On Singapore’s public housing, here are somethings to note:
(1) Singapore’s HDB public housing is provided to Singaporeans at the expense of their retirement i.e. Singaporeans’ CPF funds are being depleted to fund the PAP government’s HDB.
(2) Since HDB resale prices are falling and individuals’ CPF have been used to pay for high HDB resale flat prices when they bought it, people will not have enough to retire, and they will not be able to monetise enough from their flats to retire.
(3) HDB flats have always been meant fall to zero value and be returned to the PAP government at the end of 99 years under the PAP’s rules. Prior to this, it was not widespread knowledge that flat prices will go down to zero.
(4) Therefore if Singaporeans cannot save enough to retire, it is because the PAP encouraged them to buy and sell their flats on the open market – using their CPF funds, and it is the PAP who also mandated that their flat values will be taken back and have zero value in the end – so if Singaporeans cannot retire, the fault lies squarely on the PAP.
(6) On new flats, the PAP changed the laws in 1985, so that when Singaporeans buy new flats, they will also be paying market prices for the land that the flat sits on. However, the PAP government is making Singaporeans pay for land Singaporeans do not own – and making them use their CPF to pay for it. As such, the PAP government is making Singaporeans deplete their CPF to pay for land which Singaporeans do not own.
(7) Thus if Singaporeans cannot save enough to retire, the blame should be put squarely on the PAP, who makes them use their CPF to pay for land which the PAP government owns.
Or in other words, I lend you my iPhone to use, but I charge you the full market price to use the iPhone. Fair?
(8) The PAP government said that it would delink new flat prices from resale flat prices. If resale flat prices continue to fall, and new flat prices continue to include land costs at market value, will new flats become more expensive?
(9) The PAP government announced that it would come out with a VERS in 20 years to buy back flats when they are 70 years old. But as resale flat prices continue to fall, when the government buys back the lease, the flat’s value would have declined to be very low anyway, and the compensation will be low. Singaporeans who used their CPF to pay for resale flats would make losses on their CPF, and again, not be able to retire.
Thus when Singaporeans cannot retire today, the fault lies squarely on the PAP.
(A) The PAP knew that flats prices will become zero, but still made Singaporeans use their CPF to inflate resale flat prices.
(B) The PAP knew that flat prices will become zero, but still made Singaporeans pay market prices for the land that the flats sit on.
(C) The PAP knows that flat prices will become zero, and decline in value, but still tell Singaporeans they will introduce a VERS which will not help much.
(D) The PAP knows that flat prices will become zero, and decline in value after 20 years, so they say they will introduce VERS after 20 years, because by then, VERS will not cost them much to them anyway – the PAP is kicking the problem down the road.
Finally, CPF changes, the Medisave, Medishield and increases to university fees were all started in the 1980s when PAP changed course. All these happened 30 years ago but it took about 30 years for the effects to finally unravel and be felt by Singaporeans today.
So, what will you do?