Mah Bow Tan admits he was caught “off guard” by rising prices of resale flats
December 31st, 2009 | 
Author: Written by Our Correspondent
In an interview with TODAY, National Development Minister Mah Bow Tan admitted that he was “caught off guard” by how the HDB resale market headed north in a recession year.
“Nobody, no matter how prescient, no matter how clever, would have been able to predict that this was what was going to happen,” he said.
The prices of resale HDB flats hit a record high in June this year and is still going up, fueled partially by the relentless influx of foreigners into Singapore.
PRs are allowed to buy resale flats and some of them had “spoiled” the market by over-paying for them.
One Indonesian PR forked out $653,000 for a 4-room resale flat in Queenstown when he could have easily afforded a private condominium.
Despite growing complaints from Singaporeans that they are being priced out of the public housing market, Mr Mah believes the current system is far superior to one that keeps housing cheap through a non-market-based system.
“Because it gives greater benefits to the home-owner. It gives them a stake in Singapore … it also allows them to profit from the growth that Singapore enjoys because as we grow, the flat value goes up,” he said.
Singaporeans can only unlock the value of their asset unless they give up their citizenship for good and migrate elsewhere.
Otherwise they will have to fork out a higher sum of money to buy another new flat even if they sell theirs for a hefty profit.
Mr Mah insists that prices are still “affordable” as “evidenced by how 80 per cent of Singaporeans who buy new flats can pay for their mortgages using only 21 per cent or less of their income.”
However the figures does not take into consideration the bank interest rates and inflation.
Furthermore, by depleting their CPFs for over-priced HDB flats, Singaporeans may end up having little or no savings for their retirement.
With the two IRs opening next year, pundits are predicting that property prices, public housing included, will continue to increase next year.
Posted in Headlines
33 Responses to “Mah Bow Tan admits he was caught “off guard” by rising prices of resale flats”
Loading ...
Alex Tan Allan Ooi AWARE Chee Soon Juan Chiam See Tong Claire Lee David Widjaja DBS Dr Allan Ooi Dr Silviu Ionescu Dr Vivian Balakrishnan Foyce Le Xuan highnote5 Hong Lim Park Jack Lin Xinli Jack Neo Jack Neo affair Jack Neo scandal Josie Lau Josie Lau Meng Lee Lee Kuan Yew Lehman brothers Lighthouse Evangelism MAS minibonds Miss Singapore World NTU stabbing PAP Pastor Rony Tan Ris Low Romanian diplomat in hit-and-run Rony Tan S-League silviu ionescu Singapore Singapore 2010 Youth Olympic Games Tan Kin Lian Thio Su Mien Tiger Woods affair Tong Kok Wai Top 8 Vivian Balakrishnan Wendy Chong Y O G Youth Olympic Games
WP Cumulus Flash tag cloud by Roy Tanck and Luke Morton requires Flash Player 9 or better.
So MND Mah is the latest minister to be caught with his pants down. Last year it was DPM Wong after Mas Selamat Kestari escpaed from prison, and this year Dr. Yaacob Ibrahim was caught with his pants down twice, first by the Geylang Serai food poisoning scandal, and then by the “once in 50 years (or twice in 3 years)” storm and flood. And the biggest shocker of them all, the cabinet actually includes the world’s most highly paid fortune teller, oh shingz, I mean Minister Mentor, whose job is to forecast future events.
What a pity the government is paying $3,000,000/- a year to a fortune teller who failed the forecast all the above events. Oh yes, and not to forget last year’s financial meltdown, the continuous delays of the 2 IRs, and the failure of Formula 1 as a means of eaarning revenue.
Maybe if his pay was slashed to $0.01pa he would be able to correctly predict the future. ;-P
What a joke!
How can he not know?
What he says is a better option than it is a conspiracy to cover his ass.
From: http://zhidao.baidu.com/question/116263766.html
I quote: 新加坡如何逃兵役，我是新加坡第二代pr准备服兵役，如果我要去欧洲读书并且不打算回来，行得通吗？
Translated to English: How do I evade NS in Singapore if I am a 2nd generation PR in Singapore about to be enlisted. If I run away to Europe and never return, what are my chances?
!!!!ANGRY LIKE HELL NOW!!! Look at the comments on the article! Singapore is called the “Bird Country”. Let MM L** and his “hard-driven” China friends go to h*ll!
DOWN WITH PRs!
So why are we still paying millions for a donkey to be our ministers? When we can have a “less clever” man on the street at half the price.
Mentor Mininster goes around the whole world preaching and propping up his ego lar.
As for the admission by Mah Bow Tan – is he not a minister whose job is to study trends, look into them and come with solutions, in this instance that benefits potential house buyers?
I smell a rat. If the prices do come down just around elections time – then know this lar – it is drama and manipulation – need i say more?
These are people who have been voted in, paid astronomical salaries and this is the result or think again, is it giving Singaporeans the runaround and a ploy to elicit desperately need votes!
Even when the economy is down i.e. Singapore economics growth is negative, the property price still skyrocketed and this is obviously a problem because people are earning less but the property price is still going up. Is it the problem of MBT ? Yes, because he is not responsive to the problems created by WKS, under the instruction of the PM to growth the population without due consideration! In fact, PM has the greatest responsible but he is nowhere to be seen on addressing this problem !!! How can such performance justify his $3m dollar annual salary ?
I would like to see how he arrived at this calculation. Let’s see if the medium salary of a singaporean is S$2600 and if this person is the only sole breadwinner, 21% of his salary after CPF is S$546. I assume this is part from his Cpf and part in cash.
After 20 years of paying this, it will come up to S$131k. 40% will be in interest payment. So only S$79k will be in paying the principle. So, does any flat out there cost S$79k?
This means Mah’s calculation must be different. I would like to see how he arrived at this 21%. Maybe he is using 40 years. Maybe he is using 2 income.
Does anyone out there know how he arrived at this?
Mentor Minister goes around the whole world preaching and shoring up his dissipating ego.
As for Mah Bow Tans’ addmission – one has to consdier and carefully scrutinize and watch closely – if the prices do come down or changes ‘happen’ during election or pre-election time – know this, we have been given the runaround and it is an attempt to garner votes. After that, it is back to the same old shit!
//#fair comment
That is why in today’s paper, they try to cook up the story that the average pay (household) is 7K.
They didn’t mention how many are in a household. 7?ha!
I think ministers would be more alert and on the guard if they get a much deeper pay cut. In that case they would be more hard driving….
This has got to be listed as one of the Top 10 lies of the PAPies for year 2009.
The prices of HDB flats were ‘ARTIFICIALLY, DELIBERATELY INFLATED’ for reasons even a moron can think of and Sinkaporeans are still believing this crap?
How can someone ‘in the loop’ be caught off guard?
I like to be caught off-guard drawing millions in salary as well…So, I wonder whether he will he be caught off-guard when he is voted out in the next election?
2009…
Mas Selamat escape – Wong Kan Seng caught “off guard”
Bt. Timah “freak” flood – Yaacob Ibrahim caught “off guard”
over-crowding situation at TTSH – Khaw Boon Wan caught “off guard”
and now.. Mah Bow Tan caught “off guard”
I am one of those being ousted from the resale market. Back in 2008, i feel that i can still afford a 4 room flat on my own. At that time the price is about $250K. Now only 2 yr later, i can barely afford it, the price for the same area has gone up to $400K. I ahve decided to stay with my parents as i do not expect my income to rise in tandem with the rise in property prices. It is a shame our country is governed by ministers who are only concern bringing in PRs at the expense of own people. If given the chance to migrate, i will not hesitate. The cost of living is killing. The ministers will never kow the hardship even how the middle income earners are facing. I CANT EVEN AFFORD A RESALE FLAT!! SO sad… I dun feel teh country belongs to us already.
Complacent and negligent…
PAP,especially the current government under LHL, has become increasing hateful even for some who support them in the past !!!
“Nobody, no matter how prescient, no matter how clever, would have been able to predict that this was what was going to happen,”
SO SMART!! World Class Talents like Mah Bow Tan is people we should admire. See? Why didn’t MM Lee said those words when he found out bilingualism policy was a mistake? Like that can shove off responsibility easily, right?
How can a million dollar minister for national development be caught offguarded when his job demands that he should be farsighted and strategise for the nations’ housing needs. Suuply and Demand and Pricing index are KPI’s which are indispensable. It really makes me sick to hear such excuse. If he works in the private sector, he would be long gone and be replaced.
Mee Siam Mai Hum on Fri, 1st Jan 2010 12:54 am
And a bubble economy led by housing inflation to add – ALL CAUGHT OFF GUARD??
No wonder Banjamin Bland, Mr. Brown and Alex Tan are NOT extremely popular in divine circle.
Let us all have ANOTHER BIG LAUGH when the GDP gives our world-class Ministers another huge lift. It is comically hilarious.
FPC on Thu, 31st Dec 2009 11:30 pm
Come on, fpc, you are “not fair” of truth.
They didn’t tell all that in each “household” include many with foreign tenants which could be earning 6.2K a month, rental income for the household-owner is only $800 per month before overheads, like me.
Fore, can you translate all the comments on baidu.com into English? I want to email them to all the MSM as well as to the PM himself to show them exactly what chingchongs think of Singapore.
MILLION DOLLAR SALARY and they say sorry and now caught off guard, apologies and regrets but life goes on still collecting million dollar salary, no transfer, demote or resign in shame only sorry lah!!!…..WHO IS TAKING THE BRUNT OF THEIR MISTAKES???
Singapore workers when caught with recession, meltdown or ministers’ mistakes???? Wah!!Cham ah!!Sorry leh!!! Kenna caught off guard result JOBLESS,DOWNGRADE or last resort Taxi Driver other jobs cannot compete with FT & FW.
What a difference to be an elite and to be just an ordinary Singaporean
Singapore Ministry should have better standard. The price of housing by HDB is so heavily subsidized using public funds that they are relatively cheap compare to Asia cities like Tokyo, Shanghai, Beijing, Hongkong, so we do not need a high paying civil servant who take long break and travel often around the world to predict and forecast why the price will escalate with high volume influx of rich and well educated immigrant or PRs coming to stay in Singapore. You should solve this problem quickly and protect the interest of Singaporean as civil servants.
As Minister, you are armed with government resources and man-power to do your job properly. Telling the public you are caught “off guard” is not a good excuse, maybe someone can give a better excuse and do a better job.
He does not meant what he said. He was caught offguard with Singaporeans reaction over the high price of HDB flats lah.
He expect Sinkies to LanLan accept comes what may.
I pray that when Sinkaporeans FINALLY open their eyes and VOTE HIM OUT of GRC, he will be ‘REALLY CAUGHT OFF GUARD’.
Sinkaporeans, if this MBT wants ‘CAUGHT OFF GUARD’, then give it to him!
I think he is saying that he is caught off guard because he is paid millions of dollars for this type of job.
And he will be even caught off guard if there is salary increase.
SERIOUSLY, It’s time to raise a ‘Ministry for Freak Events’.
Then all such events can be forcasted/predicted.
” NO ONE WILL BE LEFT BEHIND ”
http://news.asiaone.com/News/NDP+Rally+2007/NDP+Rally+2007.html
Singaporeans Come First For Govt [ To Be Left Behind ]
@Fore on Thu, 31st Dec 2009 10:18 pm
“Bird” country means pr**k country – derogatory remark. Ingrates. Welcome them with open arms and open legs.
I have always wonder how MND can be caught offguard – they have been in slumberland for too long.
MABUK mah.
” NO ONE WILL BE LEFT BEHIND ”
Singaporeans Come First For Govt [ To Be Left Behind ] http://news.asiaone.com/News/NDP+Rally+2007/NDP+Rally+2007.html
#Mee Siam Mai Hum
Mas Selamat escape – Wong Kan Seng caught “off guard”
Bt. Timah “freak” flood – Yaacob Ibrahim caught “off guard”
Over-crowding at TTSH – Khaw Boon Wan caught “off guard”
and now.. Mah Bow Tan caught “off guard”
Can we get the Accountant General’s Office to be caught off guard by not paying their $3 million salaries?
never mind MR MAH as long as you and HDB are sincere about
making the RIGHT NEW YEAR “RE-SOLUTIONS” for the benefits of
true citizens,we can forget the past year’s mistakes.
Mr MAH if you are enchanted by the foreigners like most of your colleagues,that’s ok, as long as you don’t continue to
keep “apologising” for the same stubborn mistakes that unfairly and unwisely hand out our “flats” to foreigners
to make money.Didn’t you guys know that these “HUNGRY”
PRs are actually mercenarily taking advantage by buying flats
and renting them our at a profit?
the matter of the fact is that some don’t seem to have the intention to ‘HANG AROUND’ for that long as you and your smart
collegaues anticipated…go to the wet markets in your constituency and jive with your people,they will tell you more
truths that the multitudes of lies that your grassroots chaps are feeding you! You see a bona fide citizen worked hard
only to be make way for your beloved newcomers who can buy flats from secondary markets but this FORCED OUT OF JOB CITIZEN
C A N N O T be eligible to buy a subsidised HDB flat as a frist-time purchaser when he have paid his taxes but now prefer
to cut costs to save for old age?
do you want us to get old living on the streets?
maybe you don’t care as that is not your current portfolio but what if you are asked to take up WKS’s HOME TEAM?
PLEASE,we are not asking you to show us the favoritism you
bestow on foreigners but we asking you to show some fairness.
if you think we are making unfair requests,please consult with
MR THARMAN…PERHAPS HE COULD TELL YOU ABOUT EQUITY IN “SOCIAL
COSTS AND SOCIAL BENEFITS”.
You must agree besides taking away our jobs unfairly,these PRs
have yet to contribute meaningfully to society except to rush to join Grassroots organisations as they are “hungry” for the
perceived or known benefits only members can get.
so,hope to see you and HDB put up your 2010’s PRO-CITIZENS’
‘RE-SOLUTIONS’ instead of making more ‘caught off-guard’ excuses.
HAPPY NEW YEAR!!!
Arggggg…. I need to buy a 4 room flat on my own to house parents, my single brother and myself. The policies are all supposed pro-family but my combination are not considered family???? It seems like singles are not paying tax and are does not belong to Singapore. The government talk more about families, PR, foreigner.. I think singles are really being left out. Last time, I stick to my view of staying put in Singapore cos this is the place where I am born. Now, I am not really sure of this statement anymore. The price of a 4 room flat has gone to about 350K to 400K excluding cash over valuation… it’s crazy…Now, calls made to agent are that the last offer of CoV is 40K.. etc etc.. Then we are told that there are still some place that does not cost that much… ya.. maybe I will need to move to a jungle area and made sure that I don’t get caught..that would be the cheapest. LOL.
if pappie ministers are not “prescient” or “clever” then we pay you million dollars for what?
TIME FOR CHANGE, VOTE PAP OUT, VOTE OPPOSITION