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HDB’s lease decay issue should rank high on national agenda as we cannot continue ignoring ‘the elephant in the room’, says WP’s Louis Chua

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Member of Parliament (MP) for Sengkang GRC Louis Chua Kheng Wee on Thursday (3 Sept) called on the government to evaluate its success of policymaking holistically, noting that it should take into account the overall well-being of Singaporeans and the vulnerable group.

Speaking in Parliament yesterday, Mr Chua addressed the unprecedented challenges that arise from the COVID-19 pandemic, adding that the crisis has exposed “the weakness in Singapore’s economic structure and lack of social protection” for the vulnerable group.

“I call on the government to evaluate its success not just purely based on a narrow set of economic terms, but to take a more holistic, multidimensional approach in measuring the progress of our nation.

“We should base our policy decision making on not just maximising financial value, but on maximising the overall well-being of all Singaporeans, particularly the most vulnerable among us,” said the Workers’ Party (WP) member.

Mr Chua highlighted four areas for reform to build a stronger and more resilient Singapore in the current pandemic-induced crisis.

Workers need direct support and financial buffers

Referring to the second-quarter employment change numbers, he pointed out that giving subsidies to companies and the past approach of “moral suasion” will not help to prevent job losses.

Mr Chua added that the ratio of job vacancies to unemployed individuals reached a historical low of 0.71 per cent as of March this year.

“With the demand outlook remaining poor, and the worst of retrenchments and unemployment ahead of us, many more workers will be without a job, despite their best intentions to be employed,” he noted.

Rather than providing blanket wage subsidies to companies, the workers themselves are in need of direct support and financial buffers in the event of unemployment, said Mr Chua.

“The Singapore government has taken pride in creating a pro-business environment, through its economic and manpower policies. It is now time in my view, however, to strengthen our employment laws to better support and protect workers, and raise the standard of work for all.”

HDB’s lease decay issue should “rank high on our national agenda”

Mr Chua went on to highlight the lease decay of HDB housing as the second area for reform, noting that it has “serious implications for the retirement adequacy of Singaporeans” due to their assets are being tied to their primary residences.

Noting that over 80 per cent of Singaporeans live in HDB flats, the Sengkang GRC MP noted that the majority of them are relying on their Central Provident Fund (CPF) ordinary account balances to pay their mortgage.

This issue potentially becomes “a significant source of mental stress and insecurity”, knowing that their HDB flats would lose value “ as they approach the tail end of their leases”.

“The government has said earlier in 2019 that it will consider all alternative suggestions and ways to manage the expiring leases of HDB flats.

“We cannot continue to ignore the elephant in the room, and this is an issue which I firmly believe should rank high on our national agenda,” he remarked.

Employees should be given legislative rights to flexible working arrangements

On the third area for reform, Mr Chua stressed the need for more family-friendly policies.

He highlighted that the country’s total fertility rate stands at a record low of 1.14 per cent in 2019, and the pandemic-induced economic downturn might lead to delay in marriage and parenthood plans among couples.

“We need to recognise that family-friendly policies boost, rather than reduce productivity, and reject the notion that dedicating time for our care-giving responsibilities, hurts the employment prospects of workers,” Mr Chua asserted.

He described the institutionalized flexible work arrangements at workplaces was “the silver lining” to the circuit breaker period, and it has shown that “economic competitiveness need not come at the expense of our families”.

That said, Mr Chua noted that employees should be given the legislative rights to flexible working arrangements, rather than simply non-legally binding advisories and recommendations.

He added that the government should “lead by example and demonstrate to companies what progressive HR practices look like”.

“We need to take bold and decisive steps and provide greater financial and non-financial support to Singaporean families, recognising that the stresses on families and our low fertility rate, if not urgently addressed today, would have significant long term socioeconomic costs on Singapore,” he said.

The use of reserves

While Mr Chua agrees with the policy that states the government’s expenditure levels cannot – and should not – exceed its revenues for long term sustainability, he said national policy proposals that tap the reserves must be seen in the context of Singaporeans’ needs in healthcare, ageing and retirement adequacy.

As such, there needs to be a thorough evaluation of alternative sources of revenue that remain untapped, he noted.

“Currently, some government revenues including land sales are excluded from the official budget. However, capital receipts from land sales represent strong, recurring cash revenues that are actually received by the Government – particularly with land being sold on a leasehold basis.

“As such, one of the ways that the revenue shortfall can be met is by tapping no more than a fifth of the approximately $15bn[billion] per year in land sales that the government typically collects,” Mr Chua explained.

He also suggested increasing the Net Investment Return Contribution by up to 10 per cent as an alternative source of revenue.

Though Mr Chua acknowledged the need to safeguard the nation’s reserves for potential contingencies, he noted that increasing the percentage of returns generated from the net assets will vary the pace of the reserve growth, and not cause them to fall.

“Arguably, deploying our reserves into more productive uses by investing them into our people, our human capital, could generate far superior returns in the long run, and boost the future sustainability of our nation.”

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Chee Soon Juan questions Shanmugam’s $88 million property sale amid silence from Mainstream Media

Dr Chee Soon Juan of the SDP raised concerns about the S$88 million sale of Mr K Shanmugam’s Good Class Bungalow at Astrid Hill, questioning transparency and the lack of mainstream media coverage. He called for clarity on the buyer, valuation, and potential conflicts of interest.

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On Sunday (22 Sep), Dr Chee Soon Juan, Secretary General of the Singapore Democratic Party (SDP), issued a public statement on Facebook, expressing concerns regarding the sale of Minister for Home Affairs and Law, Mr K Shanmugam’s Good Class Bungalow (GCB) at Astrid Hill.

Dr Chee questioned the transparency of the S$88 million transaction and the absence of mainstream media coverage despite widespread discussion online.

According to multiple reports cited by Dr Chee, Mr Shanmugam’s property was transferred in August 2023 to UBS Trustees (Singapore) Pte Ltd, which holds the property in trust under the Jasmine Villa Settlement.

Dr Chee’s statement focused on two primary concerns: the lack of response from Mr Shanmugam regarding the transaction and the silence of major media outlets, including Singapore Press Holdings and Mediacorp.

He argued that, given the ongoing public discourse and the relevance of property prices in Singapore, the sale of a high-value asset by a public official warranted further scrutiny.

In his Facebook post, Dr Chee posed several questions directed at Mr Shanmugam and the government:

  1. Who purchased the property, and is the buyer a Singaporean citizen?
  2. Who owns Jasmine Villa Settlement?
  3. Were former Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong informed of the transaction, and what were their responses?
  4. How was it ensured that the funds were not linked to money laundering?
  5. How was the property’s valuation determined, and by whom?

The Astrid Hill property, originally purchased by Mr Shanmugam in 2003 for S$7.95 million, saw a significant increase in value, aligning with the high-end status of District 10, where it is located. The 3,170.7 square-meter property was sold for S$88 million in August 2023.

Dr Chee highlighted that, despite Mr Shanmugam’s detailed responses regarding the Ridout Road property, no such transparency had been offered in relation to the Astrid Hill sale.

He argued that the lack of mainstream media coverage was particularly concerning, as public interest in the sale is high. Dr Chee emphasized that property prices and housing affordability are critical issues in Singapore, and transparency from public officials is essential to maintain trust.

Dr Chee emphasized that the Ministerial Code of Conduct unambiguously states: “A Minister must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

He concluded his statement by reiterating the need for Mr Shanmugam to address the questions raised, as the matter involves not only the Minister himself but also the integrity of the government and its responsibility to the public.

The supposed sale of Mr Shamugam’s Astrid Hill property took place just a month after Mr Shanmugam spoke in Parliament over his rental of a state-owned bungalow at Ridout Road via a ministerial statement addressing potential conflicts of interest.

At that time, Mr Shanmugam explained that his decision to sell his home was due to concerns about over-investment in a single asset, noting that his financial planning prompted him to sell the property and move into rental accommodation.

The Ridout Road saga last year centred on concerns about Mr Shanmugam’s rental of a sprawling black-and-white colonial bungalow, occupying a massive plot of land, managed by the Singapore Land Authority (SLA), which he oversees in his capacity as Minister for Law. Minister for Foreign Affairs, Dr Vivian Balakrishnan, also rented a similarly expansive property nearby.

Mr Shanmugam is said to have recused himself from the decision-making process, and a subsequent investigation by the Corrupt Practices Investigation Bureau (CPIB) found no wrongdoing while Senior Minister Teo Chee Hean confirmed in Parliament that Mr Shanmugam had removed himself from any decisions involving the property.

As of now, Mr Shanmugam has not commented publicly on the sale of his Astrid Hill property.

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Redditors question support for PAP over perceived arrogance and authoritarian attitude

Despite Senior Minister Lee Hsien Loong’s warning that slimmer electoral margins would limit the government’s political space “to do the right things”, many Redditors questioned their support for the ruling PAP, criticising its perceived arrogance. They argued that SM Lee’s remarks show the party has ‘lost its ways’ and acts as if it alone can determine what is right. Others noted that the PAP’s supermajority allows for the passage of unfavourable policies without adequate scrutiny.

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In a recent speech, Senior Minister Lee Hsien Loong warned that “if electoral margins get slimmer, the government will have less political space to do the right things.”

Mr Lee, who served as Prime Minister for 20 years, highlighted the risks associated with increasingly competitive politics.

“It will become harder to disregard short-term considerations in decision-making. The political dynamics will become very different,” he stated during his speech at the Annual Public Service Leadership Ceremony 2024 on 17 September.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed.

SM Lee pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens.

As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.”

He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

Critique of PAP’s Arrogance and Disconnect from Singaporeans

The People’s Action Party (PAP) experienced a notable decline in its vote share during the 2020 General Election, securing 61.24% of the votes and winning 83 out of 93 seats, a drop from 69.9% in 2015.

A significant loss was in Sengkang GRC, where the PAP team, led by former Minister Ng Chee Meng, was defeated by the Workers’ Party (WP).

In discussions on Reddit, some users questioned why they should support the ruling PAP, criticising the party’s perceived arrogance.

They pointed out that SM Lee’s recent remarks illustrate that the party has strayed from effectively serving Singaporeans and seems to believe it has the sole authority to decide what is right.

Others highlighted that the PAP’s super-majority in Parliament enables the passage of unfavourable policies without sufficient scrutiny.

One comment acknowledged that while many older Singaporeans remain loyal to the PAP due to its past achievements, younger generations feel the party has failed to deliver similar results.

There is significant frustration that essentials like housing and the cost of living have become less affordable compared to previous generations.

The comment emphasised the importance of the 2011 election results, which they believe compelled the PAP to reassess its policies, especially concerning foreign labor and job security.

He suggested that to retain voter support, the PAP must continue to ensure a good material standard of living.

“Then, I ask you, vote PAP for what? They deserve to lose a supermajority. Or else why would they continue to deliver the same promises they delivered to our parents? What else would get a bunch of clueless bureaucrats to recognise their problems?”

Emphasising Government Accountability to the Public

Another Redditor argued that it is the government’s responsibility to be accountable to the people.

He further challenged SM Lee’s assertion about having less political space to do the right things, questioning his authority to define what is “right” for Singapore.

The comment criticised initiatives like the Founder’s Memorial and the NS Square, suggesting they may serve to boost the egos of a few rather than benefit the broader population. The Redditor also questioned the justification for GST hikes amid rising living costs.

“Policies should always be enacted to the benefit of the people, and it should always be the people who decide what is the best course of action for our country. No one should decide that other than us.”

The comment called for an end to narratives that present the PAP as the only party capable of rescuing Singapore from crises, stating that the country has moved past the existential challenges of its founding era and that innovative ideas can come from beyond a single political party.

Another comment echoed this sentiment, noting that by stating this, SM Lee seemingly expects Singaporeans to accept the PAP’s assumption that they—and by extension, the government and public service—will generally do the “right things.”

“What is conveniently overlooked is that the point of having elections is to have us examine for ourselves if we accept that very premise, and vote accordingly.”

A comment further argued that simply losing a supermajority does not equate to a lack of political space for the government to make the right decisions.

The Redditor express frustration with SM Lee’s rhetoric, suggesting that he is manipulating public perception to justify arbitrary changes to the constitution.

Concerns Over PAP’s Supermajority in Parliament

Another comment pointed out that the PAP’s supermajority in Parliament enables the passage of questionable and controversial policies, bypassing robust debate and discussion.

The comment highlighted the contentious constitutional amendments made in late 2016, which reserved the elected presidency for candidates from a specific racial group if no president from that group had served in the previous five terms.

A comment highlighted the contrast: in the past, the PAP enjoyed a wide electoral margin because citizens believed they governed effectively. Now, the PAP claims that without a substantial electoral margin, they cannot govern well.

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