Speaking at a post-budget dialogue session, Khaw Boon Wan said today that the CPF contribution rates mean that Singaporeans already have more than enough savings to cover their housing needs.
He explained that the additional 1% requirement being added in this year’s budget is to address healthcare needs, indicating that no more needs to be done to meet housing needs. He was responding to some questions about why the additional 1% couldn’t be used for housing.
Talking a bit more on the affordability of housing, Khaw Boon Wan blamed Singaporeans saying that housing is only unaffordable if people try to buy a bigger flat than what they need.
Clearly, Khaw Boon Wan is not aware of the struggles of people who do not have enough CPF savings to buy flats that they really need.
For some, especially those who may have been out of a job for quite some time, they are not likely to have enough CPF savings to make their housing payments.
Singapore has no safety net such as benefits for the unemployed and the influx of foreigners has made it difficult for some retrenched workers to get back into full-time work. When stuck in this situation, CPF savings may not be enough to make the payments for the HDB loans they have taken out.
Even those who buy flats that were within their means originally, may face difficulties especially when they lose their jobs.
Speaking about other schemes the MND is putting into place separate from the budget, Khaw said that they are looking to expand the lease buy-back scheme to allow more Singaporeans, especially seniors, to monetize their flats more easily by selling off some years of the lease.
Khaw said that the details are still being worked out but he indicated that the scheme may soon be expanded to be available for 4 and 5 room flat owners.
Other tweaks to housing policies that may be seen in the future include making it easier for second-time home buyers to secure a flat.