Tread carefully for massive undertaking

The Prime Minister's proposed solution to renew our ageing Housing Board flats via different schemes has never been tried before on this grand scale.

The Home Improvement Programme (HIP), HIP II, the Selective En bloc Redevelopment Scheme and the Voluntary Early Redevelopment Scheme will tax governmental resources to the hilt.

A back-of-the-envelope calculation shows that simply rebuilding the one million flats the HDB has constructed since the 60s will cost Singaporeans $100 billion to $300 billion, assuming that each new flat will cost $100,000 to $300,000 for reconstruction - and this does not even include the costs of interim upgrading.

This will take up a big portion of Singapore's present-day reserves, which also have competing demandsfor disbursement. Shortfalls will have to be made up for with increased taxes, the burden of which will fall disproportionately on some.

It is fair that first-time public housing is subsidised by the state, never mind that HDB gives grants to some subsequent upgraders.

But over the course of a 99-year lease, when family finances improve and children move on to better things and to even private housing, it is moot whether another round of subsidies is warranted.

Do we really want to entrench a sense of entitlement among Singaporeans?

Yik Keng Yeong (Dr)

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A version of this article appeared in the print edition of The Straits Times on August 22, 2018, with the headline Tread carefully for massive undertaking. Subscribe