Singapore Election 2011

Latest news and updates about Singapore's 14th GE

Mah Bow Tan: WP’s housing proposals an ‘illegal’ raid on the reserves

Posted by singaporege2011 on April 21, 2011

Embattled PAP Housing Minister Mah Bow Tan continues to rant at the housing proposals of Workers’ Party to lower flat prices by paying less for the land, describing it as an “illegal raid” on the reserves.

The land for building HDB flats was acquired at below market price by the PAP regime under the draconian Land Acquisition Act which allows it to acquire any land in Singapore for ‘development’ purposes.

The cost of building HDB flats consist of land and construction costs. The land is sold to HDB at market rates by Singapore Land Authority with the profits going into the reserves. Lowering HDB flat prices is tantamount to reducing the profits made by SLA from the land sales and the amount of money going into the reserves.

Mr Mah claimed that Singapore’s reserves must be preserved for future generations and that WP’s proposals will effectively raid and deplete them.

What he failed to mention is that our reserves have already been ‘raided’ by Temasek Holdings and GIC in failed overseas investment losses estimated at around S$100 billion dollars incurred during the global financial crisis in 2008. Till today, nobody knows the exact figure for the losses.

In a way, Singaporeans are effectively paying for the ‘misadventures’ of Singapore’s two sovereign funds via their thirty year bank loans for over-priced HDB flats.

Most Singaporeans will rather the reserves be utilized to subsidize public housing than to allow them to go into the pockets of foreigners.

Mr Mah should stop obfuscating the issue and reveal the exact land and construction costs of HDB flats and the amount of money going into the reserves from the land sales annually.

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One Response to “Mah Bow Tan: WP’s housing proposals an ‘illegal’ raid on the reserves”

  1. Sgcynic said

    Mah raids Singaporeans’ reserves legally, WP ‘raid’ government’s reserves ‘illegally’.

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