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 29 of 61.
“I agree with the sentiments expressed by many Members that Singaporeans should be careful and not over-extend themselves when buying property, whether HDB or private housing. Therefore, to encourage greater financial prudence, HDB will extend credit assessment to this group of flat buyers from 1st October 2003, just as it does today for all other flat buyers. HDB will also cap the quantum of mortgage loans according to the flat type purchased. I hope that these prudential measures will ensure that low-income families buy flats when they are financially ready and not over-commit themselves. I also want to assure that HDB will continue to assist this group to own their flats by selling flats at subsidised prices and before they do so, to give them financial counselling. HDB will announce more details on the various policy changes to be introduced later. New flats will continue to be affordable Sir, I wish to assure Members that the Government remains committed to providing affordable public housing to Singaporeans, especially to first-timers. HDB flats are priced below their market values to enable many Singaporeans to own a flat. In fact, we peg the prices such that 90% of Singaporeans can afford to own at least a 3-room flat. Many Members, like Mr Iswaran and Mr Ang Mong Seng, have asked many times whether HDB will build 3-room flats, either as entry-level housing or to meet the demand from downgraders. Today, first-timers earning $2,000 or less can walk in to HDB and buy a 3-room buy-back flat at subsidised prices. They can literally, if they are not fussy, actually walk in and get their keys. There are about 150 units of such 3-room flats offered for sale every month. The demand is about 90 per month on the average.”
“This roughly works out to around 10%, or between 9% and 12% of the average household income of those who are eligible for these flats. While this move will make subsidised rental housing available to more people, we must be careful that rental subsidies are given to those who need them most. Tenants whose financial situations have improved should be encouraged to take up a home ownership flat instead. This will then free up more rental flats for the truly needy and will also prevent tenants from becoming entrenched in subsidised rental housing. This is a real problem. If you go to Hong Kong, you will see many tenants who have lived in their subsidised rental flats for many, many years, and inside their flats you can see plasma TVs, and we are told they own Mercedes Benzes, and so on. They have simply got so used to rental flats, because they are so cheap, and they just stay on and on. We have to guard against this entrenchment problem. HDB therefore intends to convert all existing tenancies to term tenancies and to implement income-based rentals. HDB will take into account the economic conditions before deciding when to do so, and any adjustment will be done in phases to allow people to gradually acclimatise to this. Mortgage financing policies for low-income families In addition to the option of subsidised rental flats, HDB has the Special Housing Assistance Programme (SHAP) to assist low-income families to buy their flats. Today, households with monthly incomes of $2,000 and below are exempted from credit assessment and are granted loans of up to 100% of the flat purchase price. While the intention is well-meaning, this has led to some lessees buying flats beyond their means.”
“It will open up another housing option for those who are either not ready to buy or who are not able to afford a flat or who do not wish to be tied down by a mortgage at a certain point in their lives. To preserve the good environment of our housing estates and to minimise nuisances that may arise from subletting, HDB will apply certain guidelines and conditions for subletting. It will also work closely with grassroots organisations and residents to ensure that subletting does not impact negatively on the living ambience of our HDB estates. Extending the Public Rental Scheme The Government has always encouraged near universal home ownership and it has been successful. 85% of our people live in HDB flats, 95% of them own their homes. However, as our economy restructures, there will be some low-income households who may have difficulty sustaining home ownership. For them, subsidised rental housing may be a better option until such time that they are ready and can afford to buy an HDB flat. Today, the monthly household income ceiling to rent subsidised HDB flats is $800. Many Members, including Dr Maliki and Ms Irene Ng, have asked for the eligibility criteria to be expanded so that more can benefit from subsidised rental housing. As DPM announced last Friday, from 1st October 2003, the monthly income cut-off for the Public Rental Scheme will be raised to $1,500. The rents charged for this second tier of households earning $801 to $1,500 will be higher than those earning $800 or less, but they will still be very heavily subsidised and very affordable. For this second tier, the rents are between $90 and $110 for a 1-room flat and between $120 and $150 for a 2-room flat.”
“From 1st October 2003, lessees of all HDB flats, who have occupied their flats for 15 years or more, will be able to sublet them, irrespective of whether they are resale flats or subsidised flats with or without outstanding loans from HDB. In addition, those who have occupied their flat for 10 years can sublet their flat immediately if they do not have any outstanding HDB loan. This move will make about 250,000 flats, or about one-third or 30% of all flats, eligible to be rented out. Some may ask why this restriction of 10 or 15 years? Why not 5 years? Why not remove the restriction altogether? We must bear in mind that the Government sells subsidised HDB flats for owner occupation. It is not for speculation. It is not, in the first instance, for income generation. So the minimum occupation period of 10 or 15 years serves to maintain the long-term owner occupation principle of our home ownership policy. With the relaxation, lessees will be able to generate income from their flats, without having to sell them. Retirees will be able to rent their HDB flats to generate cash to supplement their monthly income from CPF. If you look at the current rental rates, even if we allow for some reduction in the rental rates, the rentals can form a very significant part of their retirement income. We are talking about anything from $800 to $1,500 to rent an HDB flat. Then again, those who are in financial difficulties can also generate some income to tide them over their problems. Apart from the assistance to HDB lessees, this move will also enlarge the rental market for HDB flats and keep rentals reasonable.”
“Subletting of whole HDB flat First, we are relaxing the subletting rules for HDB flats. Let me explain the rationale. Our economy and society are changing. In the new economy, there will be more workers who are on short-term employment, entrepreneurs without a steady income stream and young couples who are not ready to commit to a property purchase. As our people become more educated, they want to take greater responsibility, to make their own choices and be self-reliant. This is to be encouraged. And with greater individual responsibility, rules and regulations can also be relaxed. For many Singaporeans, their HDB flat is their single most valuable asset. However, we know of the often-quoted syndrome of being "asset rich" but "cash poor". Some flat owners really feel this. As flat owners grow old, they want to have more flexibility to convert their housing assets into cash to provide for retirement. Others may want to seek to generate income from the flats because they are in financial difficulties as the economy restructures. My Ministry has been studying how we can help Singaporeans better monetise cash out on their flats, while ensuring that there is no abuse of Government subsidies - do not forget HDB flats are very heavily subsidised - in order to promote home ownership. In January, we introduced bank origination of HDB market rate loans, another way to give HDB lessees more choice. And, at the same time, we relaxed the subletting rules for HDB flat buyers who took these bank loans. We have decided to further free up the subletting rules.”
“Our public housing programme has given Singaporeans a good home, and a strong sense of community. This year, in our National Day goody-bag, we received a little book entitled, "Things that make us Singaporean". It is an inspiring little book. It captures the feelings of Singaporeans about Singapore and what they feel connects them to this place. Let me read to you two of my favourites. On page 16, Mr Andrew Bok said, "Being Singaporean is when I say, 'Let's apply for a flat' and my girlfriend knows straightaway what I mean". I do not think you can say that in any other place in the world. On page 21, below a picture of an NS man sitting in a 3-tonner, Mr Lau Wai Leong, a pharmacist, said: "Looking out from a 3-tonner at the night lights of a HDB estate, and thinking: it's worth doing this for my country and my fellow Singaporeans." The HDB flat and National Service - these are two of the most enduring experiences of being a Singaporean - aptly captured in one sentiment. Sir, many Members have suggested that the Government re-look its public housing policies, like universal home ownership and upgrading. I agree that we should regularly review our policies. Indeed, I have explained many times in this House that my Ministry has been reviewing various HDB policies to ensure that our public housing programmes remain relevant to meet the needs of Singaporeans. At the same time, it must be in line with the Government's overall direction to restructure the economy and remake our society. But, even as we do so, we should be mindful of the powerful role that it has played in nation-building, and giving Singaporeans, like Mr Lau, a stake in our progress and prosperity, and something worth fighting for. I shall now outline some of the changes arising from these reviews.”
“This would mean lower retirement savings for all members, regardless of whether they have outstanding HDB loans. And I think Members will agree that this is not a good idea. Another suggestion was for homeowners to stretch the tenure of their mortgages. Under current financial assistance schemes, HDB mortgagors can already extend their mortgage loan to a maximum of 30 years, subject to a 65-year age limit. So, the question is whether we should allow mortgagors to extend their loans beyond 30 years. Sir, I do not think this is either necessary or helpful because, in the first place, there are already many ways to assist HDB mortgagors who are in financial difficulty. As I have explained earlier, we can allow them to pay a reduced loan instalment, we can even allow them to temporarily defer their loan payments, which is really tantamount to stretching the mortgage payments. Secondly, of course, if we were to really give them a longer loan repayment period, this would mean additional interest cost for them and, in some cases, it would actually mean a higher mortgage instalment payment. I would like to reassure the House that HDB will do whatever it can to help existing mortgagors who will be affected by the CPF cuts. No HDB flat lessee who is in genuine financial difficulty will lose his flat just because of the cut in CPF rates. HDB will work closely with them to advise them on the appropriate measures to help them service their mortgage loans. Long-term measures Mr Speaker, Sir, what I have outlined are the short-term HDB assistance measures. I would now like to talk about the long-term measures in the HDB policies which have been announced by DPM last Friday. One of the main social objectives of the CPF scheme is home ownership.”
“Now, I am pleased to set the record straight and inform Ms Indranee that HDB did not reject the idea because "it had not been done before"; rather, it had valid environmental and safety concerns. For example, there were concerns over the improper discharge of chemicals and washing detergents which, if not properly handled, would have ended up in our reservoirs. As Members know, there are certain bays in HDB multi-storey carparks where the discharge goes into the sewage system instead of into the open drains. So, this was one concern. There were also concerns that the prolonged washing in the HDB carparks may affect the flooring, which is not properly waterproofed, and may affect the structure of the carparks. But once HDB was satisfied that these concerns could be properly addressed through certain measures, it issued the licence for the car-wash company very expeditiously. So, it had a happy ending and I thought, far from illustrating a tardy, inflexible HDB, the episode did show a careful, practical and flexible approach to administration. Let us come back to mortgage loans. There have been other suggestions by members of the public on how we can help homeowners with their mortgage loans, and I thought I should also take this opportunity to address some of them. One suggestion was for HDB to reduce its concessionary interest rate of 2.6%. As Members know, HDB gets the funds for its concessionary loans from the Government at the CPF Ordinary Account interest rate, which is currently at the statutory minimum of 2.5%. The additional 0.1% is to defray HDB's cost of administering the loans. So, if we want to cut the HDB concessionary loan interest rate, we would, first of all, have to cut the CPF Ordinary Account interest rate.”
“The purpose behind this policy is to limit the amount of subsidised loans given out, as these downgraders would usually have sufficient funds to finance the purchase of the smaller flat. I say "usually", and this is generally true. And HDB does not intend to change this policy. However, the HDB will exercise flexibility and grant a second concessionary loan to downgraders who are in severe financial hardship arising from certain circumstances. These include retrenchments, severe pay cuts, business failures, prolonged illness or death of the sole breadwinner and so on. The quantum of the concessionary loan will be capped at the outstanding loan for the existing flat. So, if they currently have an outstanding loan, that quantum will be the quantum of the new loan, or it will be 80% of the value or purchase price of the next flat, whichever is the lowest. This temporary measure will help lessees cope with the CPF changes and the economic downturn during this period. Sir, on the subject of flexibility, please allow me to take a little detour at this stage and comment on a case which seems to have attracted a little bit of attention recently. I refer of course to the case of this car wash company whose application to set up a car washing business in HDB high-rise carparks was initially rejected. And last week in this House, Ms Indranee Rajah cited this case, arguing for the use of common sense by Government departments. She noted that HDB rejected the idea because "It had not been done before". She added that if we use that kind of reason, we will never be able to do anything new. I agree with her. I thought this was quite out of character for HDB, so I checked.”
“These include: 1) extending the mortgage loan repayment up to a maximum of 30 years, subject to the age limit of 65; 2) conversion to a Reduce Repayment Scheme, ie, mortgagors can apply to temporarily pay a lower monthly sum ranging from 50-75% of their normal instalments, and this will help their cash flow; 3) they can opt for short-term deferment of the payment of the loan instalments; 4) they can apply to pay their loan arrears by instalments; and 5) they can apply to include other family members as co-owners, so that these family members can help them to service the mortgage loans. Secondly, apart from the financial assistance measures that I have outlined, HDB lessees affected by the CPF cut can also draw on their SA savings to meet the shortfall in repayment after their savings in the OA have been depleted. Since 1999, when these schemes were put in place, HDB has assisted a total of 83,000 households under its various financial assistance measures. Over the same period, 92,000 individual HDB flat owners used their SA savings to finance their housing loans. Let me now turn to the issue of downgrading. Many MPs have argued in this House that this is a sensible option for lessees who are in financial hardship. They can sell their existing flat and they can downgrade to a smaller flat. I agree. However, they have to occupy their flat for a minimum occupation period (MOP) before they can do so. Several MPs have asked HDB to waive the MOP period for resale. I want to assure Members that HDB will do so for deserving cases. Some Members like Mr Yeo Guat Kwang have also asked HDB to facilitate downgrading for those in financial hardship. Today, the policy is not to grant a second HDB concessionary loan to those who are downgrading to a smaller flat.”
“HDB estimates that the time required for new flat buyers to accumulate the 20% down payment using their CPF savings will increase by six to eight months, after the cuts. The total time required to accumulate the down payment remains at about four years. There will also be minimal impact on the ability of new flat buyers to service their mortgage loans. Those below 50 will need to use about 19-23% of their monthly household income to service their mortgage loans. This is quite close to the revised OA contribution of between 18-22% for this age group. So, 19-23% of their monthly income, after the cuts, compared to the CPF contribution of around 18-22%, ie, roughly about the same. Short-term assistance and downgrading measures Sir, while these numbers show quite clearly that the impact on both existing HDB owners and new flat buyers will be minimal, I can understand the sense of unease and anxiety among them. After all, the HDB flat is, to a large extent, probably the single largest purchase and asset of many Singaporeans. So, their concerns have been voiced by many MPs in this House - Mr Zainul Abidin, Mr Nithiah Nandan, Mrs Lim Hwee Hua, Mdm Ho Geok Choo, among others - who have all asked how HDB can help them. First of all, HDB lessees having trouble servicing their monthly loan instalments due to the CPF cuts can apply for several existing financial assistance measures.”
“Mr Speaker, Sir, the Prime Minister has spelt out how the CPF system will be restructured for Singapore's long-term economic competitiveness. Last Friday, the Deputy Prime Minister announced the package of assistance measures to help individual Singaporeans cope with those changes. Today, I shall be elaborating on the details of the measures under the purview of my Ministry, namely, those on public housing and the construction industry. But, first, let me give an overview of the impact of the CPF changes on HDB flat owners and buyers. This was the result of a study which HDB did after the CPF changes were announced. First of all, the impact on existing mortgagors. There are roughly 800,000 HDB households - to be exact, about 795,000. Out of these, 530,000 have outstanding mortgage loans with HDB. Of these, 82% service their loans using CPF funds. Before the cut in the CPF contribution rates, there were about 200,000 households with shortfalls. In other words, their monthly CPF Ordinary Account (OA) contributions were not enough to meet their monthly housing instalments. With the CPF cut, this number will increase by 45,000 to roughly 245,000. The large majority will be able to cope using their accumulated CPF savings. However, about 35,000 or 4.5% or thereabouts of all HDB households may not have enough CPF OA and Special Account (SA) contributions and balances to completely service their HDB housing loans beyond a year. So, these households, ie, about 4.5%, will have to top up a small percentage of their repayments using other savings or cash. That is for the existing mortgagors. What about new flat buyers? The cuts in CPF contribution rates will have a minimal impact on new HDB flat buyers, especially the younger households.”
“Mr Speaker, Sir, the Ethnic Integration Policy (EIP) was implemented in 1989 to promote racial harmony in public housing estates. The policy maintains the proportion of each ethnic group within certain neighbourhood and block limits. The EIP has improved the ethnic balance in HDB estates. In 1989, 28% out of the 125 neighbourhoods had at least one ethnic group which reached or exceeded the neighbourhood limit. Now, there are 25% of such neighbourhoods, although the number of neighbourhoods has grown from 125 to 165. Between January and July this year, HDB received 181 appeals for waiver of EIP for resale of flat. The flat sellers appealed for waiver of EIP to widen their base of potential buyers in order to secure higher selling prices for their flats. Most of them were selling their flats to buy another HDB flat or private property while some indicated financial difficulty as the reason for the sale. Only 7% appealed to waive the EIP for resale of their flat due to divorce. As the EIP is very important in maintaining racial harmony in Singapore, we have to apply it consistently. Waiver is granted on a very exceptional basis. The EIP has worked well in forging ethnic integration and harmony among HDB residents. We will regularly review and refine the policy if necessary. RETUNING THE CPF Order read for Resumption of Debate on the Prime Minister's Statement [28th August, 2003]. Question again proposed.”
“Sir, I beg to move, "That the proceedings on the item under discussion be exempted from the provisions of Standing Order No. 45(8) in respect of the Deputy Prime Minister's speech." Sir, the Deputy Prime Minister will be making important announcements regarding the assistance measures for Singaporeans following on the announcement by the Prime Minister on CPF cuts. So, I am sure Members would want to give as much time as possible to the DPM. Resolved, "That the proceedings on the item under discussion be exempted from the provisions of Standing Order No. 45(8) in respect of the Deputy Prime Minister's speech." - [Mr Mah Bow Tan]. RETUNING OF CPF Debate resumed.”
“Mr Speaker, Sir, may I seek your consent and the general assent of Members present to move that the proceedings on the item under discussion be exempted from the provisions of Standing Order No. 45(8) to remove the time limit in respect of the Deputy Prime Minister's speech.”
“Mr Speaker, Sir, yesterday, in my reply to Dr Mohamad Maliki Osman's parliamentary Question ---”
“The scholar is allowed his choice provided the university is of good standing, known to offer sufficiently rigorous curricula to its students, and the courses pursued meet the needs of the organisation.”
“The commitment of public funds is likely to yield far better results if we were to leverage on the value and reputation already created in our three existing universities - NUS, NTU and SMU. By expanding NTU to become a comprehensive university and by transforming NUS into a multi-campus university, we are setting out to achieve what the earlier fourth university proposal aimed to accomplish, that is, creating university capacity for 25% of our primary one cohort, while maintaining high quality. The Review Committee also supported allowing a few good quality private universities to provide undergraduate education in Singapore beyond the 25% cohort participation rate. The Government accepted these recommendations in May this year. The foreign university that EDB plans to attract is therefore not a substitute for the earlier fourth university idea. A foreign university, if established, will be privately-funded. It would provide access to university education in Singapore over and above the target cohort participation rate of 25% in our publicly-funded universities. And it will not detract from the initiatives that our own universities are taking to build excellence. Instead, a Singapore campus of a reputable foreign university, by expanding the choices available to students and faculty, can add to the vibrance of the university sector as a whole. To support this objective, MOE will work closely with EDB to ensure that only quality universities with good academic credentials are invited to establish a campus here. With regard to Mdm Ho's query on scholarships, PSC or MOE does not decide on the universities for our scholars. It is the scholar who decides where he wants to study.”
“We do not have 4- and 5-room flats for rental. Our rental schemes do not extend to 4- and 5-room flats. We have 3-room flats for rental, but they are specifically for those families whose incomes fall below a certain level, and they are meant to facilitate them to buy that flat in later years as their income levels improve. So we do not have 4- and 5-room flats for rental. I am not sure whether I gave the wrong impression to the Member just now. SETTING UP OF PRIVATE UNIVERSITIES 7. Mdm Ho Geok Choo asked the Acting Minister for Education (a) what is the rationale for rejecting our own proposal to open a fourth local university in view of the Economic Development Board courting such a deal with an international university; (b) how can the Government ensure that such international universities will be of equivalent academic standards as our own universities; (c) whether Public Service Commission scholarships and other Government scholarships will include these private universities in their eligibility list for such scholarships. The Acting Minister for Education (Mr Tharman Shanmugaratnam): Sir, the idea of a fourth publicly-funded university was studied by the Committee to Review the University Sector and Graduate Manpower Planning, chaired by Dr Ng Eng Hen, as part of its overall review of the sector. The Committee, which completed its report earlier this year, concluded that there was a sufficiently large pool of good students to sustain a high-quality public university sector catering to 25% of our primary one cohort, higher than the 21% currently. However, the Committee also pointed out that a new fourth university will find it difficult to attract good quality students and faculty staff.”
“I think the Member has to be patient. Mdm Cynthia Phua (Aljunied): Sir, since the Minister is so generous, could he even consider the new 4- and 5-room flats as rental flats? I am just being realistic. Could he consider more 3-room flats to be rental flats?”
“I think the Member is talking about something else entirely. It is not about rental housing. Is she talking about upgrading?”
“Sir, this is one of the suggestions that we are looking into, so if the Member could be patient.”
“Sir, I do not have the number with me. But I can tell her that it is quite significant because I do come across individual cases where the case report was brought to my attention and HDB had recommended and the relevant committees had approved.”
“Is the Member talking about subsidised or non-subsidised rentals?”
“Sir, I am not exactly sure what the Member has in mind when she talks about a review in terms of the eligibility criteria. We have certain very fundamental criteria. For example, the criterion on Singapore citizenship. I think that is a very fundamental point. Singaporeans enjoy significant public housing subsidies; permanent residents do not. That is a distinction that we have made and we are sticking to that distinction for good reason. What other eligibility criteria are we talking about? The 30-month debarment which many Members are familiar with. Why do we have a 30-month debarment? For the simple reason that we do not want to have somebody who is not deserving of this subsidy, or somebody who has just sold the flat, or somebody who has sold his private property and comes on to the HDB queue straightaway overnight. We say, "No. If you have sold your private property and you are eligible for HDB flat, you wait 30 months." I think that is a reasonable criterion. If there are any specific areas where the Member would like us to review, in terms of eligibility criteria, we would be pleased to consider it. But as it stands at the moment, the criteria are very simple. Over and above that, I have said many times in this House that HDB is always willing to look at specific cases where they pertain to individual hardship, or financial hardship, where it is due to unforeseen circumstances, or demise of a family member, etc. So there are no situations, as far as I know, where we have absolutely said no, where severe individual circumstances warrant us to look at those cases.”
“Sir, currently we do not cater to this group of people because our rental flats are subsidised flats and they are really meant for those in the lower income groups. However, I do recognise that what the Member has suggested is something that we should look into and HDB is looking into it, and we will be making some announcements.”
“I do not have the exact number of flats that are currently vacant, but I will check up and give the Member the number. But I think that is not the point. The point really is that our rental scheme carries a heavy subsidy. And, because of that, not everybody who shows up at his meet-the-people session who asks for a rental flat will automatically be given one. That is not possible. However, there are those who are eligible. As I said, for those eligible and when they come to us, we will offer them these flats when their turn is due on the queue. So, there are two separate matters. One is the number of flats which are currently in stock under the Public Rental Scheme. There is a separate matter which the Member is alluding to, that is, we should change our criteria and we should be more generous in allowing, say, single mothers to rent HDB flats. I think that is a separate matter. It is a policy issue. I have earlier explained why we have to have certain criteria, and not everybody who sells a flat straightaway, or who is divorced and applies for a flat, will be automatically given a flat. Yes, a Singapore permanent resident with a child who is a Singaporean is in need of a flat. But under our current criteria, we would not give that family a flat automatically. However, if there are extenuating circumstances, if it is a matter of severe financial hardship, we would consider it on a case-by-case basis. But, as a general policy, the answer is no, we would not give.”
“Let me start from the beginning. There are 3,100 1-room flats and 2,600 2-room flats. These 1- and 2-room flats, totalling 5,700 flats, are available for rental under the Public Rental Scheme. Not all of them are occupied, but there is a long waiting list for such flats. If tomorrow we say that everybody on the queue overnight would be given a key, then all of these flats will be taken up.”
“Sir, it does not mean that all the applicants who apply will be given a flat straightaway. I am not sure whether the Member is aware of this. But I have come across such cases in my own meet-the-people sessions where a person is given a flat in Jurong, but he says, "I don't want a flat in Jurong. I want a flat in Bedok or Tampines." So we tell him that there is no such flat available. And he says, "No, I do not wish to have this flat." The flat is available for him but he does not want it. But, on the other hand, there are those who want the flat anywhere but are not eligible. So, as a result of this, there is always this mismatch between supply and demand.”
“I am not sure whether the Member is aware of the rental rates that we are charging. If he has checked them out, I think he will find that they are actually much more generous than what he has mentioned. To follow his recommendation, I would be quite happy to consider. But I do not think it would be very well received.”
“No. They are available flats. Not all of them are occupied, but there is a waiting list for such flats.”
“No, available. Dr Mohamad Maliki Bin Osman: "Available" meaning they are already occupied or they are vacant and available?”
“These 1,800 flats are actually rental flats. They are actually for people under the Rent and Purchase Scheme. Under the Rent and Purchase Scheme, we rent these flats to families whose household incomes are below $2,000, with the proviso that over time we will sell them these flats at a discount, so that they can become home-owners as well. The 3-room flats for purchase are actually a separate matter.”
“Yes, the Member did hear me correctly. HDB is reviewing it, and I would like to ask the Member to be a bit patient.”
“Sir, yes, there are 5,700 1- and 2-room flats which are available for renting. However, on the other hand, there is a huge number of Singaporeans who are also asking for such rental flats and they include not just the single mothers, which the Member talked about, but senior citizens who have been chased out of their homes by their children, and other Singaporeans who have sold their flats and because of financial hardship are not able to purchase another flat. So, there is indeed a long waiting list of Singaporeans wanting to rent flats from HDB. And that is the reason why some of the requests or appeals from Members may not have been acceded to. There are, of course, eligibility criteria which HDB applies in processing these appeals. For example, citizenship status, because we do make a distinction between Singaporeans and permanent residents, and household income. There are, of course, other disqualifying criteria, for example, debarring Singaporeans who have already benefited from two or even three housing subsidies from applying for rental flats. It is important and necessary for HDB to have these eligibility criteria and debarment criteria because subsidies involved in public housing are huge, and we have to be able to direct the subsidies to those people who require most. I hope the Member would understand why there is a need for such criteria and also why the supply of rental flats is less than the demand for such flats and for that reason, not all eligible Singaporeans can be given a rental flat immediately upon request.”
“Mr Speaker, Sir, as at end July 2003, HDB has 3,100 1-room, 2,600 2-room and 1,800 3-room vacant rental flats which can be let out. 1- and 2-room flats are rented out to families earning $800 or less a month under the Public Rental Scheme; and 3-room flats to households with monthly incomes between $800 and $2,000 under the Rent and Purchase Scheme. The rents are heavily subsidised. Under the existing policy, HDB lessees who have sold their flats are not eligible to rent a flat from HDB for a period of 30 months from the date of sale. The purpose of this is to ensure that subsidised rental housing is targeted at those who are genuinely unable to afford home ownership. However, for cases where the flat is sold due to divorce, HDB will waive the 30-month debarment and allow the divorced mother who has custody of at least one child to rent a flat from HDB if she meets the eligibility conditions. Over the past three years, HDB has assisted about 1,000 divorced mothers who were granted custody of their children to rent flats. MND and HDB have just conducted a review of our rental housing policy. The review addresses, among other issues, the MP's questions on whether the current income cut-off of $800 per month is relevant and how to encourage rental tenants whose financial situations have improved over time to buy a home ownership flat. The outcome of the review will be announced shortly.”
“No. As I explained in my answer to Dr Tan just now, if at some future point in time that particular precinct is nominated again, it could be selected for MUP or IUP. INTER-RACIAL MIXING IN SCHOOLS (Measures to encourage) 3. Dr Amy Khor Lean Suan asked the Acting Minister for Education in view of the recent NIE survey findings that there is very little inter-racial mixing in schools (a) what measures have the schools and the Ministry introduced to encourage inter-racial mixing; (b) will his Ministry consider implementing further measures to encourage inter-racial mixing, and if so, what these are; and (c) if his Ministry will consider encouraging students to volunteer for community projects with multi-racial objectives at the Community Clubs and recognising these for Co-Curricular Activities points. 4. Ms Braema Mathiaparanam asked the Acting Minister for Education (a) what courses are available to trainee teachers to equip them with skills to deal with the inadvertent racial prejudices among school children; (b) what is the content of these courses; (c) whether such courses can be made compulsory for all trainee and in-service teachers, principals and other support staff in schools; and (d) how will his Ministry further promote the use of the English language within schools as the common social glue for school children. The Acting Minister for Education (Mr Tharman Shanmugaratnam): Mr Speaker, Sir, can I take Question Nos. 3 and 4 together?”
“Sir, the Main Upgrading Programme (MUP) and the Interim Upgrading Programme (IUP) are two separate programmes, and selection of precincts for upgrading under these two programmes is based on different criteria (age, flat types, geographical spread, etc). So, if this particular precinct in Pandan Gardens is one day nominated for interim upgrading under the interim upgrading selection criteria by the adviser, then we will consider it together with other eligible precincts.”
“Mr Speaker, Sir, under the Housing and Development Act, the Main Upgrading Programme (MUP) can be implemented in a precinct only if at least 75% of the eligible households vote for it. In the Pandan Gardens precinct, 68.84% of the eligible voters voted for the MUP. As this is less than the required 75%, the precinct cannot be upgraded as there is no legal mandate for HDB to proceed. The MUP is heavily subsidised. Having residents poll and co-pay for the programme ensure that upgrading is only carried out in precincts where there is overwhelming support for it. That is why the minimum support level is set at 75%, rather than a simple majority of 50%. The MUP was introduced in 1990 to upgrade older HDB estates to a standard that is comparable to newer estates. HDB residents find upgrading attractive as it brings them tangible benefits. Five other precincts polled for the MUP earlier this year have all strongly supported it. Three precincts achieved more than 90% "Yes" votes, while the other two had "Yes" votes exceeding 80%. In the case of Pandan Gardens, some residents felt that it would be prudent not to commit to expenditure on upgrading during this period of economic uncertainty. Nevertheless, I note that more than two-thirds still voted for the programme. HDB will continue to offer upgrading to older HDB estates as it improves the living environment of our residents. The number of precincts we select for the various upgrading programmes will take into account prevailing economic conditions and what the Government's budgetary position allows.”
“The animal welfare groups also have a responsibility to back up their sentiments with constructive action in shouldering the cost of caring for the well being of stray animals. One way would be to bid for land released for tender to set up and manage long-term animal boarding facilities for rounded up strays. ABORTIONS AMONG FOREIGN DOMESTIC WORKERS 4. Ms Braema Mathiaparanam asked the Acting Minister for Health what is the number of abortions among foreign domestic workers from 1999 - 2003.”
“Each year, the Agri-Food and Veterinary Authority (AVA) and the Society for the Prevention of Cruelty to Animals (SPCA) put down some 7,000 dogs and 13,000 cats. On average, AVA and animal welfare groups sterilise about 3,700 stray cats and 1,000 stray dogs. More than 1,000 pet dogs are also sterilised a year. There is no figure available for number of pet cats sterilised per year as cats are presently not required to be licensed, and that sterilisation is done by private veterinarians. AVA encourages the sterilisation of pet dogs and cats through public education on responsible pet ownership. These efforts help to control the number of strays and abandoned animals in Singapore. It is not possible to impose a compulsory sterilisation facility for all strays since, by definition, no one is directly responsible for them. Veterinarians in private practice are the main providers of sterilisation services for pet animals. The SPCA also provides sterilisation services for strays and issues vouchers to the public to facilitate sterilisation of strays at private clinics. AVA's Centre for Animal Welfare and Control (CAWC) has provided sterilisation services for stray cats brought in by volunteers under the Stray Cats Rehabilitation Scheme (SCRS). In addition, their surgical facility at CAWC has been offered for use to more than 13 veterinarians who volunteer to sterilise stray cats for free. AVA's sterilisation services have been suspended for the time being pending the review of the SCRS in consultation with animal welfare groups, Town Councils and residents. AVA is consulting with the stakeholders to identify long-term sustainable solutions to control strays in Singapore. These will need to be practicable and acceptable to the community at large.”
“As at 21st June 2003, there are 58,294 HDB flats owned by single persons. 99% of the single flat owners are aged 35 years old and above. As for gender, 58% of them are females and 42% are males. In terms of marital status, 63% are unmarried singles, 18% are divorced and 19% are widowed. HDB does not have information on the occupations of its flat owners and occupiers. STRAY CATS AND DOGS 3. Ms Braema Mathiaparanam asked the Minister for National Development (a) how many (i) stray cats and (ii) stray dogs are put down every year; (b) how many (i) cats (owned and strays) and (ii) dogs (owned and strays) are sterilised each year; and (c) will the Ministry introduce a compulsory sterilisation facility for strays and hold civil society groups responsible for their well-being.”
“I think I should leave that answer to my colleague. I can say generally that the building programme around the station has been slowed down because of the general slowdown in demand. There were original plans to build flats in the area, but these plans have not been carried through because of the general slowdown in demand over the last few years. But if you want to ask about the Buangkok Station itself, I think my colleague will be able to answer. Mr Speaker: Is it about Buangkok Station, Mr Chiam?”
“I have always told this House that we are very responsive. So, even before the Member asked the question, we have already responded. How is that? But to answer his question specifically, there are currently two or three contracts which are already under construction and they would be ready somewhere around 2003/2004. I do not have the specific numbers here but I can tell the Member that we should have something like 1,400 units available in 2005/2006. Beyond that, of course, it would depend on the take-up rate of the BTOs. We are offering one particular BTO programme this August, which will be about 450 flats. That would be ready in, say, four years' time, which takes us up to 2007, and thereafter the take-up rate will correspond to the rate at which we build which, in turn, will be dependent on the demand.”
“Sir, there are 58 completed HDB residential blocks comprising 4,720 flats that are within a straight-line distance of 600 metres from the Buangkok MRT station. Another 1,395 flats in the area are currently under construction. These were offered for sale under the Build-To-Order (BTO) scheme in 2001 and 2002 and are estimated to be completed in 2005 or 2006. HDB will be offering another 450 flats around the Buangkok Station under this year's BTO programme. If the demand for these flats is strong, HDB will proceed to tender and construct these flats, and may also consider offering more BTO sites around the Buangkok Station before the end of the year.”
“A family nucleus is defined as either one parent and one child (at least two persons), husband and wife, parent and child, etc. For the case that the Member mentioned, which is regarding a parent and a child who is born out of wedlock, HDB does not recognise that as a family unit. DEVELOPMENT PLANS FOR BUANGKOK STATION AREA 8. Mr Charles Chong asked the Minister for National Development (a) if he will give the number of completed residential blocks within a 600-metre radius of Buangkok Station and (b) what are the development plans for the area and when will these developments commence.”
“The first question was concerning the supply of rental flats. The rental flat scheme run by the HDB is not contingent upon how many people want to rent the flats. There are certain very strict eligibility criteria for those who wish to rent from HDB. There are two reasons. One is that it is a very heavily subsidised scheme and therefore we have to make sure that eligibility for such flats is tightly controlled. Secondly, the Government has always said that we want to encourage home ownership. We want to encourage home ownership because it gives Singaporeans a stake. We also want to encourage home ownership because, as opposed to rental, people do take better care of their flats and they have better commitment to the flats. For these reasons, the eligibility criteria under the rental scheme, or what we call the Public Scheme, are kept very tight. When people want to rent a flat - if they are retrenched, etc - and they approach HDB, they would be asked several questions. One, what is their income ceiling; two, whether they have a family unit; and three, whether they have actually enjoyed HDB subsidies before. For example, if they have just sold a flat, they have to wait for 30 months before they are allowed to rent. So there are several criteria before they can be eligible to rent a flat. It is not a matter of demand for rental flats and HDB striving to satisfy that demand. It is not on that basis. The second question is regarding this specific case. I do not have the details of the case but I can answer generally by saying that one of the criteria, which I mentioned earlier for renting of a HDB flat under the Public Scheme, is that the applicant must form a family nucleus.”
“Yes, that is correct. The reason why we use 40% is because this is the standard industry practice, that is, one would be considered credit-worthy for a loan if he does not have to pay more than 40% of his household income.”
“I am sorry I do not have the answer right now. Generally, the arrears rate for HDB flats in total is less than 5%. I do not have the breakdown but that is a good indication that, by and large, most of our HDB flat lessees are able to cope with the instalment payments.”
“So 90% of Singaporeans would be able to afford a 3-room flat comfortably.”