In Prime Minister Lee Hsien Loong’s National Day Rally, he said that from the second half of 2024, the government will introduce a new HDB framework, that will allow single people to own their own homes.

Under the new framework, new HDB BTO projects will be classified into three types of housing – the Standard, Plus and Prime.

Snippet of PM Lee’s speech

So think of it like this. Standard flats are good flats built all over Singapore, and will have HDB’s standard subsidies and standard restrictions. Plus flats are in the choicer locations within a region, and will have more subsidies and tighter restrictions than Standard flats. And Prime flats are in the choicest and most central locations in the whole of Singapore, and they will have the most subsidies and tightest restrictions. Let me show you the whole picture in one slide.

What are Standard, Plus and Prime flats?

The new framework of Standard, Plus, and Prime. Standard islandwide, subsidies are standard and restrictions are standard – that is why we called it standard. Plus flats have choicer region, more subsidies and tighter restrictions. Prime flats, have the choicest locations, most subsidies and tightest restrictions.

Actually the quality of the flats, they are all good flats, good flats, good flats. But the locations are different, the subsidies are different and the restrictions are different. And this new framework – Standard, Plus and Prime will be a major change to the way HDB sells flats. HDB will roll out this framework for all new projects from the second half of next year. It will not affect existing projects. Your current homes, or the homes you have already booked, will not be reclassified.

No more “mature/non-mature” flats

In time to come, we will no longer refer to new projects as Mature and Non-Mature. Instead, we will build a good mix of projects within and across regions, to cater to different needs and budgets. And that is how we can fulfil our commitment to keep high-quality HDB flats accessible and affordable to you and your children for a very long time to come.

Enhancing Access for Singles

The new framework – Standard, Plus, and Prime – will affect everyone buying a new HDB flat, but there is one special group I want to address: the singles. More and more Singaporeans are choosing to be single. Singles too hope to own their homes and have more housing choices. We hear your concerns.

Today, first-timer singles can apply for new flats, but only 2-room Flexi flats and only in Non-Mature Estates. They cannot buy new Flexi flats in Mature Estates. Singles are also not allowed to buy Prime flats. These rules are to prioritise our limited supply of flats, but unfortunately, they have restricted singles’ choices. We will do something about this.

When we roll out the new framework, singles will be allowed to buy 2-room Flexi flats across all types of BTO projects – Standard, Plus, and Prime. HDB will tell you the details soon. But I am sure singles will welcome this move to have more choices to find your own home and to write your own part in Singapore’s housing story.

Prime Minister Lee Hsien Loong addressed a number of issues during his National Day Rally last night (20 August), among the issues he spoke on were the increase in cost of living and higher inflation.

Snippet of PM Lee’s speech

Good evening, my fellow Singaporeans. Over the last three years, through the pandemic, we stayed united, and overcame challenges. Life has returned to normal. We are organising National Day Dinners once again, to celebrate National Day. Some Singaporeans have developed the good habit of wearing masks when they have a cold or flu, protecting themselves and others.

Cost of Living

Even as we emerge from the pandemic, geopolitical tensions are rising and the international economic situation is uncertain. Prices are soaring globally, resulting in higher inflation.

To reduce the burden of rising costs on Singaporeans, the Government has given out various subsidies. Last year, I used a calendar to show you the support that a Singaporean household living in a 3-room HDB flat would receive. This included U-Save and S&CC rebates, CDC vouchers, cash payouts and Medisave top-ups, amongst others. The Government gave out different subsidies to help low-income families almost every month. Other Singaporeans also received subsidies. Everyone should have received them.

We also have a calendar this year. Like the past year, Government will continue to provide various subsidies almost monthly. In August, we have cash payouts. There are subsidies in September; then U-Save and S&CC rebates in October and cash payouts again in December. In January next year, we will have CDC Vouchers again. In time for everyone to buy goodies for Chinese New Year. We have kept our promise to take care of Singaporeans.

Assurance Package

We know that the GST hike this year has affected Singaporeans, so we rolled out the Assurance Package to alleviate the pressure on Singaporeans, especially middle- and lower-income families. Last year, as a result of the Government’s savings, we had a budget surplus. Therefore, in this year’s Budget, we further enhanced these support measures. The extra CDC Vouchers were very popular. I am glad that these measures have been effective and Singaporeans have benefitted from them.

From 1 January next year, we will adjust the GST to 9%. We will continue with the Assurance Package, as planned. I am confident it will be effective in buffering the impact of the adjustment to 9%. But I am sure you are wondering: could we further enhance the Assurance Package. So everyone gets a little more help? You asked me, so I asked Finance Minister Lawrence Wong. He said he will study it carefully. Let’s wait — and of course, we hope for good news.

However, we must understand the Government cannot give out subsidies infinitely. The long-term solution is to make ourselves more productive, transform our businesses, and grow our economy. Then our real incomes can rise and we can all be better off.

Govt has been stabilising prices

Actually, the Government has been stabilising prices through various policies. In 1973, NTUC established NTUC Welcome, the predecessor of today’s NTUC FairPrice. Its social mission was to ensure that Singaporeans could purchase necessities at affordable prices. Fifty years later, FairPrice is now the largest local supermarket chain. It plays a leading role maintaining costs at a reasonable level, so Singaporeans can continue to buy affordable and good quality goods. As a result, other supermarkets have no choice but to emulate FairPrice by offering their own house brands and promotions.

To reduce daily expenses, we can make smart choices when purchasing daily necessities. Many Singaporeans know how to compare prices. They know which supermarket has the lowest price on which day for which item. They can go to NTUC FairPrice today, Sheng Siong tomorrow and Giant the day after. Some are expert, use mobile applications such as Price Kaki, or access chat groups to decipher where the best “lobangs” (deals) are. If you are from the Pioneer or Merdeka Generation, or hold a blue CHAS card, from Mondays to Fridays, you can go to different supermarkets and enjoy discounts everyday. Many people look out for money-saving hacks, and buy value-for-money necessities to keep their wallets full. So long as we shop wisely, we can still get our hands on cheaper items.

Prime Minister Lee Hsien Loong said during his National Day Rally speech last night (20 August) that the government is introducing a “Majulah Package” for Singaporeans in their 50s and early 60s, whom he named the “Young Seniors”.

The Majulah Package is set to cost the government about S$7 billion, and will consist of three components, namely the “Earn & Save” bonus of $400 to $1,000 yearly, a one-time “Retirement Savings Bonus” of $1,000 to $1,500 and a one-time “MediSave Bonus” of $500 to $1,000.

Snippet of PM Lee’s speech

The Three components of the Majulah Package

We will introduce a package to help Young Seniors meet your retirement needs – let us name it the Majulah Package. This will be for Singaporeans who are 50 and above this year – born in 1973 or earlier. It will benefit those with lower incomes and less wealth. The support will be tiered, depending on your income and your CPF savings. The Majulah Package will comprise three components.

First, an “Earn and Save” Bonus, to help you build up your CPF savings while you work. Most Young Seniors are still working, and have some years to go before retirement. We encourage you to continue working as long as you can. Lower- and middle-income workers will get a CPF bonus of up to $1,000 a year, depending on your income. The Government will credit this into your CPF account, on top of the usual employer and employee contributions. You will receive this Earn and Save bonus yearly, as long as you are working, whether full-time or part-time. Take for example a lower-income 55 year-old who plans to retire at 65. Over 10 years, her Earn and Save bonus adds up to $12,000 in extra CPF savings if you include the CPF interest, which is not bad.

Second, a Retirement Savings Bonus (RSB). If your CPF balances have not reached the CPF Basic Retirement Sum, you will receive a one-time CPF bonus of up to $1,500. Those who are not working will get this bonus too. This includes homemakers, who have given up their careers and laboured to raise their families, and thus have very low CPF balances.

Third, a MediSave Bonus. Most Young Seniors have enough MediSave balances. Nevertheless, many still worry about healthcare costs, because you will soon be Not-So-Young Seniors. So the Majulah Package will include a modest one-time MediSave Bonus of up to $1,000. It will give you some extra buffer, to help pay your medical expenses and insurance premiums.

58th national day present

The Majulah Package will help Young Seniors, in their 50s and early 60s, to meet your retirement needs. But besides Young Seniors, we also want to encourage older seniors to continue working for as long as you can. Hence the Majulah Package also covers the Pioneer and Merdeka Generations.

I think quite a few here belong to the Pioneer and Merdeka Generation. Let me say to you, if you are PG and MG: If you are still working and meet the income criteria, you too will receive the Earn and Save Bonus as long as you are working. If you are not working, you can still get something from the one-time Retirement Savings Bonus and MediSave Bonus. This will be in addition to the PG or MG benefits that you are already receiving and will continue to receive. Think of this as a 58th National Day present!

The Majulah Package will cost the Government about $7 billion. MOF will create a new Fund to meet the full lifetime costs of the Package, using resources from this term of Government. We will honour this commitment without burdening future generations.

The Majulah Package will benefit some 1.4 million older people across several generations. We will also be enhancing existing schemes, like Silver Support, Workfare, and the Matched Retirement Savings Scheme and the details will be announced next year. Taken together, these improvements will help seniors to meet basic retirement needs, especially for lower- and middle-income Singaporeans so that you can have greater peace of mind in your golden years.