Many Singaporeans are disgusted by ministers who engage in half-truths, such as Khaw Boon Wan and (former) Mah Bow Tan.
Both have insisted that HDB has been incurring humongous losses year after year, with no end in sight, despite knowing for a fact that this is a half-truth. This is because HDB pays market rate for land cost to Singapore Land Authority (SLA), ie if HDB has been making losses, then PAP should disclose SLA’s humongous profits.
It’s immoral to include land cost at market rate in selling HDB flats because HDB lessees could never own the land. This is common sense.
Although Leong Sze Hian has already written on the issue of HDB land cost component, it’s still worth the effort to continue educating Singaporeans, including propaganda lovers, on this immoral policy. Another example:
In 2011, HDB awarded the 1009-unit Waterway Cascadia project valued at $161.2 million to WTP (image below). In 2016, flat buyers received their keys to 242 3-room, 500 4-room and 267 5-room premium flats.
The minimum prices of these flats were $204,000, $$310,000 and $390,000 for 3-,4- and 5-room flats respectively, excluding grants. A few things to note:
– Grants are only a fraction of a HDB flat land cost component.
– There are too many different types of CPF grants which look good on PAPer but in reality, most buyers are ineligible for the maximum grants.
– Higher floor = Higher flat price.
For ease of calculation, let’s use HDB’s minimum selling price to calculate its revenue (table below).
Has HDB been making billion-dollar losses?
|Flat type||Minimum price||No. of units||Sub total|
|Construction costs:||$161,200,000||Total revenue||$308,498,000|
When ministers do not paint the full picture, ie leaving out the land cost component earned by SLA, they are clearly talking cock and trying to hoodwink citizens.
Singaporeans must be wary of such ministers because if we continue to live in la la land, HDB flats will become even more unaffordable for future generations.
The PAP should manage the country properly by generating real economic growth to earn government revenue. It should cease earning revenue via selling public housing at exorbitant prices, high COE prices, confiscating CPF members’ returns, etc.
Quote: “The half-truth is the most dangerous form of lie, because it can be defended in part by incontestable logic”. Ministers should cease fabricating and perpetuating half truths because they risk being called L _ _ R S.