HOUSING AND DEVELOPMENT BOARD (Raising of income ceiling)

Mr Ho See Beng asked the Minister for National Development, in view of the fact that the income of Singapore workers has considerably increased in the last decade, whether he will now consider revising upward the combined family income ceiling of $500 to a more realistic figure so that those who earn more than $500 a month will be able to rent two-room flats or to transfer from one-room to two-room flats.

Mr Teh Cheang Wan: Mr Speaker, Sir, the income ceiling for rental flats is under constant review. The present ceiling of $500 per month has already been relaxed for two groups of applicants. First, existing tenants who have occupied their present flats for at least two years may be allowed a transfer to a 2-room flat, even if the family income exceeds $500 per month. Secondly, resettlement cases in urgent need of accommodation are allowed to rent a flat, even if their income exceeds the income ceiling. However, because of a shortage of 2-room flats, the HDB is unable to allow other public applicants with a family income exceeding $500 per month to be allocated such flats.

Mr Ho See Beng: Sir, the Minister seems to favour the higher income bracket applicants. The income ceiling for the HUDC applicants has been revised upwards. If he allows this revision, why can the Minister not do the same for the lower income wage earners?

Mr Teh Cheang Wan: Sir, that is not so because the income limit for rental flats has been fixed at $800 per month. We have not revised this ceiling for the simple reason that we want to encourage,people to own their own homes. If we allow the ceiling for rental flats to be adjusted upwards, then some people may prefer to rent rather than buy their flats. The ceiling of $800 per month has not been revised for a long time because it is our policy to encourage people to own their own homes.

As hon. Members are aware, the income ceiling for ownership of HDB flats has been constantly adjusted upwards, that is, from $800 to $1,200; from $1,200 to $1,500, and recently from $1,500 to $2,500. Most probably we may have to further adjust upwards to catch up with inflation and the increase in the price of HDB flats.