Corrections regarding Ethnic Integration Policy in video posted by Mr Shaik Amar on 24 July 2024 and 25 July 2024

The video posted by Mr Shaik Amar on TikTok/Instagram on 24 July 2024, and on YouTube on 25 July 2024, contains the following false statements of fact regarding the Ethnic Integration Policy (EIP):

1. The EIP offers no benefit to ethnic minority households; instead, it only causes them significant financial detriment when they sell their flats.

2. The EIP was introduced in the 1960s and has not been changed to date.

Falsehoods and Facts

#1 Falsehood: The EIP offers no benefit to ethnic minority households; instead, it only causes them significant financial detriment when they sell their flats.

Facts:

• The EIP was introduced to prevent racial enclaves and ensure racial diversity in HDB neighbourhoods in support of racial harmony.

• The EIP benefits ethnic minorities in several ways.

Benefits at point of initial sale

• Because of the EIP, a defined proportion of flats are set aside for ethnic minority communities (“Minority Communities”) in all HDB developments (including more popular ones) through its BTO and SBF exercises and through open booking. This is a significant benefit because the EIP guarantees that a specified minimum number of flats in HDB estates, including in highly sought after estates, are available for persons from Minority Communities. Flats in more popular areas are generally higher priced. But the significant Government subsidies given by HDB make them affordable.

• Mr Shaik Amar himself benefited from the EIP, because his household would not have been able to select an SBF flat if there was no EIP. During the SBF exercise where his household had booked their SkyOasis @ Dawson flat, all minority First-Timer applicants were invited to select a 3-room flat in Queenstown, including Mr Shaik Amar’s household. In comparison, only about 40% of Chinese First-Timer applicants were invited to select a flat because of the Chinese EIP limit.

• Without the EIP, we would risk the proportion of owners from Minority Communities in more popular developments being significantly lower, even at point of sale by HDB. The EIP, in this way, generally enables more households from the Minority Communities to benefit from the increase in value that takes place when a flat bought from HDB is resold at a higher price. It is misleading to focus on the point of resale, without setting out that flats are first obtained within the framework of the EIP.

Benefits over time

• Further, the EIP applies not just at the point of purchase of flats at HDB’s sales exercises, but also at point of resale. This ensures that no ethnic group is excluded from any public housing neighbourhood, even over time. Today, nearly one in three HDB blocks, and 11% of HDB neighbourhoods have reached their EIP limits. Without the EIP, over time, we may see fewer flat owners from the Minority Communities in highly sought after housing estates. This would be detrimental to the Minority Communities.

• First, they would not be able to benefit from future increases in value for flats in such estates.

• Second, segregation generally affects Minority Communities more than it affects ethnic majority communities (“Majority Communities”). By setting limits on the proportion of each ethnic group allowed in a HDB block or neighbourhood, it has been possible to have ethnically diverse neighbourhoods across Singapore, and opportunities for interaction and understanding across races. On the flipside, increased segregation would reduce opportunities for multicultural interactions, and ultimately weaken our racial harmony.

No significant financial detriment

• It is false that the EIP causes all minority households to suffer significant detriment when they sell their flats.

• The Government has publicly acknowledged that for a small number of EIP-constrained flat owners, at point of resale, there can be differences in the prices that a potential Chinese buyer might be willing to pay, compared with a potential buyer from the Minority Communities.

• Over the years, HDB has put in place a range of measures to assist these EIP-constrained flat owners, including giving EIP-constrained flat owners more time to sell their existing flat if they have purchased another one, and waiving the EIP limits in exceptional circumstances.

• In addition, HDB has, since 2022, put in place a scheme to buy back flats from eligible EIP-constrained owners who face genuine difficulties selling their flats. For such households, HDB offers to buy back their flats at a fair price based on prevailing market conditions. They are therefore not forced to sell at unreasonably low prices offered by other buyers. These flats are then offered for sale through SBF exercises or open booking.

• As with all flats sold through SBF exercises or open booking, HDB applies a significant subsidy to the assessed market value of the flat to determine the sale price. For blocks or neighbourhoods where the Chinese EIP limit is reached, only buyers from the Minority Communities will be eligible to buy such flats, and they will benefit from the subsidies, like other buyers.

#2 Falsehood: The EIP was introduced in the 1960s and has not been changed to date.

Facts:

• Since the introduction of the EIP in 1989 (not the 1960s), we have made, and publicly announced, adjustments to the EIP: 

  • In 2010, we announced the increase of the Indians/Others EIP limit by 2%-points, i.e. from 10% to 12% at the neighbourhood level, and from 13% to 15% at the block level.

  • Over the years, HDB has put in place a range of measures to assist these EIP-constrained flat owners, including giving EIP-constrained flat owners more time to sell their existing flat if they have purchased another one, and waiving the EIP limits in exceptional circumstances.

  • In 2022, we announced the EIP buyback assistance scheme, where HDB will buy back flats from eligible EIP-constrained owners who face genuine difficulties selling their flats.

The Minister for National Development has instructed the Protection from Online Falsehoods and Manipulation Act (POFMA) Office to issue a Correction Direction to Mr Shaik Amar in respect of his posts. The Direction requires the recipient to carry a notice, with a link to the Government’s clarification.

Although Mr Shaik Amar has taken down the videos on TikTok and Instagram, there is a need to address the falsehoods that may have been circulating in the public as a result of the publication of these videos. We note the video remains on his YouTube account.