Mr Speaker, Sir, I beg to move, That this House - Recognising the achievements of the Housing and Development Board in the last 25 years; and Commending the valuable contributions made by the Management, Staff and Workers of the HDB in achieving this; and Conscious that HDB's success has enabled the majority of Singaporeans to be proud home owners; Urges the Government to take suitable measures to assist those citizens in the lower income group who do not yet own homes to become proud home owners. Sir, we are today a nation of proud home owners. In 1959, when the PAP swept into power, it was confronted with seemingly intractable problems. The immediate tasks were to provide jobs for the jobless and homes for the homeless. Sir, in 1959, it was estimated that a quarter million people were living in generated slums and another 300,000 in squatter areas. The Singapore Improvement Trust (SIT), which was set up in 1927 by the then colonial Government, had managed to build only 23,000 units of public housing over a period of 32 years. The SIT flats accommodated about 9% of our 1.6 million population. Sir, the PAP Government therefore took immediate action to tackle the problem of public housing. The HDB was thus established in February 1960 to undertake the function of providing low-cost public housing. Mr Speaker, Sir, today, after 25 years, the HDB has completed over 500,000 units of flats, accommodating over 80% of the total population of about 2.6 million people. This is indeed no mean task. Today, Singapore's public housing record is the envy of many people and nations. Sir, last week I happened to be in Wushan in South Korea where I had the occasion to meet leading members of the business community. South Korea, as you probably know, has tremendous economic achievements and better performance records than Singapore. They lamented that only 15% of the population are housed in low-cost public housing, where our record, Sir, is well over 80%. Mr Speaker, Sir, this achievement has been made possible because of Government's strong commitment to its public housing policy and Singaporeans' full support for its implementation. The Government's goal is to provide sufficient flats for all Singaporeans who need them and at prices they can afford. Moreover, out of half a million flats more than 75% are owner-occupied under the Home Ownership Scheme. For the year 2000 we can expect virtually all HDB residents to be home-owners. Mr Speaker, Sir, the HDB in the last 24 years has successfully completed four Five-Year Building Programmes, and it is now at the tail-end of the fifth programme which ends in December 1985. This House should congratulate the HDB for its splendid achievement on its 25th Anniversary, which it is celebrating now. Sir, as at March 31, 1985, the properties under its management consist of over half a million flats, as well as a large number of shops, factories, car parks and a host of other facilities, such as swimming and sports complexes, town and neighbourhood parks, food centres, markets and offices. I have tabled these cumulative achievements of HDB. These Tables (Cols. 653 - 654) I and II have already been circulated to hon. Members. Tables - HOUSING & DEVELOPMENT BOARD (Cols. 653 - 654) Sir, the HDB's achievements underscore the commitment and the determination of the Singapore Government to provide not only a home for every citizen but also to build a viable urban community for people to live, work, shop, rest, relax and educate their children. All the time, however, the HDB was also learning from its own experience and thinking of ways and means to improve conditions for future residents. In 1962, Queenstown, the HDB's first new town, took shape. Built on the neighbourhood concept, it became the basis for future generations of new towns. In 1964, Toa Payoh added another landmark in the Singapore scene. Mr Speaker, Sir, the next two 5-Year Building Programmes (1966 to 1975) saw HDB putting greater efforts to improve facilities and amenities for residents. More emphasis was placed on quality. Hawker centres, shopping and recreational facilities were also included. The estates that were completed included Telok Blangah and Marine Parade. By the end of 1975 a total of more than 180,000 units of shops and flats were completed against a target of only 173,000. Sir, with the completion of another 134,000 units in the fourth Building Programme, 65% of our population began living in HDB flats. By this time the lifestyle of Singaporeans had so changed that the "HDB Family" was recognized as a typical Singapore family. In fact, HDB also made several policy changes and decisions aimed to preserve the family unit, especially our Asian extended family lifestyle. In this connection, the Joint Ballot Scheme and the Multi-tier Family Scheme were introduced. To even encourage upward mobility, in 1979 the HDB flat owners were allowed after five years of occupation to sell their flats in the open market and to purchase another bigger HDB flat. Before, however, all HDB flats had to be sold back to the Board at the original selling price. Recent revisions in the resale policy have also given flat owners more flexible options. Mr Speaker, Sir, income ceilings governing the eligibility criteria of HDB flats have also been revised over the years to enable those with rising income who could not afford private housing to purchase HDB flats. Sir, at the start of the fifth 5-Year Building Programme in 1981, there was an upsurge in the demand for HDB flats, resulting in more applicants on the waiting list. Immediately the building target was revised upwards from 100,000 to 155,000. By 1983, the waiting list had been significantly reduced. It was during this time that the HDB introduced mechanization and prefabricated flats successfully. In May 1983, the first HDB executive flats were completed to meet the housing needs of the middle-class in our population. I am told that the Board is confident that by December 1985, the number of dwelling units completed will be over 180,000, exceeding its revised target of 155,000. Good physical housing is no guarantee for good and harmonious community living. Experience all over the world has shown that it is all too easy for public housing to degenerate into urban slums. This is so whether it be in advanced countries or in developing countries. Fortunately, for us, HDB towns were saved from falling into this trap by the creation of a harmonious and thriving community within each of our existing housing estates and new towns. This is not entirely due to good fortune. It was achieved through a mix of right Government policy on the one hand and hard work and cooperation on the part of the HDB, its residents and our community and grassroots leaders on the other hand. By having a mixed community in each housing estate and new town, this ensures that each represents a cross-section of the population distribution in Singapore. This prevents the formation of enclaves or closed communities. For this reason, Sir, the HDB discontinued the building of exclusive HUDC estates. At the same time, Sir, tremendous efforts have been made by Residents' Committees, Citizens' Consultative Committees and grassroots organizations to ensure that living in HDB estates is a pleasant and harmonious experience. This is a goal which cannot be achieved by good housing design alone. Sir, in the last few minutes I have tried to sketch the achievements of the HDB over the last 25 years. I would like now to turn to the people who have made this possible. If you consider the achievements of the physical building which you see as the hardware, now let us look at the software behind the scheme. Permit me to propose a general salute to the unsung heroes of the HDB. Here, I am referring to the 13,906 management and staff who have been in the front line of the Republic's battle against homelessness. This House should commend the valuable contributions made by the HDB's dedicated and harkworking workforce as well as qualified management team. Since the inception of HDB in 1960, the staff strength has risen more than ten-fold, from over 1,000 employees to the present strength of nearly 14,000. The HDB management team, Sir, must be congratulated for effectively implementing well thought-out administrative policies, sound planning and designs and an efficient implementation system. These are the silent heroes who strive ceaselessly to make our housing estates clean and the environment habitable. Let us also not forget the maintenance crew who provide 24-hour emergency service to all constituencies to ensure that nobody gets trapped in our lifts. To all the HDB staff, especially the counter staff, we owe them a big Thank You for their patience in dealing with the public. A word of thanks should also go to the sweepers, counter clerks and all the other supporting staff throughout the 32 Area Offices around Singapore. I would submit, however, that the management of HDB continue to explore avenues to improve the HDB-resident interface. I can foresee that the HDB would be subject to increasing pressure for more, better and faster services and amenities in the years ahead. Sir, in my opening remarks I mentioned that we are a nation of proud house owners. Sir, home ownership is the cornerstone of our nation building. It gives every home-owning Singaporean a genuine stake in this land of ours. Singapore is today a property-owning democracy. Instead of the inevitable class struggle between the haves and the have-nots, we have in Singapore a healthy battle among Singaporeans each striving for a bigger slice of the Republic's real estate. Indeed, the lower and middle income groups can look forward to constant improvement of the standard of living and eventually owning their own flats. The provision of large scale public housing in Singapore has contributed in no small measure to the stable, social and political climate. Though the home ownership scheme was introduced in 1964, overwhelming demand to own an HDB flat did not gather momentum until 1968. With the introduction of the Central Provident Fund (Amendment) Act in 1968, purchasers were permitted to use their CPF savings to meet down-payments and monthly payments. In view of the rising general income level, and to enable a greater proportion of the population to own HDB flats, the income ceiling has been periodically reviewed. To further encourage Singaporeans to own their own homes, people living in squattered areas or rent-controlled premises which are affected by public redevelopment are given priority in the allocation of flats. Sir, Singapore has gradually avoided disastrous policies of unlimited subsidies associated with the welfare state which are, in fact, crippling some of the industrial countries today. However, having said this, there does appear to be pockets of our less well-off Singaporeans who do not seem to be able to afford to buy HDB flats. One estimate gives the percentage of such Singaporeans as about 15-20%. According to the HDB, about 26% of its flats are still being rented out to Singaporeans who are either waiting to buy flats or for some reason are not eligible to own flats. However, there are also some Singaporeans who just cannot afford to buy their flats. I think it is our duty to help our fellow Singaporeans to move out of this trap. It is the Government's stated policy, and here I quote: 'Our people can enjoy a better quality of life by 1999. There will be no unsewered households, slums or environmental pollution. Every family will own a home for we shall help the 15-20% lower income group to do so.' Sir, due to various reasons, maybe lack of education, old age, personal circumstances, the 15-20% of our population belong to this lower income group. They have not reaped much of the benefits of our 25 years of economic progress. Most of them are either odd-job workers, casual labourers or self-employed and are thus without the benefit of CPF. If nothing is done to assist them, then this lower income group living in their cramped flats will become more and more detached from the mainstream of our society and it will remain a dark spot in our social fabric. The $10,000 cash grant is one of the schemes introduced by the Government to assist the people in the lower income group. However, for various reasons, response to this scheme has been poor so far. Whilst I agree with what the First Deputy Prime Minister has stated in this House, and I quote: 'The Government's approach to the problem of the poor is therefore high economic growth, universal education and skill training, small families, home ownership and working wives. It has in large measure succeeded although it has not eliminated poverty altogether. Our experience has confirmed that welfare and generous handouts are not the solution to the problem.' I submit, Sir, that it will take considerable time to solve the problem of the lower income group. As such, I believe special interim measures may be necessary. This has been articulated by many of my PAP colleagues in this House during the debate on the Presidential Address earlier in the year. The Government may want to consider some of the following measures to assist the poor in our society to own their own homes: Firstly, there is this question of reduction in the deposit for the purchase of flats. The current deposit level appears rather high for the lower income group. Another measure which Government could seriously consider to assist the lower income group is to extend the current repayment period of 20 years. And thirdly, as a further incentive, Government could consider offering lower interest rates for the people in the lower income group. Mr Speaker, Sir, the above measures, if implemented, will enable some to become home owners quickly. The long term solu- tion, I believe, will really be to increase the income levels of the people through higher productivity. If this can be achieved, then the lower income group can own their own homes and improve their quality of life. I would strongly urge the Government to work out a scheme quickly which will enable these lower income Singaporeans to join the rank of proud home owners. Mr Speaker, Sir, in conclusion, I would like to offer my heartiest congratulations to the HDB on its 25th Anniversary and would urge the management and staff of HDB to scale even greater heights. Sir, I beg to move. Question proposed. 12.34 pm