Monday, September 24, 2007

The Clift @ Mccallum Street























Development : A Single Tower of 43-Storeys comprises of 312 units with sizes varies from 505-1065sqft of 1 bedroom/1 bedroom + loft/2 bedrooms/2 bedrooms + loft

District : 02
Located : Former Natwest Centre Site(Demolished)
Address : 15 Mccallum Street (S)069045























Map Source : http://www.streetdirectory.com

Tenure : 99 years w.e.f 2004
Expected T.O.P. : 2011
Prices : From $1300/psf

Facilities @ 10th & 31st Storey
10th Storey















• Clubhouse Patio
• Clubhouse Lounge
• Deck Dining (with BBQ pits)
• Deck Sunbeds
• Feature Catwalk Deck with Trellis & Rain curtain
• Massage Pavilion
• Reflective Pool
• Cabana Lounge
• Lift Core Wall Reflective Pool
• Massage Beds
• Massage Jets
• Lap Pool Deck Lighting
• Waterwall Cascade
• Pool Lounge Beds
• Laundrette Snack Bar















31st Storey
• Multi-Purpose Room
• Lounge Deck
• Plunge Pool with glass end Wall
• Dining/ Preparation Top
• Party Plunge Pool
• Water feature
• Glass wall/ Sauna
• Wash facilities
• Jacuzzi

SOHO @ Central














Type : High Rise - Small Office Home Office Concept
Tenure : 99-Years Leasehold w.e.f 2 January 2001
Area (Approx) : 581-872 sqft


















Central is a commercial development with 2 SOHO Towers, 2 blocks of offices and a shopping podium of about 200,000 sq ft.



















Central is the first landmark development in Singapore to integrate the diverse functions of live-work-play and travel within one complex. It is also the first to pioneer the combination of a work-live lifestyle within purpose-built SOHO units.

There are a total of 227 purpose-built SOHO units, typically 635 sq ft in size with the dual flexibility of use as an office as well as a home. These units are column-free with high ceiling of 4.5m and full-height glass windows. Each SOHO unit comes fitted out with its own kitchen, shower and toilet facilities.

Location : Eu Tong Sen Street, above Clarke Quay MRT






















Map Source : http://www.streetdirectory.com

The development will be located above the Clarke Quay MRT station within the Clarke Quay vicinity. it is close to the country's bustling banking and business centre at Raffles Place and within the civic district which houses Parliament House, the Supreme Court and the City Hall. The new Singapore Management University and the new National Library are also nearby.

Global Financial Crisis To Have 'Far-Reaching' Impact: IMF

Source : Channel NewsAsia, 24 September 2007

WASHINGTON : The turmoil stemming from the US sub-prime property market and tighter credit will have a "far-reaching" impact on the world economy, the International Monetary Fund said Monday.

"Downside risks have increased significantly and even if those risks fail to materialise, the implications of this period of turbulence will be significant and far reaching," the IMF said in its latest "Global Financial Stability Report".

The IMF said that since issuing the April 2007 report, "global financial stability has endured an important test" in the meltdown of the risky US sub-prime mortgage that rocked the global financial system in August.

"Markets are recognising the extent to which credit discipline has deteriorated in recent years - most notably in the US non-prime mortgage and leveraged loan markets, but also in other related credit markets," the 185-nation financial institution said.

The rapid deterioration in global credit conditions as risk was repriced led to "extraordinary" liquidity injections by a number of central banks to ease market operations.

"The potential consequences of this episode should not be underestimated and the adjustment process is likely to be protracted," it said.

The IMF said in the context of a benign global economy and "a long period of abnormally low market volatility" there was a lack of due diligence in the credit market and an over-reliance on ratings agencies to analyze risks in complex financial instruments.

"So far, despite the significant ongoing correction in financial markets, global growth remains solid, though some slowdown could be expected." - AFP/ch

URA Launches Second Transitional Office Site At Tampines

Source : Channel NewsAsia, 24 September 2007

The Urban Redevelopment Authority has launched the sale of a second transitional office site.

The second site is located at Tampines Concourse/Tampines Avenue 5, within the Tampines Regional Centre.

URA said the site will "help meet the demand for office space in the short to medium term".

The land parcel, which will be sold on a short-term lease of 15 years, has a maximum permissible gross floor area of 11,520 square metres.

The office building on the site is expected to be a low-rise development of about three storeys that can be built quickly in about a year. - CNA/ac

Flatted Factory/Office @ Entrepreneur Business Centre For Sale (Selling Option)
















Flatted Factory Or Office For Sale
Option Till 8 Oct 07
Area : 2454sqft

Floorplan









Tenure : 60 years from Mar 1995
Asking : S$245/psf + GST
Own Lift, Free Broadband, Stay In Approved.

18 Kaki Bukit Rd 3, Enterpreneur Business Centre






















Map & Photo Source : http://www.streetdirectory.com
Robert J Steiner (RJS) Pte Ltd

CPF Changes Must Be Fair To All, Ministers Say

Source : The Business Times, September 24, 2007

Scheme is not a subsidy programme, everyone must save enough for himself, not rely on others, they reiterate

The recent changes unveiled to beef up the CPF - specifically the move to require workers to buy longevity insurance - are intended to be fair to all Singaporeans, according to a panel of ministers yesterday at a dialogue session led by Prime Minister Lee Hsien Loong.

Addressing a widespread concern that the proposed longevity insurance - or annuities - will benefit only the rich, since it is believed the better-offs tend to live longer, Manpower Minister Ng Eng Hen, a panel member, said it is 'very clear that the number one rule is: we want to be fair to everyone'.

The government wants each Singaporean member to put aside enough CPF savings to take care of himself and not rely on others to support him, he said at the dialogue which focused on the hows and whys of the CPF reforms.

Dr Ng said the annuity scheme, which will be examined by an independent committee before it is put in place, will be run professionally. People who live longer will pay higher premiums, he said.

The CPF reforms - including a one percentage point increase in interest for the first $60,000 of CPF monies and a re-pegging of the return in the Special Account to 10-year Singapore bond rate - are introduced to raise savings and retur+ns to meet the needs of Singaporeans who are now expected to live longer.

Mr Lee, in his National Day Rally speech last month, and Dr Ng, in Parliament last week, said the changes will benefit lower income groups most, but the move to require Singaporeans to pay for a longevity insurance plan to take care of their needs if they crossed the age of 85 has led to grouses on the ground.

Related Video Link - http://tinyurl.com/2ovz9q
CPF reforms carefully considered, govt can deliver: PM Lee


The insurance plan is based on a common pooling of resources where the payouts will go to contributors who live beyond 85. Many Singaporeans seem to have trouble coming to grips with the idea of living long enough to enjoy the scheme's benefits. And they cannot accept that heirs of contributors who die prematurely will not inherit their money.

Second Finance Minister Tharman Shanmugaratnam, also on yesterday's panel, said the CPF has worked because it is a savings plan, not a tax.

The CPF can be self-sustaining only if subsidies are not introduced into it, he said.

According to Mr Tharman, subsidies should come only from the government's Budget, through taxes, measures like the GST offset packages and others like the Workfare Income Supplement or the flat buyback programme.

But such subsidies are dished out only if the Budget can afford them, he said, because the government wants to ensure that 'one generation doesn't subsidise another'.

'We are not averse to subsidies but we want to do it in a disciplined and sustainable fashion,' Mr Tharman said.

The CPF has worked because it is a savings plan, not a tax. The CPF can be self-sustaining only if subsidies are not introduced into it. We are not averse to subsidies but we want to do it in a disciplined and sustainable fashion. - Second Finance Minister Tharman Shanmugaratnam

Prime Minister Lee said the government had since 2002 studied alternatives to the plan to raise interest rates on the first $60,000 of CPF balances for account holders across the board.

One such alternative had account holders choosing between three investment schemes with different risk-reward profiles: a safe scheme with low expected returns, a balanced scheme with higher expected returns, and a risky scheme with the highest expected returns.

But Mr Lee was persuaded against his preference and convinced that 'it's better for the government to take responsibility for the first $60,000', he said.

This would ensure that the poor have at least enough for their old age. 'After we have done this for a few years, we can start thinking of more varied private pension schemes, then you can get more', said Mr Lee.

Warning that investments with uncertain returns could lead to losses, he said: 'If you retire at the wrong time and the market went down and stayed down for four to five years, you would be in trouble.'

Only one-quarter of people who invested under the CPF Investment Scheme have done better for themselves, while three-quarters would have been better off earning the 2.5 per cent interest from CPF, he said.

But in any case, CPF is but one policy among many that the government uses to help the lower-income groups, said Mr Lee.

Another such move linked to the recent CPF changes is re-employment. Though employers will be required to re-employ workers above the age of 62 only from 2012, Lim Swee Say, NTUC's secretary-general and Minister in the Prime Minister's Office, said a Singapore Human Resources Institute survey showed 50 per cent of companies already practise this.

And of the 3,200 Singaporeans who turned 62 in the last 18 months, a fifth were working in the same or similar jobs with the same pay, a tenth had different jobs with the same pay, and 70 per cent had the same or similar jobs with lower pay, Mr Lim also said.

Of the CPF changes as a whole, he said that unless people recognise that they are more and more likely to live longer, they would not appreciate the policies.

Statistics show that of those who are now 62 years of age, half will live beyond 85 years, one in seven will live beyond 95 years, and one in 20 beyond 100 years, he said. 'Until we believe in this, we will be talking about things half-heartedly.'

Cuscaden Residence























Cuscaden Residence
comprises two impressive 20-storey blocks of luxurious condominium in down town location next to Regent and Hilton Hotel, Tanglin Mall and Hard Rock Cafe.

The property presents an ideal city location residence convenient to all the shopping, dining and amenities in Orchard Road.

Prominent shopping and entertainment outlets such as Tanglin Mall, Tanglin Shopping Centre and Hard Rock Café are just steps away from Cuscaden Residence.

Address: 26, 28 Cuscaden Road






















Map Source : http://www.streetdirectory.com

Tenure : Freehold
District : 10
Developer : HPL Properties Pte Ltd
Year of Completion : 2002
No. of Units : 150

Unit sizes:
2 bedrooms: 115 sq m
3 bedrooms: 134 - 138 sq m
4 bedrooms: 193 - 197 sq m
Penthouse: 460 - 577 sq m

NEAREST MRT STATIONS

ORCHARD MRT STATION (NS22)
437, Orchard Road Singapore 238878
How Far? 0.61 km

SOMERSET MRT STATION (NS23)
1, Somerset Road Singapore 238162
How far? 1.48 km

NEAREST SHOPPING CENTRES / MALLS

TANGLIN SHOPPING CENTRE
19, Tanglin Road Singapore 247909
How Far? 0.16 km

ORCHARD PARADE SHOPPING CENTRE
1, Tanglin Road Singapore 247905
How Far? 0.22 km

FORUM GALLERIA THE SHOPPING CENTRE MALL
583, Orchard Road Singapore 238884
How far? 0.26 km

NEAREST SCHOOLS

SINGAPORE INTERNATIONAL SCHOOL (ISS)
ELEMENTARY, AMERICAN SCHOOL
25, Paterson Road Singapore 238510
How Far? 0.55 km

OVERSEAS FAMILY SCHOOL
25F, Paterson Road SINGAPORE 238515
How Far? 0.66 km

RAFFLES GIRLS' SECONDARY SCHOOL
20, Anderson Road Singapore 259978
How Far? 0.79 km

Residents will have access to a wide range of recreational facilities such as swimming pool, tennis court, sauna and steam room, underground car park and 24 hours security.

FACILITIES :-
-Swimming Pool
-Gymnasium
-Tennis Court
-Playground
-BBQ Area
-Clubhouse
-24 Hours Security
-Covered Car Park

The Light @ Cairnhill





















Address : 19 Cairnhill Circle, 50, 52, 54 Cairnhill Road
Tenure : Freehold
District : 09
No. of Units : 118
Year of Completion : 2004
Developer : WingTai Holdings

Unit sizes:
Studio: 700 - 893 sq ft
2 bedrooms: 1,238 - 1,313 sq ft
3 bedrooms: 1,485 - 2,131 sq ft
4 bedrooms: 2,013 - 2,,443 sq ft
Penthouses: 3,218 - 5,242 sq ft
Conservation houses: 3,821, 3,778, 3,671 sq ft

A STYLISH RETREAT FROM THE PULSE OF THE CITY

Located within a stone's throw away from the heart of Orchard Road, residents at this proposed development will have ample opportunities for shopping, dining and entertainment. This luxurious freehold development is located just outside the Central Business District (CBD) at the junction of Cairnhill Road and Cairnhill Circle. The uniquely curved building profile of the development, coupled with its full glass 'curtain' wall, makes it look like a modern lighthouse - a refreshing beacon of modern architecture that complements nicely with an existing row of terraced houses which will be conserved as part of the exclusive development.

Providing the best of both worlds, the site offers residents the opportunity to soak in the hustle and bustle of the city, yet enjoy the tranquility and exclusivity of the prestigious Cairnhill neighbourhood.

Conservation House within the Development, 3778sqft, Asking $6m. One and Only Conservation House that is eligible to foreigners

YOUR OWN PRIVATE HAVEN

The Light at Cairnhill, a 20-storey development, comprise 118 units of largely 1,300 sq ft 2-bedroom to 2,000 sq ft 4-bedroom units. While all the bedrooms and living areas offer a full, uninterrupted, breathtaking view of the surrounding area, the Zen-like landscaping with its water features will provide residents with a calm and relaxing environment after a hard day's work in the office.

CONVENIENT ACCESS TO ALL PARTS OF SINGAPORE

Located just seconds away from the Central Expressway which links motorists to other major expressways around Singapore within minutes, The Light at Cairnhill site provides residents excellent accessibility to other parts of the island. Furthermore, residents may choose to take a mere 5-minute stroll down to the Orchard Road where public transport services are aplenty.























Map Source : http://www.streetdirectory.com

NEAREST MRT STATIONS

Newton Mrt Station (Ns21)
49 Scotts Road Singapore 228234
How Far? 0.66 km

Somerset Mrt Station (Ns23)
1 Somerset Road Singapore 238162
How Far? 0.68 km

Orchard Mrt Station (Ns22)
437 Orchard Road Singapore 238878
How Far? 0.71 km

NEAREST SHOPPING CENTRES / MALLS

Paragon Shopping Centre, The
290 Orchard Road Singapore 238859
How Far? 0.35 km

Heeren, The
260 Orchard Road Singapore 238855
How Far? 0.40 km

NEAREST SCHOOLS

Anglo Chinese Junior School
25 Peck Hay Road Singapore 228315
How Far? 0.40 km

Chatsworth International School
37 Emerald Hill Road Singapore 229313
How Far? 0.41 km

Monks Hill Secondary School
12 Winstedt Road Singapore 227978
How Far? 0.5 km

FACILITIES :-
-Swimming Pool







-Jacuzzi
-Sauna
-Steam Bath
-Tennis Court
-Gymnasium
-Playground
-BBQ Area
-Multi-Purpose Room
-24 Hours Security
-Basement Car Park

URA Launches Second Transitional Office Site At Tampines Concourse/Avenue 5

Source : Urban Redevelopment Authority (URA) News Release

URA announced today the launch of sale of the second transitional office site at Tampines Concourse / Tampines Avenue 5.

URA had recently awarded the first transitional office site at Scotts Road on 27 August 2007 (http://www.ura.gov.sg/pr/text/2007/pr07-88.html). The launch of the Tampines Concourse site will continue to help meet the demand for office space in the short to medium term.

Transitional office site at Tampines Concourse / Tampines Avenue 5


















This Land Parcel, located within the Tampines Regional Centre, is being tendered out for the development of a transitional office building. It has a site area of about 1.15 ha and a maximum permissible gross floor area of 11,520 sqm. The site is sold on a short-term lease of 15 years and the office building on the site is expected to be a low-rise development of about three storeys that can be built quickly in about a year.

Located within the established Tampines Regional Centre, the Land Parcel is within walking distance of the Tampines MRT station and bus interchange. The site is easily accessible by several major expressways such as Tampines Expressway (TPE), East Coast Parkway (ECP) and Pan Island Expressway (PIE). The site also enjoys the convenience of being located in close proximity to Changi International Airport. The details of the Land Parcel are at Annex A-1 (http://www.ura.gov.sg/pr/graphics/2007/pr07-100a1.pdf) and the location plan at Annex A-2.

More details on the Land Parcel are available on URA website at http://www.ura.gov.sg/sales/TampinesAve5Sep07/TampinesAve5-intropage.html.

Other details

A tender period of about six weeks will be allowed for the site. The tender will close at 12 noon on 6 November 2007. Selection of the successful tenderer will be based on the tendered land price only.

Developer’s Packets containing details of the site, development requirements and conditions of tender are available at S$105 each (inclusive of GST). These can be purchased from the Customer Service Counter on the 1st storey of The URA Centre, 45 Maxwell Road, Singapore 069118. The Developer’s Packets can also be purchased via URA-Online at http://www.ura.gov.sg/sales/sale_of_developer’s_packet.html at a cost of S$105 each (excluding delivery charges) for local and overseas purchases.

--------------------------------------------------------------------------------

For media enquiries, please contact:

Ms Serene Tng
Manager, Public Relations
DID: 6329 3224
Email: serene_tng@ura.gov.sg

What Lies On The Horizon?

Source : TODAY, Monday, September 24, 2007

Fund managers still careful not to bask in any post-Fed glow





















GLOBAL stock markets have been volatile due to concerns over the United States sub-prime crisis. Rate cuts by the US Federal Reserve (Fed) have helped to allay investors’ fears. But is the worst over?

We polled 19 fund managers for their views and their take on the investment outlook for markets and the opportunities they see on the horizon.

Fund managers believe that financial market uncertainties will persist despite the Fed’s 50-basis-points cut on Sept 18. The effectiveness of this move will only become evident in the coming months.

However, they said that it might not be sufficient to ease credit woes, which could resurface, especially if more casualties emerge from the sub-prime saga.

There are fears that delinquencies could rise as adjustable rate mortgages, which account for the bulk of US sub-prime loans, are re-priced in the months ahead.

Many think that the Fed will need to cut rates further — by between 25 and 50 basis points before year-end. However, there are concerns that the Fed’s hands may be constrained if inflation picks up due to the weaker US dollar and higher oil prices.

Most said that the subprime crisis is unlikely to cause the US or other global economies to slip into a recession, as long as the crisis is not prolonged and the US housing market stabilises.

“While US economic growth could well remain below its trend rate for an extended period, leading indicators and business confidence surveys are not consistent with a recession,” said Henderson Global Investors.

Even if there is no recession, many foresee a slowdown in growth due to the sub-prime crisis.

UOB Asset Management said that although downside risks to economic growth have risen, it is of the view that unless there is a severe dislocation in financial markets, the current turmoil is unlikely to send the real economy into a recession.

BNP Paribas Investment Partners said that “globally, leading indicators hint at a deceleration in growth almost everywhere, but they also show that activity is still fairly healthy, especially in emerging markets”.

Despite turmoil in the stock markets, equities remain as fund managers’ preferred asset class, given the still healthy fundamentals and reasonable valuations.

“We remain positive on global equity markets as economic growth is still high with strength in Europe and Asia compensating for softness in the US,” said ING nvestment Management.

However, fund managers warned that markets are likely to remain choppy until credit conductions improve.

Barclays Capital sees equities outperforming most other asset classes, but warned that returns from equities are likely to moderate and volatility is expected to increase.

HSBC Investments also expects equity markets to remain volatile in the short-term as markets work out the full impact of the sub-prime problems. Nevertheless, it sees corrections as an opportunity to pick up bargains.

Lion Capital Management favours Asian equities, saying: “Asian equities should be able to weather the storm because Asian economies in general continue to show robust growth, with corporate profitability and balance sheets remaining strong.”

Aberdeen Asset Management reckons that Asia and emerging markets have solid fundamentals and continue to trade at discounts relative to their developed counterparts.

Some fund managers also expressed their support for European and US equities.

Schroder Investment Management favours European equities as they offer strong earnings- per-share growth. UBS Global Asset Management favours US equities as it thinks that they are attractively valued.

Investors are hoping for the seasonal year-end rally, but most fund managers were noncommittal about the prospects, saying that it depended on how central banks cope with the unfolding turmoil in credit markets.

Deutsche Asset Management said that with the uncertainty of the sub-prime crisis, it is difficult to foresee if stock markets will pick up towards the end of the year.

Other fund managers said that it does not see any near-term catalyst that would spur stock markets to rally.

SG Asset Management sounded a note of caution, saying that while fundamentals were strong for Asia-Pacific markets, risk factors may cause volatility to increase in the next few months.

Overall, fund managers were guarded about the short-term outlook for stock markets and warned that the worst may not be over. However, most of them they were sanguine about equities’ medium-to long-term prospects.

Aberdeen Asset Management, ABN AMRO Asset Management, Allianz Global Investors, Barclays Capital, BNP Paribas Investment Partners, DBS Asset Management, Deutsche Asset Management First State Investments, Henderson Global Investors, HSBC Investments, ING Investment Management, Lion Capital Management, Phillip Capital Management, Prudential Asset Management, Schroder Investment Management, SG Asset Management, Templeton Asset Management, UBS Global Asset Management and UOB Asset Management took part in the poll.

The writer is the chief editor of finatiQ — Bank of Singapore.

CPF Changes: More To Consider

Source : TODAY, Monday, September 24, 2007

Will CPF changes give workers higher monthly payouts?

If deferring my draw-down age means I receive $537 a month for a longer period, I do not think this is much of an incentive.

Letter from TAN ENG TECK























A LOT of information has been released over the past week about the proposed changes to the Central Provident Fund (CPF) scheme.

I wish to know if these changes will result in a higher — albeit delayed — monthly payout, or if we will simply be paid the same amount of money over a longer period.

The CPF board already encourages members to voluntarily defer their minimum sum draw-down age.

However, under the present CPF policy, this does not result in a higher monthly payout, just a longer payout period.

For example,when I turned 55 in 2002, the minimum CPF sum required was $70,000.

At a draw-down age of 62 and the present interest rate of 4 per cent per annum, this amount will give me $537 a month for 21 years.

If I defer my draw-down age to 67, I will still receive $537 a month. But I will now receive this monthly payment for 29 years.

With the proposed changes — a higher annual interest rate and incentive bonus — will deferring my draw-down age to 67 simply mean that I will receive $537 a month for an even longer period? I do not think this is much of an incentive.

CPF members can check their minimum sum payout at www.mycpf.cpf.gov.sg, clicking on the “Calculators” tab, then “CPF minimum sum payout calculator”.

In Touch With CPF : More $ For Your Retirement

Source : TODAY, Monday, September 24, 2007

A Better Balance Of Interest?

Source : TODAY, Monday, September 24, 2007

DURING the last sitting of Parliament, there seemed to be a disconnect between the questions and the answers in reply, on the issue of Central Provident Fund (CPF) interest rates.

Members of Parliament including Mr Inderjit Singh, Mr Ong Kian Min and Mr Sin Boon Ann, asked if the returns on CPF savings could be higher, particularly considering the annual returns on investments ranging from 8 to 18 per cent that the Government of Singapore Investment Corporation (GIC) and Temasek Holdings have obtained over the past decades.

Manpower Minister Ng Eng Hen's answer — that the new CPF interest rate structure is "more than fair" and matches what is available in the market for such a risk-free investment — left the question unanswered.

Even so, should CPF members get the benefit of the better returns earned by investment of CPF funds?

The Manpower Minister said it was not realistic to expect CPF interest rates to mirror the returns of Temasek and the GIC in their investments. To illustrate, he used the example of bank deposits: "You put it there and you get 2 per cent. The bank publishes a report and says ... it earned 8 per cent. You go to the bank and say, 'I want 8 per cent'. It doesn't work."

Comparing the compulsory retirement fund managed by the Government with a profit-making entity like a bank cannot be the end point. Unlike a bank, the board holding the retirement fund does not exist to earn a profit. The Government would be better characterised as a trustee of retirement funds. And trustees are duty bound not to profit from their position.

Nevertheless, yesterday, Prime Minister Lee Hsien Loong pointed out that the GIC invested long-term, and its portfolio was affected by the ups and downs of the stock market. A downturn would mean "not just your interest is less — that means your capital gets less".

There have been attempts to account for the different rates of return by reference to the different risks borne by the CPF and the Ministry of Finance. But even the Government-assured CPF interest must be based on investments generating adequate returns.

Second Finance Minister Tharman Shanmugaratnam admitted as much when he said: "The CPF Board will pay for (the additional percentage point in interest to members) through the interest it receives on the bonds it purchases from the Government. Government's debt servicing costs will therefore increase. And we will have to meet this through returns on investing the CPF monies."

But the bottom line is that, over the past few decades, CPF funds have been earning investment income that is at least between three and five times more than what CPF members have been receiving in interest.

The most obvious proof that a higher rate of interest can be paid on CPF balances is the very proposal to raise the interest rates now. There has been no apparent change of circumstances except that the Government now feels that members need better returns to provide for their retirement. So it would seem that the capacity to pay better interest rates was always there. And the capacity to pay higher rates is still there. The question is only whether it is the best way to utilise surplus investment gains from investment of CPF funds.

The starting point is this assurance from Mr Shanmugaratnam: "There is no money that is disappearing here. Nothing being squirreled away that disappears from Singaporeans." Few Singaporeans will doubt that.

The Minister explained that the surplus investment income was used to fund housing grants and other subsidies. Some surplus would go towards building on the national reserves. He stressed that even if the surplus income from investment of CPF funds does not result in higher returns to CPF members individually, it ultimately does benefit Singaporeans.

Fair enough. But can't a better balance be struck between group and individual interests? That is, pay more interest without unduly affecting the eventual plough-back into the economy and social reform measures?

Nominated MP Siew Kum Hong quoted a 2002 Asian Development Bank Institute paper that stated: "To the extent the Government earns a higher rate of return on the CPF funds than what it pays to members; there is an implicit tax on CPF wealth. This tax is likely to be fairly large and regressive, as low-income members are likely to have most of their non-housing wealth in the form of CPF balances."

With projections that CPF members may not have enough funds to retire on, it may be a good time to review if such a regressive form of indirect taxation is apt, especially considering the formidable amount already sitting in the national coffers. As noted by Mr Shanmugaratnam in an earlier speech, the trick is to aim for additions to the national reserves "that will neither result in over-saving at the expense of the current generation, nor deplete what should be protected for future generations".

Why can't this be better achieved with a more generous return on CPF savings? Let the brilliant minds in and outside the Government provide ideas that can enhance the CPF debate and bring about a better understanding between the Government and the people.

The writer is a legal academic. These are his personal views.

Govt Can Deliver: PM

Source : TODAY, Monday, September 24, 2007

CPF reforms have been carefully considered: Mr Lee














CAN the Government be more generous in providing for Singaporeans' retirement funds? That was the theme of several questions grassroots leaders put to a ministerial panel at a dialogue yesterday.

Some felt the new interest rate for the Special, Medisave and Retirement Accounts — pegged to 10-year yields from Government bonds plus 1 percentage point — was too low.

Others, as Prime Minister Lee Hsien Loong noted, had called for part of the returns from Central Provident Fund (CPF) investments to be managed by the Government Investment Corporation (GIC) and Temasek Holdings.

Said Mr Lee: "People say, GIC makes so much money, you should give me the same like GIC.

"But GIC invests long-term — they buy shares, the stock market goes up, the stock market goes down … (In the) last few months, the stock market has gone down.

"I am sure GIC's portfolio would have gone down. And not just your interest is less—that means your capital gets less."

In fact, he revealed, he was initially not in favour of the move to pay Singaporeans an additional 1 percentage point interest on the first $60,000 in their various CPF accounts.

"I was persuaded by MOM (Ministry of Manpower) and MOF (Ministry of Finance), against my preference, that it's better for the Government to take on this responsibility for the first $60,000 because it's a big burden," said the Prime Minister.

The extra 1 percentage point is something Singaporeans will find hard to get anywhere else because it is "100-per-cent risk-free", he added.

The latest CPF reforms were finalised after carefully calculating that the Government can deliver on what it has promised, said Mr Lee, adding that a British pensions expert recently told him there were only three ways to solve the problem of living longer and providing for old age.

They are, work longer and enjoy a shorter period of retirement; save more while working; or choose to have less money when one grows old.

Some asked if the Government should just step in and help old people with funding when their money runs out.

"This sounds very appealing, in fact it sounds very fair somehow," said Education Minister and Second Minister for Finance Tharman Shanmugaratnam.

"But it will have the opposite result of what we want to see," he said, as people would make less effort to save.

Mr Shanmugaratnam also noted that the Government has helped Singaporeans build up their retirement funds in many different ways — be it through housing grants, the Workfare Bonus Scheme, or CPF top-ups.

Indeed, a third of the savings of low-income earners at the point of retirement comes from the Government, he said.

As for concerns over those without a CPF account, Mr Lee encouraged husbands to top up for their wives or vice versa.

"All the women should tell their husbands that the Government's CPF interest rate is now very high, better than the POSBank anytime, so better take your money from your POSB (account) and put it into my CPF account," he quipped.

Crossing That ‘85’ Barrier

Source : TODAY, Monday, September 24, 2007

Govt addresses Singaporeans' concern about living long enough to enjoy benefits of plan

EVEN as details of the sweeping Central Provident Fund (CPF) reforms are being defined and debated over, the Government must first coax Singaporeans past a key psychological barrier: The scepticism that they will live beyond age 85.

Yesterday, just four days after he urged his parliamentary colleagues to sell the new policies to the ground, Manpower Minister Ng Eng Hen was out doing just that, in the company of a high-powered panel led by Prime Minister Lee Hsien Loong.

For more than two hours, in a rare and candid dialogue signalling the importance of the move, they heard and addressed the concerns of some 550 grassroots leaders, unionists and community representatives gathered at the Grassroots Club.

One key issue that emerged: Singaporeans wondering if they would live long enough to enjoy the benefits of the proposed annuities scheme.

The statistics have been reported: That about one in two of those who turned 62 last year will live beyond age 85, while one in seven will live to 95. But while these might "convince the brain", real-life examples were needed to "touch our hearts", said one grassroots leader.

"I'm wondering if the Community Development Councils would have stories of people who might be in financial difficulties but would be better off when such measures are in place," he told the heavyweight panel that included Mr Lim Boon Heng, Minister in Prime Minister's Office; union chief Lim Swee Say; Second Minister for Finance Tharman Shanmugaratnam and Mr Gan Kim Yong, Minister of State for Labour and Education.

There is also a perception that the longevity insurance scheme would result in "taking money away" from the "poor and sick", and handing it to the "healthy and well-to-do" who would live longer, said another grassroots leader, Mr Goh Keng Hwa.

To this, Dr Ng said the scheme would be worked out by professional actuarists in such a way that those expected to live longer would have to pay higher premiums.

Said Dr Ng: "If, indeed, it shows that if you are richer, you live longer … you have to pay a higher fee."

Mr Lee added: "But I don't think we can say that only rich people grow old. I've been to old folks' homes. A lot of people (there are) more than 80, 90 years old and have no money. Those are the ones we are worried about."

On suggestions that the annuities scheme be on an opt-out basis, Mr Lee feared that many Singaporeans would simply adopt a short-sighted approach.

He said: "There will be some who don't have a family to look after them but they need the money now, maybe to pay off debts. And they say, 'Don't worry, I'll take the chance. I won't live till 85 years old.'"

The Government cannot leave such citizens to their own devices, in the eventuality that they do live until a ripe old age, said the Prime Minister.

What was important, he added, was to ensure flexibility — for example, CPF members could choose the duration of coverage and whether to leave any money for their beneficiaries.

Under the proposed longevity insurance scheme, if one dies before age 85, the amount goes into the common pool and the payouts for those still living. One Kebun Baru grassroots leader took blunt issue with the fact the money would not automatically be returned to the family.

He said: "The Government's concern is to look after the citizen from cradle to grave. But before they reach their grave, you already rob their tombs." The Government, he added, should allow Singaporeans to "enjoy life" while they can. "Why do you need so much money when you are 85? You are bo gay (toothless)… the most you (can do is) buy the best pei dan chok (century egg porridge)," he said.

Mr Lee replied that that was a sure formula for old-age suffering. He quipped: "Bo gay, you cannot enjoy life. Bo gay and bo lui (no money), it's worse!"

But Mr Lee said he was prepared to consider options — such as having the annuity plan continue, after the member's death, paying the surviving spouse for the rest of his or her life.

Given that there is no way to predict how long any one person would live, union chief Lim Swee Say urged the grassroots leaders — and all Singaporeans — to accept the reforms in the knowledge that society, as a whole, would benefit.

Said Mr Lim: "Whether you are convinced that you will live until 85, 95 or 100 is not important, because all these policy changes are not about ourselves, it's about everybody."

The slew of CPF changes includes deferring the Minimum Sum drawdown age and increased interest rates for the Special, Medisave and Retirement Account.

US Economy Has 'Less Than 50-50' Odds Of Recession: Greenspan

Source : Channel NewsAsia, 24 September 2007

WASHINGTON - Former Federal Reserve chairman Alan Greenspan said Sunday the US economy has a better than evens chance of beating a recession but warned that a housing slowdown could hit spending hard.

"We're heading for a slowdown," he said on NBC in the latest television appearance to publicise his new memoirs, "The Age of Turbulence: Adventures in a New World."

"My own guess is the odds are less than 50-50 that we're heading to a recession, but there is no question we've got significant pressure on home prices, which I expect to move down quite considerably lower," he said.

"And that will curtail the net housing wealth of the American household, and history tells us that causes some weakness. It's too soon to call this one really."

Greenspan's memoirs lay out explosive charges such as that President George W. Bush was driven to overthrow Iraqi leader Saddam Hussein in a large part by a lust for Iraq's oil.

He also accuses Bush of abandoning the Republican party's traditional fiscal restraint through failing to veto "out-of-control" spending by Congress.

On the oil question, Greenspan told NBC that his concern was rather that Saddam was trying to seize control of the entire region and could use the resultant wealth to acquire a nuclear weapon.

"Having him out of power was critical to me," whether by an internal coup or by war, he said.

Greenspan defended his own conduct in arguing for the record tax cuts promoted by Bush after the president took office in 2001, despite now castigating the Republican over fiscal responsibility.

"I could give you a long list of things on which I have strong views. Nothing happened. So all of a sudden I become this powerful force in moving policy," he said.

In 2001, Greenspan said, he was afraid that the United States was on course to eliminate its national debt, which would have left "huge holdings of private assets by federal government and for reasons I explain in the book, that is a very bad idea."

When Bush went back to Congress for further multi-billion-dollar tax cuts, Greenspan said that he still supported them despite the US budget by then having slipped into deficit.

But he said he stressed to members of Congress that they would have to cut their spending to match the tax cuts.

"I did change my view. It wasn't in 2007. It was a lot earlier than that."

Greenspan denied that he bore partial responsibility for the imploding US housing bubble by keeping interest rates too low when he oversaw the Fed.

"With the whole housing boom, we're dealing with a world problem. In fact our housing boom is less than the average. This clearly calls for a global explanation, not just an individual explanation," he said. - AFP /ls

Government Has Duty To Do The Right Thing Now, And Measures Will Benefit Many, Especially The Poor

Source : The Straits Times, Mon, Sep 24, 2007

PRIME MINISTER Lee Hsien Loong yesterday took pains to explain the Government's reforms to the Central Provident Fund (CPF) scheme, saying it had a duty to act to address problems that would arise in the future.

'This is something which if we did not do, it will not disturb us now, it will not affect the next election,' he told 550 grassroots leaders at a dialogue at the Grassroots Club in Ang Mo Kio.

'Nobody will blame us until we are 35 years from now, when the problem is here, then people will say, 'What kind of Government did we have 35 years ago, never took care of us today'.

'And I think it is our responsibility to make sure that we do that now.'

He was referring to the debate on the controversial new longevity insurance that requires those aged below 50 to buy an annuity that they will start collecting at 85, some 35 years later.

The Government, he said, could have put off introducing the reforms, as the impact of not doing so would not be felt for many years to come. But, as a responsible Government, it chose to act early and think long term.

While he accepted that the CPF reforms debated in Parliament last week were 'not easy to digest', he believed the changes were necessary and the right thing to do.

'I think it will benefit many Singaporeans, especially the low-income ones.

'It is not something which is going to make a difference overnight because we are talking about when we grow old, and we are talking about 10, 15, 20 years from now,' he said.

The CPF changes, first announced by Mr Lee at the National Day Rally last month, cover three aspects.

These are: An extra one percentage point interest for the first $60,000 in the accounts, a delay in the draw-down age of the Minimum Sum from 62 to 65 and the compulsory longevity insurance.

Parliament spent three days debating the proposals last week, and yesterday's session was a follow-up to address concerns from grassroots leaders.

The 21/2-hour dialogue covered a range of topics, from doubts over whether people really lived long lives to housing and medical needs of the old. Nearly half of the 22 questions were on the longevity insurance issue.

Throughout, Mr Lee and his team of ministers sought to explain complex issues in simple terms, relating amusing anecdotes of people they had met and tossing in earthy phrases to make their points. They also released a cartoon DVD to help get the message across.

Asked what the point of longevity insurance and having so much money at age 85 was, when one might be bo-geh, or toothless in Hokkien, Mr Lee replied, to laughter: 'Bo-geh, you cannot enjoy. But bo-geh, bo-lui (no money) is worse.'

Turning to the issue of CPF interest rates, Mr Lee said the Government should be very careful in taking up calls that had been made for higher returns because that would also mean higher risks with members' money.

Noting that some had hit out at the Government for using their CPF funds as 'cheap money' for its investments, Mr Lee said: 'Some people say...Government wants cheap money to go and make a profit. We do not have to make cheap money. This is not that kind of government.'

Mr Lee added that the CPF was just one piece in an entire package catering to Singaporeans' retirement needs.

Second Finance Minister Tharman Shanmugaratnam, who was among five other ministers present, fleshed out the details. Responding to a participant who asked for more goodies, he said that 'at least one-third' of a lower-income Singaporean's retirement savings already came from the Government.

Most of this funding went into Housing Board flats, which, he added, appreciated over time.

'So, this is a Government that actually has been helping people build up savings for retirement,' he said.

In addition, there are the Workfare income supplement, ComCare public assistance fund and education subsidies like the Post-Secondary Education Account, which will deposit $400 for all Singaporeans aged seven to 20 from next year, helping them with further studies.

Manpower Minister Ng Eng Hen said that the proof of it was in the money the Government spent on Budget surpluses and goods and services tax offset packages since 2001 - $11.7 billion.

Admiralty constituency's youth executive committee chairman Jordan Ang, 29, said after the session: 'The picture is clearer now and makes it easier to explain to residents.'

MapletreeLog Pays $15m For Tuas Warehouse

Source : The Straits Times, Monday, September 24, 2007

MAPLETREE Logistics Trust Management (MapletreeLog) has bought a warehouse in Singapore for $15.2 million, marking the latest in a rapid run of acquisitions over the last few months.

Yesterday, it announced that it had bought the warehouse in Tuas from Pioneer Districentre, which will lease back the property for seven years - with an option to extend it for a further seven years.

MapletreeLog chief executive Chua Tiow Chye said that this acquisition adds to the trust’s stable core of Singapore properties which will generate long-term and stable returns for unitholders.

‘Given the tight supply situation for high quality logistics real estate in good locations, rentals and capital values are expected to remain firm,’ Mr Chua added.

Just last week, MapletreeLog said that it is investing $92 million in a distribution centre in the Kanto region of Japan, a key logistics area.

The tenant will have a lease tenure of 20 years, which the trust sees as complementing the shorter-term leases it has in its portfolio in higher-growth markets such as China, Hong Kong and Malaysia.

Earlier this month, MapletreeLog completed the purchase of two properties in Selangor, Malaysia for just under RM30 million (S$13 million).

Prior to yesterday’s purchase, its most recent buy in the Singapore market came last month. MapletreeLog then bought four warehouses for $36.8 million from mainboard-listed Union Steel Holdings, which will lease them back for six years, with an option to extend for another six years.

All four properties are located in the Tuas area.

Last Friday, the Reit’s units closed unchanged at $1.17. While the share price was as high as $1.46 in May, it has since lagged behind the broader market.

It is now roughly at the same level as at the start of the year, while the Straits Times Index is still 18 per cent up.

Hearing For Horizon Towers Case

Source : The Straits Times, Monday, September 24, 2007

WHAT IT IS

THIS Thursday is the High Court hearing for the Horizon Towers case, where the intended buyers - a Hotel Properties-led consortium - are suing the sellers. The buyers are seeking hundreds of millions of dollars in damages for an alleged breach of contract.

WHY IT MATTERS

Some owners are believed to be unhappy with the buying price of $500 million.

There is expected to be a landmark ruling as this is the first case in which the intended buyers of an estate are suing the sellers for failing to complete a sale.

More Open, Green Spaces To Rejuvenate HDB Estates

Source : The Straits Times, Sept 24, 2007

I WELCOME the HDB's initiative to rejuvenate and regenerate the heartland, especially the older estates.

I think the first important step towards achieving this goal is to create more open and green spaces within the estates.

Such spaces provide breathing space for HDB residents to get away from the overcrowded concrete jungle to enjoy a moment of simple quiet, to release pent-up tensions, to relax our mind and body, and to exercise.

I observe that Singapore has a tendency to squeeze every inch of land to construct buildings.

I am disappointed to learn that the stretch of open space between Dakota Crescent and Geylang River has recently been sold for some condominium development.

This open space has served joggers along the river and nearby residents well as it provides an open and relatively uncluttered view. It could have been developed into a mini-forest to add more greenery to the estate. Even if it was left as it is, it could be a perfect place to practise qigong, taiji and other forms of exercise.

The rat race in Singapore already gives us much stress. To go home every night to a crowded HDB estate and be cooped up in a small flat after a day of stressful work is already bad enough for one's sanity. Now, we will lose this precious piece of open space.

Why can't the authorities confine the squeeze to the Central Business District?

Chai Joo Siong

How Will ERP Changes Help Solve Traffic Jams?

Source : The Straits Times, Sept 24, 2007

I BELIEVE most Singaporeans understand the need for electronic road pricing (ERP) to control traffic congestion. What is less clear is whether it is implemented in the best possible manner.

To my mind, ERP alleviates congestion in three ways:

The additional cost discourages the purchase of a car to begin with;

The usage cost discourages existing car owners from driving (for example, they take public transport to work rather than drive); and

The usage cost smooths road usage by encouraging some drivers (who are less willing to pay) to travel earlier or later to avoid paying charges.

I fail to see how the recent changes to ERP will help the situation. Already, ways one and two above do not really work because the upfront cost of owning a car versus the marginal usage cost is still way too high. Way three above was probably the only tangible 'positive' outcome of ERP. But with the recent extension of ERP hours, drivers no longer even have this option unless they are willing to leave home before 7am and return home after 10pm.

In general, Singaporeans would appreciate the Government being clearer about how recent ERP changes (in particular, extended hours) are supposed to help, and what is the longer-term plan to manage road congestion.

With the recently announced CPF changes, the Government clearly spelt out the rationale and long-term plan. Surely it should do the same with ERP.

Andy Chua Ping Hong

HSBC To Shut Down Sub-Prime Lending Unit

Source : The Straits Times, Sept 24, 2007

Bank says US unit is no longer sustainable; closure will cost $1.3b in goodwill charge






















TOUGH TIMES: Mr Geoghegan reiterates that HSBC would make tough choices when it had to, emphasising that the subsidiary represented only 'a small part' of the bank's US business. The bank's earnings have been hit by its heavy exposure to the sub-prime mortgage market in the US.

NEW YORK - HSBC Holdings, the British-based banking giant, announced recently that it would close its sub-prime mortgage subsidiary in the United States, saying the unit was 'no longer sustainable'.
HSBC's earnings have been hit by its heavy exposure to the US sub-prime mortgage market, where home loans have been given to people with patchy credit histories.

HSBC said its closure of Decision One Mortgage will entail a goodwill charge of around US$880 million (S$1.3 billion) and a restructuring charge of US$65 million by year-end. About 750 Decision One employees will be affected by the closure, the group said last Friday.

'This is a small part of our US business,' said HSBC chief executive Michael Geoghegan. 'It's no longer sustainable and not the right place to allocate capital in the future. We said we would make tough decisions and we have done exactly that.'

Decision One, a unit of subsidiary HSBC Finance, originates non-prime mortgages through brokers. The bank said it will still manage Decision One's US$349 million loan portfolio.

HSBC was the largest provider of sub-prime loans in the US last year, according to Inside Mortgage Finance, a real estate industry tracker, ahead of the US leaders in the domestic market, New Century and Countrywide.

The HSBC decision comes as rising interest rates and falling house prices have triggered a spike in foreclosures by borrowers with already stretched finances.

The group said HSBC Finance will focus on originating and servicing loans through its consumer lending branch network under the HFC and Beneficial brands.

AGENCE FRANCE-PRESSE

CPF Changes Needed To Tackle Future Problems: PM

Source : The Straits Times, Sept 24, 2007

Government has duty to do the right thing now, and measures will benefit many, especially the poor

PRIME MINISTER Lee Hsien Loong yesterday took pains to explain the Government's reforms to the Central Provident Fund (CPF) scheme, saying it had a duty to act to address problems that would arise in the future.
'This is something which if we did not do, it will not disturb us now, it will not affect the next election,' he told 550 grassroots leaders at a dialogue at the Grassroots Club in Ang Mo Kio.

'Nobody will blame us until we are 35 years from now, when the problem is here, then people will say, 'What kind of Government did we have 35 years ago, never took care of us today'.

'And I think it is our responsibility to make sure that we do that now.'

He was referring to the debate on the controversial new longevity insurance that requires those aged below 50 to buy an annuity that they will start collecting at 85, some 35 years later.

The Government, he said, could have put off introducing the reforms, as the impact of not doing so would not be felt for many years to come. But, as a responsible Government, it chose to act early and think long term.

While he accepted that the CPF reforms debated in Parliament last week were 'not easy to digest', he believed the changes were necessary and the right thing to do.

'I think it will benefit many Singaporeans, especially the low-income ones.

'It is not something which is going to make a difference overnight because we are talking about when we grow old, and we are talking about 10, 15, 20 years from now,' he said.

The CPF changes, first announced by Mr Lee at the National Day Rally last month, cover three aspects.

SAVING FOR THE FUTURE
'Bo-geh, you cannot enjoy. But bo-geh, bo-lui is worse.' PRIME MINISTER LEE HSIEN LOONG, in response to a grassroots leader who said that those at 85 do not need that much money because they are bo-geh (Hokkien for toothless) and can only eat porridge and ice-cream. Bo-lui is Hokkien for 'penniless'

These are: An extra one percentage point interest for the first $60,000 in the accounts, a delay in the draw-down age of the Minimum Sum from 62 to 65 and the compulsory longevity insurance.

Parliament spent three days debating the proposals last week, and yesterday's session was a follow-up to address concerns from grassroots leaders.

The 21/2-hour dialogue covered a range of topics, from doubts over whether people really lived long lives to housing and medical needs of the old. Nearly half of the 22 questions were on the longevity insurance issue.

Throughout, Mr Lee and his team of ministers sought to explain complex issues in simple terms, relating amusing anecdotes of people they had met and tossing in earthy phrases to make their points. They also released a cartoon DVD to help get the message across.

Asked what the point of longevity insurance and having so much money at age 85 was, when one might be bo-geh, or toothless in Hokkien, Mr Lee replied, to laughter: 'Bo-geh, you cannot enjoy. But bo-geh, bo-lui (no money) is worse.'

Turning to the issue of CPF interest rates, Mr Lee said the Government should be very careful in taking up calls that had been made for higher returns because that would also mean higher risks with members' money.

Noting that some had hit out at the Government for using their CPF funds as 'cheap money' for its investments, Mr Lee said: 'Some people say...Government wants cheap money to go and make a profit. We do not have to make cheap money. This is not that kind of government.'

Mr Lee added that the CPF was just one piece in an entire package catering to Singaporeans' retirement needs.

Second Finance Minister Tharman Shanmugaratnam, who was among five other ministers present, fleshed out the details. Responding to a participant who asked for more goodies, he said that 'at least one-third' of a lower-income Singaporean's retirement savings already came from the Government.

Most of this funding went into Housing Board flats, which, he added, appreciated over time.

'So, this is a Government that actually has been helping people build up savings for retirement,' he said.

In addition, there are the Workfare income supplement, ComCare public assistance fund and education subsidies like the Post-Secondary Education Account, which will deposit $400 for all Singaporeans aged seven to 20 from next year, helping them with further studies.

Manpower Minister Ng Eng Hen said that the proof of it was in the money the Government spent on Budget surpluses and goods and services tax offset packages since 2001 - $11.7 billion.

Admiralty constituency's youth executive committee chairman Jordan Ang, 29, said after the session: 'The picture is clearer now and makes it easier to explain to residents.'

25% More HDB Flats Rented Out Since March

Source : The Straits Times, Sep 24, 2007

MORE Housing Board (HDB) flatowners are cashing in on the rising rental market by letting out their units following a relaxation of the rules on doing so.

The new rules have spurred 5,700 more people to rent out their flats over the past six months.

The latest figures from the HDB show that a total of 15,773 flats have been given the green light for rental by the middle of this month.

This is a 25 per cent jump on the total figure before the March 3 rule change. About 39 per cent of these additional homeowners would not have qualified had the rules not been eased.

Previously, flatowners could rent out their flats only five years after buying them - or 10 years if they had not paid off HDB home loans.

Now, they can do so after living in their flats for just three years - or five years if they had bought it with a government subsidy or grant. It no longer matters if the home loan has been paid off.

The change almost doubled the pool of eligible flats to 645,000, out of more than 800,000 across the island.

The relaxation was part of a series of measures to make it easier for flatowners to earn income from their units.

Besides easing subletting rules, the HDB also allowed homeowners to take out reverse mortgages on their flats. It is also looking into a novel scheme to buy back the tail-end of flats' leases from homeowners.

Newly minted landlords included Madam Yee Kin Moi, 58. The retired hawker and her husband rented out their four-year-old flat in Choa Chu Kang just last month for about $1,000 a month, and moved in with their daughter to help take care of their 18-month-old grandson.

The rental income, said Madam Yee, covers their monthly housing instalments and helps pay daily expenses as well.

She told The Straits Times: 'The good thing about renting the flat out is that we do not need to sell it. We can go back to live in it if our children choose to migrate elsewhere.'

According to the HDB, about 27 per cent of flats rented out after March 3 belonged to owners who were older - aged 55 years and above.

Most of those renting out their flats under the revised rules moved in with their family members. About 22 per cent now live with their children, while another 36 per cent live with their parents, siblings and other relatives.

About two-thirds of flats being rented out are three- and four-room units.

HDB statistics show that three-room flats fetched a median rental of $980 islandwide from April to June, while four-room flats fetched $1,180.

Property agents estimate that rents are up about 10 per cent to 15 per cent since then, but say demand for rental flats remains strong as tenants, deterred by rising private rentals, choose public housing instead.

Median rentals of non-landed private homes islandwide grew by 11 per cent from April to June to $31.87 per sq m per month. This means it would cost about $3,200 a month to rent a 100 sq m, three-bedroom home.

As a result, rental flats being put on the market are being snapped up within a month, said the chief executive of property agency Propnex, Mr Mohamed Ismail.

Most homeowners, though, will not rush to rent out their flats even if rental rates become even more attractive. This is simply because they would have nowhere else to live if they did.

The director of Dennis Wee Properties, Mr Chris Koh, pointed out: 'Not every elderly couple would want to live with their children.'