HOME OWNERSHIP PLUS EDUCATION (HOPE) SCHEME

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HOME OWNERSHIP PLUS EDUCATION (HOPE) SCHEME: 7.

Mr Ahmad Khalis Bin Abdul Ghani asked the Acting Minister for Community Development, Youth and Sports (a) in regard to the applications under the HOPE Scheme (i) how many applications were made since its inception, (ii) how many were successful, (iii) what were the main reasons for rejection; (b) does his Ministry consider the current take-up rate as too low, and if so, what can the Ministry do to improve it; and (c) will the Ministry consider relaxing one or two of the Scheme's many conditions in deserving cases.

Mrs Yu-Foo Yee Shoon (for the Acting Minister for Community Development, Youth and Sports): Mr Speaker, Sir, the Home Ownership Plus Education (HOPE) Scheme is a programme to help young, low-income families move out of the poverty trap by providing them with

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comprehensive forms of assistance. This voluntary scheme is meant to encourage the parents to keep their families small, so that they can concentrate their limited resources on their children and give them a head-start. Under HOPE, we will support these families with a package of assistance, including education, housing and training grants.

Since the inception of HOPE on 1st January 2004 to 30th September 2004, we have received 630 applications, of which 375, or 60%, have been approved. The main reasons for the unsuccessful applications were because the applicants exceeded the income, education, or age criteria. The CDCs would always consider these unsuccessful applicants for other assistance schemes.

When HOPE was introduced, MCYS had set a target of 1,000 families to join the scheme by 2007.We had expected about 250 families to be on HOPE in 2004. This target was based on our estimate that about 3,400 families would be eligible for the Scheme. Based on our previous experience, we expected about 30% of these families to participate in the Scheme. Hence, the take-up rate of 375 cases so farwas better than our expectation. We will continue to monitor and promote the Scheme through a "many helping hands" approach, involving voluntary and community-based organisations, grassroots organisations, CDCs and relevant Government agencies.

As the Scheme has only run for about 10 months and the efforts at reaching out to the target families are still actively ongoing, it is premature to review the qualifying conditions of the Scheme. We will ensure that the scheme continues to benefit the families that it is targeted at.

Mr Ahmad Khalis Bin Abdul Ghani: I was wondering whether the expected

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30% take-up rate from the 3,400 families that should be eligible isa little too low and that more efforts should be made to reach out to the remaining 70% who should be coming in.

Mrs Yu-Foo Yee Shoon: I am sure that Members know that the HOPE scheme was more or less readjusted from the previous Small Families Improvement Scheme. That scheme was not very popular. Every year, less than 100 persons apply. When we introduced this new HOPE scheme, we also adjusted some of the benefits. For instance, we extended the bursary to pre-schools as well asuniversities, and we also give them some mentorship support as well aslife-skills. Hence, this scheme is quite popular, compared to the Small Families Improvement Scheme, which has only a 14% take-up rate. So, compared to the 14% in the last few years,we thought maybe, fora start, let us set it at about 30%. But, of course, this is notfixed. We will review it from time to time. But this scheme has so farbeen in operation for only less than a year.

Ms Braema Mathiaparanam: CouldI ask the Minister whether the criterion of having just two children is one of the deterrents? Is there a view on that? Doesthat criterionnot run contrary to the "Baby Bonus" policy where wedo not now put alimit on the number of children? If so, will there be any review?

Mrs Yu-Foo Yee Shoon: There are no contradictions in these two schemes. The marriage and procreation package is to encourage married couples to have more children. So, those who want to have more than two children, they can apply under the marriage and procreation package for the baby bonus, etc. But the HOPE scheme is particularly targeted at those small and low income families. The parents' education should be two GCE "O" level passes and below,their combined income should be less than

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$1,500, their families should be intact and so on. We hope that, by helping them, they can concentrate their limited resources on the children, spending especially on their education. Therefore, we extend the education eligibility frompre-school to includesecondary, high school, polytechnic and university education. We also give the parents training grants and hope that they can upgrade themselves. So, by providing a limitto two children, we hope that they can really pull themselves out of the poverty trap.

We alsohelddiscussions with this group of users, who themselves felt that the 2-childcriterionwasquite a reasonable cap for them. Beyond that, they felt they would bequite stretched.

Mr Ahmad Khalis Bin Abdul Ghani: Sir, would the Minister of State not agree with me that the main aim of this scheme is, as stated just now, to help families with difficulties to get out of the poverty trap? In that sense, would the Minister of State not agree with me that the low income level and low education level are but guidelines for us to administer this scheme? Therefore, if there are families which exceed these criteria by a little bit, perhaps three children instead of two, or three "O" level passes instead of two, and if they are still having difficulties, shouldthey also qualify for this scheme, bearing in mind that the aim of this scheme is to get them out of the poverty trap?

Mrs Yu-Foo Yee Shoon: As I mentioned just now, actually we have many other schemes. We have the Kindergarten Financial Assistance Scheme (KIFAS). I am sure hon. Members are aware of thisscheme. We also have the Centre-based Financial Assistance for Childcare (CFAC) scheme, the WorkAssistance Programme (WAP), etc. So, we have other schemes to help those families with more than two children. Now we also have the marriage and procreation package, if they qualify for it.

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I am sure every one qualifies, up to four children. There are so many schemes.

But theHOPE scheme has a particular objective, ie, to encourage the small familiesto concentrate their resourcesand hope that, because the family is small, they can pay more attention to their children andreally educate them well so thatthey can make a better living andmove out of poverty.

Hence, we have so many schemes. Those who are not qualified for this scheme, we do not turn them away. We will look into their situation and refer them tothe schemes which are suitable for them. But the HOPE scheme is only for this target group.

Mr Sin Boon Ann (Tampines): While I accept that there areother schemes available to help the poor and needy in Singapore,but, as stated earlier, the objective of this is essentiallyto help small families that arein need, and the question that is posed to the Minister is whether or not the Government is prepared to exercise flexibility in administering this scheme. I know in a situation like this it is very difficult. There will be some who will be left out of the net and others who are cast in the net. But if the Government can provide the assurance that it is prepared to consider the marginal cases, I think it will go a long way in helping the smaller families in need.

Mrs Yu-Foo Yee Shoon: I think we are always very flexible. For instance, widows, we will also consider their applications. Sometimes, maybe because of certain reasons they want to upgrade their education level, we can consider. But for the number of children, we always encourage them to try not to increase more than that. If they really want to do so, we will refer them to other schemes. For instance, now we have the marriage and procreation package, which is also very attractive.