and above who are buying an uncompleted 2-room flexi or 3-room flat from HDB may apply for this Deferred Downpayment Scheme. So, it is really meant for seniors to facilitate rightsizing. Separately, HDB also has a Staggered Downpayment Scheme (SDS) where flat buyers are required to pay half of the downpayment when they sign the Agreement for Lease and pay the other half together with the balance purchase price at key collection. This SDS is available to first-timer young couples below the age of 30. They can qualify for such a scheme when they buy any flat type from HDB, including 4-room and 5-room flat types. SDS is also available to flat owners who are rightsizing to a 2-room flexi or a 3-room flat in non-mature estates, regardless of the age of the flat owner. Home seekers should continue to exercise financial prudence and buy a flat within their means. And for those who face difficulties with their downpayment, HDB can provide assistance on a case-by-case basis.”
“Mr Speaker, there are basically two broad categories of cases where they would not be able to get the third housing loan when they apply for such a loan from HDB. The first would be cases where they, in fact, can get a loan from the bank. HDB would then ask them to take a commercial loan because they are, in fact, eligible. The second would be the one that Mr Ong Teng Koon has referred to. They cannot get commercial loans from the bank and they are asking for a third HDB loan. And in most of these cases, the reason why HDB rejects or is unable to approve is because they are unable to service the loan to begin with. So, there is an issue of them having difficulty with incomes and the ability to service the loan is in question. So, rather than having them overstretch themselves, it is more prudent for them to build up their savings, steady their incomes and then they can consider applying for an HDB loan at a subsequent stage.”
“Mr Speaker, the Housing and Development Board (HDB) provides up to two housing loans at concessionary interest rate to eligible Singapore Citizen households. This is generally sufficient to meet the lifecycle needs of each flat buyer. Flat buyers also have the option of taking a bank loan. Nevertheless, HDB has extended a third housing loan upon careful consideration of the merits of each specific case, particularly for those with urgent need of housing but are unable to secure commercial financing options. These households must have sufficient savings and steady incomes to service the HDB loan. Last year, HDB received around 4,500 such appeals, and assisted about 20% of the appeals or about 900 households. HDB will continue to evaluate such appeals and extend flexibility where necessary.”
“The Urban Redevelopment Authority's (URA's) Property Price Index (PPI) captures all private housing transactions, including new sales of units sold by developers, resales and sub-sales; the Housing and Development Board's (HDB's) Resale Price Index (RPI) captures all HDB resale flat transactions. Insofar as there are underlying factors that affect both the public and private property markets, the two indices would tend to move together. But there have been instances of divergence in the PPI and RPI price trends. This has happened in the past, and more recently between the second quarter of 2017 and the third quarter of 2018. The recent divergence was largely due to euphoric sentiments in the private property market. This resulted in a sharp increase in private property prices over a very short duration. This was not sustainable as prices were increasing well ahead of fundamentals. Hence, the Government had moved to introduce the last round of cooling measures in July last year. The Government will continue to monitor both the public and private property markets and ensure they are stable and sustainable.”
“There is no need for seniors who take up the Lease Buyback Scheme (LBS) to refund the Central Provident Fund (CPF) monies they had used to purchase the flat. Instead, the LBS proceeds are first used to meet a basic level of CPF Retirement Account savings. Any remaining amount can then be taken out in cash. This ensures that seniors are able to benefit from a lifelong income stream under CPF LIFE. Most seniors who take up LBS are able to meet this CPF top-up requirement and still receive some of their LBS proceeds in cash. On top of this, they also receive the LBS bonus in cash. The Housing and Development Board (HDB) conducts personalised face-to-face counselling sessions for seniors who are interested in LBS or other housing monetisation options. Seniors are encouraged to make an appointment with their HDB Branch to find out more, so that they can make an informed decision about which option is best for their specific needs and circumstances.”
“Since the app was launched on 1 October 2017, more than 550,000 unique vehicles and more than 60% of cars have used Parking.sg1. Motorists have initiated over 15 million parking sessions. The number of parking coupons sold, at 50,000 booklets in December 2018, is less than one-third of the 180,000 booklets a month when the app was launched. At the same time, the number of parking sessions motorists initiated on Parking.sg has more than tripled, from 300,000 at launch to more than 1.1 million a month at present. Drivers can pay for their parking sessions with their credit and debit cards. The team will continue to take in user feedback and improve the app. To raise the awareness of the app, Government agencies have distributed flyers at locations frequented by motorists and advertised on social media.”
“From 2016 to 2018, there were a total of 10 fires that involved external kitchen exhaust ducts installed in Housing and Development Board (HDB) commercial premises. Operators of food establishments are required to comply with the National Environment Agency's (NEA's) Environmental Public Health (Food Hygiene) Regulations and the Singapore Civil Defence Force's (SCDF's) Fire Code, both of which include requirements for operators to clean and maintain the exhaust systems. NEA and SCDF carry out inspections and will take action against cases of non-compliance. HDB issues annual advisories to all operators, advising them to carry out regular maintenance of their exhaust systems to comply with NEA and SCDF's requirements. Since October 2016, HDB has also required operators to submit their maintenance records at each tenancy renewal or transfer of property. Should operators fail to produce their maintenance records, HDB will withhold lease transfers and tenancy renewals. So far, operators have complied with this requirement, and HDB has not had to hold back the processing of any transfers or renewals.”
“Two-room flexi flats were first offered for sale in November 2015. From 1 November 2015 to 31 December 2018, a total of 18,572 singles had applied and were invited to select a 2-room flexi flat under the Housing and Development Board's Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises.1 A breakdown of this figure by gender and income is provided in Table 1 below.”
“From January 2015 to December 2018, about 13,000 second-timers have booked a Build-To-Order (BTO) flat. About 2,600, 2,600 and 3,400 second-timer buyers will be invited to collect keys to their BTO flats in 2019, 2020 and 2021 respectively.”
“Buildings in Singapore have to be designed according to the relevant building codes. Buildings are generally designed to withstand a maximum wind gust speed of up to 143 kilometres per hour. This is more than sufficient to cater to the wind gust speeds locally. Singapore is not located in an earthquake zone. The nearest earthquake fault zone is located in Sumatra, more than 400 kilometres away. Over such a long distance, the seismic waves would have dissipated and lost most of their energy. Nevertheless, our buildings are designed to be sufficiently robust to withstand forces generated by distant earthquakes. For example, while tremors from the magnitude 9 earthquake in Aceh in 2004 could be felt in Singapore, there were no reports of structural damage to our buildings.”
“Mr Speaker, that is correct. We have a robust and transparent process for the purchase of land and also for construction. Essentially, HDB, as a developer, is treated like any other developer with regard to land sales. And as Mr Leon Perera and other Members would appreciate, land sales are governed under the Constitutional rules for the protection of Reserves. So, the sale of land is benchmarked at a price set by the Chief Valuer, and land proceeds go on to past Reserves and we use a share of that through the Net Investment Return contributions that come to the Budget every year. On the construction side, HDB will put up a tender and the tender will set the basis for the construction cost.”
“Mr Speaker, the cost of building Housing and Development Board (HDB) flats includes the cost of land, construction, consultancy fees, financing and other project-related costs. The proportion of land and construction cost for individual projects will vary from project to project, depending on specific site, design and market conditions, as well as other factors affecting land and construction cost. For projects that were awarded in 2016 and 2017, the land cost was about 60% of total development cost, and this percentage was about the same across 3-, 4- and 5-room flat types. In general, HDB's total development cost cannot be fully covered from the sale price of the flats. This is because the pricing of new HDB flats is guided by our objective of keeping public housing affordable. That is why in the last three years, from financial year (FY) 2015 to FY2017, HDB incurred an average annual deficit of about $1.14 billion per year for its Home Ownership Programme.”
“Mr Speaker, in the event of a demise of an applicant, if the remaining applicant wishes to purchase the flat and is able to meet the eligibility conditions, certainly we will facilitate that transaction. And if in the event the eligibility conditions are not met and the applicant chooses not to proceed, we will certainly be prepared to consider waiver of the forfeiture.”
“Mr Speaker, I have mentioned earlier our first way of addressing these appeals is to give them more time and, very often, we find that by giving more time to complete the transaction of the new flat and to sell the existing flat, they are able to proceed. But if even after more time is given, they are still unable to proceed and they wish to not proceed with the transaction of the new flat, they decide that it is better for them to just stay with their existing flat, they do not want to sell, then I suggest that they approach HDB and we will look at their particular case and, if indeed there are genuine difficulties with proceeding with the transaction, we will consider whether or not the forfeiture may be waived.”
“Mr Speaker, the flats are all put back to the Sale of Balance Flats. So, they are all eventually sold through the SBF exercise. As for why 5% and whether there are other mechanisms, at the end of the day, as I have said, we need a mechanism that ensures buyers consider very carefully the flat purchase. This is a major commitment; a major commitment for the flat buyer as a couple or as a single, and it is a major financial commitment as well. So, we want to have that in place to ensure that buyers take it very seriously and are also mindful that, when they make a flat purchase, it is a commitment on their part. If they were to apply and unwind it later, they are, in fact, depriving others who may want the flat more urgently. So, it is not so much a loss on the Government but, in fact, they are depriving others of an opportunity to get a flat. So, we want that mechanism in place. But, as I have said, we do exercise flexibility and if there are individual cases that for some reason or another decide not to proceed with the application, they can put up the case and we will look at it on a case-by-case basis.”