MM Lee urged voters to support National Development Minister Mah Bow Tan

SINGAPORE: The Housing & Development Board (HDB) is considering imposing a quota on Permanent Residents buying resale HDB flats. This could be done in the same way that racial quotas are imposed to prevent ethnic enclaves.

The issue came up in a dialogue session on public housing with Minister Mentor Lee Kuan Yew where questions on affordability and aspirations were brought up.

Public housing has come a long way from where it started 50 years ago. Still, issues remain. These include how foreigners are perceived to affect pricing of flats.

Mr Lee said over the next five years, the intake of foreigners will slow down but that means Singaporeans will have to increase their productivity.

Going further, dialogue moderator Professor Tommy Koh asked if more could be done to integrate those already here, in much the same way that the Ethnic Integration Policy was introduced in 1989 in public housing estates to get races mingling.

Mr Lee said: "Could the same approach be adopted towards integrating new Singaporeans? We are not allowing new Singaporeans whether from China, India, Malaysia, or whatever, to congregate in the same tower blocks, which they are already beginning to do.


"They buy second hand flats and they congregate. So we have a record of how many new citizens living where and we keep their numbers dispersed. It's a very valuable tool of communal harmony."

HDB later clarified that a quota policy on PRs for resale flats was being considered.

One other issue that came up during the dialogue is that of affordability, which has come up repeatedly. One suggestion was to have HDB provide more rental housing units.

Mr Lee said: 'I completely disagree with that policy. It will lead us into all kinds of problems. You are getting a dependency group - dependent on the government on constant subsidies, whereas our philosophy is 'I give you this asset, I will increase the value of the asset as the economy grows but it is yours and you look after it.' And we do not have run down public housing like other countries which are rental."

Mr Lee was also asked for his take on a recent media report that at least three opposition parties were eyeing National Development Minister Mah Bow Tan's ward with the aim of making public housing affordability an election issue.

He explained: "What is affordabilty? From the point of view of the buyer? And the government that is subsidising you? The government has to price it at a level that is fair to the revenue it is collecting and fair to the individual, not only the present buyer but past and future buyers. If Mr Mah is unable to defend himself, he deserves to lose.

"No country in the world has given its citizens and families an asset as valuable as what we have given every family here. And if you say that policy is at fault, you must be daft."

Mr Lee was speaking before some 500 delegates from 20 countries at a housing conference. - CNA/vm

Public housing in 21st century must meet changing needs: Minister Mah

SINGAPORE: Singapore's National Development Minister Mah Bow Tan said public housing in the 21st century must evolve to meet changing needs.

But the core mission of the HDB remains unchanged - that of providing Singaporeans with affordable quality homes and building cohesive communities.

Speaking at the International Housing Conference in Singapore, Mr Mah noted the HDB will face increasing challenges due to shifting demographics. These include an aging population which may require further innovations in housing policies or building design.

These include an aging population, which may require further innovations in housing policies or building design.

In addition, with more new Singapore citizens, greater integration efforts will be required.

Mr Mah said rapid globalisation and affluence may also prompt other lifestyle changes and with it, increased expectations of what public housing can provide.

Singapore is also facing the steadily ageing profile of HDB flats and towns. So there will be an urgent need to upgrade, redevelop and rejuvenate older estates.

Mr Mah said HDB must meet these challenges and continue achieving environmental, economic and social sustainability. This will contribute to Singapore's overall quest to provide a green and healthy living environment, through careful long-term planning.

In the past half century, HDB achieved much for Singapore and garnered significant international recognition, including the UN Public Service Award.

And he urged HDB to continue its relentless pursuit of sustainable public housing for the next 50 years and beyond. - CNA/vm

Former SAF scholar joins Reform Party

Former SAF scholar joins Reform Party











Reformers at a Jurong Walkabout – from left to right – James Teo, Justin Ong, Tony Tan


One can be forgiven for believing that there is somewhat a connection between high-flying scholars and the ruling party. This can be attributed to the number of former scholars who are serving in Parliament and the Cabinet under the ruling party. Mr Tony Tan (TT), however, took an alternative path vis-à-vis his other illustrious colleagues.

A recipient of the SAF Merit Scholarship, he earned a Bachelor of Engineering with Honours from the University of Cambridge. He also earned a MBA and Biomedical degrees from the University of Leicester and Central Queensland University respectively. He left SAF to found an educational provider, achieving success that earned him the Spirit of Enterprise award. He has remained within the educational sector ever since.

Joining the Reform Party, he became a member of the Central Executive Committee in 2009. The Online Citizen was fortunate to be able to catch up with Tony, soliciting his views on various issues, and even managed to catch a slight glimpse into the upcoming educational seminar organised by the Reform Party.

In this exclusive interview, Tony Tan shares his perspective on the economy, national service and education. To find out more about Tony Tan and the Reform Party, why not pop over at the Reform Party’s Seminar on Education? It will be held on 130pm, 23rd January at Berkshire School Pte Ltd, 100 Beach Road #02-19A, Shaw Towers, Singapore 189702. The facebook page for the event is accessible at http://www.facebook.com/event.php?eid=231270716589&index=1

Blogger Gerald Giam joins the Workers’ Party

Blogger Gerald Giam joins the Workers’ Party
Saturday, 23 January 2010

From Gerald Giam’s blog http://geraldgiam.sg/2010/01/why-i-joined-the-opposition/:

I joined the WP because I believe Singapore needs an alternative leadership that is capable of taking over the reins and steering our country to its next level of development, should the PAP stumble. This will ensure that Singapore will continue to prosper and thrive even without the PAP in power. I believe the WP has the potential to be that alternative government in the future, and I want to play my part to contribute to its growth and development. I hope to be able to help my party sharpen its policy proposals and broaden its outreach to Singaporeans who are not usually interested in politics.

I am under no illusions that the road ahead as an opposition activist will be long and fraught with obstacles, not to mention minefields. Many who have gone before me have paid a heavy price for their ideals. Some have lost everything they had, except their dignity. All Singaporeans are heavily indebted to these heroes, whether or not they realise it.

I hope I will not have to suffer political persecution like these heroes did, but I know many things are beyond my control. I therefore ask my friends and readers for their prayers and support, as I take my first of many steps in this long march towards building a better Singapore for all Singaporeans.

Election-year largesse unlikely

Election-year largesse unlikely

BY FIONA CHAN

DESPITE this being a likely election year, next month's Budget looks set to be a more low-key affair than those of previous election years, with fewer handouts to please Singapore's voters.

Economists expect this year's government spending plan to be generous, but more focused on laying the foundation for medium-term growth.

This will be in contrast to the round of recession-cushioning reliefs announced last year - which included the bumper $20.5 billion Resilience Package - or the liberal payouts unveiled in other election years.

'Last year, we saw more focus on practical responses to the crisis to stem job losses,' said Barclays Capital economist Leong Wai Ho.

'This year, given that the immediate urgency has sort of faded, there will be a shift in emphasis towards longer-term measures in the Budget.'

Likely to dominate the Budget will be the soon-to-be-published recommendations of the Economic Strategies Committee (ESC), which has been tasked with mapping out new ways for Singapore to grow over the next five to 10 years.

In fact, economists are holding back on predicting the contents of the Budget goodie bag until they have a clearer view of what resources the Government will need to commit to implement the ESC recommendations.

Among other things, the committee is expected to outline how Singapore can re-orientate its economy with a greater focus on services, said OCBC Bank economist Selena Ling.

This may result in Budget measures that include more money for education, training and re-skilling programmes, plus extra help for small- and medium-sized enterprises (SMEs), for instance in the area of financing, Ms Ling and other economists said.

The Government has already indicated that some of the downturn assistance provided in last year's Budget will be extended this year.

The Jobs Credit scheme will continue to help companies keep their workers employed until June, while the financing schemes under the Special Risk-Sharing Initiative will encourage banks to keep lending to firms.

In October last year, Finance Minister Tharman Shanmugaratnam told Parliament that Budget 2010 was going to shift from broad-based relief towards more specific targeting. This, he pointed out, would include 'restructuring, enhancing productivity, and preparing for growth over the medium to longer term'.

Despite this year looking set to be an election year, Barclays' Mr Leong believes lavish cash handouts are unlikely.

'We've already seen a tremendous amount of handouts over the last few years,' he said.

These have included 2006's $2.6 billion Progress Package, the $4 billion GST Offset Package in 2007, and last year's $20.5 billion Resilience Package.

'To be fair, it's probably time to cut back on some of that, rein in the Budget and prepare for the possibility of a rainy day again,' Mr Leong said.

This, he added, was particularly important 'given that we're not certain about the durability of the recovery'.

Economists, however, do not think the Budget will be totally devoid of goodies, although the Government may try to align its handouts to longer-term goals.

DBS economist Irvin Seah expects a lowering of the top personal income tax rate - something which is in line with Singapore's long-term strategy of attracting foreign talent.

'We would also probably see more top-ups in public assistance schemes to help the lower-income groups,' he said.

'This is in line with the Government's long-term objective to foster inclusive growth, as the lower-income groups are finding it difficult to keep pace with development.'

OCBC's Ms Ling suggested that some handouts may come in the form of measures to help Singaporeans cope with rising living costs, assist the needy as well as provide greater differentiation between foreigners and Singaporeans.

'But there won't be big handouts in the style of, say, Growth Dividends,' she added, referring to the cash payouts in the Budget that preceded the 2006 elections.

The 2010 spending statement is slated to be in marked contrast to recent election-year Budgets, all of which were considered to set new levels of largesse when unveiled.

The $2.45 billion Budget of 1996, which came prior to the elections of January 1997, cut the corporate tax rate by one percentage point, reduced the top personal income tax rate by two percentage points, and gave away a 10 per cent tax rebate.

In 2001, a slew of tax cuts and rebates worth more than $2 billion - including $333 million in utility, rental and conservancy fee 'share-outs' to HDB households - was unveiled in the run-up to elections in November that year.

The Government also handed $1.85 billion back to Singaporeans via special transfers, including $1 billion in CPF top-ups.

It then followed this up with 2006's Progress Package, which gave out $1.4 billion in Growth Dividends and introduced Workfare Bonuses for lower-wage workers.

Elections that year came three months after the Budget in May.

This article was first published in The Straits Times.

HDB flat value will rise as long as economy grows: MM Lee

HDB flat value will rise as long as economy grows: MM Lee
By Asha Popatlal, Channel NewsAsia | Posted: 13 December 2009 2123 hrs

SINGAPORE: Public flats will continue to appreciate in value as long as the Singapore economy continues to grow. And with limited space, the future of public housing looks set to go up - with more skyscraper flats to be built.

Minister Mentor Lee Kuan Yew said this as he launched The Pinnacle@Duxton, which at 50 storeys, is the tallest HDB development in Singapore.

The first rental HDB blocks in Tanjong Pagar were built in 1963 on the site where The Pinnacle@Duxton stands. Today, it is the site of the tallest HDB in the country and the scene has changed significantly.

Mr Lee attributes the change to an early policy decision to build a home-owning society, which is what motivates Singaporeans to upgrade this asset for a better life, something which could not have happened with just rental flats.

Going forward, Mr Lee expects more of such flats to be built.

He said: "The Pinnacle@Duxton is therefore a good example that if the nation continues to do well, we can build more flats of this standard. But we should not make a quick profit from a resale of HDB flats.

"The rules on minimum occupation and requirement for family units nucleus are to discourage speculative purchases."

Mr Lee gave out keys to seven of the first families to move in and visited one family, whose father had rented a flat in the area previously.

Speaking to reporters later, he said the government could have built a condominium in its place but preferred to build public flats in this central area and share the growth of the city with the people who had rented flats in the area before.

Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country's growth - if the country is doing well, property prices will go up.

But if the economy goes down, unemployment goes up but incomes and property values decline.

One thing that will be going up is the height of future public housing.

Mr Lee said: "Well, it's a very special problem we face because we can't expand the city laterally, we have to expand the city vertically. Yes, we can have more (land) reclamations but that's only about 10, 15 per cent and we've reached the limit.

"Therefore, I see more and more of the old blocks being demolished and new blocks like The Pinnacle@Duxton being built."

Units at The Pinnacle@Duxton cost an average of S$486,000 for a 4-room flat and S$590,000 for a 5-room flat, when the last of the units were released in October.

The 50th-storey skybridge will also be open to non-residents for a S$5 fee.

- CNA/ir

DPM Wong says leaders must have conviction to do what is necessary

DPM Wong says leaders must have conviction to do what is necessary
By Mustafa Shafawi, Channel NewsAsia Posted: 07 December 2009 1838 hrs

SINGAPORE : Deputy Prime Minister Wong Kan Seng has said leaders must have the conviction to do what is necessary, even if it may not win them political points.

He said that in a crisis, leaders may find that they have the platform and momentum to drive difficult reforms. But it becomes less easy to pursue and persist with tough reforms when the crisis is over and the economy is on the mend.

Businesses and employees would be reluctant to see the withdrawal of temporary support measures put in place during the downturn. They might be wary of moves to tighten credit and strengthen corporate governance.

In such a situation, leaders must have the conviction to push through what needs to be done, rather than what is politically expedient or populist.

Mr Wong said that to do so, they need to articulate the long-term vision for the country or organisation clearly, mobilise their stakeholders and steer them towards this vision. They cannot do this effectively if they lack credibility and lack the trust of those they lead.

Mr Wong, who is also Home Affairs Minister, was speaking at the fifth Asia Economic Summit on Monday.

The event brings together think tanks, business leaders and government officials from the region to discuss the strategic challenges Asia faces and the prospects ahead. - CNA/ms