AGENT “BENEFITED FROM EIP”
An article published on the government’s fact-checking website Factually explained why Mr Shaik’s claims were false.
Mr Shaik had claimed that the EIP offers no benefit to ethnic minority households and only “causes them significant financial detriment when they sell their flats”.
“The EIP was introduced to prevent racial enclaves and ensure racial diversity in Housing and Development Board (HDB) neighbourhoods in support of racial harmony,” the article said.
“Because of the EIP, a defined proportion of flats are set aside for ethnic minority communities in all HDB developments (including more popular ones) through its Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises and through open booking.
“This is a significant benefit because the EIP guarantees that a specified minimum number of flats in HDB estates, including in highly sought after estates, are available for persons from minority communities.”
While flats in more popular areas are generally higher priced, the “significant government subsidies given by HDB make them affordable”.
The article said: “Mr Shaik Amar himself benefited from the EIP, because his household would not have been able to select an SBF flat if there was no EIP.”
“During the SBF exercise where his household had booked their SkyOasis @ Dawson flat, all minority first-timer applicants were invited to select a three-room flat in Queenstown, including Mr Shaik Amar’s household.”
“In comparison, only about 40 per cent of Chinese first-timer applicants were invited to select a flat because of the Chinese EIP limit.”
SkyOasis @ Dawson is a replacement flat located at Queenstown under the Selective En bloc Redevelopment Scheme (SERS).
The article said that the proportion of owners from minority communities in more popular developments could be significantly lower without the EIP in place, even at point of sale by HDB.
“The EIP, in this way, generally enables more households from the minority communities to benefit from the increase in value that takes place when a flat bought from HDB is resold at a higher price.”
It added it is “misleading to focus on the point of resale, without setting out that flats are first obtained within the framework of the EIP”.
“Further, the EIP applies not just at the point of purchase of flats at HDB’s sales exercises, but also at point of resale. This ensures that no ethnic group is excluded from any public housing neighbourhood, even over time.”
The article noted nearly one in three HDB blocks, and 11 per cent of HDB neighbourhoods have reached their EIP limits.
“Without the EIP, over time, we may see fewer flat owners from the minority communities in highly sought after housing estates. This would be detrimental to the minority communities,” it said.