HOUSING SCHEME FOR PUBLIC OFFICERS (Use of CPF savings)

[Mr Speaker in the Chair]

Mr J. F. Conceicao asked the Minister for Labour if he will consider introducing legislation to allow government officers to make use of the amounts standing to their credit in the Central Provident Fund, and their contributions to the Fund, for the purchase of executive flats under the Housing Scheme for Public Officers.

The Minister of State for Labour (Mr Sia Kah Hui) (for the Minister for Labour): Mr Speaker, Sir, in line with its declared policy of encouraging home ownership, Government provides housing loans on attractive and favourable terms to civil servants. The interest at the effective rate of 6% per annum, i.e., the interest calculated on a monthly rest basis, levied for the loans advanced by the Government is still the lowest compared to those charged by banks, finance companies and building societies. Furthermore, repayment is stretched over a maximum period of 20 years deductible from salaries.

Civil servants may secure a Government housing loan to purchase a privately-developed property, or one developed under the Housing Scheme for Public Officers. They may, however, purchase properties developed by the Housing & Urban Development Co (Pte) Ltd, in which case they may utilise half the balance of the CPF savings standing to their credit for payment of the flats and meet the remaining cost from loans offered by the HUDC at an effective rate of 9½% per annum.

As civil servants are generally well catered for in this respect, it is therefore not necessary to introduce legislation to allow them to make use of their CPF savings for the purchase of executive flats under the Housing Scheme for Public Officers.