CENTRAL PROVIDENT FUND CONTRIBUTIONS (Purchase of flats built by Housing and Urban Development Co. (Pte.) Ltd.)

Mr Ang Nam Piau asked the Minister for Labour if he will consider extending the provisions of the Central Provident Fund (Approved Housing Schemes) Regulations, 1968, to purchases of flats to be built by the Housing and Urban Development Company (Private) Limited, so that persons in the middle-income group may make use of the amounts standing to their credit in, and their contributions to, the Central Provident Fund for the purchase of such flats.

The Minister of State for Labour (Mr Sia Kah Hui) (for the Minister for Labour): Mr Speaker, Sir, Members will recall that the Central Povident Fund (Approved Housing Schemes) Regulations, 1968, were primarily designed to encourage home ownership among the lower income group. Notwithstanding that, I told the House last March that this policy would be reviewed in 1976 with a view to extending the provisions of the regulations to the middle income group. My Ministry understands and appreciates the problems and difficulties faced by the middle income group in purchasing a flat or a house and we are in full sympathy with them. We have therefore decided to review the policy this year instead of in 1976.

Members of the House will be glad to know that my Ministry has decided in principle to allow the middle income group to use part of their CPF savings for the purchase of flats to be built by the Housing and Urban Development Co. (Pte.) Ltd. The details of the middle income housing project are being worked out by the Housing and Urban Development Co. (Pte.) Ltd. Once these are finalised, the rules and regulations governing the use of CPF savings by the middle income group for the purchase of these flats will be worked out and announced. This scheme will be available only for housing units built with Government funds, for example, those built by the Housing and Development Board and the Housing and Urban Development Co. (Pte.) Ltd.