Khaw warns of housing bubble bursting

Khaw warns of housing bubble bursting


By Philip Ang

I refer to CNA’s article “Property prices yet to reach acceptable level: Tharman” dated 1 March.

DPM Tharman was quoted as saying “we can prevent a real bubble from being formed which then eventually crashes, and that’s our objective”.

Fast forward into 64 days when MND’s Khaw suddenly says on 4 May that “because of low interest rates, this bubble is being pushed up and sustained longer than it should have. So, it will collapse in a matter of time..”.

From the above, one can conclude that either Singapore has failed in its objective to prevent a real bubble from being formed or Minister Khaw’s bubble is not really a bubble.

Not too long ago, I recall a zero-portfolio minister rejecting the minimum wage system only to claim that we actually have “more than a minimum wage model”.

Taking his nonsense a little further, he has also said our “more than a minimum wage model” can “maximise the upside” and simultaneously “minimise the downside”.

Subsequently, the same portfolio-negative minister (don’t want to mention name) contradicted himself by saying “You cannot have high upside, and at the same time a low downside”.

It can be pretty confusing when leaders have different definitions and opinions of the situation we are in.