I am pleased to be here to open this International Housing Conference. May I also extend a warm welcome to our foreign guests. This international gathering provides an excellent opportunity to exchange views and experiences on an issue of much importance to all governments.

Though shelter, or housing, is a basic human need, it is an expensive item to produce, especially in urban areas. For most households, housing is by far their largest expenditure, accounting for as much as a third or more of their income. And for those who own their homes, it is usually their biggest asset. Thus, when the provision of housing is left purely to market forces, we can expect some segments of the population not to be adequately housed. This gives rise to many social and political problems. It affects the ability of the government to achieve desired economic and social goals. Most governments therefore intervene in the market to ensure that their people can have decent housing.

Public housing programmes differ from country to country. Some governments leave the development of housing entirely to the private sector, but provide housing vouchers to low-income households. Others provide subsidised loans to help in the purchase of homes in the open market. Yet others subsidise the cost of public housing directly.

In Singapore, we have chosen to build subsidised public housing for citizens with a household income below a designated threshold. This income level, at S$8,000 per month, is sufficiently high and enables 90% of our citizens to qualify for public housing. This, in effect, demands that public housing be of a high standard. It is not to be equated with low-cost housing for the low-income groups in many countries. Today, 86% of the Singapore population live in public housing. Nine out of ten public housing dwellers own their flats. But our success in public housing is of recent origin.

The housing situation in Singapore was in fact very bleak in the post-war years. There was a severe shortage that was worsened by the post-war baby boom. About 70% of the population lived within the central city area. A third of the population was housed within four square kilometres. Urban slums proliferated, breeding disease and crime, and posing fire hazards. Between 1947 and 1959, the housing authority under the colonial government built 21,000 public housing units, enough to house only 9% of the population. When Singapore achieved self-government in 1959, one of its priorities was therefore to solve the housing shortage. It set up the Housing and Development Board (HDB), which built over 50,000 flats in the first five years. Within ten years, the housing shortage was largely solved.

Singapore's public housing policy, however, has gone beyond that of providing a roof over the head. It is to give every Singaporean a stake in the country, to foster social cohesion, and to share wealth.

We believe that home-ownership enhances a citizen’s commitment to his country, and contributes to political and social stability. This is particularly important for a new nation.

Two facts in Singapore cannot be changed. First, the multi-racial character of our society. Second, the small physical size of Singapore. Therefore, Singapore's public housing programme must take these two facts into full consideration.

Ghetto living cannot be allowed in Singapore, as it impedes national integration. As a matter of policy, we ensure that every housing estate reflects the multi-racial and multi-religious character of our society. The traditions and cultural heritage of each community are preserved without giving cause to another to feel disadvantaged. For example, the HDB will allocate sites for new churches, mosques and temples to be built in new housing estates. There is also a network of community centres and organisations that actively fosters interaction and harmony among residents.

To overcome the scarcity of land in Singapore, the height of HDB's multi-storey apartment buildings has risen over the years. The latest proposal will see HDB flats reaching the 40^th storey. This is probably the first of its kind in the world. However, reaching for the sky is never an easy task. The design of such high-rise public housing is very important. The lifts and water taps must work efficiently. The rubbish disposal cannot fail. The windows and passageways must be safe, yet open to good airflows.

Putting so many people in a compact space requires an extraordinary approach to the maintenance of public housing estates and their surrounding environment. This is a major challenge. It is even more demanding than building the flats.

Public housing estates will degenerate quickly if not well maintained. They can become urban slums. Hence, apart from regular maintenance, Singapore implemented a multi-billion dollar Estate Renewal Strategy in the 1990s to rejuvenate the older HDB towns and estates. More than 200,000 HDB families have since benefited from the various upgrading and redevelopment programmes. The renewal process has injected a new lease of life into these old estates. It is also a means to share wealth. No developer of a private housing estate will pump in any money to upgrade the houses which he has sold. But the HDB does, with surplus funds from a prudent Government.

The challenges that we have confronted in the past, however, are by no means the only ones we will face in the future. For example, as the standard of living improves, there will be a new wave of demand for even better housing, better upkeep and a better living environment. Housing forms will have to be flexible to adapt to changes in lifestyle. Housing providers must be more creative and more daring to try new concepts and ideas. The advent of information technology and the Internet means that more and more people can work out of their homes rather than the traditional offices. Mindsets and work processes will have to change in order to meet higher expectations and the needs of the new economy.

For example, the new challenge now for the HDB is to fulfil lifestyle aspirations, and not simply to provide basic housing. Our public flats have to be updated with better designs and features to cater to an increasingly demanding population. This includes preferences for location, ambience and facilities within an estate.

Another challenge that authorities worldwide will increasingly face is the housing of an ageing population. In Singapore, we expect our elderly population to increase sharply from the current 7 percent to nearly 20 percent by the year 2030. The challenge is to build an environment where young and old alike can enjoy a fulfilling life together. The HDB has started building studio apartments for the elderly, locating them in mature towns that have easy access to transport and public amenities. This allows the elderly to spend their days comfortably within a community they are familiar with.

Ladies and Gentlemen,

I relate bits of Singapore's public housing history and policy to illustrate the challenges that public housing authorities face. It is not to suggest that ours is the best solution or the most appropriate. It is to elicit comments and encourage an exchange of experiences, especially at your Conference deliberation tomorrow.

I would like to conclude by expressing my warmest wishes to the HDB on its 40^th anniversary. All Singaporeans owe a gratitude to the HDB for looking after their housing needs. May I take this opportunity to congratulate the HDB's management and staff, both past and present, for their contributions in making Singapore a better place to live. We are proud of your achievements.

It is my hope that this Conference will establish new benchmarks for housing. With the range and quality of experts gathered here, I am confident that you will be able to throw up new ideas. I wish all of you a fruitful Conference.

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