MND said that the losses incurred by HDB are “accurate and real”, adding that the agency’s deficits are covered using funding from the annual Budget, which is raised from taxes and other revenue streams.
“Real money is involved, and this is certainly not an ‘accounting sleight of hand’,” said MND.
It stressed that state land is part of Singapore’s past reserves, and is not part of the assets that the Government can use as it wishes.
“When HDB requires land to develop flats, the land has to be taken out of the past reserves. HDB has to purchase the land by paying fair market value for the land, and the money goes into the past reserves. The estimated land cost for Central Weave @ AMK is about S$500 million,” MND said.
“The Government cannot sell state land at nominal or much lower cost than its fair market value without the President’s approval, as doing so would constitute a draw on past reserves.”
Singapore’s past reserves are protected by the Constitution for the benefit of current and future generations, noted MND.
“The Government cannot sell state land at nominal or much lower cost than its fair market value without the President’s approval, as doing so would constitute a draw on past reserves,” it said, adding that there is an established process to determine the fair market value of land.
“Neither the Government nor the past reserves profit from land sales,” MND said.
“For the Central Weave @ AMK BTO project, HDB will pay the Government fair market value for the land, estimated to be about S$500 million. This money will be paid into the past reserves, but does not result in a net increase in the past reserves.”