Sim Ann and Leong Mun Wai Gear Up for Full Debate on Housing Costs and Reserves
The ongoing debate between Senior Minister of State for National Development Sim Ann and Non-Constituency Member of Parliament Leong Mun Wai over Build-To-Order (BTO) flat pricing is set to shift from social media to Parliament. This follows a heated exchange on Facebook regarding the inclusion of land costs in public housing prices and the management of government reserves.
Facebook Exchanges Ignite the Debate
The argument began with Leong disputing Sim’s claim that he agreed HDB flats are subsidised by the government. Leong contended that the government generates net positive cash flow from HDB flat sales, excluding land costs, and argued for their categorisation as public infrastructure, akin to schools or hospitals.
Sim countered by reaffirming that BTO flats are sold with significant subsidies and dismissed Leong’s approach to disregarding land costs as “simply incorrect.” She also challenged his broader stance on reserves, accusing him of promoting overconfidence in their sustainability and advocating for excessive spending.
Key Points of Contention
Leong argued that land costs should not factor into HDB pricing and called for proceeds from land sales to be used in annual budgets instead of adding to reserves. He pointed to Singapore’s substantial financial assets, suggesting current reserves are more than sufficient to secure future generations.
Sim refuted these points, asserting that reducing HDB’s land acquisition costs would draw from reserves, as state land forms part of the reserves’ value. She also criticised Leong’s perspective as a “wrongheaded proposal” with potentially severe consequences for fiscal stability.
Parliamentary Debate in the Works
Sim invited Leong to bring the discussion to Parliament, which Leong and the Progress Singapore Party (PSP) accepted. PSP announced plans to file a motion for an open debate on public housing challenges, signalling an end to the social media phase of this argument.
This parliamentary debate is expected to provide a more comprehensive exploration of the issues surrounding BTO flat pricing, government subsidies, and the management of Singapore’s reserves, offering clarity on these contentious topics.
