The government is exploring ways on how it can further tie a person’s CPF to the purchase and sale of a HDB flat, according to PM Lee Hsien Loong at a forum on securing Singapore’s future.
The move is aimed at reinforcing the message that property is an asset for one’s old age.
It is a growing trend that has got authorities concerned: Home-owners selling their HDB flats to repay debts, and then asking their MP for assistance in obtaining a rental unit.
According to PM Lee, this goes against the aim that homes are an asset for life.
“When we help people to own a home, it’s really for you for life,” said Mr. Lee. “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?”
Thus, 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,” he explained.
“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 that the point was to look at how the poor can be made better off and not to gauge the size of the gap.
Two of the best things the government has done are a high rate of home ownership and access to a good education.
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.”
Dr. Vivian Balakrishnan, Minister for Community Development, Youth and Sports, said: “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.”