Govt to explore ways to increase use of CPF for buying
HDB flats
By Hoe Yeen Nie | Posted: 27
March 2010 2131 hrs
SINGAPORE: The government is exploring how it can further
tie a person's CPF to the purchase and sale of an HDB flat.
The aim is to strengthen the message that property is an asset for
one's old age.
Prime Minister Lee Hsien Loong said this at a forum organised by
REACH, the government's feedback unit.
It is a growing trend that has got authorities concerned:
Home-owners selling HDB flats to pay off debts, only then to ask
their MP for help in getting a rental unit.
Prime Minister Lee said this goes against the aim of these homes as
assets for life.
"When we help people to own a home, it's really for you for life,"
Mr Lee said. "When you're not so old, and you've bought the house,
and now you see that the pot of gold is down there and you ignore
the 'please don't break the glass sign' and you break the glass and
take the money out straightaway, then what happens to you? Or more
importantly, your children and your dependents? Where do they
go?"
Hence, the government wants to strengthen the CPF route in the
buying and selling of flats.
"Like what we've been doing with the Additional Housing Grant -
that grant we give you into your CPF, you can use it to buy a
house," explained the Prime Minister.
"If you sell the house, the money goes back into the CPF. So if
you're buying another house, you can use that for another house. If
you're not buying another house, the money is there for your old
age."
On tackling income inequality, the Prime Minister said the point
was not to measure the size of the gap, but to look at how the poor
can be made better off.
Access to a good education and a high rate of home ownership are
two of the best things the government has done.
However, Mr Lee noted there are some people who will be left
behind.
"And my advice is, please try to help yourself. And particularly,
please help your children to break out of this cycle," he said.
"The government will help them, but you must help them too."
Said Dr Vivian Balakrishnan, Minister for Community Development,
Youth and Sports: "It's not just about dollars. It's how you
deliver the dollars, how you deliver assistance so that people make
the right decisions for themselves and their children.
"If you were a poor person, anywhere on this planet, Singapore is
the one place where you will have a roof over your head, where you
will have food on the table. Even if you can't afford it, we will
have meals delivered to you. You will get healthcare.
"Do not lose sight of the fundamentals. And I am confident that we
have done our duty for the people who need our help."
The hour-long dialogue also saw questions on the teaching of the
Chinese language, and more help for singles.
In response to a question on casino entry fees, Mr Lee said the aim
was not to prevent Singaporeans and permanent residents from
gambling. He added that gambling was not harmful if seen as a form
of entertainment, but it does become a concern when people get
addicted.
The dialogue session is part of a forum on securing Singapore's
future.
- CNA/yb