SINGAPORE: The government will “always keep public housing affordable for Singaporeans”, said Prime Minister Lawrence Wong on Tuesday (Jan 21).
Speaking at a dialogue session themed on the Singapore dream, he gave the assurance that new Build-to-Order (BTO) flats will continue to be priced in relation to income levels. Supply for both public and private housing are also being ramped up, which will help to stabilise the overall property market in due course.
Mr Wong, who is also Finance Minister, acknowledged the concerns about housing affordability that may come with reports on million-dollar HDB flats and when people compare the prices of their flats with that of their parents’ generation.
But that is “one part of the equation” and needs to be seen in the context of rising incomes, he said at a dialogue organised by the government’s feedback unit Reach and student organisation Varsity Voices at the National University of Singapore (NUS).
Addressing questions on affordability, he noted that more than 80 per cent of first-time flat buyers were able to service their loans through their Central Provident Fund (CPF) funds “with very little or zero cash”.
This is unlike those who bought their homes during the 1960s to 1980s. Even though flats were cheaper, people “had to fork out a lot more from their take-home pay” to pay off mortgages, leaving them with lesser disposable incomes, he said.
This is also a result of the Housing Board pricing BTO flats in relation to income levels to make sure that new flats remain within reach for a vast majority of Singaporeans.
“The assurance to all of you is that HDB will continue to price the new flats in relation to income, not in relation to the resale market … to make sure that (housing) remains affordable,” said Mr Wong.
Noting that prices in the HDB resale market have been rising due to supply disruptions brought on by the COVID-19 pandemic, the government has been “building as much as (it) can”.
It is doing so not just for public housing but also by ramping up private housing supply through its government land sales programme as both markets are interlinked. But these supply moves will “take time”, he added.
“We are doing all we can on the property side. The new flats are affordable. We will continue to review to make sure they continue to stay affordable,” said Mr Wong.
“The supply that we are putting on to the market will eventually have an impact on stabilising the overall property market.”
Moderated by NUS' vice-provost of student life Leong Ching, the dialogue was attended by about 900 students from various institutes of higher learning.
The session was held under Chatham House rules, which dictate that participants are free to use the information received but cannot reveal the identity of the speaker.
On questions about the Singapore dream, Mr Wong noted it has evolved from the notion of the 5Cs – cash, car, credit card, condominium, and country club membership – to about pursuing one’s own path.
That had emerged during the Forward Singapore exercise, with people’s idea of a better life going beyond material success to include a sense of purpose.
“I believe the refreshed Singapore dream is one where we pursue own path … and we realise our own aspirations and dreams,” said Mr Wong.
He noted that comparison with others may be part of human nature, but it can get frustrating when overdone, leaving one feeling trapped in an “endless rat race” or “chasing someone else’s dream”.
Moving away from that to an environment where people recognise they have different abilities and strengths can help people to find purpose in what they do, he said, adding that doing so can help young people to “seize opportunities enthusiastically”.
He said: “It’s one where it's more open, not so prescribed. It's one where we want you to choose your own path of success, and there will be different pathways, different aspirations, different goals.
“Ultimately, we also hope that Singaporeans, in realising your own potential, have a care to look out for one another and help all of us succeed together. I think that's a Singapore dream we can all look forward to realising together.”
Asked by a student on the help given to people with disabilities and special needs to achieve their Singapore dream, Mr Wong said the government has been doing so through special education (SPED) schools and is studying ways to address concerns about what these students can do after graduation.
“We always hear concerns around post-education … We are looking at ways in which we can improve some of the pathways for them to work, or at least do something with their lives that will be meaningful and fulfilling,” said the prime minister, adding that he hopes to share some of these plans at the Budget statement next month.
Mr Wong was also asked a range of questions ranging from geopolitical tensions with a second Donald Trump presidency, regulations on social media, cryptocurrencies, artificial intelligence and same-sex marriages.
On the country's stance on same-sex marriages, Mr Wong said Singapore made “a major move” in 2022 to repeal Section 377A of the Penal Code, which criminalised sex between men.
Recognising that the majority of the society today still viewed marriage as one between a man and a woman, it also amended the Constitution to protect the heterosexual definition of marriage from legal challenges.
“This is where we are today. How will it evolve? I really don't know exactly,” he said. Just as views on 377A have “evolved over a long period of time”, views on other issues may also change and the government’s position “is to let things take its natural course”, he added.
“From the government's point of view, our main priority is for these sorts of issues not to divide our society further, because you can see that happening in so many different places,” he said.
He cited how in the United States, there are “swings from one to another extreme with a new administration”.
“Society has become so divided and polarised by these sorts of cultural wars, they divide up into different groups and it's really all-out war from one camp to another camp, and we really don't want that to happen,” said Mr Wong.
“So, while there may be differences in views around these issues, our view as a government is ‘let's sit down, talk, continue to engage one another', and let's do this organically.”
“The government is not going to lead social change,” he reiterated, adding that when a different view emerges down the road, “the government at that time can make a decision in due course”.
On how Singapore will navigate its relations with the world's superpowers and whether that could be made more challenging with the return of President Trump to the White House, Mr Wong noted that Singapore is facing a more challenging and turbulent external environment that will not be going away.
For now, Singapore has a “positive” bilateral relationship with the US, with close cooperation in many areas like defence and security, while also exploring new partnerships such as in cybersecurity.
“We are continuing to grow the relationship and it’s a mutually beneficial relationship. The US administration recognises this, even the new incoming administration,” said Mr Wong.
“So long as the two countries are able to manage the competition and not force countries like Singapore to choose sides and bifurcate the world into two blocks, we will be able to navigate this.”
At the moment, the likelihood of the superpowers choosing to bifurcate the world is “not so high” as there are tremendous interdependencies in their economies, he said, adding that the rest of the world can do its part to minimise the risk of an outright decoupling or an outright conflict from happening.
“If we all do that … then hopefully we can manage the rivalry between the two superpowers, keep the peace in the world and we can still have a reasonably good environment for all of us to continue thriving and flourishing.”
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Speaking at a dialogue session themed on the Singapore dream, he gave the assurance that new Build-to-Order (BTO) flats will continue to be priced in relation to income levels. Supply for both public and private housing are also being ramped up, which will help to stabilise the overall property market in due course.
Mr Wong, who is also Finance Minister, acknowledged the concerns about housing affordability that may come with reports on million-dollar HDB flats and when people compare the prices of their flats with that of their parents’ generation.
But that is “one part of the equation” and needs to be seen in the context of rising incomes, he said at a dialogue organised by the government’s feedback unit Reach and student organisation Varsity Voices at the National University of Singapore (NUS).
Addressing questions on affordability, he noted that more than 80 per cent of first-time flat buyers were able to service their loans through their Central Provident Fund (CPF) funds “with very little or zero cash”.
This is unlike those who bought their homes during the 1960s to 1980s. Even though flats were cheaper, people “had to fork out a lot more from their take-home pay” to pay off mortgages, leaving them with lesser disposable incomes, he said.
This is also a result of the Housing Board pricing BTO flats in relation to income levels to make sure that new flats remain within reach for a vast majority of Singaporeans.
“The assurance to all of you is that HDB will continue to price the new flats in relation to income, not in relation to the resale market … to make sure that (housing) remains affordable,” said Mr Wong.
Noting that prices in the HDB resale market have been rising due to supply disruptions brought on by the COVID-19 pandemic, the government has been “building as much as (it) can”.
It is doing so not just for public housing but also by ramping up private housing supply through its government land sales programme as both markets are interlinked. But these supply moves will “take time”, he added.
“We are doing all we can on the property side. The new flats are affordable. We will continue to review to make sure they continue to stay affordable,” said Mr Wong.
“The supply that we are putting on to the market will eventually have an impact on stabilising the overall property market.”
Related:
EVOLVING SINGAPORE DREAM
Moderated by NUS' vice-provost of student life Leong Ching, the dialogue was attended by about 900 students from various institutes of higher learning.
The session was held under Chatham House rules, which dictate that participants are free to use the information received but cannot reveal the identity of the speaker.
On questions about the Singapore dream, Mr Wong noted it has evolved from the notion of the 5Cs – cash, car, credit card, condominium, and country club membership – to about pursuing one’s own path.
That had emerged during the Forward Singapore exercise, with people’s idea of a better life going beyond material success to include a sense of purpose.
“I believe the refreshed Singapore dream is one where we pursue own path … and we realise our own aspirations and dreams,” said Mr Wong.
He noted that comparison with others may be part of human nature, but it can get frustrating when overdone, leaving one feeling trapped in an “endless rat race” or “chasing someone else’s dream”.
Moving away from that to an environment where people recognise they have different abilities and strengths can help people to find purpose in what they do, he said, adding that doing so can help young people to “seize opportunities enthusiastically”.
He said: “It’s one where it's more open, not so prescribed. It's one where we want you to choose your own path of success, and there will be different pathways, different aspirations, different goals.
“Ultimately, we also hope that Singaporeans, in realising your own potential, have a care to look out for one another and help all of us succeed together. I think that's a Singapore dream we can all look forward to realising together.”
Asked by a student on the help given to people with disabilities and special needs to achieve their Singapore dream, Mr Wong said the government has been doing so through special education (SPED) schools and is studying ways to address concerns about what these students can do after graduation.
“We always hear concerns around post-education … We are looking at ways in which we can improve some of the pathways for them to work, or at least do something with their lives that will be meaningful and fulfilling,” said the prime minister, adding that he hopes to share some of these plans at the Budget statement next month.
Related:
Mr Wong was also asked a range of questions ranging from geopolitical tensions with a second Donald Trump presidency, regulations on social media, cryptocurrencies, artificial intelligence and same-sex marriages.
On the country's stance on same-sex marriages, Mr Wong said Singapore made “a major move” in 2022 to repeal Section 377A of the Penal Code, which criminalised sex between men.
Recognising that the majority of the society today still viewed marriage as one between a man and a woman, it also amended the Constitution to protect the heterosexual definition of marriage from legal challenges.
“This is where we are today. How will it evolve? I really don't know exactly,” he said. Just as views on 377A have “evolved over a long period of time”, views on other issues may also change and the government’s position “is to let things take its natural course”, he added.
“From the government's point of view, our main priority is for these sorts of issues not to divide our society further, because you can see that happening in so many different places,” he said.
He cited how in the United States, there are “swings from one to another extreme with a new administration”.
“Society has become so divided and polarised by these sorts of cultural wars, they divide up into different groups and it's really all-out war from one camp to another camp, and we really don't want that to happen,” said Mr Wong.
“So, while there may be differences in views around these issues, our view as a government is ‘let's sit down, talk, continue to engage one another', and let's do this organically.”
“The government is not going to lead social change,” he reiterated, adding that when a different view emerges down the road, “the government at that time can make a decision in due course”.
Related:
FOREIGN RELATIONS
On how Singapore will navigate its relations with the world's superpowers and whether that could be made more challenging with the return of President Trump to the White House, Mr Wong noted that Singapore is facing a more challenging and turbulent external environment that will not be going away.
For now, Singapore has a “positive” bilateral relationship with the US, with close cooperation in many areas like defence and security, while also exploring new partnerships such as in cybersecurity.
“We are continuing to grow the relationship and it’s a mutually beneficial relationship. The US administration recognises this, even the new incoming administration,” said Mr Wong.
“So long as the two countries are able to manage the competition and not force countries like Singapore to choose sides and bifurcate the world into two blocks, we will be able to navigate this.”
At the moment, the likelihood of the superpowers choosing to bifurcate the world is “not so high” as there are tremendous interdependencies in their economies, he said, adding that the rest of the world can do its part to minimise the risk of an outright decoupling or an outright conflict from happening.
“If we all do that … then hopefully we can manage the rivalry between the two superpowers, keep the peace in the world and we can still have a reasonably good environment for all of us to continue thriving and flourishing.”
Continue reading...