Pritam Singh Pushes for Transparency on BTO Costs, Igniting Public Demand for Clarity

On Monday (Nov 7) in Parliament, Leader of the Opposition Pritam Singh engaged in a debate with Second Minister for Finance and National Development Indranee Rajah about the development costs of new HDB flats and the subsidies provided to buyers. Ms. Rajah declined to disclose the detailed breakdown of total development costs for all new Build-to-Order (BTO) projects, arguing that such information would not be “helpful or meaningful” to prospective buyers.

Many netizens reacted to her responses, calling for transparency and asserting that Singaporeans should be able to evaluate the data themselves.

Mr. Singh’s request stemmed from the recent POFMA correction orders issued to former GIC economist Yeoh Lam Keong and others regarding comments on Singapore’s past reserves and HDB losses from BTO projects. He asked for a detailed breakdown of the development costs and the specific dollar value of subsidies applied to the market price of these flats.

In response, Ms. Rajah explained that development costs include land and construction costs, stating, “What we sell to Singaporeans, less the total development cost, will give you, in virtually all cases, a net loss, because we are subsidising, we are selling below market value.” However, she argued that providing a detailed cost breakdown wouldn’t benefit buyers, emphasizing that affordability is the key issue for most Singaporeans. She added, “Every Singaporean who buys a BTO knows that the price they are paying is less than the market price.”

Mr. Singh countered that publishing the exact value of HDB subsidies is important, particularly given the rising resale prices and the need to keep BTO flats affordable. “With resale prices reaching record highs today and therefore pushing up the market price of land, increasing the size of the subsidies… would appear to be the main way through which BTO prices can be kept affordable,” he said. He further questioned, “What is preventing HDB from publishing the dollar value of HDB subsidies for new BTO flats?”

The parliamentary exchange sparked significant public reaction, with many Singaporeans echoing Mr. Singh’s call for greater transparency.

On Reddit, netizens shared similar concerns, emphasizing the need for clear and detailed information on the cost structure. A Facebook commenter suggested that the public should be consulted on whether they would prefer to see the cost breakdown, warning that withholding such information could fuel suspicion.

TISG