ST : Upgrading to keep up with expectations

Nov 18, 2010

Upgrading to keep up with expectations



PM Lee points out that these days, people not only want a flat, but they also want it soon and in their preferred location, all of which puts a lot of pressure on the Government. -- ST FILE PHOTO

Our Homes: 50 Years Of Housing A Nation, a history of the HDB, was launched last week by President S R Nathan. Written by Warren Fernandez and published by Singapore Press Holdings, the book carried an interview with Prime Minister Lee Hsien Loong. Below are excerpts from the interview.

· How would you describe the role of housing in the politics of Singapore?

PM Lee: It is still very important. In terms of providing roofs over people's heads, we have settled that a long time ago. What we are looking for now is communities, social integration, uplift at the lower end and also, first-class living environments across the island. Now, we are thinking not only of housing and investment, but also monetisation, because as people grow old, they have this nest egg and will want to draw on this nest egg. So we need to arrange for an orderly drawdown of this nest egg, which will see them through.

· Historically, how has public housing played a role in evolving a social compact in Singapore?

Without public housing, this would be a totally different country. It is because we have HDB public housing and all the networks which go with it - the Residents' Committees (RCs), the Citizens' Consultative Committees and so on, but particularly the RCs, which have been a tremendous success - that we have been able to have communities and activities and reach the grassroots, to hold the ground together. Take the issue of the ageing of our society. We would not be able to handle these problems without the RCs, and the senior citizens groups, and people keen to participate in these community activities. If they lived in isolation, in their own flats, without knowing their neighbours, each one shut behind their doors, it would be a lot tougher to manage.

And the social stresses would have been there - ethnic enclaves, income disparities. You cannot duck these, because these are global pressures. So you must have the network and the HDB is a very important part of this. We have given Singaporeans an asset, to give an extra leg-up at the lower end, to make this a harmonious, integrated community...

It's not just the economics, but also the community building. And also, the values and tone of the society. You could go on a totally individualistic approach, each one on your own, look after yourself, and don't poke your nose in your neighbours' business. Perhaps in the next generation, we may drift in that direction if we are not careful. But so far, we have been able to bring people along through various ways, different kinds of activities and so keep the reach out to them.

· But politics has also changed over time, with the rising expectations of public housing.

That's true. In the old days, first of all, a roof was already a great blessing. Second, if you owned your flat, the Government had done you a huge favour. But now, the desire is not only for a flat, but a flat very soon, and a flat at preferred locations. That puts a lot of pressure on the Government.

· There has been a ratcheting up of expectations, especially in the 1980s and 1990s.

In the 1990s, until 1996, during the property boom, there was a great expectation that this was not only a house, but also a fast way to turn a very quick capital gain. I came across a young man who said he had bought his house in the 1990s, and then sold it after five years, and made a five-times capital gain. And, he says, that's the right thing, and that's what the Government should do... Nowadays, why can't the Government do that any more? But that is totally not realistic.

Another time, I met a young man living in Pasir Ris, who was eager to sell his flat once the five-year occupation period was up, and move into private property. So I asked him, why do you want to do that? You have got a Pasir Ris flat, it's beautiful. At that time, it was the newest estate, spectacular sea views and so on. And he said: 'Moving on, moving on.'

There is a tremendous anxiety to get ahead, and also to segregate out. We have to try, in that environment, to keep communities integrated, bigger and smaller flats, even some rental flats and studio apartments, all mixed together so that one can't tell if you are living in a particular district, whether you are up or down, or where you rank on the totem pole.

· How do you deal with the rising expectations, of wanting to move on from public housing?

In the long term, we expect the proportion of private housing to go up. It is still now only about 15 per cent. We had expected it to go up more, but public housing has stayed around 85 per cent. I think gradually the private housing share will go up. But for a long time, HDB will be the preponderant majority, and with high quality HDB environments. That is why we have projects like Punggol 21, Dawson, and upgrading and renewal plans for all the older housing estates in Singapore. We do not want our public housing estates to gradually decline into disrepair.