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Pritam Singh asks if HDB will provide breakdown of development costs for its flats, Indranee says it is not meaningful

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SINGAPORE — “It won’t be helpful or meaningful to” provide the breakdown of the development cost for flats built by the Housing Development Board (HDB), said Ms Indranee Rajah.

This was said by the Minister in the Prime Minister’s Office and Second Minister for Finance in response to a Parliamentary Question filed by the Leader of the Opposition, Pritam Singh on Monday (7 Nov).

The Workers’ Party Secretary-General had asked if HDB would provide a clear breakdown of the total development cost of all new flats and the value of the “generous subsidies” applied to the assessed market price of these new flats, in light of the POFMA Correction Directions issued on 14 October 2022 to an individual for his Facebook posts dated 4 October 2022.

Ms Indranee noted, “So Mr Singh’s question was, would we give a breakdown for all new flats henceforth.”

“It’s not meaningful because you will be just comparing this one with this one. And, you know, prices in one area may not be the same as the other. So that is the answer. My straightforward answer is it won’t be helpful or meaningful to do so.” said Ms Indranee.

Explaining to Ms Indranee why it would be meaningful to do so, Mr Singh said:

“So since the introduction of the prime location housing (PLH) of bleached flats last year, it suggests to me at least or provides an example why a detailed publication of HDB subsidies actually warranted. A HDB PLH flat buyer upon selling his PLH flat after ten-year MOP (Minimum Occupancy Period), will have to return the quantum of additional subsidies provided as a percentage of the original assessed market value of the flat and the subsidy recovery will apply to the resale price.”

He added, “That is a reflection of the prevailing market value regardless if the flat is sold at a gain or loss. Another reason I would suggest to the Minister to publish the dollar value of the subsidy is to scrutinise and track the amount of subsidies being diverted for homeownership purposes.”

“This is particularly in view of the Ministry of National Development’s 2011 decision to delink BTO prices from the rising resale market than the median price of a 4 room and larger HDB resale flats has increased 26% between 2017 and 2022, with resale prices reaching record highs today and therefore pushing up the market price of land. Increasing the size of the subsidies under the current HDB policy would appear to be the main way through which BTO prices will be kept affordable.”

In view of these new reasons, Mr Singh asked what is preventing HDB from publishing the dollar value of HDB subsidies for new BTO flats.

Ms Indranee retorted saying, “With respect to prime location housing. It actually doesn’t really change my answer because at the end of the day, the question is what is affordable to the person who’s buying? And in that, we have made no secret of the fact that for prime location housing, you will have to have a greater subsidy.”

“So that’s the key thing. So it comes back to the same question, why would you have to disclose or put out the development costs of every single project? It’s just not meaningful.”

“The key thing is to the buyer, is this affordable? And that’s what HDB does.”

Ms Indranee Cannot See Correlation Between POFMA Correction Directions And HDB’s Need To Disclose Breakdown Of Development Cost

Ms Indranee asked a question in return to Mr Singh on what is the correlation between the POFMA correction notice he is referring to and the question that he is asking about HDB’s disclosure of cost.

“I’m just trying to understand how it’s correlated because the fact that we provided subsidies has always been known long before the POFMA correction notice. So I just want to know the connection,” asked Ms Indranee.

In response, Mr Singh said that it is the government’s point that flats are generously subsidized before they are sold. So a subsidy is applied by HDB and that’s why flats can be sold at an affordable price. So that’s the correlation.

When pressed further for another explanation of the correlation between the POFMA correction direction and his questions, Mr Singh noted that the individual who was issued the Pofma correction direction was the Chief Economist of the Government of Singapore Investment Corporation (GIC).

“So if the Minister sees that this has been known for a long time, one would expect some of that stature to also not fall foul of Pofma and be POFMAed. But I think Minister has said that she will answer the question. So I hope the Minister can answer the question whether HDB will provide a breakdown of the subsidies again” said Mr Singh.

Ms Indranee said, “I don’t think there is any room in the law books which says that economists and ex-economists of GIC cannot be POFMAed. What the law says is that if you say something which is factually incorrect, then you are required to post a direction pointing out to it.”

She added, “the POFMAed post alleged that there was a disingenuous and misleading analysis of the $270 million loss made by HDB…The POFMAed post said it was an accounting sleight of hand being an omission that the government acquired most of its land at minimal or much lower cost by compulsory acquisition, and that the true cost price should be the original book value.”

“Those were the key things. And in response, the POFMA clarification pointed out that actually there is a real loss. And the fact that when we built HDB flats under the housing program, the fact that the government incurred losses.”

POFMA Correction Directions On Facebook Posts

Without a doubt, the individual whom Mr Singh is referring to in his question is Mr Yeoh Lam Keong, former Chief Economist of GIC.

Mr Yeoh had earlier published two Facebook posts on 4 October, which commented on a reply made by Minister Lee to Constituency Member of Parliament, Mr Leong Mun Wai’s Parliamentary Question.

Mr Leong had asked for the HDB’s net loss for the Central Weave BTO project at Ang Mo Kio; the cost of land paid by HDB to the Singapore Land Authority (SLA) for this project; and the net profit and loss position for the Singapore Government, including HDB and SLA, for this project.

In response, Mr Lee said that the estimated development loss of about S$250 million for the project would increase to about S$270 million after considering the Central Provident Fund (CPF) housing grants given to eligible buyers.

Mr Lee’s reported reply to Mr Leong spurred Mr Yeoh to write on his 4 Oct Facebook post, “A rather disingenuous and misleading analysis of the supposed $270mn loss made by HDB and by inference the government in developing BTO flats in AMK imho.”

Subsequently, on 14 October, Mr Lee directed the POFMA Office to issue Correction Directions to Yeoh Lam Keong and The Online Citizen Asia (TOC) over alleged false and misleading statements regarding Housing Development Board (HDB)’s deficits and Singapore’s Past Reserves.

The Minister claims that Mr Yeoh’s Facebook posts had falsely conveyed the message of HDB not incurring a loss of about $270 million from the Central Weave @ AMK Build-To-Order (BTO) Project and that the Government is free to sell State land at nominal or much lower cost than its fair market value.

In regards to the HDB’s loss, the Minister in his correction directions states that the losses incurred by HDB are accurate and real.

He states that for the Central Weave @ AMK project, HDB will incur an estimated development loss of about $250 million, or about $270 million after taking into account housing grants.

It is also stated that HDB’s deficits are covered using funding from the annual Budget, which is raised from taxes and other revenue streams.

As for the sale of State land, Mr Lee wrote that the State land is part of Singapore’s Past Reserves.

The Government cannot sell State land at nominal or much lower cost than its fair market value without the President’s approval, as doing so would constitute a draw on Past Reserves, claims the Minister.

“Past Reserves are protected by the Constitution for the benefit of future generations and use during crisis. The President’s concurrence is needed before the Government can draw on Past Reserves.”

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SDP: Chee Hong Tat, SMRT owe public full transparency, accountability for train system

Singaopre Democratic Party has called on Transport Minister Chee Hong Tat and SMRT to provide full transparency regarding the recent six-day disruption of the East-West Line. Despite S$2.5 billion spent on upgrades, serious issues persist.

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Bryan Lim, vice-chairman of the Singapore Democratic Party (SDP), has urged Transport Minister Chee Hong Tat and SMRT to take full responsibility for the ongoing issues with Singapore’s train system, following the unprecedented six-day breakdown of the East-West Line in September 2024.

In the statement from the party, Lim stressed that the public deserves full transparency regarding the management of the rail network and an itemised account of the more than S$2.5 billion spent on upgrading the North-South and East-West lines.

In the SDP’s statement, Lim pointed to a series of major incidents in recent years, including the deaths of two SMRT maintenance staff, the flooding of the Bishan MRT tunnel, and the Joo Koon train collision in 2016 and 2017.

He argued that these should have served as clear signals that the 35-year-old rail system required a thorough review to ensure the safety of millions of commuters and staff. Despite these warning signs and the substantial investments made to improve reliability, the recent breakdown reflects deeper, unresolved issues within the system.

Lim noted that former Transport Minister Khaw Boon Wan had, in 2017, promised a “quantum improvement” in the rail system’s performance following core replacements. However, seven years later, commuters are still grappling with major disruptions, despite the massive financial outlay.

According to the SDP, this raises serious questions about how effectively these funds have been used and whether SMRT’s focus on profits has compromised public safety.

Adding to public dissatisfaction, public transport fares have steadily increased over recent years. Since 2021, fares have risen by 2.2%, followed by a 2.9% increase in 2022 and a significant 7% hike in 2023. Another fare rise of 6% is expected in December 2024.

Authorities have justified these increases by citing the need to keep operators financially sustainable and ensure the provision of reliable services and fair wages for employees. However, Lim criticised this reasoning, pointing out that despite the rising fares, commuters continue to face significant service disruptions.

Lim further expressed concerns over remarks made by SMRT Chairman Seah Moon Ming, who emphasised the need to balance rail reliability with the cost of maintenance.

The SDP questioned whether this focus on financial considerations was coming at the expense of commuter safety and called for a detailed breakdown of the S$2.5 billion spent on upgrading the rail system.

Lim asserted that Mr Chee  and SMRT must be fully transparent with the public, providing clear explanations for the disruptions and disclosing how the funds were allocated.

Following the six-day disruption, multiple investigations into the incident are now underway. The Land Transport Authority (LTA) has launched an investigation into the root cause of the axle box failure that caused the disruption.

This investigation will include a forensic analysis of the component and an evaluation of SMRT’s procedures for fault detection and incident handling.

To support this effort, the LTA has appointed an Expert Advisory Panel (EAP) to review the findings and offer technical advice.

The EAP will be led by Malcolm Dobell, an expert with more than 45 years of experience in railway operations and engineering.

Dobell, who previously served as Head of Train Systems for London Underground, will be joined by a team of experts with extensive knowledge in railway engineering, maintenance, and safety protocols.

The panel’s goal is to ensure that all aspects of the disruption are thoroughly examined, and appropriate recommendations are made to prevent similar incidents in the future.

In addition to the LTA’s investigation, SMRT has also announced the formation of an internal committee to review the East-West Line disruption.

This committee will be chaired by Quek Gim Pew, a former Chief Defence Scientist and SMRT Independent Board Member, with Ng Chin Hwee, former CEO of SIA Engineering Company, serving as the deputy chairman.

The committee will include other independent panel members to provide impartial insights into the incident.

The Transport Safety Investigation Bureau (TSIB), a department within the Ministry of Transport, is also conducting a separate investigation.

Mr Chee confirmed this in a Facebook post, noting that TSIB’s investigation will focus on safety-related aspects of the disruption. The results of the investigations, which are expected to take a few months, will be made public once completed.

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Dr Chee Soon Juan criticises Ho Ching’s vision for 8-10 million population

SDP chief Dr Chee Soon Juan criticised Ho Ching’s claim that Singapore could support a population of 8 to 10 million through effective city planning. He expressed scepticism, citing adverse effects like rising living costs and mental health issues. Dr Chee argued that smaller populations can thrive, referencing Scandinavian countries that excelled internationally and produced Nobel laureates.

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Dr Chee Soon Juan, Secretary-General of the Singapore Democratic Party (SDP), slammed Senior Minister Lee Hsien Loong’s spouse, Ho Ching, for her assertion that Singapore could accommodate 8 to 10 million people with proper city planning and land reclamation.

In a video message published on 1 October, Dr Chee expressed strong scepticism regarding the narrative of increasing the population, highlighting that the current surge past the 6 million mark had been largely driven by the influx of foreigners, which led to several adverse consequences.

He further highlighted that smaller populations were not inherently negative, drawing examples from some Scandinavian countries that had flourished on the international stage despite their smaller populations and had even produced Nobel Prize laureates.

Ho Ching expressed confidence that with proper city planning, Singapore could accommodate up to 8-10 million people

Last Friday (27 September), in a Facebook post, Madam Ho, who was also the former CEO of Temasek Holdings, highlighted the growing demand for caregivers as the population aged and the need for workers to sustain sectors like construction and engineering, particularly as the workforce shrank due to lower birth rates.

“As we have less children, we need more people from elsewhere to join us to keep this city functioning, from repairing train tracks through the night to serving patients in hospitals through the night. ”

Dr Chee Highlights Risks of Population Growth

In response, Dr Chee recalled his experience of being reprimanded by Minister for Foreign Affairs Dr Vivian Balakrishnan during the last General Election for raising concerns about the implications of a rapidly growing population.

He questioned why Madam Ho, who shared similar views, had not faced the same scrutiny.

In his video, Dr Chee articulated several concerns regarding the proposed increase in population, highlighting the potential negative impacts, including increased demand for food, housing, and transportation, which would result in a significant rise in living costs.

With a larger population, Dr Chee pointed out that more flats, roads, hospitals, and public transportation would need to be constructed, which would ultimately require higher taxes and fees to maintain the necessary infrastructure.

The SDP leader emphasized that an influx of residents would intensify competition for jobs, exerting downward pressure on wages and potentially leading to higher rates of unemployment and underemployment.

Dr Chee further expressed concern over the environmental degradation that would accompany population growth, citing the recent clearing of forests for housing and industrial developments, including Tengah and Kranji Forests.

Dr Chee questioned the ability of existing infrastructure to cope with a growing population, referencing the persistent issues with the MRT system, including breakdowns and safety hazards.

He highlighted the toll that congestion and overpopulation take on the mental health of Singaporeans, noting a rise in reported mental health challenges.

“All this while the ministers live in secluded and luxurious bunglows and villas, far from the madding crowd which we are subjected to every single day.”

“So, when Ho Ching says that we can accommodate up to 10 million people, I’d like to ask her, where and what type of house she lives in?”

Dr Chee Argues for Innovative Economic Solutions Over Traditional Urban Expansion

Regarding the ruling government’s persistent push to increase Singapore’s population to what he considered “unhealthy levels,” Dr Chee suggested that the PAP lacked viable alternatives for fostering economic growth.

He implied that the government resorted to traditional methods of expansion, such as construction and urban development.

He highlighted that the government is fixated on physically expanding the city—“digging, pouring concrete, and erecting structures”—to sustain GDP growth.

This approach, he argued, creates an illusion that Singapore remains a productive economic hub, despite potential downsides.

Dr Chee Advocates for the Value of Smaller Populations: Cites Political Freedom as Key to Innovation and Success

Dr Chee further contended that a smaller population did not necessarily hinder a nation’s success.

He cited several Scandinavian countries and Taiwan, emphasising their global brands and innovations despite their relatively small populations.

Dr Chee connected the success of these nations to their political freedoms, arguing that the ability to think and express oneself freely fostered innovation and societal progress.

He contrasted this with Singapore, where he claimed that the government controlled media and stifled freedom of expression.

He criticised the ruling People’s Action Party (PAP) for its centralised control and for limiting the potential of Singaporeans. Dr Chee used the metaphor of a “grotesque monkey” clinging to the nation, suggesting that the PAP hindered progress and growth.

Dr Chee emphasised that the quality of a population—its talent, energy, and potential—was far more important than its size.

He suggested that Singapore possessed the necessary attributes to succeed on a global scale but was held back by the current political landscape.

He urged Singaporeans to engage in critical thinking rather than passively accepting government narratives.

Dr Chee advocated for a more mature and sophisticated approach to governance and civic engagement, encouraging citizens to take an active role in shaping their society.

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