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Good Practices and Innovations in Public Governance 2003-2011

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2008 Category 1: S<strong>in</strong>gapore<br />

Asia <strong>and</strong> the Pacific<br />

S<strong>in</strong>gapore<br />

2008 Category 1 W<strong>in</strong>ner<br />

Home Ownership Programme<br />

Hous<strong>in</strong>g <strong>and</strong> Development Board, S<strong>in</strong>gapore<br />

Description<br />

Fulfill<strong>in</strong>g the aspirations of S<strong>in</strong>gaporeans for homes <strong>and</strong> communities through<br />

the Home Ownership Programme established by the Hous<strong>in</strong>g Development Board<br />

<strong>in</strong> S<strong>in</strong>gapore.<br />

Summary<br />

To forge nation build<strong>in</strong>g <strong>and</strong> community development for a multi-racial society, the<br />

Government of S<strong>in</strong>gapore decided to move away from rental hous<strong>in</strong>g to leasehold<br />

owner ship flats by encourag<strong>in</strong>g home ownership. S<strong>in</strong>gapore’s “Home Ownership for<br />

People Scheme”, was <strong>in</strong>troduced <strong>in</strong> 1964 through the Hous<strong>in</strong>g & Development Board<br />

to help S<strong>in</strong>gaporean families own their apartments. With home ownership, each S<strong>in</strong>gaporean<br />

family has an asset to hedge aga<strong>in</strong>st <strong>in</strong>flation <strong>and</strong> an <strong>in</strong>vestment that can be<br />

monetized <strong>in</strong> times of need.<br />

The Problem<br />

When S<strong>in</strong>gapore obta<strong>in</strong>ed its <strong>in</strong>dependence from Great Brita<strong>in</strong> <strong>in</strong> 1959, it faced serious<br />

problems of a rapidly grow<strong>in</strong>g post-war population (4.3% per year or 60,000<br />

citizens), high unemployment rate (about 13.5%) <strong>and</strong> a critical shortage of sanitary<br />

hous<strong>in</strong>g. <strong>Public</strong> hous<strong>in</strong>g provided by the colonial government was grossly <strong>in</strong>sufficient<br />

to meet a boom<strong>in</strong>g population. Basic hous<strong>in</strong>g was out of reach to large majority<br />

of S<strong>in</strong>gaporeans. Only 9% of 1.6 million people were liv<strong>in</strong>g <strong>in</strong> public hous<strong>in</strong>g.<br />

The city was mostly occupied by dilapidated <strong>and</strong> overcrowded shop houses. Due to<br />

postwar rent control, l<strong>and</strong>lords had no <strong>in</strong>centives to ma<strong>in</strong>ta<strong>in</strong> their properties <strong>and</strong><br />

allowed them to s<strong>in</strong>k <strong>in</strong>to disrepair, while their chief tenants benefited by endlessly<br />

sub-divid<strong>in</strong>g cubicles to maximize large number of sub-tenants to collect rent. At<br />

the city periphery, racketeers made quick profits on unauthorized shelters <strong>in</strong> squatter<br />

settlements <strong>and</strong> <strong>in</strong> vacant l<strong>and</strong> that were not properly controlled, to ignorant citizens.<br />

Such overcrowded slums <strong>and</strong> squatter colonies with no sanitation, water or<br />

basic facilities were homes to more than half a million people. They became breed<strong>in</strong>g<br />

grounds for disease, crime <strong>and</strong> fire hazards. Social disharmony <strong>and</strong> frustration<br />

among the different communities of ethnic groups were strong; riots <strong>and</strong> strikes<br />

were common.<br />

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