WKS AND MBT are OUT!

[proper-t]

Agreed to most of the points mentioned but for B, the release of huge amounts of land is not to adjust price downwards. Adjusting price downwards is a natural (expected) outcome but the primary objective was the great complaints that there was insufficient supply to meet the huge demands whether from high influx of foreigners or locals.

Its usually a combi of all the factors. I think we would be naive to think that "B" is not one of the factors as the actions & words of MBT in the run-up to the elections clearly show that one of the reasons for their massive release of land was also to 'moderate' prices to cater to public outroar.

Also your model simply assumed a cycle in the property market but the market need not neccessarily be down after the initial 3 years of hot. There are many other factors that might affect whether up or down. These external factors may well bring the market down in less than 3 years or may drag on for up to 7 years as observed from 1997 to 2001 and then to 2008.

As stated, my two scenarios (pt 1 & 2) is just an EXAMPLE. Sure cycles are different all the time.

What I am trying to point out is that whatever the cyclical period, tweaking just the demand side (buyer restrictions, SSD, LTV etc) but ignoring the impact of the supply side (which is solely based on revenue maximisation or political motivations) in releasing land indiscriminately only exacerbates the swings even more.

[ysyap]

I think he it all along, can't be after GE, suddenly wake up since he also say he expressed his wish to step down earlier...but was asked to stay. His last Cooling Measure was his swan song , "hiok, jialat jilat" 4 yr SSD, 40%LTV, so that we all remember him! Really good, he make sure he justify his pay to his bosses!

It's 60% LTV...

[ay123]

I think he it all along, can't be after GE, suddenly wake up since he also say he expressed his wish to step down earlier...but was asked to stay. His last Cooling Measure was his swan song , "hiok, jialat jilat" 4 yr SSD, 40%LTV, so that we all remember him! Really good, he make sure he justify his pay to his bosses!

both WKS/MBT said they already express their intention to step down years back. u believe them?? they must be kana sack but still die die say want to give way to new generation raymond lim is the worse!! give way to younger player who is 2 yrs yonger than him!!

[land118]

It's 60% LTV...

ya...typo error..

[land118]

both WKS/MBT said they already express their intention to step down years back. u believe them?? they must be kana sack but still die die say want to give way to new generation raymond lim is the worse!! give way to younger player who is 2 yrs yonger than him!!

Ya, who will believe....Yes, Raymond Lim - if not for WKS & MBT kena wacked, sure many will focus on him also....can't think of any significant good that that benefit us during his tenure..., can u? Don't talk about the opening of Circle Line, etc - this was Master Plan long ago..., ya...other lines being announced recently, but nothing concrete..., execution still long way off....

[land118]

Quote from MBT:

http://www.channelnewsasia.com/stori...129933/1/.html

"Mr Mah said he welcomes Health Minister Khaw Boon Wan, who will be taking over as National Development Minister.

"I am confident that (Mr Khaw) will lead the ministry to even greater heights," he said"

Hope MBT don't mean greater heights = higher prices for HDB?

[linchong84]

MBT admitted responsibility for the high housing cost yesterday...

Did he specify whether he meant pte or public housing? This is very impt, cos it means the new guy will strive towards correcting the price of either one, or even both..

[ay123]

Did he specify whether he meant pte or public housing? This is very impt, cos it means the new guy will strive towards correcting the price of either one, or even both..

LHL instruction to khaw is to look at BOTH hdb n pte leh

[proper-t]

Quote from MBT:

http://www.channelnewsasia.com/stori...129933/1/.html

"Mr Mah said he welcomes Health Minister Khaw Boon Wan, who will be taking over as National Development Minister.

"I am confident that (Mr Khaw) will lead the ministry to even greater heights," he said"

Hope MBT don't mean greater heights = higher prices for HDB?

I hope so to but when you look at the 'top performing' ministries in terms of revenue generation, what do you think will be the case?

Finance - Tax, stamp duties etc
MND - Land sales, HDB sales etc
Transport - COE, ERP etc


A manager who takes over a dept or division will always try to better the performance of his predecessor. The only way to change is to remove 'revenue generation' as a KPI in their assessment critiera. This is only possible if driven from top-down.

[land118]

Some of the notable quotes from our former Transport Minister, Raymond Lim in the past:

“You want it to be free, do you want the GST to go up to 8.5% to run a completely free bus and train system?”

“We don’t want the companies to be making excessive profits, but that’s different from saying that they cannot make profits at all.”

“There are only two persons who pay when it comes to public transport fares. One, I use – I pay. Or two, I use – you help me subsidise my ride. What happens when you subsidise my rides? That means the taxpayers are now paying.”

“The answer is that public transport fares are not directly linked to oil prices.”

“heads the PAP wins, tails citizens lose“.

[land118]

I hope so to but when you look at the 'top performing' ministries in terms of revenue generation, what do you think will be the case?

Finance - Tax, stamp duties etc
MND - Land sales, HDB sales etc
Transport - COE, ERP etc


A manager who takes over a dept or division will always try to better the performance of his predecessor. The only way to change is to remove 'revenue generation' as a KPI in their assessment critiera. This is only possible if driven from top-down.

Yes, only way to measure are KPIs that measurable....$$$, can't be wait till 5 years later and measure them by how many % votes they win in their GRC...

[proper-t]

Some of the notable quotes from our former Transport Minister, Raymond Lim in the past:

“You want it to be free, do you want the GST to go up to 8.5% to run a completely free bus and train system?”

“We don’t want the companies to be making excessive profits, but that’s different from saying that they cannot make profits at all.”

“There are only two persons who pay when it comes to public transport fares. One, I use – I pay. Or two, I use – you help me subsidise my ride. What happens when you subsidise my rides? That means the taxpayers are now paying.”

“The answer is that public transport fares are not directly linked to oil prices.”

“heads the PAP wins, tails citizens lose“.

SINGAPORE, INC.......

[devilplate]

if subsidise more on tpt n healthcare n BTO flats, which areas u tink govt should take back from?

[land118]

if subsidise more on tpt n healthcare n BTO flats, which areas u tink govt should take back from?

From Casino..., speed up the reclamation and development on Lazarus island, etc, open 3rd Integrated resort there..., rack in more $$$.

We are already 2nd Biggest Gamblers in the world liao:

http://www.economist.com/blogs/daily...ebiggestlosers

[Fleur]

if subsidise more on tpt n healthcare n BTO flats, which areas u tink govt should take back from?

Ministers' pay

[ysyap]

I hope so to but when you look at the 'top performing' ministries in terms of revenue generation, what do you think will be the case?

Finance - Tax, stamp duties etc
MND - Land sales, HDB sales etc
Transport - COE, ERP etc


A manager who takes over a dept or division will always try to better the performance of his predecessor. The only way to change is to remove 'revenue generation' as a KPI in their assessment critiera. This is only possible if driven from top-down.

Of the 3 ministries, I suspect transport got the largest revenue generation... how many lands can you sell in a year? Tax and stamp duty collection can also be projected and its pretty fixed. Its the COE and ERP that keeps rising and the number of COEs released every month may be controlled in terms of numbers but not in terms of bidding results. Also, ERP can just add 2 more gantries any time they think traffic flow is slow, etc...

[proper-t]

Of the 3 ministries, I suspect transport got the largest revenue generation... how many lands can you sell in a year? Tax and stamp duty collection can also be projected and its pretty fixed. Its the COE and ERP that keeps rising and the number of COEs released every month may be controlled in terms of numbers but not in terms of bidding results. Also, ERP can just add 2 more gantries any time they think traffic flow is slow, etc...

COE is a fixed no. each year and can sometimes be only $1 plus a lot of motorists try to 'siam' ERP gantries.

For MND, they not only get revenue from sales (some sales are already hundreds of millions) but also rentals and lease renewals. Its not just residential but commercial and factory/warehouse as well.

My suspect however is that IRAS is the most since median income of SG residents has been rising PLUS the buyers/sellers' stamp duties and the BIGGEST kicker of all - CASINO revenue taxes + levies.

Anyway, my point is that as long as 'revenue generation' figures strongly in the assessment of Ministers, then things will not change very drastically and we will be status quo 5 yrs down the road.

As stated in my earlier post, one of the causes of our housing woes is because of the supply imbalance cause by 'revenue maximisation' motivations.

[ysyap]

if subsidise more on tpt n healthcare n BTO flats, which areas u tink govt should take back from?

Transport is just to increase number of trains/buses. Taking train as example, each train's cost plus maintenance cost is pretty fixed but with added trains means can get more commuters so will naturally generate more revenue and in turn, can channel back to people. One train traveling with one passenger vs one train with 1000 passenger, the running cost of moving the train may be slightly different but the income difference is certainly huge... Not saying that therefore should have less train. My point is to strike a comfortable balance there.

Healthcare should be subsidized further. Medisave has so much clauses before you can even touch... first must educate the people on these clauses. Then maybe use medisave to pay for insurances which provide riders so in that sense, healthcare is bore both by govt and insurance companies. Those w/o medisave will have different model.

BTO flats subsidy can be overcome by channeling land cost from ECs to BTO coz ECs don't have subsidy... hahaha!!! Such an ideal world..

[ysyap]

COE is a fixed no. each year and can sometimes be only $1 plus a lot of motorists try to 'siam' ERP gantries.

For MND, they not only get revenue from sales (some sales are already hundreds of millions) but also rentals and lease renewals. Its not just residential but commercial and factory/warehouse as well.

My suspect however is that IRAS is the most since median income of SG residents has been rising PLUS the buyers/sellers' stamp duties casino and the BIGGEST kicker of all - CASINO revenue taxes + levies.

Anyway, my point is that as long as 'revenue generation' figures strongly in the assessment of Ministers, then things will not change very drastically and we will be status quo 5 yrs down the road.

As stated in my earlier post, one of the causes of our housing woes is because of the supply imbalance cause by 'revenue maximisation' motivations.

Unfortunately, I guess revenue generation will remain a KPI for these ministers..

[chiaberry]

Revenue generation is a priority even for health. A doctor friend told me that even in the past more than 10 years ago, he was chastised by the CEO of the public hospital he was working in that he was spending too much time with the C class patients rather than the A class patients. That's why I think KBW $8 by pass is a joke.

[proper-t]

Unfortunately, I guess revenue generation will remain a KPI for these ministers..

Hope you can change all that when you are 'sworn-in' this sat.....

[Regulators]

I am very certain jurong just got the increase, not sure about aljunied.

Not sure if this is after the election. It says 2 opp town councils haven't increase price referring to PP and Hougang. Aljunied is still under Mrs Phua so I think this was referring to last year's report...

[ysyap]

Revenue generation is a priority even for health. A doctor friend told me that even in the past more than 10 years ago, he was chastised by the CEO of the public hospital he was working in that he was spending too much time with the C class patients rather than the A class patients. That's why I think KBW $8 by pass is a joke.

Yup.... my friend is the only surgeon in a clinic inside a hospital and was denied maternity leave even 1 week before expected date of delivery of her baby coz need to bring in $$$... very ironic... hospital supposed to help improve health and not a money generating tool.. while I can understand for private hospital, unfortunately this was a govt hospital...

[ysyap]

I will ensure there's a radical change in the whole system, more radical than what has been reported in the papers... join my A team.. come along this sat..

Hope you can change all that when you are 'sworn-in' this sat.....

[proper-t]

I will ensure there's a radical change in the whole system, more radical than what has been reported in the papers... join my A team.. come along this sat..

Sure thing bro...with a chiobu shedevil (bro devilplate) and a third-eye (bro BJ21T), your team will be the ultimate.....

[kingkong1984]

U just need me lah.

More EC and no 1 and 2 bedders....

[devilplate]

Mbt, wks will get their pension peg according to their last drawn pay?

Minister pay will b revised soon...

[ysyap]

Mbt, wks will get their pension peg according to their last drawn pay?

Minister pay will b revised soon...

But they will not be affected lor... they actually very wise to quit now... they will always be known as the last ministers to rest on super high pension, probably only behind the other two ministers, MM and SM... Hmmm... they actually benefitted big time also... hahaha!!!

[ysyap]

What could be the next housing policies?

By Sheena Chua

Did former Minister for National Development Mah Bow Tan relinquish his role to appease the public's dissatisfaction with rising housing prices?
The increasing cost of housing has been a much-debated topic of late. The policy by the People's Action Party (PAP) to make housing not just a living space, but also an asset, came under fire from opposition parties. Following a tough fight for the hearts and votes of Singaporeans in the General Elections earlier this month, PAP emerged victorious; the mandate, though waning, remained strong. Yet Prime Minister Lee Hsien Loong announced a Cabinet reshuffle on Wednesday that saw Mah and two others voluntarily resign from their posts. Why then did Mah, together with Minister for National Security Wong Kan Seng and Transport Minister Raymond Lim, step down?

One possible explanation is that the PAP wants to show disgruntled Singaporeans that the government pays attention to their needs. In a survey conducted by Reach prior to the elections, around two-thirds of respondents expressed concern over the cost of living in Singapore, while half found public housing unaffordable. Measures implemented by the government to cool the property market managed to slow demand, but prices remain high and lower-income households still find it difficult to keep up with living costs. As such, Mah's retirement may be the consequence of the perceived inability of the ministry under his leadership to produce affordable housing.

Former nominated MP Zulkifli Baharuddin has observed a pattern of less popular ministers with lower vote percentages retiring. "If you look at the three, they have some of the lower percentages. PM Lee is really making ministers accountable" he told The Straits Times. Mah's departure could also signify an end to a dated governing style and — together with PAP's new batch of office holders — herald a move towards a more engaging approach to governance.

Meanwhile, former Minister for Health Khaw Boon Wan has inherited Mah's role as Minister for National Development. The million-dollar question now is what this Cabinet reshuffling will translate to in terms of housing policies. It seems likely that new policies — partially stemming from pressure by the six Workers' Party members seated in Parliament, who have promised strides towards affordable housing — will be implemented to either lower housing prices significantly, or make it such that struggling families can afford them.

One possible solution is to raise the income ceiling for families buying directly from HDB. Currently, families who earn more than $8,000 are unable to purchase direct from HDB, while those earning between $8-10,000 can only purchase DBSS flats. The 'sandwiched class' — those with slightly higher incomes unable to purchase direct from HDB or qualify for direct loans from the government — would thus qualify for HDB units and avoid unnecessary loans and debts.

Whether these policies will be introduced, and what such changes will mean to the property market in Singapore remains to be seen. What is clear is that affordable housing has become perhaps the most important domestic issue facing Singaporeans today.

[kingkong1984]

Bring back multi generation flats and let father mother have dual key to the wealth.