CENTRAL PROVIDENT FUND DEPOSITS (Purchase of private houses by middle income group)

[Mr Speaker in the Chair]

Mr Cheong Yuen Chee asked the Minister for Foreign Affairs and Minister for Labour, in view of the fact that the Housing and Development Board is unable to fully meet the housing needs of workers in the middle income group, if he will consider allowing this category of workers to utilise their Central Provident Fund deposits to purchase private houses built by reputable building societies.

The Minister of State for Labour (Mr Sia Kah Hui) (for the Minister for Foreign Affairs and Minister for Labour): Mr Speaker, Sir, the Central Provident Fund Board approved housing scheme regulations were introduced in August 1968 to enable members of the C.P.F. to purchase Housing and Development Board flats and houses under the home-ownership scheme of the Housing and Development Board. In March 1970 the regulations were extended to include the home-ownership scheme of the Jurong Town Corporation. The Housing Board is now allowing families with a combined income of $1,200 per month to use their C.P.F. deposits to purchase Housing Board flats. This ceiling will be raised to $1,500 per month as from July this year.

It is true that applicants for Housing Board flats have to wait quite a long time because the demand for public housing exceeds the supply. The long waiting period is not confined only to applicants from the middle income group, but those from the lower income group also have to wait for their flats.

It is not intended to extend the C.P.F. approved housing scheme regulations to allow C.P.F. members from the middle income group to purchase private houses built by building societies. This policy may be reviewed in five years' time, depending on the housing position then and the Housing and Development Board building capacity as it grows in the next few years.

Mr N. Govindasamy (Telok Blangah): Mr Speaker, Sir, in view of the fact that there are people who have been on the waiting list for Housing Board flats for two years or even more, will the Minister care to review the position so that not only the middle income group but also the lower income group can utilise their C.P.F. deposits to buy private houses?

Mr Sia Kah Hui: Sir, when I said "review", of course, I meant a review of the whole picture. It need not be confined to the middle income group only.