SINGAPORE – A new framework to reclassify mature and non-mature housing estates, a $7 billion package to help “young seniors” who are in their 50s and early 60s to meet their retirement needs, and more support for retrenched workers to find their next good job.
These were some of the announcements Prime Minister Lee Hsien Loong made at the National Day Rally 2023 on Sunday.
Here are key takeaways from his speech.
1. New Standard, Plus and Prime framework to classify BTO projects
The framework will split Build-To-Order (BTO) housing projects into Standard, Plus and Prime, depending on whether these are in choicer locations.
Standard projects will continue to have a five-year minimum occupation period (MOP), regular subsidies and no income ceiling for resale buyers. Most Housing Board projects in the future will still be Standard projects.
Plus projects will be those that are in choicer locations in each region, and will have more subsidies than Standard projects to moderate the prices of Plus flats.
They will have a longer MOP of 10 years and have tighter restrictions when the flat is resold. They include a subsidy recovery applied on the resale price, as well as an income ceiling on resale buyers.
Prime projects will have the most subsidies, and also the tightest resale restrictions, such as a higher subsidy recovery rate than Plus projects. They will also have a 10-year MOP.
Why it matters:
While classifying estates as mature and non-mature has worked for many years, a new framework is needed to keep home ownership affordable to all income groups, maintain a good social mix and ensure that the system stays fair, said PM Lee.
This is because there will be fewer larger tracts of undeveloped land left to build new towns and estates, and increasingly, new flats will be built within or near existing estates. Such new projects, in developed areas with more amenities, will be more popular and will cost more.
Non-mature estates may be so named today, but they have become much more developed with excellent connectivity and amenities. This has blurred the distinction with mature estates, and in future, more BTO projects will be in estates that are effectively mature.
The new framework will let the Government provide higher subsidies for choicer locations while attaching tight restrictions and subsidy recovery. This will moderate windfall gains, ensure lower-income groups are not priced out, while moderating demand for prime projects.
2. Temporary safety net for those retrenched
Financial support will be given to workers who lose their jobs, as a temporary safety net for such workers to meet their immediate needs while they train for a good next job.
The scheme will ease the immediate pressures that job seekers experience so that they can focus on upgrading their skills and get back on their feet confidently, said PM Lee.
More details will be shared when the Forward Singapore exercise concludes in the second half of 2023.
Why it matters:
Financial pressure and the need to support the family affect retrenched workers’ choices, and make it difficult for them to go for skills courses, noted PM Lee.
Out of desperation, such workers may seize whatever jobs are offered, even if they are not the best fit.
With the new safety net, PM Lee pledged that the Government will go the extra mile to help such workers upgrade themselves with support so that they have the space and time to upskill and secure a job that is a good long-term fit.
READ MORE HERE: Retrenched workers to get interim financial support while reskilling for better jobs
3. $7 billion Majulah Package to help ‘young seniors’ meet retirement needs
A new Majulah Package was announced for Singaporeans who are 50 and above in 2023, or those born in 1973 or earlier. About 1.4 million older people will benefit, particularly those with lower incomes and less wealth.
There are three components to the package. First, a yearly bonus of up to $1,000 will help lower- and middle-income workers build up their Central Provident Fund (CPF) savings for as long as they are working.
Second, those whose CPF balances have not reached the CPF Basic Retirement Sum will receive a one-time CPF bonus of up to $1,500, Those who are not working, including housewives, will get this bonus too.
Lastly, a one-time MediSave Bonus of up to $1,000 will help pay for medical expenses and insurance premiums, said PM Lee.
The Majulah Package will also cover the Pioneer and Merdeka generations.
Why it matters:
This package has been introduced to help “young seniors” in their 50s and early 60s meet their retirement needs.
This generation has benefited more from Singapore’s growth and generally done better in life than the Pioneer and Merdeka generations before them.
However, compared with workers in their 30s and 40s, they have generally earned less over their lifetime, and had less time to benefit from improvements to the CPF system. Thus, they have built up less retirement savings, said PM Lee.
Alongside other existing schemes that will be enhanced, such as Silver Support, Workfare Income Supplement and the Matched Retirement Savings Scheme, these improvements will give seniors greater peace of mind in meeting their basic retirement needs.
READ MORE HERE: $7b Majulah Package to help S’poreans aged 50 and older meet retirement needs
4. Making homes and precincts more senior-friendly
Seniors will soon be able to choose from an expanded suite of fittings under the Enhancement for Active Seniors (Ease) programme, a government initiative that aims to provide safer, comfortable homes through elder-friendly features.
Under Ease 2.0, some new fitting options are foldable shower seats, and widened toilet entrances for those who are wheelchair users.
Neighbourhoods will also be made safer and more comfortable for seniors to move around with ease, while more assisted living facilities will be built, said PM Lee.
Some changes include revamping streets and linkways frequented by seniors, making roads more pedestrian-friendly and barrier-free, and using more colourful block signs to help seniors remember where they live.
Why it matters:
Singapore is one of the fastest-ageing nations in the world, with one in five Singaporeans a senior aged 65 and above. By 2030, nearly one in four Singaporeans will be a senior.
Many seniors have said they want to live out their golden years in their own homes as it is a familiar environment where they have sunk deep roots.
This is a good thing, and making homes and precincts more senior-friendly will help this group age in place, said PM Lee.
These initiatives are part of a new national programme called Age Well SG to improve seniors’ health, and more details will be shared in the coming months.
READ MORE HERE: Wider toilet entrances, shower seats among new elder-friendly features for HDB flats
5. Succession plans, supporting the 4G leadership
With the Covid-19 pandemic in the rear view, PM Lee reassured Singaporeans that his succession plans are back on track.
He outlined his focus, which is to support the fourth-generation team led by Deputy Prime Minister Lawrence Wong and their agenda. The 4G team is increasingly setting the pace for the Government, he noted.
PM Lee also gave Mr Wong and the 4G team his vote of confidence and said that they share the same core convictions as him, such as being stewards aiming to build a Singapore for the ages.
Why it matters:
PM Lee, 71, had originally planned to step down and hand over the reins before his 70th birthday. But the pandemic disrupted his plans, and at the 2020 General Election, he pledged to see Singapore through the crisis before handing over the country “intact and in good working order”.
He also acknowledged that recent controversies involving People’s Action Party (PAP) MPs have drawn Singaporeans’ attention.
In July, the Corrupt Practices Investigation Bureau opened a formal probe into Transport Minister S. Iswaran. Meanwhile, Speaker of Parliament Tan Chuan-Jin and Tampines GRC MP Cheng Li Hui resigned over their extramarital affair.
PM Lee said that these incidents have been dealt with thoroughly and transparently, including in Parliament, and that they will not delay his timetable for renewal.
Calling integrity and incorruptibility the foundation of the Government and fundamental to Singapore, he affirmed that every generation of PAP leaders will commit to upholding these ideals.
READ MORE HERE: Recent controversies do not delay leadership renewal timetable, says PM Lee
If you have a few more minutes...
Expanding network of Active Ageing Centres
To help seniors stay active, healthy and socially engaged, the Government will invest in expanding the network of these centres, and work with community partners to enhance their services and reach.
These include more activities that interest men, such as cafe corners for them to catch up over coffee.
With one of the biggest threats to the well-being of seniors being loneliness, PM Lee encouraged seniors to join a nearby centre in order to live and age well.
Govt studying if more support needed to ease impact of GST increase
While he is confident that the Assurance Package for the goods and services tax (GST) will be effective in buffering the impact when the GST goes up to 9 per cent from 2024, PM Lee said the Government will study whether it can be further enhanced.
The package, announced in Budget 2020, aims to cushion the impact of the GST increase for the majority of Singaporean households for at least five years, and for lower-income households for about 10 years.
It was beefed up to $6.6 billion at Budget 2022, and then enhanced again to $9.6 billion in Budget 2023.
