The lane's famous Chinese death houses or funeral homes came
into existence in the late 19th century. This was the place where
people near death will be left to die, with the funeral parlour
prepared below. All the Chinese funeral paraphernalia (funeral
clothing, appliances, paper models such as houses, cars, incense
paper etc.) were related to death rites were sold in shops on this
lane. The death houses were banned by the government in 1961, and
by the late 1960s, all the shophouses on the street were
demolished, with part of the street being demolished to make way
for Chinatown Complex.
Basically its for those who are poor and have no families or
next of kin...
http://en.wikipedia.org/wiki/Sago_Lane