20141226 After HDB yearly billion-dollar losses, what’s next?

The HDB is a statutory board tasked with providing affordable public housing but has instead made them unaffordable to the masses.

HDB recently reported another year of humongous deficit of $1,930,000,000 despite selling units at high prices. Why is it losing so much tax dollars? Will it go bankrupt?

I am getting very worried by headlines regarding HDB’s losses. Before Mah Bow Tan, ex MND minister, graciously stepped down in 2011, he also stated that HDB made an annual deficit of about $600 million for the preceding 3 years. Mah later anyhow increased the deficit figure to “about $1 billion” after taking into account CPF housing grants. Hmm… how come CPF and HDB accounts are merged? CPF gave the housing grants but HDB making the losses?

Last year, Khaw Boon Wan, Mah’s successor, also confirmed HDB has been losing money, about $1 billion annually. So has HDB’s role been changed to one of helping the government lose money?

The PAP seems to have applied a ‘funny’ accounting standard in loss reporting. I hope HDB CEO could show us how she has been able to lose money every year because it is not something any ordinary CEO could do and not be fired.

If HDB has been making losse, then NParks should have also lost hundreds of millions in greening Singapore. The PUB should have lost even more money in drainage construction which could not prevent flooding. Are NEA’s legal fees in fixing the opposition considered losses as well? MOE’s school rebuilding programme?

Can we also declare losses for our cheap labour NSFs if their allowance is unable to cover their food, transportation, bills and some entertainment? Are low wage Singaporeans also making losses since their income is supplemented by government grants?

Singapore Inc is a very profitable company because 3.3 million citizens and 2.1 million foreigners are its clients. Who has heard of a department (HDB) of a profitable company declaring a ‘loss’, keechiu. It appears the directors of Singapore Inc deserve their millions for being creative.

What will they think of next?

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5 Responses to 20141226 After HDB yearly billion-dollar losses, what’s next?

  1. Anonymous says:

    No, Phillip, the HDB will not go bankrupt. Just look at GIC and Temasek. They lost billions and are still very rich. Only the citizens get impoverished.

  2. Confused says:

    The beauty of this is, the only major debt or bond that Singapore is holding is our SSGS as well as SGS which is much much smaller, I supposed when compare to the 260 billions of cpf converted SSGS.

    By looking at the size of the SSGS which has been increasing at about 20B every year for the past few years and at the going rate, one can conclude that there was never a need to redeem this bond forever. Therefore, technically even if all the 260B is lost, nothing will happen to the government because there will be no debtors knocking on their doors.

    Have the past budget surpluses been used to pay for the SSGS’ s interest all these years when GIC was reportedly making losses left and right?

    • phillip ang says:

      There are too many unanswered questions. I suspect the source of revenue for paying CPF returns is not from CPF investments. If tens of billion$ in CPF investments are underwater, it means a large percentage of CPF has to be invested in risky assets to get higher yield. What about the bond/cash portfolio which earns a very low interest rate.
      It is likely our reserves have been used in 2008/2009 to pay CPF members. The PAP could have easily proven otherwise but the fact that it didn’t tells us something is not right. This whole CPF is beginning to resemble more like a scam.
      If stock markets tank in 2015, CPF investments in 2013 and this year, probably $40 billion, will increase GIC’s paper losses. The PAP cannot reveal the total value of all investments with unrealised losses for obvious reasons.

  3. Alan says:

    Someone must be lying.

    If HDB is really making losses, why did they build the new HDB hub when the old one is still functioning and collecting rent? They could have save costs by staying put in the old HDB Towers.

    No logic, right? That is why I suspect someone is lying. As they say, the last person to believe is your local politician in power.

    • phillip ang says:

      A lot of things the PAP does make no sense. Most of the things they say are nonsensical. HDB can construct more than 1 HDB hub if it had wanted because it has been making obscene profits from flat buyers. : (

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