BETTER RACIAL MIX IN HDB HOUSING ESTATES - (Statement by the Minister for National Development)
Mr Speaker, Sir, in a speech to community leaders on 6th January, I referred to the trend in some HDB estates where concentrations of racial groups are beginning to form. The President, in his Address to Parliament, also highlighted the gravity of this problem. I would like to inform the House today of the measures that the Government is going to introduce to ensure a better racial mix in HDB estates. The Government will set a limit on the maximum proportion allowed for each racial group in each HDB neighbourhood. It will also set a separate limit on the maximum proportion for each block. These limits are set out in Table 1 (Cols. 723 - 726). Some Tables and Annexes have already been distributed to Members. May I ask them to turn to Table 1? I will take them very briefly through this Table. Table 1 sets out the proportions of flats permitted for each race, each neighbourhood and block. You can see from this Table that for Malays who comprise 15% of the population, the permissible proportion of flats in each neighbourhood is 22% and for each block is 25%. For Chinese who comprise 76% of the population, the permissible proportion in each neighbourhood is 84% and in each block is 87%. And for Indians and others who make up about 9% of the population, the permissible proportion for each neighbourhood is 10% and for each block is 13%. These limits will cover the allocation of new flats as well as the sale of resale flats. They will take effect from 1st March 1989. Table 1 - PROPORTIONS OF FLATS PERMITTED FOR EACH RACE IN EACH NEIGHBOURHOOD AND BLOCK, NEIGHBOURHOODS AFFECTED BY LIMITS SPECIFIED IN TABLE 1 AS AT 15 FEB 89 (Cols. 723 - 726) Mr Speaker, Sir, I would like to give the assurance that no HDB owner, whether he is Chinese, Malay or Indian will be requested to move from his present flat. The measures that we will be introducing to ensure a good racial mix will only affect the allocation of new flats and the resale of flats after 1st March 1989. Let me now explain the reasons for the measures and how they will work. I have also distributed to Members three Annexes. (Cols. 719 - 722) May I ask them to refer to these annexes now. Annex I shows the racial distribution of applications for new flats. It shows that proportionately more Chinese applied for flats in Ang Mo Kio/Hougang Zone and proportionately more Malays applied for flats in the Bedok/Tampines Zone. Annex II gives the position for resale flats, applications to buy resale flats. Here Members will note that Malays bought more than half (55%) of the flats in the Bedok/Tampines Zone. In Bedok new town alone, if present trends continue, the proportion of Malays will reach 30% by 1991, and will exceed 40% in 10 years' time. Annexes - APPLICATIONS FOR NEW FLATS BY RACE AND ZONE, APPLICATIONS FOR RESALE FLATS BY RACE AND ZONE, PURCHASES OF RESALE FLATS BY RACE AND ESTATE IN 1988 (Cols. 719 - 722) Similar trends are emerging in other estates, largely through open-market resale of HDB flats. This is illustrated by a more detailed analysis of purchase of resale flats by race and estate, and is shown in Annex III. You can see from Annex III that a high proportion of buyers in Bukit Merah, Redhill and Henderson were Chinese. In Bedok, Eunos, Teban Gardens and Taman Jurong, more than half the buyers were Malays. In parts of Yishun and in Kampong Java, there was a high proportion of Indian purchasers. There are clear signs that racial congregations are re-emerging. Although the problem has not reached crisis proportions, the experience in other multi-racial societies such as the United States shows that while racial groupings start slowly, once a critical point is passed, racial groupings accelerate suddenly. With the slowing down of HDB's construction of new flats, resale flats will have an increasing influence on the ethnic composition of the HDB estates and new towns. We must therefore introduce open and clear policies early, to stop these trends. In the late 50's and early 60's, various sections of our population were gathered in different pockets, distinguishable by their race or dialect groups. Older Singaporeans will remember that the Malays were concentrated in Geylang Serai, Eunos and a few other areas. The Indians were found in disproportionate numbers in the Serangoon Road and Naval Base areas. The Chinese gathered in dialect groups: the Cantonese in Kreta Ayer, the Hokkiens in Telok Ayer, the Teochews in the Upper Serangoon and Boat Quay areas, and the Hainanese in the Beach Road/Middle Road areas. Each group was fiercely proud of its own identity and defended its narrow interests stoutly. Each clung to its own race or community for security and mutual assistance. It was clear that something had to be done if we wanted to build a cohesive, stable and harmonious society and a nation. The Government seized the opportunity of the massive public housing programme to mix the population. We made sure that every HDB new town and estate reflected the racial mix of the population as a whole. With few exceptions, we have made each electoral constituency representative of the racial and social mix of Singapore. Each HDB new town has a cross-section of Singaporeans. Each has its share of talent and community leaders. Each MP is familiar with the problems of every ethnic, social and economic group in Singapore. Grassroots leaders too are familiar with these problems and can therefore play a more effective community development role among their residents. Most importantly, each racial group has developed an understanding of the other racial groups that make up our nation. This explains how we have been able to forge a consensus on social issues and carry the population with us. Mixing the various communities in proportions that approximate the general population has given us racial tolerance and harmony for the last 20 years and more. To allow them to regroup now will be to go back to the pre-1965 period when conditions bred distrust and misunderstanding among the various races and when there were even racial riots. We will, therefore, set limits on the maximum proportions of each racial group allowed in each HDB neighbourhood. These are, as I have already explained, set out in Table 1. These proportions take into account the existing racial composition of our population and the projected demand for HDB flats by each racial group. The projected demand is based on the rate of formation of new households as well as recent trends in applications. We have chosen the HDB neighbourhood as our basic unit to apply the racial proportions because the neighbourhood is a distinct entity with a well-defined physical boundary. A neighbourhood comprises an average of 50 blocks with about 5,000 flats. Every HDB new town is made up of a number of neighbourhoods, each designed around a neighbourhood centre, which is a focal point for community activities. The neighbourhood limits set out in the table will ensure that each neighbourhood has a good racial mix of residents. In addition, the limits on individual blocks will prevent any single block from developing a concentration of a single racial group. The limits on blocks are set three percentage points higher than the limits for neighbourhoods. This is to allow some variation of ethnic proportions from block to block. For example, you can see from the table that while Chinese can occupy 87% of the flats in a block, they may not exceed 84% of the flats in a neighbourhood. In the sale of new flats, the HDB will use these proportions as a guide to allocate the flats and will as far as possible follow the existing first-come-first-served policy. I would now like to explain how these proportions will apply in the resale of flats. If the existing proportions in a neighbourhood or block are within the limits set in Table 1, there will be no restrictions. Anyone can sell his flat to any buyer, regardless of race. The operative limit is the neighbourhood limit. As long as the neighbourhood limit is below that which we have set out in the table, transactions can take place freely, until such time as the permissible limit for anyone of the racial or ethnic groups has been reached. Let me now illustrate how these proportions will work in different contexts. For example, let us assume that Malays already occupy 22% of the flats in a neighbourhood, the Malay proportion will therefore have reached the limit set for Malays. A Malay in this neighbourhood may sell his flat to a buyer of any ethnic group, because by doing so, he will not be increasing the proportion of Malays in the neighbourhood. If he sells to a Malay the proportion will remain the same. If he sells to a non-Malay the proportion will come down. A non-Malay, however, who intends to sell his flat will have to sell his flat only to a non-Malay. He cannot sell to a Malay because if he does so, the proportion of Malays in the neighbourhood will go beyond the 22%. Similarly, suppose in a neighbourhood the Chinese occupy 90% of the flats and thus exceed the neighbourhood limit for Chinese which, Members will remember, is 84%. A non-Chinese in this neighbourhood may only sell his flat to another non-Chinese because if he were to sell to a Chinese he will cause the proportion of Chinese in the neighbourhood to go up even further. A Chinese, however, is free to sell his flat to a buyer of any ethnic group. If a Chinese sells his flat to a non-Chinese, the proportion occupied by Chinese in the neighbourhood will come down. The proportion will not be allowed to go back to 90% as this exceeds the limit that we have set. So we will allow the proportions to come down as and when a Chinese sells to a non-Chinese, and we will not allow the proportions to go back to the 90%. Let us take a third example. Suppose the proportion of Chinese in a neighbourhood is 80%, ie, below the limit set for the neighbourhood for Chinese, but there is a block in the neighbourhood with 95% Chinese, much higher than the block limit for Chinese. Then a non-Chinese owning a flat in that block will only be allowed to sell it to another non-Chinese, whereas a Chinese can sell it to anybody. From this example, it will be clear that an HDB owner can sell his flat freely as long as the buyer is of the same ethnic group. Similarly, someone looking to buy a flat in the resale market can buy one freely as long as the seller is of the same ethnic group. The permissible limits only arise when the buyer and seller are of different ethnic groups and they are in neighbourhoods where the limits are already higher than the limit set out in the table. This way we will contain the problem. Where the limits have already been exceeded, our measures will prevent the situation from deteriorating. However, these measures will not force the proportions down. Out of the 125 HDB neighbourhoods, the HDB has identified 35 neighbourhoods which will be immediately affected by these measures. Table 2 shows where these neighbourhoods are. These are the neighbourhoods where the owners have already occupied the flats for more than five years and are thus free to sell in the open market, and these are neighbourhoods where the existing levels or proportions for any one of the three ethnic groups exceeds what we have set out in the table. But it does not follow of course that everybody who lives in these neighbourhoods will be affected immediately or even in the long run. It will only affect those who own and want to sell their flats. Only such people will be affected. Resale statistics show that most HDB owners who sold their flats sold their flats to buyers of the same ethnic group. Based on this trend, the HDB estimates that fewer than 1,200 owners in these 35 neighbourhoods will be affected in the next 12 months if they want to sell their flats, say, in the next year. In other words, if these measures that we will be introducing had taken effect one year ago, there would have been about 1,200 transactions that could not have taken place. If as a result of this policy to ensure a balanced racial mix in HDB estates, anyone finds it difficult to sell his flat in the open market, the HDB is prepared, as a last resort, to buy back the flat at prevailing posted price. I would like to repeat the assurance that no one will be asked to move from his present flat. Where the present proportions exceed the limits, we will allow time and redevelopment of the area to bring the proportions down and to achieve a better racial mix. Mr Speaker, Sir, our multi-racial policies must continue if we are to develop a more cohesive, better integrated society. Singapore's racial harmony, long-term stability, and even viability as a nation depend on it.