November 18, 2009 by admin
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Written by our Correspondent
The ruling party is wooing HDB home owners by giving a one-off
property tax rebate of up to $120 to help them cope with the
expected increase in the property tax next year following the
increase in the annual value of their flats.
The prices of HDB flats have sky-rocketed in the last few
months, hitting a record high in June this year.
PRs constitute as high as 40 per cent of the buyers of resale
flats, according to a report released by real estate agency
ERA.
An Indonesian PR “spoils” the market lately by forking out
$653,000 for a 4-room HDB flat in Queenstown which is sufficient to
pay for a condominium of similar size in the suburbs.
Though the rebate is likely to be a tiny fraction of the tax
increase, it is likely to win much goodwill from the public.
HDB has been trying desperately hard of late to allay
Singaporeans’ fear and anxiety over the rising prices of HDB flats
by promising to build more new flats to increase the supply.
The rising demand is fueled largely by the influx of foreigners
who now make up about 36 per cent of Singapore’s 5-million
population.
The ruling party is taking small, but conspicuous measures to
“sweeten” the ground before the next election which is due to be
called by 2012.
A few weeks before the 2006 election, Prime Minister Lee Hsien
Loong announced a “Progress Package” which put a few hundred
dollars into the pockets of every Singaporean voter.
After the ruling party won the election, GST was increased to 7
per cent not too long after followed by hikes in public transport
and ERP.
It may have to spend more efforts this time round to convince
Singaporeans to cast their votes for them again.
An increasing number of Singaporeans are getting frustrated and
unhappy at the government’s policies, such as its immigration
policies.
Prime Minister Lee had said earlier during his National Day
Rally speech in August that the inflow of foreigners will “slow” as
the economy is not doing well.
With Singapore out of recession, it is unsure if the intake of
foreigners will increase again.
Recent public statements made by senior leaders seem to suggest
that the government’s pro-foreigner policy is here to stay and
Singaporeans have no choice but to live with it.
MM Lee Kuan Yew urged Singaporeans to “bear” with the tide of
foreigners which has now become a “flood”.
With no credible opposition to challenge the ruling party, it is
almost impossible to vote it out of office.
Source: The Temasek Review
