CONCESSION SCHEME FOR LOWER INCOME GROUP (HDB flats sold to rental flat dwellers)

Dr Koh Lam Son asked the Minister for National Development what was the number of Housing and Development Board flats sold in 1986 to tenants/applicants of rental flats under the Concession Scheme for lower income group introduced in December 1985.

The Minister for National Development (Mr S. Dhanabalan): Mr Speaker, Sir, in 1986 the HDB sold 4,073 flats under the Low-Income Family Incentive Scheme.

Dr Koh Lam Son: Sir, this figure just quoted by the Minister, what is it in terms of percentage of the total number of tenants in the rental flats or applications for tenant flats? Would the Minister say, if he cannot give me the percentage, whether it is a very small percentage of the total number?

Mr Dhanabalan: Mr Speaker, Sir, I do have the figure for the total number of people who are registered under this scheme, ie, the low-income family incentive scheme. As of February, there were 8,558 applicants still waiting to purchase flats under this scheme. I do not know whether that satisfies the Member.

Dr Koh Lam Son: It is not quite satisfactory. I would like to ask whether the number of applicants who have taken advantage of the concession scheme represents a substantial percentage of the number of people whom the Government wants to persuade to purchase flats. This is in keeping with the Government's objective of having as high a home-ownership population as possible. What I want to know is whether the concession scheme, in his view, is successful.

Mr Dhanabalan: Mr Speaker, Sir, I do not have the figures. But I can tell the Member that this scheme just started lately and the programme to relocate those who are now residing in 1-room rental blocks and persuade them to buy flats has just started. It is a bit early to say whether the scheme is successful or not. We expect, from the little experience that we have had so far, that about 50% of those who are now in 1-room flats will buy flats under this scheme.