Mah Bow Tan
Singapore
“The previous generation of Singaporeans overcame huge odds together to create this improbable nation which we call home. Let this generation work as one to define our country for the next lap of our journey. Sir, on this note, I fully support the amended Motion. Page: 143”
“Like all upgrading programmes, there is a certain budget, and a certain pace at which we will build. We have completed the LUP and now we are going on towards the HIP. The Estate Upgrading Programme (EUP) is ongoing.”
“For those who cannot afford home ownership, we will provide rental flats. For the rest where there is hardship involved, that is where the safety net comes in. I do not think we should make the safety net so wide as to bring in everybody.”
“Building a studio apartment is no different from building any other HDB flat. If a person applies now and the building works start now, he can get it in two-and-a-half years to three years. We have stepped up the building of studio apartments over the last couple of years.”
“Mdm Halimah Yacob asked the Minister for Health (a) how many people have signed an Advance Medical Directive (AMD) and how many have revoked them since; and (b) whether there is a need to review the current rules on AMDs which do not require a person who has revoked the AMD to inform the Registrar, thus causing uncertainty for hospitals t…”
“Parents who wish to exert more control over the maximum mobile service charges incurred by their children may consider service options such as mobile pre-paid cards. IDA is aware of the public's concerns on mobile subscriptions, and will continually review policies and look into measures to further protect the interest of consumers.”
The complete record
Every one of 3,030 lines we hold for Mah Bow Tan, in date order, each linked to its source. Free to read, in full, without an account. Page 17 of 61.
“Mr Steve Chia Kiah Hong asked the Minister for National Development (a) what is the detailed cost breakdown of the announced upgrading plans for the Tampines, East Coast, Aljunied, Sembawang and Pasir-Ris Punggol Group Representation Constituencies as announced recently through the media; (b) what is the estimated co-sharing cost that residents are expected to pay; and (c) what is the cost that residents have had to pay for the lift upgrading programme that has been completed to date.”
“According to the Housing Mobility study by the Department of Statistics, 62% of households who moved house between 1995 and 2005 shifted to bigger housing, 20% moved laterally and 18% shifted to smaller housing. Of those who upgraded to bigger HDB flats, the majority (61%) did so between 1995 and 1999, compared to 39% between 2000 and 2005. As for those who moved to smaller flats, about half moved between 1995 and 1999, and the other half did so between 2000 and 2005. It is not clear from DOS’ data whether there is a correlation between housing mobility and residential property price indices and unemployment rates. Among both upgraders and downgraders, there were higher proportions who moved house between 1997 and 2001. This is the period following the Asian Financial Crisis, which saw a slowdown in Singapore’s economy and decline in residential property prices. On the other hand, the proportion of households who upgraded to bigger flats over the last two years in 2004 and 2005 was small, despite improvement in our economic and employment conditions. Hence, besides property prices and unemployment rates, there could be other factors such as market sentiments and financial prudence, which affect the housing decisions of HDB flat buyers. UPGRADING PLANS AT GROUP REPRESENTATION CONSTITUENCIES (Cost breakdown) 28.”
“As these structural modifications are an integral part of the LUP works, their costs should be included in the cost-sharing computation for the LUP. I would like to reiterate that Government is heavily subsidising the LUP. Residents’ share of the cost is between 5% and 12.5% only, depending on their flat type, and the maximum co-payment is capped at $3,000.”
“Sir, the slaughter houses are, obviously, one very critical part of the production chain. This is the reason why we maintain a very strict vigilance on the bio-security of the slaughter houses and also on the training and hygiene protocols for slaughter house workers. So, if necessary, they will be vaccinated; they will be trained on how to properly handle carcases as they come in, and how to properly do the slaughtering. In any case, if there is an outbreak of the HPAI bird flu and any of them are infected, they will be covered by the relevant insurance plans, including workmen's compensation. LIFT UPGRADING PROGRAMME (Exclusion of cost of structural works from cost-sharing computations) 7. Mr Leong Horn Kee asked the Minister for National Development whether the component cost involving structural works such as the provision of lift landings in void areas and access floors and staircases to lifts, should be excluded from the cost-sharing computations for future Lift Upgrading Programmes (LUP) where the residents have to bear a part of the LUP costs. The Parliamentary Secretary to the Minister for National Development (Dr Mohamad Maliki Bin Osman) (for the Minister for National Development): Sir, the Lift Upgrading Programme (LUP) provides residents who live on floors that do not have lift landings with direct lift access. Under the LUP, HDB will either create new lift openings from existing lifts and lift shafts, or add new lifts and lifts shafts to the existing block. The LUP works often involve modifications to the existing lift shaft and the adjacent structural components, such as the parapet walls and floor slabs. Depending on the block configuration, new landing bridges may be constructed to connect the lift and lift shaft to the existing corridors.”
“Sir, with regard to the specific issue of dead birds, as I explained in my answer, if anybody sees a dead bird or is aware of such a situation, please get in touch with NEA. There is an established protocol/agreement between AVA and NEA that as far as disposal of dead birds is concerned, NEA will be in charge. There are no "ifs" and "buts" about it. It is very clear. However, if somebody is not sure and calls up AVA or some people may even call up the police or whatever, there is also an established protocol to direct such calls to the relevant agency concerned, in this case, the NEA. As far as nation-wide publicity campaign is concerned, I think the Member may be aware that we have an inter-Ministry Committee on Avian Flu, which is chaired by the Deputy Prime Minister, Mr Wong Kan Seng. All the relevant Ministries are represented in this Committee - MND/AVA, MOH, MICA, etc. The Committee is now in the process of preparing a publicity programme which will keep Singaporeans informed of avian flu - what are the dangers involved, what are the threat situations, how is the Government going to respond, and how should citizens respond in such a situation. We have not had a bird flu outbreak in Singapore, but I do not think we can ever discount the fact that such an outbreak will happen in Singapore. So it is important for us to be prepared, not just at the Government level but also at the level of the households, at the industry level, at the level of the importers, and so on. Such a contingency plan is being prepared and relevant publicity will be disseminated in the very near future.”
“As for dead birds found in public places, the public should contact NEA for assistance if they have any doubts about how to dispose of them. AVA is ready to implement emergency vaccination of poultry in our local farms when there is an imminent threat of avian flu incursion into Singapore, such as when there are rampant outbreaks in areas of close proximity to Singapore, or when there is an imminent threat of a human flu pandemic. Sir, as the avian flu has become endemic in this region, we need to remain highly vigilant. AVA will continually review the situation and implement further measures when necessary to mitigate the risks of a bird flu incursion into Singapore.”
“Mr Speaker, Sir, AVA has been in close touch with its Malaysian counterpart, the Department of Veterinary Services (DVS), regarding the avian flu outbreaks in Selangor, Perak and Penang. DVS had taken swift and firm actions to contain the outbreaks and to prevent the other Malaysian states from being affected. Both AVA and DVS are working closely together to strictly enforce the various mutually agreed control measures to ensure that poultry and eggs imported from Malaysia into Singapore are free from bird flu, and safe for consumption. AVA will only allow imports of poultry and eggs from the accredited disease free zones in Malaysia. It will continue to be vigilant and inspect every poultry consignment from these disease free zones at the border. It has stepped up the sampling and testing of imported poultry and eggs to detect any presence of the HPAI virus. AVA is also working with the ICA and Police to curb any smuggling of birds and avian products. At our local poultry slaughterhouses and farms, AVA has also intensified inspection and surveillance. Strict bio-security has been mandated as a licensing condition for farms to continue their operations. In addition, AVA is now working with farms to implement bio-segregation to minimise inter-farm contact. This will prevent any spread of infectious agents between the farms. AVA, NParks and NEA have also stepped up surveillance of wild birds in nature reserves and also stepped up surveillance of urban pest birds. Birds at the Bird Park, Sentosa and Botanic Gardens have been vaccinated. The public should continue to keep their pet birds and poultry caged, and observe personal hygiene after handling birds.”
“If Members wish to develop a point, I suggest that it is best that they allow themselves a little bit more time. It is better to make a few good speeches than to make 18 incomplete ones. I am sure, Sir, that you will be sympathetic, and that you will allow Members to finish their short speeches, even when their time is up, provided they do not drag on for too long. On this note, Sir, may I thank you once again and, through you, your Deputies and the Parliamentary Secretariat staff, especially the Clerks, Simultaneous Interpreters, the Hansard team reporters and the Librarians, for their support, assistance and cooperation.”
“Mr Speaker, Sir, on behalf of hon. Members, I would like to thank you and your Deputies for chairing the Budget debate and also the Committee of Supply. We have had nine days of very extensive debate, and we have been sitting close to seven hours each day, although less in some days. This is actually one full day less than we sat last year. But I believe that both the breadth and the depth of debate this year have not been compromised. The number of cuts this year has been more or less the same as last year. We have 363 cuts this year and 362 last year. The number of Members who spoke last year and this year is also more or less the same. Sir, this is the second year of the Committee of Supply debate where we are following this new system. I would like to share some observations with Members. First of all, as I said earlier, the debate has covered a lot of ground, and it has proceeded at a fairly steady clip, thanks, of course, to your firm and impartial exercise of the guillotine. There have been more opportunities for clarification and debate, although some Members' clarifications sounded suspiciously like speeches. But I feel that Members need to finetune their time management skills. For example, some Members underestimated the time that they thought that they would need, as a result of which, they rushed through their speeches at machine-gun speed and left us all far behind, or they risked the ignominy of being cut off in mid-sentence. So, I would advise Members who make one-minute cuts or, worse still, half-a-minute cuts - and there were a few who did that - to please get straight to the point so that they do not suffer the knife. But, better still, save your time and raise your Questions for Oral Answer instead.”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2006/2007, and ask leave to sit again tomorrow.”
“Mr Chairman, Sir, may I seek your consent and the general assent of hon. Members present to move that progress be reported now and leave be asked to sit again tomorrow?”
“I take it that that was Prof. Ivan Png's clarification on my speech earlier and so maybe I should respond. I will add on to what my Parliamentary Secretary has said. First of all, we have to remember that Marina Bay is actually a reservoir. So when you talk about boat-building, maritime museum and so on, we have to bear in mind that as a reservoir, access to the open sea would be restricted. Although there will be provisions made with a boat-lift to allow small yachts to come in, the big boats will have difficulty traversing from Marina Bay into the open sea. That is the first point that needs to be considered. The second point is that when you talk about boat-building, etc, again coming back to the point that Marina Bay is a reservoir, the impact on the quality of the water will have to be considered. In fact, if the Member will recall, there actually were boat-building activities in the Kallang area. In the Tanjong Rhu area there were boat-yards and shipyards all along that area before URA changed it into a residential area. So I think the idea of having boat-building in the Marina Bay area is probably something that is no longer relevant. But, having said that, as my Parliamentary Secretary said earlier, all sorts of suggestions have come in, including I must say the idea of a maritime museum and, obviously, the commercial as well as the technical feasibilities will have to be undertaken.”
“Landscaped open spaces will be the hallmark and the distinguishing feature of developments at the Marina Bay area. Finally, let me talk about the Bay itself. The Bay itself is the centrepiece for our celebrations at the Bay. Some architects I talked to have likened it to, what they call, a piazza, in many traditional European cities. But in our context, I believe it is more like a Padang, except that instead of grass, it will have water. Just as we enjoy sports like football, rugby, cricket, and so on, on the Padang, we can have water sports on the water Padang. URA has worked with partner agencies like the PUB, STB, SSC, to develop activities for the Greater Marina Bay area by way of an activities masterplan. We have already organised some notable activities in Marina Bay area. Last year, we held the F1 Powerboat Championships and the Marina Bay New Year Eve Countdown, and some of these activities are shown in picture 5 of the handout. With the city skyline as the backdrop, the Bay and its waterfront can be a one-of-a-kind venue for major events in Singapore, truly a Bay of Celebration. Sir, distinctive architecture, well-integrated landscaping in buildings and public spaces; internationally renowned Gardens; varied public attractions; tasteful lighting; exciting water-based activities and events - all these can contribute to making Marina Bay and Singapore unique and special. If we couple this with sound land-use planning, we can take Singapore even closer towards our vision of a vibrant global city.”
“If I may refer Members to picture 3, this lighting plan serves to enhance Singapore's city skyline by highlighting various unique architectural features of prominent buildings, as well as the greenery and the waterscape. And the lights from the pedestrian bridge, as well as developments around the Bay, can bring out the beauty of the city at night, and create a whole new image for Singapore. In fact, we can create different images for different times of the year in the same way that other cities are able to celebrate different moods through different seasons. We too can celebrate different times of the year by celebrating different festivals, and through the lighting effect create such a difference in mood. So URA will have to look into measures to persuade owners to provide such lighting. More details will be announced later. Another major attraction that will be developed at Marina Bay is the Gardens-by-the-Bay. Please refer to picture 4 where there are certain artists' impressions of the various gardens around the Bay. NParks has already launched an international design competition to try and bring in the best designers from all over the world to give us the concepts and designs for the three waterfront gardens. Each of the gardens will feature a design and a character of its own. And when these three gardens are completed and surround the Bay, they will help us to achieve our vision of a City-in-a-Garden. To further our greening efforts at Marina Bay, a Lanscape Masterplan has been drawn up to guide the planting of trees and shrubs along the key streets and boulevards and within the public open spaces in the Bay area. URA will also encourage all new developments in the area to provide sky terraces, viewing decks and roof gardens.”
“URA staged an International Design Consultancy Competition to secure the best possible design for this bridge, and it attracted many proposals, both local and international. We have selected the design, it is very spectacular, very unique and very distinctive. If you refer to picture 2, I think you will be able to see what I mean. The pedestrian component of the bridge, there will be a vehicle component as well to the left of that, but the pedestrian component alone will be of a unique design. In fact, it is a world-first because it will resemble the structure of a DNA, the bridge featuring a double helix steel structure, symbolising "life and continuity", "renewal" and "growth". At night, the bridge can be lit to bring out the beauty of the double helix structure and it can also be programmed with different colours to create different moods for different occasions. The new pedestrian connection at Bayfront will be more than a bridge. There will be art works that will be integrated into the design to provide a unique crossing experience, and we are inviting some of our young artists, together with our other prominent local artists, to create the artwork. The completion of this iconic bridge in 2009 will add to the exciting developments in Marina Bay. It will be functional and yet aesthetic. It will complete the loop around the Bay area, and it promises to be another unique attraction in Singapore. The new bridge will not be the only structure that will be lit up at night. URA has developed a lighting master plan to guide new developments and existing buildings within the CBD and the Marina Bay.”
“] One development that is going to make a major impact on Singapore's financial landscape and the city's skyline is the Business and Financial Centre (BFC). If I may refer Members to picture 1, the BFC is one of the buildings that would be surrounding the Bay, together with the Integrated Resort and the new bridge, which I will talk about later. The BFC is positioned as the new financial hub of Singapore because it will contain state-of-the-art office, residential and retail space. It will meet new needs and it will also enliven the Bay. The tender for the BFC site was awarded last year. I understand that planning for the buildings is now at the design stage, and completion is expected before 2010. On the Integrated Resort, the tender is also expected to be awarded by the middle of this year. I look forward to receiving strong proposals that will differentiate the Singapore Marina Bay IR from any other IRs in the world. To support the new developments at the Marina Bay, the URA, as the Development Agent for the area, is now coordinating the infrastructure, implementation of the infrastructure for the area, like the Common Services Tunnel, the road, rail network and also the electrical substations. In addition to this, a new vehicular and pedestrian bridge will be built this year to link the Bayfront area in Marina South to Marina Centre, in other words, to link that part of the land where the IR is going to be situated with the Marina Centre area where the hotels are - Marina Mandarin, Ritz-Carlton, and so on. The pedestrian component of the bridge will complete the walking loop around Marina Bay and link up the necklace of public spaces and attractions around the Bay.”
“This is part of a series which will showcase some of the most significant developments and buildings in Singapore, showcase the people behind them, the history, the meaning of all these urban spaces and designs. 12.15 pm The third area of focus would be to focus development on strategic areas in Singapore, that will create new competitive advantage for us. I am talking about Orchard Road, which is one of the world's premier shopping streets and which brings in tourists as well as locals alike. I am talking about the Bugis and Bras Basah area, our arts and civic area, which is also going to become our educational hub. And finally, the greater Marina Bay area, which will be home to financial centres, the Integrated Resorts, and so on. Let me talk a little bit about the vision for Marina Bay. Marina Bay is fast taking shape. The future of Marina Bay is an exciting one. Last New Year's Eve, 200,000 Singaporeans gathered around the Bay to witness and to celebrate New Year's Eve Countdown. They saw the spectacular fireworks and they saw the lighting displays, and I think they were very excited, not just by the event itself, but by what that event can become, and I hope that one day, that celebration will be seen, not just by thousands of Singaporeans, but also by many millions all around the world "live" on New Year's Eve. There are many new developments that are coming up around the Bay. As they say, a picture is worth a thousand words, so I have prepared a pamphlet that will give Members a better idea of some of these developments. If I may ask the Clerk to please assist to distribute the folders. [Copies of pamphlet distributed to hon. Members.”
“The Prime Minister, at last year's National Day Rally speech, painted this vision of Singapore as a very distinctive global city, with beautiful residential towns, thriving communities in the heartlands, and exciting events that will enliven the city. That is the first area that we will focus on - a more flexible land use planning approach. The second area that we will focus on is to make Singaporeans proud of our city. Last year, we had a seminar and some prominent Singaporeans were invited to speak at the seminar. One of them said that we must make Singaporeans love our city, and for that the city must love us back. I think "love" may not be the right word to use in this context. But I think we must make Singaporeans proud of our city. How? Deepen their rootedness; foster a spirit of creativity; foster a sense of celebration among our people through better use of urban spaces, preserving some of the memories that we hold dear. And this is where URA can play a part. They can actively promote architecture and urban design excellence to encourage distinctive buildings and public places. URA is making a concerted effort in this direction and it has started to hold exhibitions to showcase good local as well as overseas architecture, working with DesignSingapore Council on the President's Award for Architecture and Urban Design Excellence, and promoting Singapore's urban design and architecture by participating in overseas exhibitions such as the Biennale and through the mass media. I do not know whether Members here managed to catch CNA broadcast last night. It was called "City Lights", and it featured a selection of significant buildings in Singapore's central area.”
“I think this is one of the strengths of Singapore. While Dr Amy Khor may cite complaints of our top-down planning being a burden, it is, I submit, a strength that has allowed us to make better use of the limited space that we have. So, when you talk about Changi Airport - although Changi Airport was completed in the 80s - the land for Changi Airport was actually set aside many years before that. When we finally decided that the time was ripe for us to move the airport from Paya Lebar to Changi, the land was already available. You compare that with other situations in other major cities. Every time they try to shift an airport to a new place, they have got to fight with the farmers, like they did in Tokyo. They have got to fight with the residents, like they are doing in Sydney or many other big cities. And they simply cannot move, and airports which are urgently needed infrastructure take years and years to develop. So we have to bear these considerations in mind. It is not just a top-down approach that we need but it is, I think, a consultative approach that we would need, with industry players and the population, and this is the kind of approach that we have taken in reviewing the Concept Plan and the Master Plan. But one of the things that I would like to emphasise is that whatever it is, whichever approach we take, and we will take whatever approach is necessary, in land use planning, we must bear in mind that this is our home - that this is a home that is dear to us, this is a home that is beautiful, that has character, life and memories which we want to keep.”
“The first is to touch on what Dr Amy Khor mentioned, and that is land use planning. How do we provide for greater flexibility in our land use planning to meet very diverse and rapidly changing needs? Sir, we know that the Urban Redevelopment Authority (URA) has got a comprehensive Concept Plan which is updated every 10 years, and then, in the interim, there is a Master Plan which is updated every five years. These regular reviews of the plans ensure that the plans will always remain relevant to our needs and the changing aspirations of our people. In recent years, we have introduced the White Zones, the Business-White Zones, other schemes such as the Warehouse Retail Scheme, the Home Office Scheme, and so on. As a result of all these schemes, I think businesses and entrepreneurs now find that they are able to make better use of the facilities and infrastructure that they have. But, having said that, I think we also have a responsibility to maintain a certain orderliness and a certain quality of the living environment that people have come to expect. We need to provide a little bit of certainty to businesses and home-owners, so that when somebody buys a home in the neighbourhood, he does not find suddenly that next to him there is a factory or a childcare centre, a place of worship or a shopping mall. There is a need to balance between flexibility on the one hand and that sense of certainty, that when you buy a piece of property in Singapore, you know what it is that you are buying; you know, to a certain extent, at least within a certain reasonable timeframe, what is it that is going on around you. So, that is the kind of balance that we need to strike. Of course, on top of that, we also need to worry about our long-term land use needs.”
“Sir, Dr Amy Khor has asked what are the plans we have to develop Singapore into a global city and how we can meet the new challenges and competition. I agree with her that developing a global city is not something that we can do overnight or easily. In fact, there are many cities in the world that are vying for the same position, in the same way, to attract investors, talents and visitors. So, many cities around the world are embarking on major development projects, building new attractions, and actively marketing themselves as global cities. No idea is too far-fetched, too bold, or too crazy for them. Recently, I read that in Shanghai, there is a developer that intends to jack-up or lift the 20-odd conservation buildings along the Bund. If you know about the conservations along the Bund, it is equivalent to us saying that we are going to jack-up City Hall. He was going to put a row of high-end shops underneath those buildings after he had jacked them up by something like seven metres. We do not intend to do the same with our City Hall - to jack it up and put a shopping mall underneath. But, I think, that is an illustration of what cities around the world are thinking of doing. Whether they proceed with it or not, I do not know. But the very fact that somebody is thinking along these lines illustrates that people are all vying to attract the same pool of talents and visitors to their shores. That is the kind of competition we are up against - to be an international city and a global city. So, to be in the game, we need to have bold strategies, innovative plans, and we also need to think, to use the cliché, out of the box. How do we intend to do so? Let me outline three areas we intend to focus on in the years ahead, in order to achieve this vision.”
“Mr Chairman, Sir, may I seek your consent and the general assent of hon. Members to move that progress be reported now and leave be asked to sit again on Monday, 6th March 2006?”
“There are a few hundred blocks that are affected by this cost cap. Should we allow them to top up? Some of these blocks, as I explained in my reply, require something like $50,000 to $80,000 to implement the LUP. So, if the hon. Member is talking about just capping the subsidy and requiring them to pay the difference, the difference is very significant, and I am not so sure whether this will be welcomed by the residents. I think it is far better for us to keep on looking for more cost-effective solutions and to give them the lift upgrading programme without having to cost them an arm and a leg. HDB Shops”
“Finally, Dr Tan Cheng Bock asked if we could give concessions to elderly households in their payment of LUP, taking into account the age of the estate, the demographics, income profile and so on. I fully understand Dr Tan's concern. For the elderly, the lift upgrading programme is probably the most important upgrading programme that they desire. That is the reason why the Government has made special efforts to ensure that payment for the lift upgrading programme is not a problem. It would ease the payments of these less well-off elderly residents in several ways. For example, they can defer payment temporarily, extend the repayment period and even defer payment until the flat is sold, in other words, do not pay the HDB anything until the flat is sold off and transferred. Members must bear in mind also that the lift upgrading programme is heavily subsidised in the first place and residents co-pay only a small portion of the cost. I am pleased to know that residents have appreciated the LUP and that very few residents have had problems with payment. We have had 6,400 households which have been billed for LUP thus far. 85% have fully paid up their share of the LUP cost, 15% have opted to pay by instalments, only eight households have opted to defer payment until their flats are sold, ie, eight out of 6,400. This demonstrates that the share of the LUP that residents have to pay is not really that onerous. Sir, as our population ages and climbing up stairs becomes more difficult as the years go by, including for some of us when we go for our block visits, I would like to assure Dr Tan that we will do our utmost to make sure that our elderly residents are able to have comfortable and convenient access to their homes.”
“We introduced the cost cap because it does not make sense for us to provide lift upgrading at any cost. There is a limited budget for the LUP and we want to try and get the maximum number of LUP programmes done within this budget as possible. HDB blocks come in different shapes, sizes and configurations, and some of these configurations make it extremely difficult, technically as well as financially, for us to justify doing a retrofit. There is one block that I know of that requires 19 lift shafts. It is a very long block. Each of these lift shafts is serving four households. I think it simply does not make economic sense. The cost can be as high as $80,000 in some of these blocks. There are some very complicated blocks, segmented blocks with the voids inside and so on. We have worked out the cost at something like $80,000 per unit. If we take the total cost of providing that lift to that particular block and divide it by the number of units, it gives us $80,000 per unit. If the flat value is about $160,000, I do not think it makes sense for lift upgrading to proceed when the cost of lift upgrading is half the value of the flat. So what do we do? We will continue to explore other cost-effective solutions for these blocks, including the use of new technology. I believe that we will be able to find a solution within the timeframe of the LUP. It may not necessarily be next year or the year after, but I will advise HDB to actively look at some possible solutions for them. If we just think about last year and this year, for example, the use of the MRLs has really given us quite a lot of significant savings, and those savings have allowed us to still keep the cost cap and yet expand the LUP to at least 250 more blocks, both high and low-rise.”
“Around 95% of the blocks that are selected for the LUP and IUP Plus in FY05 will be able to benefit from the use of the MRLs. We have made significant progress in the LUP. We are on track to fulfilling our promise of bringing the LUP to all eligible blocks in 10 years' time. Some Members have suggested, why not five years instead of 10 years? Sir, we need to consider the capacity of the industry but, more importantly, we need to be aware of the amount of funds that we have available for lift upgrading. I believe that 10 years is a realistic target. In fact, it is a stretched target. If Members will recall, we actually started off a few years ago to complete the LUP in 15 years. So we have actually reduced that total programme by one-third, to 10 years. I hope that Members will be patient. We will try and speed it up as fast as we can but, given the number of blocks that still need to be done, I think 10 years is a realistic target. Let me now address specific comments and suggestions from Members. Dr Teo Ho Pin and Dr Tan Boon Wan asked if we could review the criteria to allow more blocks to qualify for IUP Plus. Currently, as Members know, blocks that are built between 1981 and 1986 qualify for IUP Plus. Our immediate priority is to go for LUP to bring lift upgrading to as many households as possible within the next 10 years. So blocks that are built after 1986 without lift access can also be selected for LUP. It does not mean that they get nothing. So there is really no immediate need for us to review the age criteria for the IUP Plus, which essentially covers the same works as the IUP, except for some additional precinct works. Dr Teo also asked whether we could remove the $30,000 cap for each benefiting unit under the LUP.”
“The third way that we have tried to speed up the LUP programme is to give Town Councils the go-ahead to carry out their own lift upgrading works for some 100 blocks under the Town Council-Lift Upgrading Programme (TC-LUP). So, if they meet the eligibility criteria, Town Councils can also do their own lift upgrading programme in parallel with HDB's. In this way, we will speed up lift upgrading in HDB estates. The other advantage, of course, is that Town Councils will be able to schedule and prioritise their blocks according to the needs of their residents. Sir, I am not sure about the particular block that Dr Tan Boon Wan mentioned, but it is worth checking to see whether it is eligible for TC-LUP, in which case, the hon. Member could actually select and do the lift upgrading for his residents even faster. He does not have to write to me. Fourthly, as I have recently announced, HDB will be using new technologies and construction methods to save cost and time. For example, there is this new machine-roomless lifts (MRLs), not machine-less lifts, which Mr Ang Mong Seng has very vividly explained to the House just now. These are lifts where the machines and controllers are incorporated into the lift car. What is the benefit? It means that we do not need an additional room at the top and, therefore, we do not need to build a structure to hold that room. So, all in all, it means lower cost and less time, without compromising on performance, capacity and safety. Residents will pay up to 20% less for their share of the LUP costs, and they can get their lifts faster, by six months, from 33 to 27 months from the point of polling to LUP completion. MRLs will be used for both high- and low-rise blocks, because it is technically feasible and cost-effective to do so.”
“Sir, last year, I informed Members of the various measures that MND is taking to complete the Lift Upgrading Programme (LUP) in 10 years' time. Various Members have now raised questions relating to LUP. So let me give them an update on the progress that we have made over the past year. Firstly, we have stepped up the pace of upgrading. We have selected 64 precincts for upgrading in FY05 which is a significant increase over the 46 precincts in FY04 and 24 precincts in FY03. As an indication of the progress that we have made, there are about 2,500 eligible blocks that are awaiting selection for the LUP, compared to more than 3,000 blocks a year ago. So we have completed 500 blocks in one year. Of the 64 precincts selected in FY05, six were for MUP, 15 were for IUP Plus and 43 for LUP. To make better use of our upgrading budget, we are selecting more precincts for the LUP and IUP Plus each year, instead of MUP. 5.15 pm Secondly, to stretch every LUP dollar and ensure that as many residents as possible can benefit from lift upgrading, we introduced a cost cap of $30,000 per benefiting unit for the LUP. Blocks are eligible for the LUP if they do not exceed the cap. The cost cap is necessary because the cost of lift upgrading can be very expensive. Although we have managed to reduce the cost of lift upgrading, it does not mean that we have totally eliminated the cost. Even with the cost cap, about 90% of blocks will benefit from the LUP. Mr Ang Mong Seng asked about low-rise blocks. Lift upgrading has been extended to 232 low-rise blocks which have met the cost cap so far. 73 of these low-rise blocks have successfully polled for LUP. The support levels ranged from 78% to 100%. Polling for the remaining precincts will be conducted over the next few months.”
“Sir, if the Member is asking me for a policy on displaced parents, my position is that we will not provide housing for displaced parents as a policy. But if he is asking me about a specific case that he has, then I think we will certainly look at it. The Chairman: Dr Teo Ho Pin, can you move to your next cut? HDB Upgrading Programme”
“I would like to assure Mdm Halimah that we will certainly be very sympathetic and understanding for cases where there is a break in the two-year requirement as a result of, say, retrenchment or some problems in the family. But why we have this two-year requirement is because we want to make sure that the family has some ability to service the loan that is going to come with the purchase of the house. So we think that the two-year employment history is a reasonable and fair indication of the employability of that particular family. But if there is evidence of employability and if they do not meet the two-year requirement for, as I said, some unforeseen circumstances, we would certainly take that into account.”
“All in all, less than 500 at this moment. But, again, as and when we build new apartments either to house displaced SERS lessees or new BTO contracts, we will consider putting studio apartments in them as well.”
“We have studio apartments that are available currently, about 100 over units which have just been built. There will be some more being built under BTO programme, another few hundred units in various parts of Singapore.”
“No, it does not include studio apartments. Studio apartments are a separate building programme. Yes, we are building more studio apartments as well to cater to the needs of the elderly. But it is not counted in the 160.”
“We ensure that the price of a new flat is always at a discount to the market price of that similar flat, as far as possible. She knows, as a valuer, that it is not possible to have everything exactly the same. But as far as is possible, as far as the valuers can advise, we try to price the new flat at a subsidy to market price of a comparable flat. What is the amount of this subsidy? It varies from place to place. It varies from time to time. The important criterion, as I said, is to ensure that there is affordability at various price points and at various flat types. And that is the reason why it is not possible for me to name a certain amount as the subsidy of the flat. 5.00 pm As for the difference between a new flat and a resale flat, yes, they are different. Why do people buy a resale flat if they perceive that a new flat gives them better value? It is really up to the individual. Some people would prefer to live in a certain area, near to their parents. Some prefer to live near to their workplace. Some cannot afford to wait. For such people, the resale flat is a better option. Those who can afford to wait, those who are prepared to wait for their flat in the location of their choice and they feel that it is a better option for them, go for a new flat. Then, again, there are some people who say, "Look, I don't want the hassle of renovating my flat. I want to buy something that I can see and move in straightaway." Then you go for a resale flat. There are many, many different reasons why people choose one over the other. At this particular point in time, there are more or less the same number of people who buy a resale flat as buy a new flat, plus or minus 10%. I believe I have answered the Members' clarifications.”
“This has happened in many cases. But because of the recent drop in HDB flat prices, we have come across many cases where even the downgraders are not able to have any cash in hand, because some of the time, the value of the flat is less than the loan. In such cases, HDB has looked at their appeals favourably. In most, if not all cases, they have said, yes. One of the criteria for the HDB to look at the second concessionary loan for downgraders is really to see whether there is any cash in hand after they have sold their flats. If the Member has any case where the person is able to show that he is totally wiped out by the sale, HDB would look at it favourably. So, it is not all no for all downgraders. There are many downgraders who are actually not in any difficulty at all. There are people who are downgrading from a 5-room to a 3-room flat. It is downsizing, right sizing, or whatever you call it, there is no shame involved. You are at the stage of your life where you do not really need a big flat. You want to move to a small flat. But that does not mean that the Government has an obligation to give you a second concessionary loan, because the proceeds from your first flat is sufficient to buy the second flat. That is the reason why, as a policy, we are not prepared to give a concessionary loan for the downgraders, but we are prepared to be very flexible and generous on a case-by-case basis. The third point Dr Amy Khor raised was this issue about implicit subsidies. How do we price our flats? The most important criterion in pricing of new HDB flats is affordability. We track affordability very closely. We track what are the various household incomes at various percentiles. We also track the market prices.”
“Perhaps I should invite her to come and have a look at these flats as well, just to see what she thinks, whether they are going to be popular or not. Dr Amy Khor asked three questions. First of all, why do we not impose a premium on the second flat, instead of imposing the levy which is tied to the first flat type. When we looked at the resale levy policy, there were many considerations, not least of which was that we wanted a policy that is simple to administer, easy to understand and provide some certainty to the buyer. That is the reason why we fixed the levy amount. If we put it as a premium on the second flat, not only do we have to depend on the future selling price of the second flat, but the levy payable on the second flat would also vary according to the flat type. It would range widely, depending on prices of the second flat. So it really comes back to this issue of uncertainty again. That is why we felt that it is better for us to fix the quantum. Of course, it makes sense today. It may not make sense in the future. But having fixed the quantum, as with other HDB grants, for example, depending on the situation, we may vary the quantum, up or down as the case may be. The second clarification she sought was on concessionary loans. Why do we give concessionary loans for upgraders and not downgraders? As I explained, first of all, there is a public good. There is a social objective that we want to encourage, which is upgrading. We want people to be socially mobile to move up in life and the house is one way for them to demonstrate this. Why do we not give it to downgraders? Again, it is because, for downgraders, monetising of their first flat which gives them a certain sum of money in hand will actually allow them to buy a smaller flat without any difficulty.”
“Sir, I always like to start off with the last one first, as that is the one that I remember best. So I will respond to Dr John Chen first. He asked for HDB to be flexible. I have always emphasised to Members of this House that HDB is very flexible, but I cannot ask HDB to break the rules. In this particular case, if the total household income is insufficient to service the mortgage instalments on the existing loan, then I think it is really unwise - not just for HDB but also for the family - to take this loan. But I think the best way to resolve this is really for me to look at the specific case, go through the numbers with Dr John Chen and let us see whether we can come up with an amicable solution. But I would like to emphasise that the credit assessment policy is a sound policy. They are policies that would, in fact, benefit his resident in this particular case. Mdm Cynthia Phua asked about the supply and demand for 2-room flats. Apart from the converted flats that we are going to do in the pilot project, we will also be doing some BTO projects in Sengkang for the 2-room flats. Altogether, there will be at least 150-160 flats. Will that be enough? We should wait for the response to these flats before we can gauge. It is really difficult for us at this stage to assess what is the true demand for such flats, because we have only had about 6,000 of these flats in the market and not many people are familiar with such flats. Only after we have priced them and put them on the market, and people are able to see what they are buying, then we will be able to assess the true demand for such flats. So, I would urge the Member to be a little bit patient.”
“We look at different prices across different estates for different ethnic groups, and the prices vary considerably depending on a whole host of factors. Some of these factors, obviously apart from market conditions, include factors like location, age, condition of the flat, facing of the flat, timing of the sale, urgency of the sale, and so on. So, when a home owner is not able to sell a flat at his or her expected price, it is due to many factors, apart from the EIP. 4.45 pm Sir, the EIP does impose a constraint on some sellers as well as on buyers. As a result, they need a longer time to buy or sell. We will continue to review the policy to try to minimise the impact of the policy, but the policy must remain. By maintaining a multi-racial environment in our housing estates - in our schools, shops, playgrounds - we maintain social stability, racial harmony and religious tolerance, and we keep Singapore safe, secure and prosperous for all races.”
“Similarly, there are Chinese households in Whampoa/Kallang who cannot sell their flats to an Indian household, or Malay households in Bishan who cannot sell their flats to a Chinese household, because doing so will exceed the respective EIP ethnic limits. So I want to assure Members that we will review the EIP limits from time to time to ensure that they too reflect the ethnic distribution of our population. The third point I would like to make is that most flat-owners who wish to sell their flats are able to do so without any difficulties, despite the EIP. In other words, the magnitude of the problem is not as big as many would have us believe. Less than 1% of the total resale applications received by HDB each year were rejected due to the EIP. There are about 30,000-35,000 resale transactions a year. Last year, we had about 300 appeals for sales rejected due to the EIP. So, with this large number of resale transactions, sellers who are realistic in their asking price should be able to find buyers from the eligible ethnic groups. Dr Wang Kai Yuen asked whether we can do anything to minimise the problems faced by the people who are affected by the EIP. This is a very relevant question but, as I mentioned earlier, our experience is that the number of people who are affected, who are really truly unable to sell their flats, is not a very large proportion, about 1% of the homeowners, and even those who are affected by the EIP are generally able to find buyers for their flats, even though they may take a longer time to complete their transactions. As for the prices, there is no conclusive evidence that the EIP has depressed prices, causing affected owners to suffer grave losses.”
“When I answered the Question in Parliament I was hoping that Mr Low Thia Khiang would be around so that he could respond to some of the questions that I had. I see that he is still not around in this House as we are debating this issue. I am wondering whether the Workers' Party is having second thoughts about this part of their manifesto but, anyway, we shall see. Let me state, first of all, very categorically that the EIP is still as relevant and necessary today as when it was first introduced in 1989. In fact, I would argue that at a time when our multi-racial harmony and social stability is under challenge, the EIP is even more critical. It has been effective in maintaining the ethnic balance in our HDB estates. Over the years, it has helped to lower ethnic concentrations in towns which have high concentrations of a particular race, whether it is Chinese in Sengkang or Malays in Bedok. Even with the EIP, 41, or 25%, of the HDB neighbourhoods have hit the EIP limits. So, I have no doubt that the ethnic concentrations would have been higher if there had been no EIP to place a cap on ethnic proportions. This would have serious repercussions on the multi-racial flavour of our housing estates, schools, shops, and so on. The second point I would like to reiterate is that we apply the EIP policy consistently across all ethnic groups. For example, there are Chinese households in Tampines, my constituency, where the Malay limit has been reached, and the Chinese households are not able to sell their flats to a Malay household.”
“The Government will not provide any financial assistance or guarantees to providers of such schemes. This does not mean it will not work. Yes, Mr Chay explained to us that in the US, the government or institutions like the Housing Urban Development Corporation (HUD) provide financial help. But I also know that in the UK, there are no financial assistance schemes given but the reverse mortgage has taken off. I am not sure whether the reverse mortgage scheme in Singapore will be very popular but this is another option which we can offer to our lessees. This is in line with the recommendations of both the Ministerial Committee on Low Wage Workers as well as the Committee on Ageing Issues. We will work with industry players to facilitate the provision of such schemes, so that elderly HDB lessees will have more options to monetise their flats to enhance their retirement adequacy. Whether HDB lessees will sign up for the reverse mortgage schemes is an individual decision that only they can take and, of course, they will have to take into account the terms and conditions that are offered and look at other alternatives that they may have. Sir, finally, let me address Dr Wang Kai Yuen's comment on the Ethnic Integration Policy (EIP). Recently, I answered the Question in Parliament - I think it was Dr Amy Khor who asked the question - about the Ethnic Integration Policy. But I think it is worthwhile for me to reiterate some of the key points today because it is an important policy. It is an important pillar of our policy to maintain social stability and, yet it is one that the Workers' Party says should be scrapped because they feel that it is no longer necessary.”
“If we can find a way to convert that into cash in some form, then we would have provided a way for the lessee to live his retirement years in comfort. And we have done this over the years. We have put in place a wide range of options to help the elderly monetise their flats. We have built studio apartments which would allow the elderly lessees to sell their existing flat, buy a studio apartment and live comfortably and use the balance proceeds to purchase an annuity plan or other financial products. We have liberalised the conditions for the purchase of studio apartments last year. Studio apartment buyers need not top up their Medisave accounts. They can also use their CPF savings to pay for the studio apartment after they have set aside cash for the Minimum Sum. Elderly lessees can also rent out a room or they can rent out the entire flat, if they have another place to go to, with their children, friends or whatever. The market rate for renting a room is about $250-$500, depending on location. Today, there are more than 500,000 lessees who are eligible to sublet their whole flats. But what about the reverse mortgage? Mr Othman Haron Eusofe asked for an update on the status of our discussions with industry players on reverse mortgage. I am happy to inform him that we have been in touch with many industry players and, in fact, one financial institution is ready to offer such a scheme, and that is NTUC Income. I will leave it to NTUC Income to release the details of the scheme. I welcome other banks and financial institutions to also offer reverse mortgage schemes for HDB flats, so that our lessees can have more choices. As these are financial schemes, they should be offered on commercial terms.”
“But, as always, there will be cases where they are in genuine financial hardship and this is why we take this approach of having a flexible implementation of some of our rules, even as we make those rules carefully and properly, in order to make sure that public housing subsidies are well allocated. So, in this case, as in many other cases, I will ask HDB to look at cases flexibly and where the merits of the case warrant, we will look at it favourably. Let me emphasise that even as we provide rental flats to low-income families, we will continue to assist and encourage them to buy their own flats when they are financially ready because this will enable them to feel that they too have a stake in this country and that they have not been left behind by our economic progress. And this is why we have introduced the additional CPF housing grant and why we are building 2-room flats. Finally, two last issues I want to address. The first one is reverse mortgage. Dr Wang Kai Yuen talked about the purpose of having a scheme such as the reverse mortgage scheme. He calls this a way to help the empty nester retiree households. Many MPs and many people have lamented that we suffer from this asset-rich cash-poor syndrome. I submit that it is better for us to have an asset-rich cash-poor syndrome than to have an asset-poor cash-poor syndrome. With an asset-rich cash-poor syndrome, we have a happy problem to solve - how we can help people convert their asset to cash at the right time when the cash is needed. Mr Chay Wai Chuen rightly pointed out that the flat is a store of wealth. Recently, we released some DOS figures to show that, on the average, the net value of a flat is something like $138,000, and that is not a small sum of money.”
“[Mr Deputy Speaker (Mr Chew Heng Ching) in the Chair] 4.33 pm Let me assure Members that HDB has enough rental flats to meet the housing needs of low-income households who cannot afford to own a flat. But this is provided we maintain very strict eligibility criteria and guard against the entrenchment of those who can afford to own a flat but who decide to stay in a rental flat because it is so cheap. We will continue to require singles wishing to rent a flat from HDB to share one with another eligible single. It is difficult for the singles to do so and, there have been persistent requests from many Members why we cannot let them live alone. If every single has his own flat, we will not have enough rental flats. The demand for rental flat is going to double immediately. We will require those who have cashed out of their flats to observe a 30-month debarment period before they can be considered for a rental flat. If we do not have the 30-month debarment, again I see a flood of applicants coming for rental flats straightaway after they have sold their flats. I would also be very careful about making rental flats easily available for parents who have been displaced by their children. I do not think it is a good idea. Already, we are seeing many cases at our MPS of elderly residents coming to us and saying that they have been kicked out of their flats by their children. Much as we sympathise with them, if we have a policy where we make rental flats available for this group, I think we are going to end up with a greater social problem because we are going to encourage more children to chase their parents out of their homes.”
“Mr Ang Mong Seng asked if we can offer converted 2-room flats as rental flats and also to waive the 30-month debarment for those who wish to rent from HDB. Mdm Cynthia Phua wanted to know if we have enough rental flats. Mr Steve Chia suggested that we build more rental flats. Back to basics again. 4.30 pm Our public housing policy is based on encouraging home ownership. That is the reason why we price our flats such that the majority, about 90% of Singaporeans, can own their flats. But I think we all know that not everybody can afford to own their homes. We recognise that. And that is the reason why, to complement the Home Ownership Scheme, we have a Public Rental Scheme. Under this Public Rental Scheme we will provide 1- and 2-room rental flats to meet the housing needs of low-income Singaporean households, who cannot afford home ownership flats. The rentals under the Public Rental Scheme are heavily subsidised. For example, a subsidised 2-room flat is rented to low-income families for about $60. The market rental is about $480. If you compute this over a 10-year timeframe, you are talking about a total subsidy of over $40,000. What does this really mean? This means that HDB rental flats are another form of public housing subsidy. They have to be funded from the same public housing budget that we use to provide subsidies for sold flats, upgrading and estate renewal programmes, and so on. That is why we have very strict eligibility criteria for public rental scheme applicants, criteria such as ownership of private property or ownership of property earlier, family nucleus, income, citizenship, and so on. This way, we ensure that rental subsidies are given to those who really need them and who have not enjoyed their fair share of housing subsidies.”
“If they cannot, they will have to either rent a flat from the open market, buy a smaller flat or failing which, if there are extenuating circumstances, they may come to HDB to request for HDB rental flats. So there are many avenues for such people to try and get help. HDB is not the first avenue and, of course, it should not be the last. Prof. Chin mentioned some of these areas of help, whether it is the CDCs, VWOs or various Government agencies. He also asked for a one-stop centre for all these. I thought this is what the MPS is for. They come to us and we are supposed to find an answer for them. We will continue to find various means to help them, but I urge Prof. Chin to exercise his ingenuity and to try and help his constituents. And if he still cannot, he can always write to me. Let me reiterate once again - I do not want to sound like a stuck record - but I really would like to reiterate that buying an HDB flat is a long-term commitment. It is a financial commitment that all flat buyers need to be aware of. They have to exercise financial prudence and they should only consider buying a flat if it is within their means. They must take into account their household income and possible changes to their household income or even possible changes to the mortgage loan rates. Having taken all these into account, if they can still proceed to buy a flat and take advantage of our various schemes, then we would encourage them to do so. Sir, let me now move on to another hot topic of Members - HDB rental flats. Many Members have spoken - Dr Lily Neo, Mr Ang Mong Seng, Mdm Cynthia Phua and Mr Steve Chia too. Dr Lily Neo suggested that HDB build smaller rental flats so that elderly singles can rent a flat on their own.”
“But, nevertheless, we will continue to closely monitor the situation and continue to do counselling, advise and exhort flat buyers to always exercise care when they purchase a flat using bank loans, and to be very prudent in the kind of loan that they ask from the banks. Mr Ahmad Khalis also asked what can we do to assist those whose flats have been repossessed or are facing repossession. First, we have to accept that banks and financial institutions have their own rules and regulations and practices concerning how they deal with potential defaulters. But I know that they also have their own financial assistance measures to help mortgagors who are in difficulties. They tell me that they are not in a hurry to repossess flats. They would, first of all, try to work out a scheme of arrangement with the flat owners to try and make sure that they are able to solve their predicament in some way. I believe there have been some cases where they have worked out a satisfactory arrangement. So HDB flat-owners who are facing difficulties keeping up with their bank payments should, first of all, approach their banks for help. HDB will not and cannot intervene in such cases because it is a private matter between the borrowers and the banks. For those whose flats have been repossessed by their banks, the HDB Branch Office will provide advice and assistance, if necessary. Of course, there are many options for the ex-lessees. And here, I want to emphasise again that every time they come and look to HDB or Government for assistance, they should, first of all, look at their own personal situation, at families, relatives or friends, to see whether they can get help in that direction as well.”
“Usually, owners who have sold off their first flat and want to move to a smaller flat would have substantial proceeds from the sale of their first flats. I know there are cases that this does not happen. But usually, this is the situation. And they can use these proceeds to finance the purchase of the smaller flat. So, as a policy, we will require those who need a loan to purchase a smaller flat to obtain a bank loan. Such an approach has allowed us to focus our attention on those who need more assistance, in this case, the first-timer households as well as the upgraders. I must emphasise, based on the global picture that HDB provides me, most households do not have any difficulty obtaining bank loans. But I wish to assure Members that MND and HDB will examine every appeal on its own merits and we will be as flexible as possible in cases of genuine hardship. Next, I move on to market rate loans. Mr Ahmad Khalis asked for some figures, an update on bank origination and the number of flats that the banks have repossessed. Since January 2003, when we started bank origination, there have been about 70,000 bank loan cases for HDB flats. Most of these are, of course, for the purchase of resale flats because for the new flats, they can take an HDB loan. But there are some people who take a bank loan, even though they are eligible for an HDB loan, a very small percentage, because they may have a better package with the banks. As at 31st January 2006, the mortgagee sales of 190 flats by banks have been completed or are pending completion. I think you will agree with me that the number, at the moment, is not significant. It is less than 0.3% of the total bank loan cases.”
“As with all Government policy changes, the new resale levy policy will not apply retrospectively, in other words, those who have already sold their first subsidised flat but have not yet purchased their second subsidised flat. These people have signed an undertaking when they sold their first flat. It may have been many years ago. They signed an undertaking to say that they would pay a levy under the old policy when and if they buy a second subsidised flat. Again, I will ask HDB to look at each and every case of appeal if it comes in, exercise due flexibility and consider applying the new policy on a case-by-case basis to those in financial hardship. Sir, let me now talk about HDB concessionary loans. Members have asked HDB to be more generous in providing additional HDB concessionary loans to downgraders. We have a policy that we will provide every household with at least one HDB concessionary loan. But for those who subsequently purchase a larger flat, we will facilitate their upgrading by providing them with a second concessionary loan. Why do we do this? Because we believe that social mobility is an important objective. We believe that for somebody who has moved into, say, a 2-room flat, it is important for him to hope that, one day, sooner or later, or when his family size grows or when his income improves, he will be moving into a 3-room or 4-room flat, or if the family does very well, a 5-room flat or even larger. I think this is an important objective and one that we will encourage. That is the reason why we are providing them with a second concessionary loan. Members asked what about those who want to move to a smaller flat.”
“Our conclusion is that the policy is still relevant. However, we will fine-tune the policy by setting the levy payable as a fixed quantum of between $15,000 and $50,000, based on the flat type of the first subsidised flat. Under the new policy, someone whose first subsidised flat is a 2-room flat, will pay a resale levy of $15,000. Those whose first subsidised flat is a 3-room, will pay a resale levy of $30,000; 4-room, $40,000; 5-room, $45,000; and Executive flat, $50,000 respectively, when they purchase a second subsidised flat. What all this means is that if you work it all out, in nearly all cases, second-timers will now pay less in resale levy under the new system. To illustrate, if you sell a 5-room flat today, roughly at around $300,000, you would attract a resale levy of $75,000 under the current system, ie, 25%. Under the new system, you will pay a flat rate of $45,000, in other words, you would be paying $30,000 less. A 4-room flat, which is sold at $230,000, would translate into a saving of about $12,000, in other words, about $52,000 under the old system and $40,000 under the new system. A 3-room flat sold at $180,000 would translate into a saving of $6,000, because it is $36,000 under the old system and $30,000 under the new system. These are all ballpark figures. But I wanted to illustrate that with the new levy system, there would be significant savings. And also, as the quantum of the levy is fixed, it will give greater certainty to existing flat lessees who are deciding whether or not they want to move to a second subsidised flat. The revised resale levy policy will apply to future cases, in other words, those who have not yet sold their first flat and who have not yet bought their second subsidised flat. The cut-off date is today.”