HDB asset enhancement was a PAP scam to win votes

I refer to “The ticking time bomb of the 99-year-leasehold HDB flats“.

Although the ‘time bomb’ of a 99-year leasehold HDB flat starts ticking the moment HDB hands over flats to lessees, the PAP government has successfully tried to mask this fact with propaganda and half truths.

The man responsible for the current mess: former PM Goh Chok Tong. 26 years ago, Lau Goh told HDB lessees:

It is tempting to call Goh a liar because he should have known that the value of any 99-year property cannot “continue to rise” perpetually.

Goh somehow ‘forgot’ to tell Singaporeans the whole truth and nothing but the truth: increased property prices will ultimately trickle down to higher cost of living.

Goh was the culprit who raised our cost of living to Swiss standard: prices of HDB flats shot up 400% from 1990 to 1996.

While AE of HDB lessees was ongoing, a different but bigger AE programme was underway: ministers were also enhancing their own financial assets. Chart below shows PM’s salary vs HDB RPI.

Unedited chart @ teoalida.com

One of Goh’s ‘accomplices’ in AE is former paper colonel Lim Hng Kiang, then Acting MND minister. Lim:

“With the upgrading of the precincts, we are trying to achieve the objective where the end result… will be a new town that is even more attractive than Bishan and will command higher prices than Bishan.”

Lee Kuan Yew of course had a hand in talking up HDB flat prices.  4 years before his death, LKY said:

“The government continually invests in upgrading the homes of its citizens, to increase their value for the owners.  As Singapore prospers, the value of their HDB homes also appreciate.”

Perhaps LKY was acting stupid for a while because he should have known there was no way the price of a 99-year leasehold property could increase forever just because of government upgrading.

If Singapore continues to prosper for a hundred years, will “HDB homes also appreciate”?  LKY was not being truthful.

To impress the public that HDB flat prices could defy gravity, PAP politicians were not only telling half truths: they lied.

After the AE scam was exposed, HDB lessees are now told by MND Minister Lawrence Wong that HDB flats are just a “store of value” for retirement.

What’s next?  PAP should not continue to take Singaporeans for fools.

Hundreds of billions in CPF retirement savings are now tied up in public housing.

At the end of a HDB flat lease, most CPF members’ retirement plans will go up in smoke with their CPF evaporating into thin air.

PAP should be held accountable for lying about asset enhancement to win votes. It would be foolish not to do so.

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

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19 Responses to “HDB asset enhancement was a PAP scam to win votes”

  • HDB CEO "spilled the beans":

    Recently, HDB CEO said the price of HDB flats in the resale market should reflect the number of years left in the lease. This just reinforces what MND Minister said earlier that after 99 years the market value of HDB flat is ZERO. It goes back to Government and the land becomes part of State Land to be sold to HDB again to build new HDB flats. PAP’s Asset Enhancement Scheme is the mother-of-all cons” (and over-priced HDB flats is the mother-of-all scams”).

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  • Ong PC:

    While HDB prices may not increase rapidly as before, they will maintain their value and remain sound investments. Even when the lease expires, our govt can’t afford to kick people onto the streets. They will be rehoused in new HDB flats with new 99-year leases, or maybe less, depending on how much we are willing to pay. There will be flexibility and options for all. Yes, it will not be free but at that time we will only be required to pay a token amount to extend our stay in very high quality public housing. Any money we have paid for the original 99-year leases, while unrecoverable, were well-utilized as we have been able to stay in our flats for 99 years with no disruption, and for many of us, we have profited by selling the flats along the way.

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  • Bapak:

    The angst is building up due to their many lies. One man got carried away, dat boleh tahan went humtum the MP. I am sure he will be jailed jialat, jialat to scare monkeys.

    What are his issues? Living in this kena screwed left, right and center times, under this heartless regime can be very stressful.

    Without prejudice, sometimes after seeing MPs only get one letter and whole long year nothing had happened. You are back to square one to die alone.

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  • Whack them hard to wake up:

    @ Ong PC

    What investment when nobody wants to buy?? Yea, stay for 99 years in a dilapidated pigeon-hole and see other people en-bloc and get millions. Song bo, tio bo??? kok.

    Ong PC:
    While HDB prices may not increase rapidly as before, they will maintain their value and remain sound investments. Even when the lease expires, our govt can’t afford to kick people onto the streets. They will be rehoused in new HDB flats with new 99-year leases, or maybe less, depending on how much we are willing to pay. There will be flexibility and options for all. Yes, it will not be free but at that time we will only be required to pay a token amount to extend our stay in very high quality public housing. Any money we have paid for the original 99-year leases, while unrecoverable, were well-utilized as we have been able to stay in our flats for 99 years with no disruption, and for many of us, we have profited by selling the flats along the way.

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  • Conned Care:

    LKY called Sinkies for a good reason.

    70% are born stupid, stay stupid throughout their life..
    In short they are stupid beyond redemption

    They still believe in the Asset Enchancement policy, continue voting for the PAP and make to pay property tax yearly. When it is clearly that we are only long-term leasee and the rightful owner to pay property tax is the HDB

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  • opposition dude:

    What to do, voters were simpleminded enough to believe everything PAP told them mah. Government say HDB flats will rise in value so must be true, government say what. PAP say CPF also damn good for you so must also be true because government say what.

    It seems now that the older generations who bought their flats back in the 60s have problems selling them now. I couldn’t quite believe my eyes when I saw a 3 room in Toa Payoh going for below $300k.

    PAP is keeping quiet now because the election isn’t near yet. Once it is they will announce something for sure. Perhaps a lease extension of 50 years since they will say the older blocks are structually sound and can last for another 100 years easily. Or have the HDB loan extended from the current 60 years to 75.

    But what will be interesting is even if all these measures are in place eventually the problem will still come around.

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  • Fake News:

    This is fake news and should not be allowed here. PAP has not made any public announcement regarding this issue and IB Ong is pretending to be an expert to hoodwink my fellow Singaporeans.

    “rehoused in new HDB flats depending on how much we are willing to pay”
    No matter how you try to reword it, this “asset” become worthless instead of assets enhancement proclaimed by the PAP.

    “at that time we will only be required to pay a token amount to extend our stay in very high quality public housing”
    We are already supposedly paying a “token amount” to stay in the “affordable” HDBs. So we will have to pay another “token amount” for a 99 lease.

    Ong PC:
    While HDB prices may not increase rapidly as before, they will maintain their value and remain sound investments. Even when the lease expires, our govt can’t afford to kick people onto the streets. They will be rehoused in new HDB flats with new 99-year leases, or maybe less, depending on how much we are willing to pay. There will be flexibility and options for all. Yes, it will not be free but at that time we will only be required to pay a token amount to extend our stay in very high quality public housing. Any money we have paid for the original 99-year leases, while unrecoverable, were well-utilized as we have been able to stay in our flats for 99 years with no disruption, and for many of us, we have profited by selling the flats along the way.

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  • Rabble-rouser:

    Problems keep piling up for the PAP govt. Latest news is SMRT CEO Desmond Kuek being stood down for another ex-military chap who is being parachuted into SMRT & who is equally clueless about public transportation as was Desmond Kuek. Never learn, never will!

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  • Merobok:

    When LKY made the statement about Govt increasing the value of flats to its owners,he was already old and senile. We can probably forgive him.
    But during his hey days he told several lies which went undetected as many were simply mesmerized whenever he speaks!
    Firstly, when the Israel President Herzog came to Singapore in the 80′s amidst the protest from our muslim neighbors, LKY said openly that he did not know that Herzog was invited to come to Singapore. So, the culprit was S. Dhanabalan who was then the Foreign Minister. Did he really know that Herzog was coming especially when he was PM?
    During the former President Nair’s debacle, LKY claimed that he did not know that the former was a drinker?….someone close who often sat in coffee shops with him discussing on getting rid of the British colonial master.
    Or maybe these were fake news perpetuated by the Straits Times?

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  • Bebe:

    Now, everyone knows that the HDB is a lease; why are we paying property tax and maintenance?
    The gov should refund all of us – current and previous home owners!

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  • INDIAN malay INDIAN president:

    Rabble-rouser:
    Problems keep piling up for the PAP govt. Latest news is SMRT CEO Desmond Kuek being stood down for another ex-military chap who is being parachuted into SMRT & who is equally clueless about public transportation as was Desmond Kuek. Never learn, never will!

    that is bad news for the nation. because dismal quack will have a 2nd bite of the pap cherry just like the NOL guy now 2nd bite of pap cherry in the states times.

    NOT that it matters if the S$billions wasted are pap own money. if pap own money pap can even hire own grand mother own grad father.

    BUT it is taxpayer money. 70% sheep’s money. citizens’ CPF money.

    since it is not pap own money that is wasted on such pap paper generals such mrt dismal quack and NOL kim jong un lookalike then cannot lah. citizens money cannot be wasted like that lah. 70% sheep needs to wake up.

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  • Bapak:

    Dont you know SAF is their only source of HR Dept. There is no one more capable than them. According to Ssisy, these groups know how to analyse things. Others dont know like his mee siam mai hum theory.

    Rabble-rouser:
    Problems keep piling up for the PAP govt. Latest news is SMRT CEO Desmond Kuek being stood down for another ex-military chap who is being parachuted into SMRT & who is equally clueless about public transportation as was Desmond Kuek. Never learn, never will!

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  • Nil:

    Military people r train n take order to shoot
    No pity whatsoever.

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  • to keep the wayang going:

    //Problems keep piling up for the PAP govt. Latest news is SMRT CEO Desmond Kuek being stood down for another ex-military chap who is being parachuted into SMRT & who is equally clueless about public transportation as was Desmond Kuek. Never learn, never will!//

    they need kaki lang to keep the wayang going lar. anything goes wrong, just form ownself-check-ownself committee and then wayang @ the level of 4 = 5 and selected = elected and then case closed.

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  • Lets wait n see:

    Just to win votes PAP will come out with some new rules re these old flats that are ‘reaching maturity’…with some conditions , for sure!

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  • Monopoly NTUC:

    pap bastards should sell their wife and daughter to earn money.. not scam voters..

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  • Food for thought:

    If you have and can afford only one flat, all the talk about asset enhhancement is rubbish.
    You have to live in it, you cannot sell it. Even if you downgrade, you do not get much money out of it, after the levies, what nought.
    Worse still, your children cannot afford or are not eligible to buy a flat of their own, they have to live with you, maybe your parens and in-laws have to bunk in with you too!
    Higher property prices mean higher cost of living. That reminds me of the ever increasing health care cost and health care insurance premium and a main cause – the insurance rider, Khaw Boon Wan paid only $8 for his heart bypass.
    Who actually benefit from asset enhancemnet – properety companies and the rich with many properties like GCT, LHL, MBT, WCY.

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  • fakenews:

    Someone’s very own words as recently as 2010!

    “We give our buyer an asset which is below market price the moment he buys it. So there is no profit, it’s a loss, but there’s a strategy behind that loss,” he said.

    “That loss is to give the man an asset which he will value, which will grow in price as the country develops, as his surroundings become better. This is a social responsibility which we have undertaken and that’s the reason why we are re-elected.”

    “No country in the world has given its citizens an asset as valuable as what we’ve given every family here. And if you say that policy is at fault, you must be daft.”

    So…what do you think?….

    are these words truth?

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  • rukidding:

    I can see PC Ong “behaving” exactly like those dafts…..”masturbating” themselves as always….just to make themself feel shiok.

    Dream On…babe !

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