You are right in this. People should know about this too.
During GCT era, he allowed HDB prices to rise close to that of
private condos.
And general property prices increased as well.
His marketing gimmick was that HDB owners will thus be
richer,
when their property prices increase.
(He had Switzerland as role model then, when we are so much more to
catchup)
However, when property prices increase, salary and businesses cost
have
to increase.
Thus overall cost of living increased, and sometimes rather
unproportionally.
(HDB make the most profit along the way.)
And this indirectly results in less cost competiveness compared to
taiwan, korea, china, india, due to higher business cost and
salaries.
Thus the problems we have now, is partly, if not largely, due to
this single factor.
In other words, it was a BIG MISTAKE that PAP had made.
And now, add our super high vehicle/transportation cost to the
picture.
And you know why we have such high business cost, salary
and thus less competiveness.
Why do you think the governemnt had run out of ideas and have to
open a casino?
Why do you think government have to heavily subsidise and try
retain MNCs here?
These are desparate measures infact, partly to correct wrong
decisions and mistakes in the past.
The sticky issue is, high-cost of living is something that is
almost irreversible.
If property prices fall alot, many people will lose money on their
investments and you may see more bankrupcy.
