ETHNIC INTEGRATION POLICY

[Mr Speaker in the Chair]

The following Question stood in the name of Mr Zainudin Nordin -

Mr Zainudin Nordin: To ask the Minister for National development (a) how effective is the Ethnic Integration Policy; (b) how many appeals have been received by the Housing and Development Board for waiver of the policy on the grounds of (i) sales due to divorce, (ii) acquisition of new flats and (iii) financial difficulties; (c) how many of such appeals have been successful; (d) whether there has been an increase of such appeals; (e) what is the assistance that HDB renders to these cases; and (f) whether there will be a further review or refinement of the policy in the near future.

Mr Loh Meng See (Jalan Besar): Question No. 1, Sir.

The Minister for National Development (Mr Mah Bow Tan): Mr Speaker, Sir, the Ethnic Integration Policy (EIP) was implemented in 1989 to promote racial harmony in public housing estates. The policy maintains the proportion of each ethnic group within certain neighbourhood and block limits.

The EIP has improved the ethnic balance in HDB estates. In 1989, 28% out of the 125 neighbourhoods had at least one ethnic group which reached or exceeded the neighbourhood limit. Now, there are 25% of such neighbourhoods, although the number of neighbourhoods has grown from 125 to 165.

Between January and July this year, HDB received 181 appeals for waiver of EIP for resale of flat. The flat sellers appealed for waiver of EIP to widen their base of potential buyers in order to secure higher selling prices for their flats.

Most of them were selling their flats to buy another HDB flat or private property while some indicated financial difficulty as the reason for the sale. Only 7% appealed to waive the EIP for resale of their flat due to divorce.

As the EIP is very important in maintaining racial harmony in Singapore, we have to apply it consistently. Waiver is granted on a very exceptional basis.

The EIP has worked well in forging ethnic integration and harmony among HDB residents. We will regularly review and refine the policy if necessary.