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