More expected to default on loans as recession bites.

S’pore’s best budget ever but please help with HDB arrears

The following is a letter sent to the TODAY newspaper by TOC columnist Leong Sze Hian.

I WOULD like to applaud the Government for what is arguably Singapore’s best Budget ever, with very comprehensive measures across the board, to help Singaporeans and businesses in this recession.

Perhaps, the greatest concern of Singaporeans is to have a roof over their heads. As of October, about 8 per cent of HDB concessionary loan mortgages were in arrears over three months.

Furthermore, with the forecast that as many as 300,000 jobs may be lost, the number of HDB flat owners in arrears may rise.

I would like to suggest that the Government consider giving the assurance that during this recession, say for 2009 and 2010, any one who cannot pay for his HDB flat, will not be subject to compulsory acquisition by the HDB, nor be compelled to liquidate in the open market.