We refer to Forum letters relating to the Ethnic Integration Policy (EIP): "Update terms of ethnic quota to make it easier for minorities to sell flat" (July 12); "Let HDB buy flat back from seller affected by ethnic quota at a small discount" (July 13); "Openness to different peoples and values must be part of Singapore DNA" (July 13); and "Laxer ethnic quota rules may appease sellers but at expense of society" (July 16).

The EIP was introduced in 1989 to ensure that our HDB blocks and neighbourhoods have a balanced mix of ethnic groups that reflect our multicultural society. The EIP applies to all ethnic groups and caps the proportion of each ethnic group in each HDB block and neighbourhood, with caps set above the national demographic proportion of each ethnic group to allow for local variations. This applies to new and public rental flats, as well as resale flats transacted on the open market.

The EIP is critical in ensuring that our HDB estates, where the majority of our residents live, remain inclusive and diverse. Since the EIP was implemented, the proportion of HDB neighbourhoods where one or more ethnic limits are reached fell from 28 per cent to 14 per cent as at June this year. Without the EIP, it is likely that ethnic concentrations in our HDB estates would grow, and eventually lead to racial segregation over time.

Nonetheless, we recognise that the EIP may cause unintended difficulties for some owners. When the EIP limits are reached for an ethnic group, sellers from other ethnic groups are unable to sell their flats to buyers from that group. With a smaller pool of eligible buyers, sellers may find it more difficult to sell their flats at their desired price.

While affected sellers are generally able to secure eligible buyers, HDB received about 500 appeals for waiver of the EIP last year, with more appeals from sellers from the minority races. HDB looks into each of these cases carefully, considers the specific circumstances, and exercises flexibility on a case-by-case basis. This includes giving affected sellers more time to sell their flats or even waiving the EIP limits where there are exceptional circumstances.

We are studying what more we can do to help affected sellers. We thank the writers for their feedback and suggestions, and will consider them in our review. Sellers who need assistance may continue to approach HDB, and we will review each case carefully.

Lily Chan

Director, Policy and Property

Housing and Development Board