If land is a premium, then the Government should compensate the
landowners at market values when their land is forcibly taken over
by the Government for development.
Yet, many times the private landowners have to take the issues to
the High Court, to challenge the paltry sum received in
compensation of land located at Prime Locations.
However, the Government has the audacity to sell the same piece of
land at more than 2000 times the compensation price.
URA designate land plots for HDB to build homes on, and such land
are not paid by HDB.
Yet the price of the HDB flat will include the cost of land that is
NOT based on the compensation sum paid to repossess the land from
Private Owners, WHICH the HDB do not pay a single cent to take over
to build the homes.
Why do HDB flat cost so much ?
The Government believe in Market Forces only when it flow to their
advantage; when it is disadvantageous to the Government's
interests, legislations will be passed to ensure that Market Forces
WILL BE to their advantage.
Only GOD can change the forces of nature, and the Government is
playing the Grand Arbitrator for their own interests.
Why do HDB flat cost so much ?
The Primary Purpose will seem to soak up the pool of Private Funds
that are locked up in the CPF, which the Government will not be in
a position to pay back.
This is a result of the generations of 'Baby Boomers' ageing, and
their money in the CPF account is utilised on national investments
in Fixed Asset Infrastructure; and a dwindling Population Growth is
shrinking the pool of contributors to support the funds withdrawn
by the ageing Baby Boomers.
As I have written before, for CPF to succeed, it need a NORMAL
pyramid structure of more contributors entering the base of the
pyramid structure, which should naturally be larger than the apex
of the pyramid - (the apex being the ageing population).
However, the reverse is true in Singapore, with a large number of
baby boomers of the late 1940's and early 1950's being bigger in
numbers than the subsequent shrinking annual birth rates
experienced from 1960's onwards to this day.
The present pyramid is an inverted one, with the wide base being
placed on top, and the apex point of the pyramid being at the
bottom !
Since there cannot be sufficient funds to pay out when each baby
boomer reaches the statutory age of 55 years, the rules of
withdrawals have been constantly changed, fine tuned with so many
new studies to justify changes that when one reaches 55 years old,
it is no longer possible to withdraw the entire CPF savings in one
lump sum.
CPF monies will be paid out in regular instalments, at regulated
age bar intervals; with new rules for direct deductions for Medical
Insurance, Medical Care, Minimum Retention Sum for later age.
The ultimate effective method to resolve the CPF enigma for the
Government is to make NINETY FIVE PERCENT (95%) Singaporeans to
live in HDB or HUDC built Flats, paying for such flats at just
slightly below market price for similar Privately built
condominiums.
