reporter2
13-03-13, 15:36
http://www.straitstimes.com/archive/friday/premium/singapore/story/80-low-income-families-own-homes-20130308
BUDGET DEBATE
80% of low-income families own homes
Published on Mar 08, 2013
IN SINGAPORE, eight out of 10 low-income households own the roof over their heads and "there's no other country that comes close to it", Deputy Prime Minister Tharman Shanmugaratnam said yesterday.
This group are the bottom 10 per cent of earners, with monthly household incomes of about $1,650, or $1,800 if Central Provident Fund contributions are included.
And home ownership is a key pillar of Singapore's social support for these people, he said.
There are, however, two distinct groups among them: those age 55 or above and those below 35. And the Government's solutions have to be tailored to their needs, said Mr Tharman.
Many of the older folk, who make up slightly over half of the group, have seen little improvement in their pay in the last five to 10 years, especially after taking into account inflation.
Six in 10 of the breadwinners have no more than primary-level education.
But Mr Tharman, who is also Finance Minister, pointed out that 83 per cent of those 55 and older in the bottom decile are home owners.
"Helping them to monetise the home, unlock the value so they can have better retirement years, is extremely important," he said.
These older citizens also get a boost in wages through Workfare.
The income ceiling for this was raised in the Budget from $1,700 a month to $1,900.
The younger group, Mr Tharman said, has benefited from an improved education system and almost all have at least secondary education.
The Government will put in place avenues for them to advance, like boosting spending on the pre-school sector and upgrading opportunities for those working. In short, "provide every leg-up rather than a handout".
For housing, they enjoy grants tailored to their needs, with even those earning $1,000 or less getting two-room flats through such measures, he said.
Low-income Singapore families receive an Additional Housing Grant of up to $40,000. A further Special Housing Grant of up to $20,000 was introduced in 2011.
The latter has been given to about 1,100 low-income households.
Helping low-income Singaporeans through such grants results in them having more cash in hand as the mortgage of their two-room flat is paid fully, or almost fully, from their CPF savings.
"It's about having an asset that will appreciate with inflation and appreciate with progress.
"They don't get left out and they too will retire with a significant asset for their retirement years," Mr Tharman added.
LEONARD LIM
BUDGET DEBATE
80% of low-income families own homes
Published on Mar 08, 2013
IN SINGAPORE, eight out of 10 low-income households own the roof over their heads and "there's no other country that comes close to it", Deputy Prime Minister Tharman Shanmugaratnam said yesterday.
This group are the bottom 10 per cent of earners, with monthly household incomes of about $1,650, or $1,800 if Central Provident Fund contributions are included.
And home ownership is a key pillar of Singapore's social support for these people, he said.
There are, however, two distinct groups among them: those age 55 or above and those below 35. And the Government's solutions have to be tailored to their needs, said Mr Tharman.
Many of the older folk, who make up slightly over half of the group, have seen little improvement in their pay in the last five to 10 years, especially after taking into account inflation.
Six in 10 of the breadwinners have no more than primary-level education.
But Mr Tharman, who is also Finance Minister, pointed out that 83 per cent of those 55 and older in the bottom decile are home owners.
"Helping them to monetise the home, unlock the value so they can have better retirement years, is extremely important," he said.
These older citizens also get a boost in wages through Workfare.
The income ceiling for this was raised in the Budget from $1,700 a month to $1,900.
The younger group, Mr Tharman said, has benefited from an improved education system and almost all have at least secondary education.
The Government will put in place avenues for them to advance, like boosting spending on the pre-school sector and upgrading opportunities for those working. In short, "provide every leg-up rather than a handout".
For housing, they enjoy grants tailored to their needs, with even those earning $1,000 or less getting two-room flats through such measures, he said.
Low-income Singapore families receive an Additional Housing Grant of up to $40,000. A further Special Housing Grant of up to $20,000 was introduced in 2011.
The latter has been given to about 1,100 low-income households.
Helping low-income Singaporeans through such grants results in them having more cash in hand as the mortgage of their two-room flat is paid fully, or almost fully, from their CPF savings.
"It's about having an asset that will appreciate with inflation and appreciate with progress.
"They don't get left out and they too will retire with a significant asset for their retirement years," Mr Tharman added.
LEONARD LIM