Locking resources into property will hinder S'pore's economy

I agree with Mr Lionel Loi Zhi Rui ("Tackle high rent issue to spur S'pore economy"; Dec 28, 2016).

We are faced with many economic forces pulling from all directions including investors' wish for more real estate investment trusts (Reits) on our local stock exchange, property investors' desire to seek returns on their properties, as well as the nation's need to stay competitive.

Excessive capital flows into commercial, industrial and private residential properties may eventually rigidly bind a lot of our nation's resources, thus rendering us a nation of landlords and shopkeepers.

Such massive illiquid financial commitments and the increasing household debts and "securitisation" will then expose our local economy to the wild swings of the rapidly changing world economy and reduce our dexterity to respond accordingly.

A new dynamic and progressive tax structure on properties alone is insufficient to re-balance or fine-tune the situation.

Moving forward, we need to identify new areas for economic growth and give everyone a fair chance of success and a stake in the new economy.

Sum Kam Weng