I AGREE with Mr Jolly Wee's point of view ("Rising cost of
living: Many can manage if they live within their means";
Tuesday).
I belong to the 30-to-35 age group. In recent years, I have
observed that, on average, fresh graduates are getting a starting
pay of more than $2,000 a month. However, most are spending it on
material items such as branded goods, expensive holidays and cars -
which are not needs but lifestyle pursuits. This will have an
impact on their savings when they need to purchase a flat later on.
Meanwhile, their salaries would have grown but not their savings.
This will ultimately lead to complaints that flats are priced
beyond their means. They would then want the Government to raise
the combined income ceiling of $8,000 in order to be eligible to
purchase a subsidised flat.
There is no doubt that prices of flats have increased over the
last few years, but they are still affordable. This is taking into
consideration the fact that the $8,000 ceiling applies at the point
of application, and that a new Build-To-Order or Design, Build and
Sell scheme flat will take around three years on average to be
ready. By the time the keys to the new flats are handed over, most
couples' combined incomes would exceed the $8,000 ceiling,
depending on the industry they work in.
I think it is high time people learn to practise financial
prudence and spend what they can afford. The income ceiling is more
than adequate and should stay at that level. After all, this ruling
is to help the lower income group whose salaries are lower than the
income ceiling, or whose salaries stagnate over a long period of
time.
Benjamin Yeo
