"It's a very valuable instrument," acknowledged Minister Mentor Lee Kuan Yew (picture). He said this when responding to a question posed at a dialogue yesterday by Ambassador-At-Large Tommy Koh if more could be done to integrate those already here, just the way the Ethnic Integration Policy (EIP) has done for Singaporeans of different ethnic backgrounds since 1989.
Mr Lee said: "We're not allowing new Singaporeans whether from China, India, Malaysia or whatever to congregate in the same tower blocks which they're already beginning to do. They buy second-hand flats and they congregate. So, we have a record of how many new citizens are living where, and we keep their numbers dispersed. It's a very valuable instrument for communal harmony."
The EIP stipulates that Chinese, Malays, Indians and Eurasians each have a representative quota of homes in a housing block and in a neighbourhood. Once those limits are reached, no further sale of public flats to that ethnic group will be allowed.
Yesterday's comments were not the first time Mr Lee had made such remarks. In a dialogue with university students last October, Mr Lee said the Government "disperses" new citizens around Singapore so they will not form "little China" or other cliques.
But the Housing and Development Board clarified after yesterday's dialogue that a quota policy on permanent residents for resale flats was still being considered.
The idea of expanding the current policy on ethnic mix for HDB flats to include PRs was raised last year in Parliament by MP Lim Wee Kiak.
Then, National Development Minister Mah Bow Tan said his ministry kept a close watch on the distribution of PRs living in HDB estates and - where necessary - will consider measures to prevent the congregation of PRs and foreigners.
Public housing prices: An election issue?
Mr Mah was at the centre of another issue that came up during yesterday's dialogue at the International Housing Conference.
Citing a newspaper report, which said three Opposition parties were eyeing Mr Mah's Tampines Group Representation Constituency in the next General Election, Professor Koh asked if affordability of public housing would be an election issue. The parties had cited what they said were unhappiness over rising prices of HDB flats.
In reply, Mr Lee said public housing affordability will always be an issue. While buyers would always want better flats - and priced cheaper - the Government has to price flats "fair to the revenue it collects" and to the individual.
"Not only the present buyer, but the past buyer and the future buyer," said Mr Lee, who paused and then added: "If Mr Mah is unable to defend himself, he deserves to lose."
While this reply drew laughter from the audience - and from Mr Mah himself - Mr Lee had this message for the Opposition.
"No (political) party in the world has given its citizens ... an asset that is as valuable as what we have given every family here. And you say that policy is at fault? You must be daft," he said.
Prof Koh, the dialogue moderator, wondered if the problem was a "mis-match" between what buyers want and what they could afford.
To this, Mr Lee replied, "You will never solve the problem. I have a three-room flat at this price. I want a four-room flat at this price. And so on."
He continued, "Why do we put a five-year limit for any re-sale? Because the moment you buy a flat, you can sell it and make a profit. That is the acid test. We're giving you something more valuable than you're paying for. So we say you cannot sell it for five years. If you sell it, and you take the profits, you'll come in for the second bite of the cherry."
With affordability a concern, especially in a booming housing market, should the HDB develop more rental flats for the lower income, asked National University of Singapore professor Deng Yongheng.
Mr Lee disagreed, saying this "would lead to all kinds of problems".
"You say the advantage is low rentals, which means you are getting a dependency group - dependent on the Government for constant subsidies," said Mr Lee.
Instead, the Government's philosophy is to "give" citizens an asset, make flats affordable by providing grants and improve estate surroundings.
Another question, from Real Estate Developers' Association of Singapore chief executive Steven Choo, was whether HDB will be able to "catch up with the ever rising aspirations" in the future.
To this, Mr Lee said future public housing is tied to Singapore's competitiveness in the globalised world. Singapore needs a stable government, a strong currency, a stout defence and an improved workforce productivity.
"If you create those conditions, you thrive. If you can't, investments go elsewhere, technology goes elsewhere, you are bypassed," said Mr Lee.
- Source: TODAY, 28 January 2010
