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POFMA NOTICE ISSUED TO “THE ALTERNATIVE VIEW” FOR SAYING HDB PROFITS FROM AMK BTO FLATS

A POFMA Correction Direction was issued to The Alternative View for their Facebook post implying that HDB profits from the Ang Mo Kio BTO flats.

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Ministry of National Development’s statement

CORRECTIONS AND CLARIFICATIONS REGARDING A FALSEHOOD ON THE ALTERNATIVE VIEW’S FACEBOOK POST

The Facebook post published by The Alternative View on 1 September 2022 contains a false and misleading statement.

2 The Minister for National Development has instructed the POFMA Office to issue a Correction Direction 1
to The Alternative View as its Facebook post communicates the falsehood that HDB profits from the sale of the Central Weave @ AMK BTO flats. The platform will be required to insert a notice against the original post, with a link to the Government’s clarification.

Clarifications regarding falsehoods

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3 On 1 September 2022, The Alternative View published a Facebook post, which reproduces the headline of an article from AsiaOne (dated 31 August 2022) stating “Ang Mo Kio BTO flats: Strong demand for 5-room units despite prices of up to $877k”, contains an image of the Minister for National Development holding a bag of money, and ends with the caption asking “How much profit is HDB reaping from this?”. Implicitly this post is stating that HDB is making profit from the sale of the Central Weave @ AMK Build-to-Order (BTO) flats, which are part of the August 2022 BTO sales exercise. This statement is false.

4 HDB will not profit from the sale of the Central Weave @ AMK BTO flats. In fact, it will incur a loss from this project, as the estimated amount to be collected from the sale is lower than the estimated total development cost of the project. If we take into account the CPF housing grants that HDB will extend to eligible buyers, the deficit is higher still.

5 The amount HDB collects from the sale of flats in every financial year is less than the costs it incurs, including the total development cost (comprising land cost and construction cost) and CPF housing grants. HDB incurs a deficit every year.

6 For the Financial Year (FY) 2021/2022, HDB incurred a deficit of $3.85 billion in its Homeownership Programme. The average deficit incurred by HDB in the last three years (FY2019/20 – FY2021/22) was about $2.68 billion per year. The annual deficit, funded by Government grants, is reflected in HDB’s audited financial
statements published annually.

7 HDB’s deficit is largely due to the significant subsidies extended for new flats and the disbursement of CPF housing grants for eligible buyers. Because of this, most firsttimer buyers use less than a quarter of their monthly income to service their housing loans. Close to 90% of first-timer families service their HDB loans using CPF with little or no cash payments.

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8 HDB will continue to use the allocated resources judiciously to provide affordable and quality homes for Singaporeans.

9 For the facts of the case, please refer to the Factually article “Corrections
regarding HDB’s BTO programme” (https://www.gov.sg/article/factually040922).

Issued by: Ministry of National Development
Date: 4 September 2022

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