hdb ar 2008
TRANSCRIPT
FULFILLINGASPIRATIONS
HDB annual report 2007/2008
CONTENTSChairman’s Statement 10
Vision and Mission 14
Shared Values 15
Environmental Policy 17
Corporate Governance 18
Awards 19
Highlights of FY 2007/2008 20
Members of the Board 22
Key Officers 24
Organisation Chart 26
Staff Strength 27
A Place Called Home 28
Making The Link 36
Looking Ahead 44
Agency Projects 50
Subsidiary and Associated Companies 51
Visitors 52
Statistics and Charts 54
Financial Report 73
HDB has transformed Singapore's housing landscapeand created homes and communities that residents andstaff are proud of.
Beyond building on past achievements, public housing isset to scale greater heights. As HDB approaches 50 yearsof public housing in Singapore, a new blueprint has beenunveiled to remake the heartland and transform it into avibrant home for all.
This exciting phase has warranted a new HDB vision andmission that would position the organisation, galvanisestaff for the future and propel HDB's plans to fruition.
Fulfilling aspirations and a continuation of excellence.It's more than a cherished dream.
Affordable Homes of Qualityand Value
Providing variety of housing options; meeting needs andexpectations.
With home ownership a reality for about 95 percent ofthose who live in HDB flats, high-quality reasonably-priced apartments are now common landmarks inSingapore's housing landscape.
More than just building blocks, HDB builds homes bycatering for the diverse needs of its residents throughthe provision of more housing options, financial assistanceschemes and the promise of a world class livingenvironment.
Vibrant and Sustainable Towns
Developing town identities and lifestyles; unveiling plansand vision.
Comprehensive and well-supported towns bring aboutconvenience and add buzz to the environment. Keepingpace with increased expectations, HDB towns constantlyundergo physical renewal to ensure that quality of life inthe heartland is never compromised.
Plans have been unveiled to sustain HDB towns to meetlife-cycle needs and uphold new lifestyle concepts - keyfactors in creating endearing homes for all.
Active andCohesive Communities
Establishing ties and attachments; promoting ownership andengagement.
A harmonious and cohesive community does not come aboutovernight. Through its housing policies and the creation ofshared common spaces for all, HDB integrates residentsfrom all walks of life and fosters ties that bind.
With the hardware in place, developing the heartware of acommunity entails the promotion of more active communityengagement and a greater sense of ownership amongresidents.
Staff Giving Their BestHarnessing resources and capabilities; enhancingservice and excellence.
Staff development takes centrestage in ensuringorganisational effectiveness and in building capabilitiesto meet current needs. Equipped with the necessaryskills set and attitude, HDB staff are set to aim higherand further in their quest for innovation and excellence.
On the service front, increased efficiency wouldtransform into greater convenience and benefits, andenhance the service experience for our customers.
In meeting the housing needs of Singaporeans, HDB had set itself
a mission to provide affordable homes of value and quality in vibrant
towns where families and communities can flourish. Notwithstanding
the complexity of the task, it had been a constantly rewarding
challenge keeping faith with this mission and keeping pace with
changing aspirations.
CHAIRMAN’SSTATEMENT
HDB Annual Report 2007/2008 [10]
In June 2008, HDB received
resounding validation of its work when
it received the United Nations Public
Service Award for its Home Ownership
Programme that had given
Singaporeans a valuable and
permanent asset in the form of their
HDB home. I am proud to share this
historic moment with all HDB staff,
past and present, as well as Singapore.
A Compelling Vision
Over the last 47 years, HDB had
achieved a great deal for Singapore
and its people. It had set new
benchmarks for public housing and
transformed the way Singaporeans
live, work and play. Approaching its
50th Anniversary, a refocus of vision
and mission objectives would give
HDB new impetus and spur both
organisation and people towards
greater heights to take public housing
further.
With management and staff crafting
it together, we launched HDB’s new
Vision and Mission Statements on 20
November 2007. The Vision called
upon HDB to become an outstanding
organisation, to meet aspirations for
the kind of homes and communities
Singaporeans take pride in. The
Mission Statements highlighted key
thrusts that were central to achieving
excellence and relevance - ensuring
housing quality and affordability, town
development and vibrancy and the
community life within.
Affordable Homes of Quality and
Value
Singapore saw strong economic
growth and upturns in its property
market in FY 2007/2008. With the
robust property market impacting
housing demand and prices, home
buyers were assured of HDB’s housing
commitments. In November 2007, the
Minister for National Development
announced that 6,000 new Build-To-
Order (BTO) flats would come on-
stream between December 2007 and
June 2008. Together with balance
units from previous BTO and other
sales exercises, there would be ample
supply of flats to choose from.
In February 2008, over 10,000
applications were received for the 278
flats offered during the Bi-monthly
Sale of 4–room and bigger flats, an
all-time high. The home buyers had
homed in on flats in the mature towns
where land for new flats was limited,
causing a spike in demand for such
flats. They were advised to consider
instead flats being offered under the
BTO system which formed the main
supply of new flats. BTO flats in the
newer towns such as Punggol and
Sengkang were attractive options for
those who were able to wait out the
construction period.
Those with immediate housing needs
were encouraged to consider the wider
resale market. HDB released more
public housing data such as
information on median resale prices
and Cash-Over-Valuation amounts to
help buyers and sellers make informed
decisions in their flat transactions.
To meet the more pressing housing
needs of newly weds to set up home
and start a family, HDB implemented
the Improved Priority Scheme for First-
Timers. Ninety percent of the BTO
and Balloting Exercise flat supply were
set aside for first-timers, and their
chances of being shortlisted were
further enhanced with each
subsequent application.
To give greater assistance to lower-
income working families, the Additional
CPF Housing Grant (AHG) introduced
in 2006 to help such families own their
first home was enhanced. The income
ceiling was raised from $3,000 to
HDB Annual Report 2007/2008 [11]
$4,000, and the maximum housing
grant from $20,000 to $30,000.
Despite ensuring the affordability of
HDB homes, rental housing remained
the main option for families falling
within the truly needy segments of the
population unable to move on to home
ownership. To meet their needs, HDB
increased the supply by converting
existing flats into rental flats and
resuming the building of new rental
flats. In January 2008, the first batch
of 180 newly converted rental flats
was ready for allocation to rental flat
applicants. In March 2008, another
748 converted units were added to
the rental housing supply, with another
353 units expected by early 2009.
Construction for some 976 new rental
flats had also started. While increasing
supply, HDB announced it would look
into tightening the eligibility criteria as
the heavily subsidised rental housing
should rightly be only for those in real
need of it.
Vibrant and Sustainable Towns
During the National Day Rally, the
Prime Minister announced the
Remaking Our Heartland (ROH) plans
that promised innovative housing
forms, an improved living environment,
and exciting lifestyle transformations
for all HDB towns - young, old and
middle-aged. The Remaking plans
for the first three showcase towns,
Punggol, Dawson and Yishun, were
launched in end August 2007 with the
objective of inviting public feedback
to help shape them further. More than
80 percent of the large turnout at all
the ROH exhibitions gave their ringing
endorsement to the plans to transform
their heartland home.
Sustainability in housing also featured
prominently in the remaking plans. As
a leader in housing provision, HDB had
long recognised its responsibility in
promoting environmentally sound
practices, starting with design
considerations to ensure energy-
efficient HDB buildings to
environmentally-friendly construction
methods and materials. With the shift
towards creating and maintaining
sustainable living environments, more
innovative eco-features were being
introduced. Guided by a broad
sustainability framework, they included
green roof tops for all multi-storey car
parks at new HDB residential
developments and the use of the sturdy
but lightweight Ferrolite Partition walls.
The milestone in HDB’s sustainability
efforts, the eco-precinct
Treelodge@Punggol was recognised
for its various pioneering technology
with the receipt of the Green Mark
Platinum Award from the Building and
Construction Authority. Its launch
drew an overwhelming 3,356
applications for the 712 units, showing
that Singaporeans were indeed ready
to embrace an eco-lifestyle. It also
affirmed that HDB’s thrust into
sustainable living was firmly aligned
with evolving perceptions of quality
homes and responsible lifestyles.
Research & Development in
programmes like Lift Upgrading (LUP)
resulted in innovations such as the
Machine Roomless Lift that could be
fabricated off site and reduce reliance
on sand – thus saving cost for both
the Government and residents.
Alternative technologies such as home
lifts and shaftless lifts were also
explored. As a result, about 700 more
blocks would now qualify for LUP
where previously it would have been
too costly to offer such blocks direct
lift accessibility.
Active and Cohesive Communities
Bringing improvements to the living
environment through various
upgrading programmes under the
umbrella of HDB’s Estate Renewal
Strategy had also helped in preserving
and enhancing community life and
spirit in HDB towns.
HDB Annual Report 2007/2008 [12]
At the Forum on HDB Heartware led
by Senior Minister of State for National
Development in August 2007, HDB’s
mission of growing active and engaged
communities was reaffirmed. During
the dialogue, residents asked for more
active engagement in matters affecting
their homes and living environments.
As a result, two new upgrading
programmes were announced - the
Home Improvement Programme (HIP)
and the Neighbourhood Renewal
Programme (NRP). Taking on a more
consultative approach, HIP and NRP
would give residents greater
opportunity to choose the
enhancements they want for their flat
and precinct surroundings.
Established programmes like the
Selective En bloc Redevelopment
Scheme (SERS) were also reviewed
to offer greater resident engagement.
Advisers, grassroots organisations,
town councils and SERS residents
were consulted on the provision of
common facilities for their new
replacement precinct. The first two
consultation exercises were held in
October 2007 for the residents of
Kampong Silat and Henderson Road.
About two-thirds of the residents
responded and gave useful feedback,
and an overwhelming 93 percent
agreed that the exercise was useful
and effective in promoting community
bonding and instilling a greater sense
of ownership of their new precinct.
HDB precincts were also enlivened to
support more vibrant community and
commercial life. Fourteen sites were
chosen to pilot the Revitalisation of
Shops Scheme to encourage retailers
to enhance and improve their business
competitiveness in order to serve
residents’ needs better. With HDB co-
funding the upgrading of their common
areas or organisation of crowd-pulling
promotional activities, the scheme got
off to a flying start.
Blazing Ahead
Having blazed ahead, expectations of
HDB are now higher. To meet these
new and challenging aspirations, we
must develop creative housing forms,
yet maintain affordability and
accessibility. We must ensure that
public housing meets the special
needs of our ageing society, yet caters
for the lifestyle of young families. We
must formulate our policies and
programmes such that they will
continue to advance home ownership,
yet at the same time, encourage
responsible, prudent home buying
decisions. To achieve all of these, we
need staff that are enabled and
inspired to create, initiate and drive
the changes and innovations. This is
why HDB’s Mission now includes a
fourth thrust to develop its people and
talent.
With the new Vision and Mission
charting HDB’s directions and
priorities, and working together in one
spirit, I am confident we will be able
to stay on track to achieve our goals.
Looking ahead, the year 2010 is when
HDB and the nation will be celebrating
a golden anniversary - 50 years of
public housing in Singapore. That is
an exciting milestone to look forward
to, as we strive to realise our vision to
be a truly outstanding organisation,
fulfilling Singaporeans’ aspirations for
homes and communities that all are
proud of.
Mr James Koh Cher Siang
Chairman
HDB Annual Report 2007/2008 [13]
VISIONAn outstanding organisation with people committed to fulfilling aspirationsfor homes and communities all are proud of
MISSIONWe provide affordable homes of quality and valueWe create vibrant and sustainable townsWe promote the building of active and cohesive communitiesWe inspire and enable all staff to give of their best
HDB Annual Report 2007/2008 [15]
SHARED VALUES
CareWe respect and trust each other, always showing concern for one another’s well-being. We care for our community and
the environment.
LearningWe practise lifelong learning, constantly upgrading our skills and knowledge so that we can give of our best to HDB.
InnovationWe pursue new and creative ideas to improve our products, services and processes.
QualityWe aim for the highest standards of professionalism and integrity, delivering products and services that are of quality
and value to our customers.
TeamworkWe value and appreciate each other’s contribution. We work as a team to achieve our shared vision and goals.
HDB Annual Report 2007/2008 [17]
ENVIRONMENTAL POLICY
HDB, the leading property developer and owner in Singapore, is committed to be the leader in environmental management.
In line with our shared value to care for the environment, we shall
COMPLY with all applicable environmental laws, regulations and other relevant requirements
COMMIT to prevent pollution by
• Promoting conservation of energy and efficient use of resources in policy formulation, planning, development,
management and maintenance of public housing, commercial and industrial buildings;
• Considering environmental requirements in land use and procurement of goods and services; and
• Reducing, re-using and recycling materials and wastes
CONTINUALLY improve our environmental performance by setting and reviewing environmental objectives and targets
COMMUNICATE with and educate all persons working for or on behalf of HDB, business partners, customers and the
public to achieve our environmental goals.
Board MembersThe HDB Board derives its strength
from the extensive and complementary
background and qualifications of its
members who bring with them
experience in the public and corporate
sectors, and are respected individuals
in their fields. All Board Members are
non-executive members, except for
the Chief Executive Officer.
Internal Control FrameworkHDB’s internal control system ensures
that assets are safeguarded, proper
accounting records are maintained,
and that financial information is reliable.
The overall control framework includes
clearly defined authority and delegation
limits and reporting mechanisms,
appropriate terms of reference for
management of core policy areas,
comprehensive policies/procedures
relating to operations and financial
controls, and an annual budgeting and
monthly financial reporting system for
all operating units.
Audit CommitteeThe Audit Committee assists the Board
to maintain a high standard of
corporate governance, particularly in
the areas of financial reporting and
the internal control systems of HDB.
The Audit Committee considers any
matter it believes should be brought
to the Board’s attention and has
explicit authority to investigate any
matter within its terms of reference.
The Chairman of the Audit Committee
is Mr James Koh Cher Siang, also
Chairman of HDB. Other members
include Board Members Mrs Quek Bin
Hwee, Associate Professor Sim Loo
Lee and RADM Chew Men Leong.
Internal Audit FunctionHDB’s Internal Audit Department
advises all levels of management on
the quality of HDB and the Group’s
operations with emphasis on systems
of control. Reporting directly to the
Audit Committee, it conducts risk-
based audits and addresses its
findings and recommendations to the
level of management who need to
know and are able to take appropriate
action. It adheres to the Code of
Ethics, Standards and Guidelines of
The Institute of Internal Auditors.
Annual Financial AuditThe audit findings by the Auditor-
General's Office in the course of the
annual financial audit are submitted
to management and reported to the
Audit Committee and Ministry of
National Development. The Board is
also informed of these audit findings.
The Audit Committee reviews the
annual financial statements with
management and the Auditor-
General's Office, before endorsing
them for the Board’s approval.
Business and Ethical ConductHDB staff are obliged to comply with
practices that reflect the highest
standards of behaviour and
professionalism. These include
safeguarding official information under
the Official Secrets Act (Cap 213), and
abiding by HDB Conduct and
Discipline Rules which include
guidelines on receiving gifts and
entertainment from contractors/
subcontractors, suppliers, vendors
and any member of the public whom
staff have contact with in the course
of their official duties.
Dissemination of Public
InformationHDB’s full-year financial results are
reported to the Board and
disseminated to the public via the HDB
InfoWEB and the Singapore Exchange
(SGX) website. The HDB InfoWEB
also contains up-to-date corporate
information such as annual reports,
latest developments, and press
releases.
CORPORATE GOVERNANCE
HDB is committed to good corporate governance. Various self-regulatoryand monitoring mechanisms have been put in place to achieve this aim.
HDB Annual Report 2007/2008 [18]
HDB Annual Report 2007/2008 [19]
2008 United Nations Public
Service Award for Home
Ownership Programme
PRISM Awards 2008 – Best
Public Service Campaign (Public
Sector) > S$500,000Excellence Award Winner for
Remaking Our Heartland
Distinguished Public Service
Award 2008
IBM Innovation Excellence
Award 2007/2008
BCA Construction Excellence
(Merit) Award 2007 - Residential
Buildings Category (Below
$1,200/m2 )- Bukit Merah Redevelopment
Contract 29
- Queenstown Redevelopment
Contract 14
PS21 ExCEL IQ Convention 2007- Gold Award for FerroLite Partition
Wall
IES Prestigious Engineering
Achievement Award 2007- Transforming Rooftops to Sky-
rise Greenery Instantly - The
Modular Way
BCA Best Buildable Design
Awards 2007- Queenstown RC14 (Gold)
- Sengkang N2C32 (Gold)
- Marine Terrace Precinct MUP 18A
(Silver)
Institute of Internal Auditors’
(IIA) Standards for the
Professional Practice of Internal
Auditing (IIA Standards)- Quality Assessment Review (QAR)
2007
Excellent Service Awards (EXSA)
2007- Star Award (14)
- Gold Award (20)
- Silver Award (57)
PS21 Star Service Award 2007- Distinguished Star
Service Award (1)
National Innovation & Quality
Circle Convention 2007/2008- Star Award (2)
- Gold Award (11)
- Silver Award (10)
- Bronze Award (1)
NTUC May Day Model Workers’
Awards 2007- Company Commendation
Home Team NS Awards for
Employers (Special Award) 2007
Total Defence Awards
(Distinguished Defence Partner
Award) 2007
Community Chest Awards 2007- SHARE Platinum Award
- Special Event (Gold) Award
National Day Awards 2007- Public Administration
Medal (Silver) (1)
- Public Administration
Medal (Bronze) (2)
- Commendation Medal (3)
- Efficiency Medal (13)
- Long Service Medal (239)
AWARDS
HDB Annual Report 2007/2008 [20]
Policy Changes
• Implementation of improved
priority for first-timers applying
for HDB flats [14 August 2007].
• Announcement of the Lease
Buyback Scheme for elderly
lessees to unlock the value of their
flats [19 August 2007].
• Enhancement to the Additional
CPF Housing Grant Scheme to
help first-timer lower-income
households own their first homes
[24 August 2007].
Service Improvements
• Implementation of revamped
Bi-Monthly Sale of 4-room and
Bigger Flats to replace the
Walk-In Selection system
[10 April 2007].
• Implementation of e-Service - sale
proceeds calculator [7 May 2007].
• Quarterly release of additional
public housing data on HDB resale
and rental market as well as the
upcoming supply of new flats for
sale [16 July 2007].
• Introduction of the revamped
‘Flats On Offer’ webpage in HDB
InfoWEB (e-Sales) [14 August
2007].
• Introduction of the Family Season
Parking Ticket to facilitate family
visits [1 October 2007].
• Launch of Home Locator in e-
Sales [25 October 2007].
• Introduction of SMS alerts via the
HDB eAlert Service [1 November
2007].
Events
• Launch of first integrated
development comprising Studio
Apartments and bigger flat types
under the BTO system
[25 October 2007].
• Launch of inaugural public talk on
subletting of flats for public to
better understand HDB’s policies
and guidelines [27 October 2007].
• Inaugural public consultation with
Advisers, grassroots
organisations, town councils and
SERS residents at Kampong Silat
and Henderson Road, on the
provision of common facilities at
replacement precinct at Kim Tian
Road [September-October 2007].
• Announcement of first batch of
Home Improvement Programme
(HIP) and Neighbourhood
Renewal Programme (NRP)
precincts [February-March 2008].
HIGHLIGHTS OF FY 2007/2008
CHAIRMAN
1) Mr James Koh Cher Siang
BOARD MEMBERS
2) Mr Edmund Koh
3) Mdm Halimah Yacob
4) Mr Tan Boon Huat
5) Mrs Quek Bin Hwee
HDB Annual Report 2007/2008 [22]
1
MEMBERSOF THE BOARD
2
4 5
3
6 7
9 10
8
HDB Annual Report 2007/2008 [23]
BOARD MEMBERS
6) Associate Professor Sim Loo Lee
7) Associate Professor (Dr) Milton Tan
8) Mr Tay Kim Poh
9) RADM Chew Men Leong
10) Mr Goh Sin Teck
HDB Annual Report 2007/2008 [24]
TOP MANAGEMENT
Tay Kim Poh
Chief Executive Officer
(centre)
Tan Poh Hong
Deputy Chief Executive Officer (Estates & Corporate)
(left)
Er. Lau Joo Ming
Deputy Chief Executive Officer (Building)
(right)
KEY OFFICERS
TOP MANAGEMENT
BUILDING GROUP
BUILDING GROUP
(from left)
Sng Cheng Keh
Director (Development & Procurement)
Raymond Toh Chun Parng
Director (Research & Planning)
Fong Chun Wah
Director (Building Quality)
Er. Yap Tiem Yew
Director (Building Technology)
ESTATES GROUP
CORPORATE GROUP
HDB Annual Report 2007/2008 [25]
ESTATES GROUP
(from left)
Yap Chin Beng
Director (Estate Administration & Property)
Tan Kim Chwee
Director (Housing Administration)
Loh Loon Tong
Director (Properties & Land)
Khoo Teng Seong
Director (Industrial Properties)
CORPORATE GROUP
(from left)
Lau Chay Yean
Director (Corporate Development)
Mah Lai Seong
Director (Finance) till 1 June 2008
Leong Chin Yew
Director (Information Services)
Balakrishna Madhubala
Director (Legal)
Soh-Leo Lan Hiang
Director (Internal Audit)
HDB Annual Report 2007/2008 [26]
Directly reporting to Chairman
DEPUTY CHIEFEXECUTIVE OFFICER
(BUILDING)ER. LAU JOO MING
Administrativelyreporting toDeputy ChiefExecutive Officer(Estates &Corporate)
BUILDING GROUP
DIRECTORSSng Cheng Keh
Development & Procurement
Raymond Toh Chun ParngResearch & Planning
Fong Chun WahBuilding Quality
Er. Yap Tiem YewBuilding Technology
DEPUTY CHIEFEXECUTIVE OFFICER
(ESTATES &CORPORATE)
TAN POH HONG
CHAIRMANJAMES KOH CHER SIANG
BOARD MEMBERS
CHIEF EXECUTIVEOFFICER
TAY KIM POH
ESTATES GROUP CORPORATE GROUP
DIRECTORSYap Chin Beng
Estate Administration & Property
Tan Kim ChweeHousing Administration
Loh Loon TongProperties & Land
Khoo Teng SeongIndustrial Properties
DIRECTORSLau Chay Yean
Corporate Development
Mah Lai SeongFinance
Leong Chin YewInformation Services
Balakrishna MadhubalaLegal
Soh-Leo Lan HiangInternal Audit
ORGANISATION CHART
HDB Annual Report 2007/2008 [27]
STAFF STRENGTH
Figures as at 31 March 2008, including employees under the Part-Time Employment Scheme.
BUILDING GROUP
302
94
7
339
3
745
ESTATES GROUP
773
1,515.5
35
793
52
3,168.5
CORPORATE GROUP
286
324.5
65
14
21
710.5
TOTAL
1,361
1,934
107
1,146
76
4,624
CATEGORIES OF STAFF
Management/Professional
Management Support
IT Support
Technical Support
Office Administration Support
Total
A PLACECALLED
HOMETransforming a house into a home that you can call your
own. A process that many may take for granted but which
in itself is a challenge for HDB from year to year.
More than just providing a key to your new home, HDB’s
work extends to the integration of an increasingly diverse
population, the forging of new communities and managing
the different needs and expectations of our customers.
HDB Annual Report 2007/2008 [28]
The initiatives introduced during the FYreinforced this sense of purpose inproviding a place that you can call home.
A RANGE OF OPTIONS
The demand for new HDB flats was
particularly high during the year. To
increase the flat supply, HDB launched
eight Build-To-Order (BTO) exercises
with a total of 11 BTO projects, and
proceeded with tender for the
construction of all. This was in addition
to two Balloting Exercises (BE) in July
2007 and January 2008 which met
with very good responses.
In addition to increasing flat supply,
HDB took several measures to improve
the certainty, transparency and
convenience, as well as success rates
with regard to applications for new
HDB flats from first-timer buyers.
The revamped Bi-Monthly Sale of 4-
room and Bigger Flats replaced the
previous Walk-In Selection (WIS)
system for unsold flats from April 2007.
Under this system, unsold 4-room and
bigger flats were grouped into three
sectors according to towns/estates,
and one sector would be launched for
sale on the 10th day of each even
month on a rotation basis. This
ensured that there would be a sales
launch for unsold flats in each sector
every six months. At the same time,
3-room and smaller flats were offered
for sale on the first working day of
every month under the ‘Monthly Sale
of 3-room and Smaller Flats’ which
replaced the monthly WIS for 3-room
flats. HDB also recognised the more
urgent housing needs of newly-weds.
Therefore, at least 90 percent of the
flat supply was allocated to first-timers
in recognition of their more urgent need
for housing. First-timers were also
given double chances under the ballot.
Public housing flats developed by the
private sector provided another source
of homes for interested flat buyers.
Under the Design, Build and Sell
Scheme (DBSS), City View@Boon
Keng was sold by tender to M/s Hoi
Hup Sunway Development Pte Ltd in
June 2007. The 714-unit project was
five times oversubscribed. In addition,
two DBSS sites at Ang Mo Kio and
Bishan were sold by tender and
awarded to private developers. Under
the Executive Condominium (EC)
Housing Scheme, the Government
released new sites for EC development
in Punggol, Yishun and Jurong West.
In tandem with this, HDB revised the
policies relating to the purchase of
HDB Annual Report 2007/2008 [29]
Jurong West Street 64 (left)Bedok North Road (right)
ECs to align with public housing
policies. Changes included the lifting
of permanent debarment for first-timer
EC buyers; removal of the resale levy
for purchase of new ECs by second-
timers; and priority allocation of new
EC units for first-timers.
While new flats were the first choice for
many buyers, HDB also encouraged
applicants to buy a resale flat from the
open market to meet their urgent
housing needs. There was a two
percent increase in the number of resale
applications registered in FY 2007/2008,
and resale demand remained strong
despite rising resale prices, due in part
to the buoyant economy and positive
market sentiments.
LENDING A HAND
A recurrent message throughout the
year was an HDB reminder for
applicants to plan their flat purchases
carefully and to buy flats that were
within their means. The HDB Loan
Eligibility (HLE) Letter and financial
counselling from HDB helped home
buyers take stock of their financial
commitments so that they could make
informed decisions before committing
to a flat purchase. Against this overall
backdrop of encouraging financial
prudence, HDB also focused on the
specific needs of the more vulnerable
groups such as the elderly and lower-
income through policies and schemes
that protected their interests as well as
provided them with a financial helping
hand.
HDB’s stable of monetisation options
was expanded with the announcement
of the Lease Buyback Scheme during
the National Day Rally in August 2007.
Targeted at the lower-income elderly,
the scheme would allow elderly lessees
to unlock the value of their flats and
receive a steady stream of income to
meet their needs while allowing them
to stay on in the same flat to enjoy the
familiarity of home and community.
The initiative to build new 2-room and
3-room flats proved to be a boon for
lower-income families. Those wishing
to downgrade from bigger HDB flats
because of financial or life-cycle
reasons were eligible for the smaller
flats if their household income was not
more than $2,000 a month for a 2-
room flat and not more than $3,000 a
HDB Annual Report 2007/2008 [30]
Clementi Avenue 4
month for a 3-room flat. Rental tenants
aiming to upgrade to home ownership
flats were given priority under the
Tenants’ Priority Scheme to buy the
2-room/3-room flats offered under the
BTO system and BE exercises. In
spite of this helping hand towards
encouraging and maintaining home
ownership, there was no respite in the
demand for rental flats as HDB
received 327 more applications
compared to the last FY under the
Public Rental Scheme. To up the
supply of rental flats, vacant 3-room/4-
room flats in Boon Lay and Woodlands
were converted to 1-room/2-room
rental flats, adding 928 units to the
overall rental flat supply.
The CPF Housing Grant and the
Additional CPF Housing Grant (AHG)
schemes which have been key in
helping citizens become home owners,
were enhanced to provide greater
financial assistance. Since March
2007, a first-timer citizen and their
second-timer citizen spouse could
apply for the Half-Housing Grant of
$15,000, or $20,000 if they applied to
live near their parents. The AHG was
also enhanced in August 2007 to
provide greater assistance to more
lower-income families to own their first
homes. The average gross monthly
household income ceiling was raised
from $3,000 to $4,000. The AHG
quantum was raised from $20,000 to
$30,000 for the purchase of either a
new or resale flat.
HDB Annual Report 2007/2008 [31]
Average grossmonthlyhouseholdincome over thepast two years
$1,500 or less
$1,501 - $2,000
$2,001 - $2,500
$2,501 - $3,000
$3,001 - $3,500
$3,501 - $4,000
Current AHG
$30,000
$25,000
$20,000
$15,000
$10,000
$ 5,000
Punggol Drive
Bedok North Road
HDB Annual Report 2007/2008 [32]
Jalan Membina
Integrating a community at EdgedaleGreen’s Welcome Party
REACHING OUT TO HOMEOWNERS
With the premise that an integrated
and united community would not only
make HDB living more pleasant but
also instill a stronger sense of
commitment and ownership, HDB
launched its first pilot SERS
consultation exercise for residents of
Kampong Silat and Henderson Road
in October 2007. Residents were given
a say in the precinct name, the precinct
marker design and other common
facilities for their new homes.
Consultation exercises were held for
two more sites in January and March
2008. Based on the survey results of
the first three sites, 93 percent of the
survey respondents agreed that the
consultation exercise was useful and
effective in promoting community
bonding, and instilling in HDB residents
a greater sense of ownership of their
precinct.
As a way of integrating and easing
new residents into the community,
HDB organised welcome parties for
residents of new developments in
Compassvale Arcadia and The Coris.
The parties were well established
activities in the FY, serving as a
platform for new residents to get to
know each other and their new
environment better. Other community
integration initiatives included mixed
developments like Telok Blangah
Towers which was launched for sale
in October 2007. HDB’s first integrated
development, it offered a mixture of
Studio Apartments which are
customised housing for the elderly,
together with other flat types built
under the BTO system. Such
developments would achieve a better
resident mix and promote social
interaction between elderly and
younger residents.
Supporting its community integration
efforts were family friendly provisions
like the Family Season Parking Ticket.
Since October 2007, residents with a
regular Season Parking Ticket for their
residential car park and who required
season parking at another car park
due to family arrangements, could buy
a Family Season Parking Ticket at 50
percent of the regular Season Parking
Ticket price.
In line with its aim to reach out and be
more accessible to residents, HDB
launched its inaugural public talk on
‘Subletting of Flats’ in October 2007.
To be held on a quarterly basis, and
as part of HDB’s community outreach
efforts to foster greater neighbourliness
in the heartland, more public talks on
topics close to the hearts of residents
were lined up for the coming year.
Even as HDB stepped up its various
community bonding activities, it
continued to be well aware of the
practical considerations that moving
into a new home and community
entailed. For all new building contracts
with tenders called from January 2008
and beyond, HDB would provide
complimentary spare tiles in the form
of five spare tiles for each tile type
installed in the residential unit. This
additional service would be useful to
flat owners who required additional
wall/floor tiles during their renovation
works. Its Building Service Centres
(BSCs) for newly completed building
projects were also fitted with a
centralised monitoring system that
tracked all defects reported and
ensured that repairs were carried out
promptly and properly. Surveys were
conducted to gather feedback from
residents on the competency of
contractors and the effectiveness of
repair methods. The data collected
would enable HDB to conduct trend
analyses and make improvements to
the design and construction of future
projects.
HDB Annual Report 2007/2008 [33]
Key StatisticsFigures are for FY 2007/2008, or as at 31 March 2008
RESIDENTIAL PROPERTIES
Residential properties under management 885,140
Home ownership flats under management 838,488 (94.7%)
Rental flats under management# 46,652 (5.3%)
Total bookings for new flats* 12,580
- Balloting Exercise 1,888
- Build-To-Order System 5,097
- Monthly Sale of 3-Room and Smaller Flats 1,446
- Bi-monthly Sale of 4-room and Bigger Flats 3,521
- DBSS 628
Bookings for Studio Apartments 319
New flats sold 11,991
- 2-room flats 142
- 3-room flats 1,852
- 4-room flats 6,056
- 5-room flats 2,343
- Executive flats 1,598
Resale transactions (based on registered cases) 29,612
- 1-room flats 19
- 2-room flats 269
- 3-room flats 8,368
- 4-room flats 10,864
- 5-room flats 7,447
- Executive/Multi-Generation flats 2,569
- HUDC 76
Resale applications registered under the CPF Housing Grant Scheme 4,459
- Family grant (living near parents/married child) 1,533
- Family grant 1,987
- Singles grant 902
- Joint singles grant 37
Households that benefited from the Additional CPF Housing Grant 3,600
HDB Annual Report 2007/2008 [34]
Number of HDB loans granted 18,824
Number of HDB Loan Eligibility (HLE) letters issued 28,061
Applications received from flat buyers and existing 16,389
flat owners to finance purchases or refinance
existing mortgage loan with bank loans
- New flat buyers 1,622
- Resale flat buyers 14,759
- Existing flat owners (refinance) 8
Applications for rental flats 5,970
Flats rented out 2,735
Approved applications for financial assistance measures 8,475
Approved applications for Home Office Scheme 33,724
Active cases of Subletting of Whole Flat 18,735
HDB households that benefited from Goodwill Repairs Assistance Measures 15,963
HDB blocks with upgraded electrical supply 27
HDB Annual Report 2007/2008 [35]
* Refers to bookings received by HDB for 2-room and bigger flats under the various allocation exercises, including Design, Build and
Sell Scheme flats. It includes projected bookings under the January 2008 Balloting Exercise, February 2008 and March 2008 Build-
To-Order Exercises and City View @ Boon Keng under the Design, Build and Sell Scheme.#Includes 44,206 rental units under the Public Rental Scheme.
Applications with Bank Loan from 1 April 2007 - 31 March 2008
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08
Refinancing Sale Resale Monthly Total
1 0 0 1 0 1 0 1 1 0 0 3
21
406
79131 73
19196 106 115 71 66
267
1,2491,378 1,410 1,366 1,343
1,1211,251 1,211
1,053
1,296
860
1,221
1,271
1,784
1,489 1,498 1,416
1,313 1,347 1,318
1,169
1,367
926
1,491
MAKINGTHELINK
Making the link between the present
and future. That summed up the
initiatives that HDB put in place for key
renewal and rejuvenation programmes,
as well as the R&D efforts invested to
bring about greater conservation and
a more sustainable environment.
HDB Annual Report 2007/2008 [36]
With an eye on future needs, whether inthe residential heartland or the businessenvironment, our works translated intoincreased opportunities for all.
REMAKING OUR HEARTLAND
Under the Estate Renewal Strategy
(ERS), HDB had implemented a
comprehensive range of renewal and
rejuvenation programmes since the
1990s. These included the Main
Upgrading Programme (MUP), IUP
Plus, Lift Upgrading Programme (LUP)
and SERS.
The urban regeneration of HDB estates
is set to go beyond current upgrading
programmes in scale and scope with
the Remaking Our Heartland plans that
were unveiled by the Prime Minister
during the National Day Rally in August
2007. Formulated to transform new,
middle-aged and old HDB estates into
more vibrant homes for Singaporeans,
the Remaking plans will be an integral
part of HDB’s effort to build an
endearing home for Singaporeans.
Following the announcement of the
plans, a public consultation/Remaking
Our Heartland exhibition was launched
to obtain feedback from the community
on the proposed plans. The large
turnout at the exhibitions and the
positive response of more than 80
percent expressing excitement over
the plans indicated strong support and
interest to transform the heartland.
For new estates like Punggol, the plans
would focus on realising the town’s
vision and fulfilling its potential.
Punggol has been envisioned as a
‘Waterfront Town of the 21st Century’,
with a waterway that would run through
the housing estates, sports
complex/town park and the town
centre. The town centre itself would
be the centrepiece, serving as a
commercial and social hub for
residents, providing attractive
recreational opportunities and lifestyle
choices.
For middle-aged estates such as
Yishun with strong, well-established
community links, preserving the
community spirit that had been built
up over the years would be key to
re-igniting the vibrancy of the town.
The remaking plans therefore would
centre on revitalising the town centre,
introducing more outdoor community
and family facilities, as well as
increasing awareness of and enhancing
the town’s unique heritage as a means
of increasing residents’ sense of
belonging to and pride in their town.
HDB Annual Report 2007/2008 [37]
Obtaining feedback from the community onRemaking Our Heartland plans
HDB Annual Report 2007/2008 [38]
Old estates such as Dawson estate in
Queenstown that was developed in
the 1960s and 1970s would be
transformed with a new generation of
public housing that include such ideas
as ‘Housing-In-The-Park’, sky gardens,
community greens and multi-
generation living. Where possible,
heartland heritage would be retained
and integrated with the new
developments to preserve memories
of the place.
While the Remaking plans formed the
new blueprint to transform HDB living
environments, it also recognised that
its success hinged on the stronger
engagement of residents in shaping
their living environment. New
upgrading programmes such as the
Home Improvement Programme (HIP)
and Neighbourhood Renewal
Programme (NRP) were therefore
launched to benefit the residents by
giving them increased flexibility in the
choice of upgrading items, and greater
consultation in the type of
improvements within and outside their
flats.
SUSTAINABLE LIVING
As the largest developer in Singapore,
HDB recognises the important role it
plays in implementing efficient and
cost-effective designs and building
methods, as well as reducing the
impact of construction related activities
on the environment to ensure a
sustainable future for HDB housing.
A broad framework for public housing
has therefore been drawn up, which
combined with the efforts of other
agencies, would support Government
initiatives to promote sustainable
development.
Moving towards more sustainable
public housing therefore, a strategic
resource release system was set up
to ensure sufficient raw materials could
be supplied for various building
projects in the event of a supply
disruption of sand and granite, while
the HDB Direct Procurement and
Supply Scheme managed the
procurement and supply of these
materials.
More important than managing
procurement and supply, was reducing
dependence on raw materials like
concrete, sand and aggregates. To
this end, HDB put in place a plan to
reduce the reliance on concrete for
construction by 50 percent in 2010.
Engaging residents in shaping theliving environment
The concrete reduction measure was
implemented in June 2007 for all public
housing projects. R&D efforts and
collaborations with business partners
also focused on finding substitutes to
replace sand or granite in concrete
mix. Other innovative in-house efforts
included the development of the
FerroLite Partition Wall System that
was also implemented for all building
contracts since June 2007. The
patented new generation of lightweight
partition wall system uses up to 20
percent less sand with no aggregates
required. It won the Gold Award at
the PS21 ExCEL Convention 2007.
The various initiatives resulted in a 41
percent concrete reduction for the year
under review.
HDB’s sustainability efforts also saw
the intensification of green initiatives
in both new and existing estates. As
a result, all Multi-Storey Car Parks at
new residential developments have
green roof tops. A skyrise greening
programme using the Prefabricated
Extensive Green (PEG) Roof System,
a sustainable green roof system for
tropical climates, was implemented at
10 Multi-Storey Car Parks. This
innovative PEG Roof System won the
IES Prestigious Engineering
Achievement Award 2007. The
successful development of the modular
vertical greening system at the BTO
development, The Coris, also
presented a greater potential for skyrise
greenery on building facades.
HDB’s most impactful sustainability
initiative, eco-precinct
Treelodge@Punggol set new
benchmarks for future sustainable
green housing development when it
was first launched in March 2007. The
project was the first public housing
project to be conferred the Green Mark
Platinum Award by the Building and
Construction Authority for its innovative
housing concept. Industrial
developments such as Gourmet East
Kitchen and Shimei East Kitchen were
also Green Mark certified.
HDB Annual Report 2007/2008 [39]
Clementi Avenue 4
Toa Payoh Central
HDB Annual Report 2007/2008 [40]
Punggol Drive
Gek Poh Shopping Centre atJurong West Street 75
Even as HDB embarked on new
initiatives to ensure the sustainability
of its housing developments, it
continued with valuable R&D into
existing programmes like Lift
Upgrading. The adoption of more cost
effective solutions like the machine
roomless lift, home lifts and shaftless
lifts have allowed more residents to
benefit from the programme. These
technologies meant that about 96
percent of HDB blocks built without
full lift access could now be provided
with lift access. Other benefits
included substantial savings amounting
to some $170 million, compared to
conventional solutions.
KEEPING THE BUZZ
An essential ingredient in maintaining
the buzz in HDB towns is the range of
businesses that offer residents not only
an extensive menu of products and
services, but employment
opportunities as well. They are that
vital link in self-sufficiency that is a
hallmark of HDB living, a crucial
component in the town planning
process. As such, HDB introduced
several measures to improve the
business viability of the industrial and
commercial properties under its
management.
The Revitalisation of Shops (ROS)
Scheme was introduced in March 2007
to enhance the vibrancy and
competitiveness of HDB shops, and
better serve the needs of residents
through co-funding for the upgrading
of common areas, co-funding for
promotional activities and rent-free
periods for tenants to renovate their
shops. In November 2007, a total of
14 sites were selected for the pilot
ROS. The pilot scheme would be
reviewed in end-2008 to determine if
it could be extended to other sites.
HDB also continued with Batch 3 of
the Restructuring Programme for
Shops (RPS) to help commercial
tenants in areas with an over-supply
of shops and where business was poor,
to exit from business. In response to
requests to allow more shop tenants
to benefit from RPS, HDB would
consider blocks with at least 30
percent of tenants wanting to quit if
there was a feasible regrouping plan
for the remaining tenants at existing
blocks. However, if the majority of
tenants opted to quit, then the
remaining tenants would be regrouped
to other blocks with vacancies. In
November 2007, 11 blocks with 121
tenants were offered the RPS. Of the
121 tenants, 57 of them opted to quit,
and were given till 31 May 2008 to
vacate their premises.
HDB’s Industrial Relocation
Programme (IRP) also set out to
achieve similar aims of helping
businesses. Building 14 new industrial
complexes for over 3,000 affected
tenants, IRP would continue to
emphasize intensified usage of HDB
land, and meet relocation demand
through the clustering of similar trades
and the release of land for the
expansion of Multi-National
Corporations and Small Medium
Enterprises.
A financial helping hand was also
extended to industrial tenants where
needed. Measures included granting
a stagger-rent plan for an estimated
1,600 tenants. This was aimed at
helping those faced with rental
increases of more than 20 percent
upon renewal. HDB also gave rental
remissions of a month for adjacent
units affected by fire, as well as a lease
extension for industrial lessees to
better plan for their future businesses.
HDB Annual Report 2007/2008 [41]
Key StatisticsFigures are for FY 2007/2008 or as at 31 March 2008
RESIDENTIAL PROPERTIES
Flats completed 6,247
Flats under construction 18,073
NON-RESIDENTIAL PROPERTIES
Commercial properties under management 17,720
Industrial properties under management 12,372
Parking lots under management 713,180
LAND MANAGEMENT
State land managed and maintained by HDB on behalf of the Government 3,291 hectares
State land sold on behalf of the Government 8 residential sites
2 commercial sites
1 ancillary site
HDB Annual Report 2007/2008 [42]
Estate Renewal Strategy
MAIN UPGRADING PROGRAMME (MUP)
Total number of precincts (units) announced under Main Upgrading Programme 131 (130,848)
(Steady State Phase)
Completed 106 precincts
In Progress 15 precincts
INTERIM UPGRADING PROGRAMME (IUP)
Total number of precincts (units) announced/completed under 190 (156,443 units)
Interim Upgrading Programme
LIFT UPGRADING PROGRAMME (LUP)
Total number of precincts (units) announced under Lift Upgrading 219 (182,647 units)
Programme since 2001
Completed 58 precincts
In Progress 112 precincts
IUP PLUS
Total number of precincts (units) announced under IUP Plus since 2002 84 (68,011 units)
Completed 20 precincts
In Progress 62 precincts
SELECTIVE EN BLOC REDEVELOPMENT SCHEME (SERS)
Total number of sites under Selective En bloc Redevelopment 71 sites comprising
Scheme since 1995
- 32,741 sold flats
- 1,452 commercial properties
- 8 markets/ hawker centres
- 88 social/ communal premises
Completed Clearance 48 sites
In Progress 23 sites
HDB Annual Report 2007/2008 [43]
LOOKINGAHEAD
HDB launched a new vision in 2007,
one that speaks of committed people
making positive transformations in
the lives of Singaporeans.
HDB Annual Report 2007/2008 [44]
A NEW VISION
HDB launched its new Vision and
Mission on 20 November 2007. In his
first official address to HDB staff, HDB
Chairman touched on the spirit and
essence of the new vision and mission.
He also shared his firm belief in the
power of the people and highlighted
the new thrusts of the mission, one of
which focused on inspiring and
enabling staff to give of their best.
Together, HDB’s new Vision and
Mission would guide the organisation
to meet the challenges ahead.
The year also saw the launch of the
HDB 2010 Plan which would chart the
organisation’s directions for the next
three years. With its tagline of ‘Soaring
to Greater Heights’, the HDB 2010 Plan
focuses on the four thrusts of HDB’s
mission – to meet the housing needs
of a diverse population, create vibrant
and sustainable living environments,
build cohesive communities as well as
develop staff with the right capabilities
and mindsets to make HDB an
outstanding organisation.
These would be important areas for
HDB to focus on in order to meet the
housing demands of a new generation
of more affluent Singaporeans, as well
as the more specific needs of the
elderly and lower-income. The
‘Remaking Our Heartland’ plans had
also opened up a new chapter in the
public housing programme. To achieve
all of this, HDB would need people
with the right mindsets and capabilities
to take on the challenges ahead.
Prior to the launch, four working
committees were formed to formulate
the various strategies under each thrust
of the HDB 2010 Plan. And to give
staff a better understanding of the
details of the Plan, an exhibition was
held at the HDB Hub from 20 to 27
November 2007. The compact but
comprehensive exhibition with its
colourful displays, interactive panels
and multi-media shows, gave staff a
clearer idea of the journey that had
been mapped out for the next three
years, and how staff could contribute.
HDB’s receipt of the United Nations
Public Service Award for our Home
Ownership Programme was another
affirmation in that direction. The win
reinforced the achievements realised
under the Home Ownership
Programme, the cornerstone of public
HDB Annual Report 2007/2008 [45]
In fact HDB’s passion to provide itscustomers with quality service and itspursuit of innovation excellence wasevident in the many new initiatives thatput the organisation firmly on track tobeing outstanding.
Forging ahead at the launch of the new HDB visionand at the Senior Management Retreat
housing in Singapore, and its continued
role in the future of public housing.
WITH PASSION
A central focus for the year in HDB’s
efforts at staff development lay in the
area of developing and encouraging a
more passionate approach to work
and relationships among individuals,
teams and departments.
With this aim in mind, seven runs of
residential workshops involving 225
middle managers were conducted to
instill greater passion for service and
innovation excellence and to foster
greater bonding. Three post
workshops were also held to help
middle managers create an
environment of learning, sharing and
committing to company goals. An
inaugural 1-day HDB Administrative
Heads Workshop was also held on 21
June 2007 as part of HDB’s initiatives
to enhance communication and
collaboration amongst departments.
Leading with Passion, HDB’s top
management demonstrated their
commitment to walking the talk with
impromptu walkabouts to the frontline
service counters and branch offices.
During such management walkabouts,
frontline staff had the opportunity to
speak with HDB’s CEO and Deputy
CEOs on a personal, one-to-one basis.
The visits allowed management to
recognise the good work done by the
frontline staff and show their
appreciation.
Moving towards a greater focus on
staff engagement, the Staff Opinion
Survey was replaced by the HDB
Employee Engagement Survey. The
Civil Service College Consultants
(CSCC) was engaged to conduct the
first Employee Engagement Survey,
launched on 24 March 2008. The
survey would also enable HDB to
benchmark its performance with the
public sector on key areas that were
critical to employee engagement.
THE INNOVATION PARADIGM
The importance of innovation continued
to feature in various established and
new initiatives while staff members
were constantly encouraged to
innovate at work.
HDB Annual Report 2007/2008 [46]
Top management on their visits tothe frontline service counters andbranch offices
The highlight of the year in the
innovation arena was the launch of
HDB’s 5 Paradigms of Innovation –
Product, Process, Service, Policy, and
Business Model Innovation. As part
of the HDB 2010 plan to be a leader in
innovation excellence, the tagline
’Innovation for all by all’ aimed to
disseminate the message that everyone
could innovate and innovation was the
responsibility of all. Expanding from
the traditional domains of innovation
which focused essentially on product
and service, the 5 paradigms of
Innovation with the inclusion of process,
policy and business model innovations
would further bring clarity when
innovating at work.
The Lessee & Tenant File System was
one major example of how innovation
had brought great transformations and
convenience to both public and staff.
Some 880,000 files, equivalent to 14
million pieces of paper were converted
into electronic documents. The essence
of the fileless operation centred on the
re-engineering and transformation of
business processes. Enabled by
electronic workflow and
documentation, many processes were
re-engineered and automated resulting
in a much faster workflow and
improved customer service.
As service innovation continued to be
an important area for HDB, customer
feedback remained a priority for the
organisation. Forbes Research Pte Ltd,
the consultant for the civil service-wide
External Customer Perception Survey
(ECPS), was engaged to conduct HDB's
latest Customer Satisfaction Surveys.
This would provide a more aligned
comparison of HDB’s performance with
respect to the ECPS results. There was
an improvement in overall satisfaction
scores for Counter Services and
Telephone Services in the 2007 survey
compared with 2006's CSS scores.
HDB Annual Report 2007/2008 [47]
An Innovation Showcase
Key StatisticsFigures are for FY 2007/2008 or as at 31 March 2008
2007 CUSTOMER SATISFACTION SURVEY FINDINGS
On a scale of 1 to 6 (with 1 being very dissatisfied, and 6 being very satisfied)
Customer satisfaction (Overall) 4.6
Customer satisfaction (Counter Service) 5.3
Customer satisfaction (Telephone Services) 4.3
Customer satisfaction (Written Correspondence) 4.1
Customer satisfaction (Home/Office Visits) 4.5
Customers who rated HDB’s service levels as similar or 79%
better than selected organisations
Rated best for counter services Jurong East Branch Office
Rated best for telephone services Sims Drive Branch Office
Rated best for home/site visit Bedok Branch Office
POWER SESSION
Processes simplified /reduced 20%
CUT WASTE PANEL
Number of suggestions referred by Cut Waste Panel 71
IQC ACTIVITIES
IQCs in HDB 284
Projects completed in FY 2007/2008 619
Cost savings from IQC projects $4,819,000
M.A.G.I.C. CHA CHA CHA RECOGNITION SCHEME
M.A.G.I.C. Achiever Awards 1370
M.A.G.I.C. Hero Awards 90
M.A.G.I.C. Champion Awards 5
HDB Annual Report 2007/2008 [48]
STAFF SUGGESTION SCHEME (SSS)
Suggestions received 26,575
Suggestions accepted 17,181
STAFF DEVELOPMENT
HDB Undergraduate Scholarships awarded 10
HDB Postgraduate Scholarships awarded 2
Sponsorship for Postgraduate (Part-Time) & Undergraduate Studies 7
Sponsorship for Part-Time Diploma and Certificate Studies 183
STAFF RECOGNITION
Recipients for 25, 30, 40 and 45-Year Long Service Awards 455
Recipients for 10, 15, and 20-Year Long Service Awards 406
RECIPIENTS FOR NATIONAL DAY AWARDS
Public Administration Medal (Silver) 1
Public Administration Medals (Bronze) 2
Commendation Medals 3
Efficiency Medals 13
Long Service Medals (including a posthumous award) 239
STAFF CONTRIBUTIONS TO COMMUNITY
Staff who contributed to SHARE 92.18%
Amount raised under GRAINS $52,345.70
Beneficiaries under GRAINS 937
HDB Annual Report 2007/2008 [49]
HDB was the agent for the Government and other authorities on land reclamation projects, and infrastructure works in
HDB towns.
Land Reclamation ProjectsPulau Tekong Reclamation
HDB was the agent for the Ministry of National Development (MND) to execute the reclamation of land around Pulau
Tekong. The project would be carried out in three separate phases. Phase 1 of the project began in November 2000 and
is presently ongoing.
Infrastructure WorksOn behalf of MND, HDB carried out major infrastructure works for public housing development programmes, estate
renewal, government land sales programme and other large-scale HDB developments. The infrastructure works comprised
earthworks, the construction of major roads, road bridges, trunk sewers, outlet drains and road related facilities, such
as bus bays and shelters, and overhead pedestrian bridges. For FY 2007/2008, a total sum of $49 million was spent
on major infrastructure works.
Other Agency ProjectsHDB was also the agent for Sentosa Development Corporation (SDC) to carry out reclamation and infrastructure works
at the Southern Islands for development into a recreational and tourist resort. HDB has completed the reclamation works
at the Southern Islands and the laying of a submarine services link between Sentosa Cove and Kias Island. Phase 1 of
the main road network on the Southern Islands was also completed in October 2007.
The restoration of beaches at East Coast Park and Pasir Ris Park was another agency project undertaken by HDB on
behalf of the Building & Construction Authority (BCA). The restoration works involve shore protection works and nourishment
of the beach. The tender for the beach restoration works would be called in the second half of 2008.
AGENCY PROJECTS
HDB Annual Report 2007/2008 [50]
EM ServicesEM Services was formed in 1988 to offer estate management, engineering, contracts administration and project management
services to Town Councils. HDB holds a 75 percent stake in the subsidiary, while Keppel Land Ltd holds the remaining
25 percent stake.
During the year, EM Services maintained its position as the largest managing agent for public housing in Singapore. It
managed more than 490,000 units of residential and commercial properties on behalf of Town Councils. The total revenue
and management fees of the company for FY2007/2008 was $98 million.
The company provides essential maintenance and lift monitoring services to Town Councils, property management
services to both private and Government agencies, and also housing agency services.
HDB Annual Report 2007/2008 [51]
SUBSIDIARY AND ASSOCIATED COMPANIES
In FY 2007/2008, HDB welcomed 3,145 visitors in 172 visits. Among them were the following dignitaries:
01) His Excellency Wen JiabaoPremier of the State Council, People’s Republic of China
02) His Excellency Datuk Wira Abu Seman Bin YusopDeputy Minister, Ministry of Federal Territories, Malaysia
03) His Excellency Mansoor Hassan Bin RajabMinister for Municipalities and Agricultural Affairs, Kingdom of Bahrain
04) Dr Samir Saeed Mahmoud FaragGovernor of Luxor, Arab Republic of Egypt
05) Mr Sergey V PchelintsevDeputy Head of State Legal Board attached to the President of the Russian Federation
VISITORS
HDB played host to distinguished overseas and local visitors interestedin our successful public housing programme.
HDB Annual Report 2007/2008 [52]
HDB Annual Report 2007/2008 [53]
01
03
05
02
04
HDB Annual Report 2007/2008 [54]
CONTENTS
HDB’s Achievements since 1960
Demand for Flats 55
Building Statistics 56
Cumulative Achievements 57
HDB’s Achievements for FY 2007/2008
Statistical Highlights 58
Town Developments 59
Population Housed in HDB Flats 60
Location of HDB Developments 61
Price Range of Flats Offered 62
Residential Properties 63
Non-Residential Developments 64
Properties under Management 65
Allocations 67
Floor Plans 68
STATISTICS AND CHARTS
HDB Annual Report 2007/2008 [55]
HDB’S ACHIEVEMENTS SINCE 1960
DEMAND FOR FLATS
Home1960 - 1990/91 Rental Ownership
1960-1965 52,408 2,967+
1966-1970 66,005 40,013
1971-1975/76 57,034 123,213
1976/77-1980/81 47,958 141,430
1981/82-1985/86 38,628 205,502
1986/87-1990/91 15,995 194,206
Home1991/92 - 2007/2008 Rental Ownership
1991/92 - 1995/96 39,200 308,454*
1996/97 - 2000/01 27,787 126,413*
2001/02 - 2005/06 22,968 50,308*
2006/2007 5,643 8,455*
2007/2008 5,970 12,580*
+ Only for applications received in 1964 and 1965 to purchase Home Ownership flats.* From FY 1989 / 1990, applications for resale flats are not included in the figure on demand for Home Ownership flats.
Notes:i Demand for flats from FY 1991/1992 to FY 1993/1994 refers to new requests received for direct purchase flats in mature and non-mature estates
under the Booking System.ii Figures from FY 1994/1995 to FY 1996/1997 include new applications received under the Registration for Flat System (RFS) and new requests made
for mature estates during the year. The new requests for flats in mature estates exclude requests from applicants who were on the RFS queue andthose who had previously applied for flats in mature estates.
iii Figures from FY 1997/1998 to FY 2001/2002 refer to new applications received under RFS. These include 3-room applications received under RFSup till May 1999 and bookings for 3-room flats under Walk-In Selection (WIS) with effect from June 1999. These exclude requests received underthe Balloting Exercise.
iv Figures from FY 2003/2004 to FY 2007/2008 are based on bookings received by HDB for 2-room and bigger flats under the various allocation exercises.It includes projected bookings under the January 2008 Balloting Exercise, February 2008 and March 2008 Build-To Order Exercises, and City View@Boon
Keng under the Design, Build and Sell Scheme.
HDB’S ACHIEVEMENTS SINCE 1960
BUILDING STATISTICS
Commercial1960 - 1990 Total Dwelling Units Developments
1960-1965 54,430 53,777 653
1966-1970 66,239 63,448 2,791
1971-1975 113,819 110,362 3,457
1976-1980 137,670 130,981 6,689
1981-1985 200,377 189,299 11,078
1986-1990* 121,400 119,708 1,692
Commercial1991 - 2007 Total Dwelling Units Developments
1991 - 1995 99,557 98,994 563#
1996 - 2000 158,621 157,919 702
2001 - 2005 55,515 55,135 380
2006 2,752 2,733 19
2007 5,111 5,063 48
Figures are for calendar years* Includes HUDC units built by the Urban Redevelopment Authority (URA).# Before July 1992, commercial developments referred only to eating houses, shops with living quarters, and lock-up shops.
HDB Annual Report 2007/2008 [56]
HDB Annual Report 2007/2008 [57]
CUMULATIVE ACHIEVEMENTS
Building Projects Units Completed
ResidentialDwelling Units 990,320
CommercialShops and Eating Houses 16,581Markets and Food Centres 223Offices 1,895Kiosks 766
IndustrialTerrace Workshops 4,786*Industrial Workshops 5,900*Warehouses 97Flatted/Ramp-up Factories 2,869Prototype Factories 207Canteens/Eating Houses 61*#
Land Leases 0Wholesale 1,145
Shops and RecreationalSwimming Complexes 18Sports Complexes 12Indoor Stadiums, Training Halls and Sports Halls 9Town Gardens and Parks 72
HDB or Government/InstitutionalCivil Defence Shelters 446Area Offices, Branch Offices and Town Council Offices 67Community Centres/Clubs 44Bus Interchanges 25
Engineering Projects: Completed Land Reclamation Area Reclaimed (hectares)East Coast Phases 1-7 1,525.0North-Eastern Coast Phases 1-3 472.0North-Eastern Coast Phase 4 126.1Punggol 276.0Kallang Basin 199.0West Coast 86.0Pasir Ris 44.0Marina Bay 38.0Tuas 20.0Woodlands Checkpoint 9.7Tanjong Rhu 5.6Pasir Panjang 4.7Southern Islands 34.0Pulau Tekong 833.4
HDB’S ACHIEVEMENTS SINCE 1960
* Includes Woodlands Park D units (comprising 342 terrace workshops, 218 industrial workshops and 3 canteens) hived off to Jurong Town Corporationin 1995.
# Includes 1 canteen in Tampines demolished in 1996.
HDB Annual Report 2007/2008 [58]
STATISTICAL HIGHLIGHTS
PercentageKey Indicators FY 2006/2007 FY 2007/2008 Change %
Estimated percentage of resident population living in HDB flats 81 82 1.0Percentage of resident population living in Home Ownership flats 79 80 1.0Bookings for new flats# ^ 8,455 12,580 48.8Applications registered for resale flats 29,034 29,612 2.0Applications to rent flats 5,643 5,970 5.8Flats sold under Home Ownership for the People Scheme# ^^ 5,712 11,991 110.0Resale transactions completed 29,063 28,449 -2.1Rental flats let 4,037 2,735 -32.3
Projects CompletedResidential 1,764 6,247 254.1Commercial* 19 44 131.6Industrial 0 0 0.0
Projects Under ConstructionResidential 14,212 18,073 27.2Commercial* 100 78 -22.0Industrial 0 178 0.0
Units AwardedResidential 3,405 10,108 196.9Commercial** 17 33 94.1Industrial 0 0 0.0
# Excludes Studio Apartments.* Includes shops and eating houses, mini-markets and food courts, restaurants and fast-food restaurants, emporiums and supermarkets.** Includes shops, eating houses and markets.^ Figures refer to bookings received by HDB for 2-room and bigger flats under the various allocation exercises, as well as bookings for Design, Build
and Sell Scheme flats.^^ 'Flats sold under Home Ownership for People Scheme' refers to completed flats where the buyers have taken possession of the flats that they have
booked (i.e. collected keys). These flats would therefore comprise those booked in the reported financial year and those booked in previous financialyears when the flats were under construction.
HDB’S ACHIEVEMENTS FOR FY 2007/2008
HDB Annual Report 2007/2008 [59]
TOWN DEVELOPMENTS
Land Area (Hectares) Dwelling UnitsUnder Management Projected Ultimate**
Town Total* Residential** As At 31 March 2008
Ang Mo Kio 638 283 48,069 58,000Bedok 937 408 59,359 74,000Bishan 690 172 19,367 32,000Bukit Batok 785 291 31,731 47,000Bukit Merah 858 312 50,873 68,000Bukit Panjang 489 228 29,498 43,000Choa Chu Kang 583 307 39,173 62,000Clementi 408 198 23,877 35,000Geylang 678 214 30,418 49,000Hougang 1,276 354 48,473 68,000Jurong East 384 165 22,300 29,000Jurong West 987 480 69,650 92,000Kallang/Whampoa 799 176 34,289 43,000Pasir Ris 601 318 27,515 44,000Punggol 957 474 16,734 96,000Queenstown 687 210 29,312 50,000Sembawang 708 376 17,664 64,000Sengkang 1,055 507 42,090 95,000Serangoon 737 156 21,292 29,000Tampines 1,200 500 61,483 83,000Toa Payoh 463 210 36,281 48,000Woodlands 1,198 525 58,025 88,000Yishun 810 445 46,613 84,000Other Estates# - 126 21,054 25,000Total 885,140 1,406,000
* Includes private developments on private and state land.** Includes private developments under Government Land Sales Programme. The projected ultimate figures may change.# Comprises Bukit Timah, Central Area and Marine Parade.
HDB’S ACHIEVEMENTS FOR FY 2007/2008
HDB Annual Report 2007/2008 [60]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
POPULATION HOUSED IN HDB FLATS
Estimated Resident Population* by Townas at 31 March 2008
HDB Town Population
Ang Mo Kio 148,600Bedok 196,200Bishan 67,300Bukit Batok 113,400Bukit Merah 142,900Bukit Panjang 109,100Choa Chu Kang 150,800Clementi 72,800Geylang 95,900Hougang 170,800Jurong East 79,700Jurong West 236,600Kallang/Whampoa 100,900Pasir Ris 107,600Punggol 53,600Queenstown 82,300Sembawang 62,700Sengkang 143,000Serangoon 74,700Tampines 230,300Toa Payoh 104,600Woodlands 219,800Yishun 167,300Other Estates:
Central Area 30,300Bukit Timah 8,300Marine Parade 22,600
Total 2,992,100
* Refers to Singaporeans and Permanent Residents only. Figures are rounded off to the nearest '00.
3,8003,6003,4003,2003,0002,8002,6002,4002,2002,0001,8001,6001,4001,2001,000
800600400200
0
Population in Singapore and in HDB Flats
PO
PU
LAT
ION
(’00
0)
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008(Mar)
YEAR
Estimated resident population in Singapore(Source: Singapore Department of Statistics)
Estimated resident population living in HDB flats(Source: Research & Planning Department, HDB)
3.0 million
3.6 million
100
90
80
70
60
50
40
30
20
10
0
Population in Singapore and in HDB Flats
PE
RC
EN
T
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008(Mar)
YEAR
Estimated percentage of resident population living in HDB flats(Source: Research & Planning Department, HDB)
9%
23%
35%
47%
67%
81%
87%
86% 86%83%
82%
HDB Annual Report 2007/2008 [61]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
LOCATION OF HDB DEVELOPMENTS
CompletedUnder ConstructionHDB Development Boundary
Legend
Map of Singapore
Scale5 kilometres
N
0
HDB Annual Report 2007/2008 [62]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
PRICE RANGE OF FLATS OFFERED
Town 2-Room ($) 3-Room ($) 4-Room/Type A ($) 5-Room/Type B ($)
Jurong West - - 160,000 - 205,000 190,000 - 260,000Bukit Panjang - 116,000 - 143,000 181,000 - 231,000 -Sembawang - - 135,000 - 200,000 -Yishun 77,000 - 97,000 118,000 - 141,000 183,000 - 253,000 -Punggol 73,000 - 89,000 117,000 - 152,000 184,000 - 259,000 -Sengkang 60,000 - 87,000 100,000 - 143,000 145,000 - 243,000 -
Note :i The prices indicated are the actual prices of flats in selected towns under development and comprise new flats at various stages of development.ii Prices of 2-room and 3-room flats are based on flats in new projects, and exclude those offered under the Monthly Sale exercises.iii Prices of 4-room flats exclude smaller and 4-room (Budget) flats.iv Prices exclude some isolated units with exceptionally different attributes and some exercises with very small supply of flats.v Price differential between flat types may not be directly comparable due to the different attributes, such as location, design, storey height, orientation,
market conditions, etc.
HDB Annual Report 2007/2008 [63]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
RESIDENTIAL PROPERTIESDwelling Dwelling
Dwelling Units Under Management Total Units UnitsSold Flats Rental Flats Dwelling Under Completed
HDB Town* 1-Rm 2-Rm 3-Rm 4-Rm 5-Rm Exec SA HUDC Total 1-Rm 2-Rm 3-Rm 4-Rm 5-Rm Exec SA HUDC Total Units Construction FY 07/08
Ang Mo Kio 0 630 24,426 13,023 5,252 481 0 0 43,812 1,318 2,863 73 3 0 0 0 0 4,257 48,069 1,221 0
Bedok 0 672 22,402 19,854 10,135 2,711 130 0 55,904 2,250 1,155 38 12 0 0 0 0 3,455 59,359 572 386
Bishan 0 0 2,359 9,199 5,395 1,660 0 358 18,971 396 0 0 0 0 0 0 0 396 19,367 176 0
Bukit Batok 0 0 10,268 13,850 4,832 2,732 0 0 31,682 20 20 9 0 0 0 0 0 49 31,731 0 0
Bukit Merah 653 1,145 16,425 13,838 9,098 44 212 0 41,415 4,231 4,913 218 96 0 0 0 0 9,458 50,873 1,218 1,306
Bukit Panjang 0 0 2,620 13,980 9,517 3,381 0 0 29,498 0 0 0 0 0 0 0 0 0 29,498 0 0
Choa Chu Kang 0 0 1,312 19,437 13,422 4,762 0 0 38,933 0 240 0 0 0 0 0 0 240 39,173 468 0
Clementi 0 41 12,132 7,677 2,407 620 0 0 22,877 454 479 67 0 0 0 0 0 1,000 23,877 388 0
Geylang 0 750 11,382 9,363 3,601 831 107 330 26,364 1,044 2,401 609 0 0 0 0 0 4,054 30,418 447 0
Hougang 0 0 9,219 23,160 9,923 4,310 0 622 47,234 538 315 380 6 0 0 0 0 1,239 48,473 0 0
Jurong East 0 0 6,879 7,333 5,898 1,871 143 0 22,124 0 0 176 0 0 0 0 0 176 22,300 0 0
Jurong West 0 123 11,107 28,401 20,821 6,506 0 0 66,958 84 1,147 1,459 2 0 0 0 0 2,692 69,650 981 228
Kallang/Whampoa 0 444 12,934 9,079 4,843 501 0 0 27,801 4,401 2,025 58 4 0 0 0 0 6,488 34,289 1,056 0
Pasir Ris 0 21 155 10,716 9,054 7,460 0 98 27,504 0 0 11 0 0 0 0 0 11 27,515 0 0
Punggol 0 0 0 5,335 10,273 1,126 0 0 16,734 0 0 0 0 0 0 0 0 0 16,734 2,074 425
Queenstown 0 1,365 15,485 6,207 3,337 359 114 0 26,867 575 1,702 168 0 0 0 0 0 2,445 29,312 3,959 720
Sembawang 0 0 0 7,238 7,556 2,870 0 0 17,664 0 0 0 0 0 0 0 0 0 17,664 757 0
Sengkang 0 84 240 17,988 19,316 4,462 0 0 42,090 0 0 0 0 0 0 0 0 0 42,090 2,556 2,024
Serangoon 0 66 4,547 10,231 3,751 2,365 0 244 21,204 0 88 0 0 0 0 0 0 88 21,292 0 0
Tampines 0 0 12,240 27,057 15,833 5,845 208 0 61,183 154 126 20 0 0 0 0 0 300 61,483 0 0
Toa Payoh 0 659 15,708 9,304 5,211 853 156 175 32,066 1,170 2,954 91 0 0 0 0 0 4,215 36,281 0 1,158
Woodlands 0 51 5,380 25,843 19,010 6,190 0 0 56,474 932 385 75 159 0 0 0 0 1,551 58,025 0 0
Yishun 0 0 13,025 23,301 7,280 2,741 169 0 46,516 16 16 63 2 0 0 0 0 97 46,613 352 0
Other Estates:
Central Area 0 341 4,697 2,282 283 9 0 38 7,650 2,073 975 53 14 0 0 0 0 3,115 10,765 1,848 0
Bukit Timah 0 0 441 920 682 380 0 0 2,423 0 0 0 0 0 0 0 0 0 2,423 0 0
Marine Parade 0 26 3,043 1,798 1,673 0 0 0 6,540 0 1,324 2 0 0 0 0 0 1,326 7,866 0 0
Total 653 6,418 218,426 336,414 208,403 65,070 1,239 1,865 838,488 19,656 23,128 3,570 298 0 0 0 0 46,652 885,140 18,073 6,247
* Equivalent to Town Registration Boundary.
HDB Annual Report 2007/2008 [64]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
NON-RESIDENTIAL DEVELOPMENTS
UnderConstruction
as atType Awarded 31 March 2008 Completed
CommercialShops, Lock-Up Shops and Eating Houses 32 49 35Mini-Markets 0 0 0Markets and Hawker Centres 1 1 0Kiosks and Shoplets 0 0 0Food Courts 0 1 0Restaurants and Fast Food Restaurants 0 0 0Emporiums and Supermarkets 0 4 1Offices 0 0 0Commercial Spaces 0 2 0
Industrial 0 178 0
Sports and RecreationalNeighbourhood Parks* 3 8 2
HDB or Government/InstitutionalBus Interchanges 0 1 0Community Clubs 0 1 0Branch Offices / Service Centres 0 1 0Town Council Offices 0 0 0Education Centres 3 6 3Residents' Committee Centres 1 8 3Child-Care Centres 0 4 2
* Includes common green
HDB Annual Report 2007/2008 [65]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
PROPERTIES UNDER MANAGEMENT
Units Units Units Unitsas at Taken over Reclassified/ as at
31 March in FY converted/ 31 MarchType 2007 2007/2008 demolished 2008 Residential1-Room Flats 20,145 0 164 20,3092-Room Flats 28,712 0 834 29,5463-Room Flats 222,098 710 (812) 221,9964-Room Flats 331,787 4,958 (33) 336,7125-room Flats 207,975 421 7 208,403Executive Flats 65,150 0 (80) 65,070Studio Apartments 1,081 158 0 1,239HUDC Flats 1,865 0 0 1,865Total 878,813 6,247 (80) 885,140 CommercialShops 13,112 50 (115) 13,047Kiosks and Shoplets 747 - (9) 738Eating Establishments 842 6 (16) 832Supermarkets and Emporiums 150 6 (5) 151Offices 2,129 16 (3) 2,142Cultural Complexes 1 - - 1Shopping Complexes 1 - - 1Automated Teller Machines 222 8 (2) 228Civil Defence Shelters 367 - - 367TAS Radio Equipment Rooms 212 - 1 213Total 17,783 86 (149) 17,720
IndustrialTerrace Workshops 2,813 - (5) 2,808Industrial Workshops 4,883 - - 4,883Warehouses 89 - - 89Flatted/Ramp-up Factories 2,706 - (1) 2,705Prototype Factories 201 - - 201Canteens/Eating Houses/Cafeterias 47 - - 47Land Leases 538 - (4) 534Coldrooms & Other Facilites 1,105 - - 1,105Total 12,382 - (10) 12,372
Car ParksCar Lots 529,971 6,071 (5,400) 557,855Lorry Lots 3,137 0 (98) 7,752Motorcycle Lots 142,686 1,486 (2,148) 147,573Total 675,794 7,557 (7,646) 713,180*
* From FY 2007/2008, the carpark figures also include 27,213 car lots, 4,713 lorry lots and 5,549 motorcycle lots that are managed by external service
providers.
HDB Annual Report 2007/2008 [66]
PROPERTIES UNDER MANAGEMENT
Units Units Units Unitsas at Taken over Reclassified/ as at
31 March in FY converted/ 31 MarchType 2007 2007/2008 demolished 2008 Social and Communal FacilitiesChildcare Centres 369 4 - 373Education Centres 483 6 (12) 477Children's Homes/Homes for the Aged 50 3 (5) 48Senior Citizen Centres 39 - 4 43Boys' Clubs 5 - - 5Social Service Centres 162 3 (5) 160Residents' Committee Centres 536 6 1 543Social Function Halls 12 - - 12Community Health/Dialysis Centres 52 1 (1) 52Day Activity Centres 73 2 9 84Neighbourhood Links 24 - 1 25Study Centres 14 - 1 15Student Care Centres 100 - (2) 98Civil Defence Shelters 79 - (2) 77Others** 7 - - 7Total 2,005 25 (11) 2,019
HDB or Government Administrative FacilitiesBranch Offices 27 - (1) 26Administrative Offices 26 - (2) 24Polyclinics 6 - - 6Community Centres*** 31 1 (6) 26Neighbourhood Police Posts/ Satellite Fire Posts 77 - - 77Bus Terminals and Interchanges 5 - - 5HDB Site Offices 13 - (3) 10Libraries 21 - (3) 18Total 206 1 (15) 192 Other FacilitiesBungalows 46 - - 46
** Comprises civil defence centres.*** Refers to void-deck Community Centres. The stand-alone Community Centres are excluded as these are not managed by HDB.
Notesi Children’s Homes, Homes for the Aged, Hostels for the disabled, sheltered housing and hospice care are reclassified under Children’s Homes / Homes
for the Aged.ii Facilities formerly grouped under Social Services Centres have been reclassified and categorised separately as Day Activity Centres, Neighbourhood
Links, Student Care Centres and Study Centres. Counselling Centres, Family Clubs, Family Service Centres, Social Service Centres, Social Servicesand Youth Centres are now classified under Social Services Centres.
iii Community Halls are now reclassified as Social Function Halls.iv Cancer Screening Centres, Diabetes & Hypertension Control Centres, Diabetes Education Care Centres, Kidney Dialysis Centres, Medical Free Clinics
and Mental Health Centres are grouped under Community Health / Dialysis Centres.v Day Activity Centres for the Disabled, Day Activity Centres for Senior Citizens, Day Care Centres for Senior Citizens and Rehabilitative Day Care
Centres are grouped under Day Activity Centres.vi Student Care Centres and Student Service Centres are grouped under Student Care Centres.vii Libraries include Community Children’s Libraries.
HDB Annual Report 2007/2008 [67]
HDB’S ACHIEVEMENTS FOR FY 2007/2008
ALLOCATIONS
Number of UnitsType Sold Percentage% Rented Percentage%
Residential1-Room Flats 0 0.0 1,147 41.92-Room Flats 142 1.2 1,066 39.03-Room Flats 1,852 15.5 272 10.04-Room Flats 6,056 50.5 250 9.15-Room Flats 2,343 19.5 0 0.0Executive Flats 1,598 13.3 - -Total 11,991 100.0 2,735 100.0
CommercialShops and Eating Houses 17 100.0 330 60.9Offices - - 200 36.9Supermarkets & Emporiums - - 9 1.7Civil Defence Shelters (commercial use) - - 3 0.5Total 17 100.0 542 100.0
IndustrialTerrace Workshops 0 0.0 116 24.4Industrial Shops 0 0.0 228 48.0Warehouses 0 0.0 8 1.7Prototype Factories 0 0.0 1 0.2Flatted/Ramp-up Factories 0 0.0 119 25.1Canteens/Eating Houses 0 0.0 1 0.2TOL Land 0 0.0 2 0.4Total 0 0.0 475 100.0
Social Communal FacilitiesChildcare Centres - - 5 7.9Education Centres - - 16 25.4Social Services Centres - - 5 7.9Residents' Committee Centres - - 15 23.8Day Activity Centres - - 11 17.5Neighbourhood Links - - 1 1.6Rehabilitation Centres - - 3 4.7Kidney Dialysis Centres - - 1 1.6Senior Citizens Centres - - 1 1.6Study Centres - - 1 1.6Youth Centres - - 1 1.6Community Centres - - 2 3.2Hospice Care Satellite Centres - - 1 1.6Total - - 63 100.0
HDB Annual Report 2007/2008 [68]
FLOOR PLANS
HDB’S ACHIEVEMENTS FOR FY 2007/2008
LIVING/DINING
BEDROOM
BATH/WC
HOUSE-HOLDSHELTER
KITCHEN
2 ROOM MODEL ‘A’
Scale:
Area: 45m2
0 1 2 3 4 5 METRES
HDB Annual Report 2007/2008 [69]
3 ROOM MODEL ‘A’
Scale:
Area: 65m2
0 1 2 3 4 5 METRES
BEDROOM 2
MAIN BEDROOM
LIVING/DINING
HOUSE-HOLDSHELTER
BATH/WC 2
BATH/WC 1
KITCHEN SERVICEYARD
HDB Annual Report 2007/2008 [70]
LIVING/DINING
BEDROOM 2 BEDROOM 3
MAIN BEDROOM
HOUSE-HOLDSHELTER
BATH/WC 2
BATH/WC 1
KITCHEN SERVICEYARD
4 ROOM MODEL ‘A’
Scale:
Area: 90m2
0 1 2 3 4 5 METRES
HDB Annual Report 2007/2008 [71]
LIVING/DINING
BEDROOM 3 BEDROOM 2SUGGESTEDSTUDY
HOUSE-HOLDSHELTER
BATH/WC 2
BATH/WC 1
MAIN BEDROOM
KITCHEN
SERVICEYARD
5 ROOM IMPROVED
Scale:
Area: 110m2
0 1 2 3 4 5 METRES
HDB Annual Report 2007/2008 [73]
CONTENTS
Financial Highlights of HDB 74
Financial Review 76
Statement by the Board 84
Report on the Audit of the Financial Statements 85
Balance Sheets 87
Income and Expenditure Statements 88
Statements of Changes in Capital and Reserves 89
Consolidated Statements of Changes in Capital and Reserves 91
Consolidated Cash Flow Statement 93
Notes to the Financial Statements 95
FINANCIAL REPORT
HDB Annual Report 2007/2008 [74]
FINANCIAL HIGHLIGHTS OF HDB
S$ millionIncrease/
2007/2008 2006/2007 (Decrease) 2005/2006 2004/2005
INCOMEIncome 3,004 2,941 63 3,089 3,038Gross profit 104 51 53 137 116Income (net) 3,108 2,992 116 3,226 3,154
EXPENDITUREExpenditure 4,252 3,789 463 4,703 4,060Less: Amount capitalised (63) (57) (6) (71) (82)Expenditure (net) 4,189 3,732 457 4,632 3,978Capital expenditure 2,423 1,532 891 1,131 1,658
SEGMENTAL RESULTSHome ownership (1,006) (576) (430) (454) (554)Upgrading (516) (353) (163) (306) (374)Residential ancillary functions (173) (159) (14) (236) (219)Rental flats (77) (65) (12) (71) (100)Other rental and related businesses 632 381 251 (316) 401Mortgage financing 37 1 36 (51) 16Agency and others 22 31 (9) 28 6Deficit (1,081) (740) (341) (1,406) (824)
HDB Annual Report 2007/2008 [75]
S$ millionIncrease/
2007/2008 2006/2007 (Decrease) 2005/2006 2004/2005 FINANCIAL POSITIONProperty, plant and equipment, and investment properties 19,440 19,575 (135) 19,912 21,576Loans receivable 49,680 52,195 (2,515) 54,550 56,657Properties under development 2,443 2,636 (193) 2,025 2,359Other assets 2,638 2,832 (194) 3,275 4,201Total assets 74,201 77,238 (3,037) 79,762 84,793Less:Loans payable 57,828 61,211 (3,383) 63,650 67,383Other liabilities 1,997 1,808 189 1,863 1,920Total net assets 14,376 14,219 157 14,249 15,490Capital and reserves 14,376 14,219 157 14,249 15,490 FINANCING OF PUBLIC HOUSINGGovernment grant to HDB 1,248 746 502 755 919
Government loans drawn during the year- mortgage financing 2,359 2,574 (215) 2,361 2,245- upgrading financing 23 15 8 18 20
Outstanding loans payableGovernment loans- mortgage financing 49,669 52,473 (2,804) 54,581 56,552- upgrading financing 116 116 - 120 116- housing development - 2,018 (2,018) 3,705 5,896Bonds 5,200 4,900 300 4,400 3,400Bank loans 2,842 1,702 1,140 841 1,416
Mortgage loans granted to flat buyers 3,040 3,244 (204) 3,592 2,481
HDB Annual Report 2007/2008 [76]
FINANCIAL REVIEW
FINANCIAL RESULTS
The HDB reported a deficit before government grant of $1,081 million, $341 million higher than last year.
The net surplus after government grant of $1,248 million was $167 million. The asset revaluation reserve of $89 million was realised
and transferred to retained earnings. The total amount of $256 million transferred to capital gains reserve comprised the reversal
of impairment losses and the capital gains on disposal, of protected properties which were attributable to the past governments.
$ million
5,000
4,000
3,000
2,000
1,000
0
-1,000
-2,000
FINANCIAL RESULTS
2004/2005 2005/2006 2006/2007 2007/2008
(850)
(1,406)
(740)(1,081)
Income (net) Expenditure (net) Deficit before government grant
3,154
3,978
3,226
4,632
2,992
3,732
3,108
4,189
HDB Annual Report 2007/2008 [77]
INCOME
Income comprises mainly interest income from mortgage loans, rental and related income from commercial and industrial
properties and car park charges. Income increased due mainly to increase in rental and related income, car park charges and
gain on disposal of assets, offset by lower interest income.
Rental and related income increased due to higher rental rates in tandem with strong market demand. Car park charges were
higher as a result of increase in the number of season parking tickets sold. The gain on disposal of assets increased as higher
compensation was received for the return of some land parcels to the Government.
Provision for foreseeable loss was made for flats acquired or being developed, and released to the cost of sales on subsequent
sale of the flats. The gross profit from the sale of properties and building materials after offsetting the release was $104 million.
The increase in gross profit was due mainly to more units of larger flats and flats in mature estates being sold.
After taking into account the gross profit, net income for the year was $3,108 million.
INCOME
Change over2007/2008 2006/2007 2006/2007
Breakdown $M % $M % $M %
Interest 1,417 46 1,480 49 (63) (4)Rental and related income 842 27 793 27 49 6Car park charges 416 14 387 13 29 7Recoveries for upgrading and others 70 2 78 2 (8) (10)Levy on resale flats and sales premium 41 1 28 1 13 46Agency fees 41 1 24 1 17 71Gain on disposal of assets 61 2 22 1 39 177Others 116 4 129 4 (13) (10)Income 3,004 97 2,941 98 63 2Gross profit 104 3 51 2 53 104Income (net) 3,108 100 2,992 100 116 4
2007/2008:$3,004M
2006/2007:$2,941M
HDB Annual Report 2007/2008 [78]
EXPENDITURE
Expenditure for the year was $4,252 million. As compared with last year’s expenditure of $3,789 million, there was an increase
of 12%. The increase in expenditure was due mainly to higher provision for foreseeable loss for properties under development/for
sale, higher upgrading, improvements and demolition expenditure, and manpower costs. The increase was offset by lower
depreciation and impairment due to reversal of impairment losses on properties, lower interest and CPF Housing grant.
EXPENDITURE
2007/2008:$4,252M
2006/2007:$3,789M
Change over2007/2008 2006/2007 2006/2007
Breakdown $M % $M % $M %
Interest 1,664 39 1,769 47 (105) (6)Upgrading, improvements and demolition 625 15 439 11 186 42Depreciation and impairment 190 4 336 9 (146) (43)Property tax 108 3 100 3 8 8Provision for loss for properties 784 19 195 5 589 302
under development/for saleManpower costs 391 9 333 9 58 17CPF Housing grant 215 5 311 8 (96) (31)Others 275 6 306 8 (31) (10)Expenditure 4,252 100 3,789 100 463 12
HDB Annual Report 2007/2008 [79]
CAPITAL EXPENDITURE
Capital expenditure for the year was $2,423 million, an increase of $891 million from last year. A large proportion of the year’s
capital expenditure was incurred for purchases of land and construction of public housing. The land and construction expenditure
for the year was higher as more building contracts for dwelling units were awarded.
CAPITAL EXPENDITURE
2007/2008:$2,423M
2006/2007:$1,532M
Change over2007/2008 2006/2007 2006/2007
Breakdown $M % $M % $M %
Buildings 708 29 617 40 91 15Land 1,321 54 602 39 719 119Upgrading and improvement works 187 8 115 8 72 63Flats and assets purchased 207 9 198 13 9 5Capital expenditure 2,423 100 1,532 100 891 58
HDB Annual Report 2007/2008 [80]
SEGMENTAL RESULTS
The Home ownership segment recorded a higher deficit of $1,006 million as compared with $576 million last year. The number
of flats sold under the home ownership scheme this year was 11,991, which was 6,279 more than last year. The higher deficit
was mainly attributable to higher provision for foreseeable loss for properties under development, as more new building contracts
were awarded this year.
The Upgrading segment reported a higher deficit of $516 million. The increase in deficit was mainly due to more precincts under
the lift upgrading and interim upgrading plus programmes this year.
The Residential ancillary functions segment, which includes lease administration, management of ancillary facilities such as
car parks in housing estates, and building resources, reported a higher deficit of $173 million as compared with $159 million
last year. The higher deficit was largely due to the write-off of parking lots for the greening of multi-storey car parks, which was
partially offset by the increase in season parking income.
The Rental flats segment recorded a higher deficit of $77 million this year, due mainly to the upgrading of rental flats. The Other
rental and related businesses segment focuses on the tenancy and management of other property developments owned by
the HDB. It reported a higher surplus of $632 million as compared with $381 million last year. The increase in surplus was due
mainly to higher rental, reversal of impairment losses of commercial and industrial properties and land, and higher compensation
received for the return of some land parcels to the Government during the year.
The Mortgage financing segment reported a higher surplus of $37 million this year. The higher surplus was due mainly to the
reversal of allowance for impairment losses made in respect of non-performing mortgage loans, as a result of higher resale
prices of flats.
The Agency and others segment encompasses mainly agency projects on behalf of the Government.
Change over2007/2008 2006/2007 2006/2007
Breakdown $M $M $M
Surplus/(deficit) from:Home ownership (1,006) (576) (430)Upgrading (516) (353) (163)Residential ancillary functions (173) (159) (14)Rental flats (77) (65) (12)Other rental and related businesses 632 381 251Mortgage financing 37 1 36Agency and others 22 31 (9)
(1,081) (740) (341)
HDB Annual Report 2007/2008 [81]
FINANCIAL POSITION
As at 31 March 2008, the HDB’s total assets decreased by $3,037 million to $74,201 million. Properties, plant and equipment,
and loans receivable were $19,440 million and $49,680 million respectively. These accounted for 93% of the total assets.
Properties under development were $2,443 million.
Capital and reserves stood at $14,376 million as at 31 March 2008. Reserves were made up of capital gains reserve of $5,992
million and asset revaluation reserve of $5,920 million.
The loans payable of $57,828 million comprised mainly loans due to the Government.
$ billion
100
80
60
40
20
0
FINANCIAL POSITION
04/05 05/06 06/07 07/08 04/05 05/06 06/07 07/08
5%
Other assets
Properties under development
Property, plant and equipment,and investment properties
Loans receivable
Total Assets
Capital and reserves
Other liabilities
Loans payable
Capital, Reserves and Liabilities
4% 4%4%3%
3% 3% 3%25% 25% 25%
26%
67%
67%68%68%
2%
3%
18%18% 19%
19%
80%80% 79%
78%
2% 2%
FINANCING OF PUBLIC HOUSING
The HDB’s annual deficit is fully covered by government grant. In addition, the HDB receives government grant to preserve
the capital gains attributable to past governments on disposal of the protected assets. The cumulative government grant to
the HDB since its establishment in 1960 amounted to $17,241 million.
The main loans which finance the HDB’s operations are:
i) The mortgage financing loans that finance the mortgage loans granted for purchase of flats under the public housing schemes.
Interest rate and repayment term on loans obtained from the Government are:
ii) The housing development loans that finance the development programmes and operations. Interest rate is pegged at two
percentage points above the floating CPF interest rate. The housing development loans were fully repaid as at 31 March 2008.
iii) The bonds are issued to finance the HDB’s development programmes and working capital requirements. During the financial
year, the HDB redeemed $500 million and raised $350 million, $150 million and $300 million of 2-year, 12-year and 15-year
unsecured Fixed Rate Notes respectively to meet funding requirements. Total outstanding notes under the Medium Term Note
Programme was $5,200 million.
HDB Annual Report 2007/2008 [82]
Mortgage loans granted to purchasers at
Concessionary interest rate
Market interest rate
Interest rate on loans obtained from the Government
CPF interest rate
0.1% point below adjustable rate mortgage index
Repayment term
20 years
5 to 30 years
$ billion
70
60
50
40
30
20
10
0
TOTAL OUTSTANDING LOANS
2004/2005 2005/2006 2006/2007 2007/2008
Mortgage financing loans Housing development loans Bonds
3.40
5.90
56.55
4.40
3.70
54.58
4.90
2.0052.47
49.67
5.20
HDB Annual Report 2007/2008 [83]
RISK MANAGEMENT
The activities of the HDB expose it to interest rate risk, credit risk and liquidity risk.
Interest rate riskThe HDB’s exposure to market risk for changes in interest rate relates primarily to the government loans. The HDB manages
its interest rate exposure by largely matching the terms of the government loans with that of the loans receivables. The HDB
uses various sources of funding to manage interest costs. In addition to government loans, the HDB also accesses the capital
market and financial institutions for its funding requirements. The bank loans are unsecured and short-term in nature. Any future
variation in interest rates is not expected to have a material impact on the results of the HDB.
Credit riskThe HDB’s loans receivables comprise largely mortgage loans to purchasers of flats under the public housing schemes. Policies
on loan quantum and credit assessment are in place for the granting of mortgage loans to flat buyers and the flats are taken as
collateral. An allowance for impairment is made in respect of non-performing mortgage loans of which the collateral held is
insufficient to discharge the outstanding mortgage loan. The allowance represents the aggregate amount by which management
considers it necessary to write down its mortgage loan in order to state it in the Balance Sheet at its estimated net realisable value.
Liquidity riskThe HDB monitors and maintains a level of cash and cash equivalents deemed adequate to finance the operations. Funding
is also made available through an adequate amount of committed credit facilities. The Ministry of Finance will act as the lender
of last resort to the HDB for its funding requirements.
HDB Annual Report 2007/2008 [84]
In our opinion, the accompanying balance sheets of the Group and the Housing and Development Board (HDB) as at 31 March
2008, income and expenditure statements and statements of changes in capital and reserves of the Group and the HDB and
the cash flow statement of the Group for the year then ended, and a summary of significant accounting policies and other
explanatory notes as set up on pages 87 to 127 are drawn up so as to give a true and fair view of the state of affairs of the
Group and the HDB as at 31 March 2008, the results and changes in capital and reserves of the Group and the HDB, and
changes in cash flows of the Group for the year ended on that date.
On Behalf of the Board
James Koh Cher SiangChairman
Tay Kim PohChief Executive Officer
30 May 2008
STATEMENT BY THE BOARDof the Housing and Development Board for the year ended 31 March 2008
HDB Annual Report 2007/2008 [85]
The accompanying financial statements of the Housing and Development Board (HDB) and its subsidiaries, set out on pages
87 to 127, have been audited under my directions and in accordance with the provisions of the Housing and Development Act
(Cap. 129, 2004 Revised Edition) [“the Act”]. These financial statements comprise the balance sheets of the Group and the HDB
as at 31 March 2008, the income and expenditure statements and statements of changes in capital and reserves of the Group
and the HDB, and cash flow statement of the Group for the year then ended, and a summary of significant accounting policies
and other explanatory notes.
Management’s responsibility for the financial statements
The management is responsible for the preparation and fair presentation of these financial statements in accordance with the
Act and Statutory Board Financial Reporting Standards. This responsibility includes:
a) designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error;
b) selecting and applying appropriate accounting policies; and
c) making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
My responsibility is to express an opinion on these financial statements based on the audit. The audit was conducted in
accordance with the Act and Singapore Standards on Auditing. Those standards require that ethical requirements be complied
with, and that the audit be planned and performed to obtain reasonable assurance as to whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the entity’s management, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTSof the Housing and Development Board for the year ended 31 March 2008
Opinion
In my opinion,
a) these financial statements are properly drawn up in accordance with the provisions of the Act and Statutory Board Financial
Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the HDB as at 31 March
2008, and the results, changes in capital and reserves of the Group and of the HDB, and cash flows of the Group for the
year ended on that date;
b) proper accounting and other records have been kept, including records of all assets of the HDB whether purchased, donated
or otherwise; and
c) the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the HDB during the financial
year have been in accordance with the provisions of the Act and the Constitution.
Emphasis of matter
Without qualifying my opinion I draw attention to Note 2.9 to the financial statements. The Board did not carry out impairment
review of rental flats and car parks as according to the HDB, these properties are for the provision of social services and
amenities to the public.
Lim Soo PingAuditor-General
Singapore
30 May 2008
HDB Annual Report 2007/2008 [86]
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTSof the Housing and Development Board for the year ended 31 March 2008
HDB Annual Report 2007/2008 [87]
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
Note S$'000 S$'000 S$'000 S$'000
Capital and reservesCapital account 2,463,627 2,463,628 2,468,127 2,468,128Capital gains reserve 5,992,813 5,736,308 5,992,813 5,736,308Asset revaluation reserve 5,920,008 6,019,488 5,920,008 6,019,488Foreign currency translation reserve - - (21) (19)Fair value reserve - - 5,341 6,371Retained earnings - - 71,740 68,742
14,376,448 14,219,424 14,458,008 14,299,018
Minority interests - - 27,689 27,132
Total equity 14,376,448 14,219,424 14,485,697 14,326,150
Non-current assetsProperty, plant and equipment 3 14,539,636 14,753,469 14,545,663 14,759,372Investment properties 4 4,900,191 4,822,247 4,916,246 4,840,404Loans receivable 5 46,826,533 49,451,350 46,826,651 49,451,609Investments in subsidiary 6 1,500 1,500 - -Investments in associates 7 - - 477 497Other investments 8 - - 55,800 57,182Deferred tax asset 9 - - 2,156 2,090
66,267,860 69,028,566 66,346,993 69,111,154
Current assetsProperties under development 10 2,443,494 2,635,589 2,443,494 2,635,589Properties for sale 11 915,118 1,742,768 915,118 1,742,768Inventories of building materials 53,168 52,364 64,997 54,174Loans receivable within 1 year 5 2,853,471 2,743,609 2,853,552 2,743,745Other investments 8 - - 8,000 16,338Government grant receivable 12 1,227,674 728,102 1,227,674 728,102Debtors and other receivables 13 402,533 286,931 409,062 292,511Cash and cash equivalents 14 38,378 20,321 62,851 39,877
7,933,836 8,209,684 7,984,748 8,253,104
Less: Current liabilitiesLoans payable within 1 year 15 6,572,605 5,621,921 6,572,605 5,621,921Creditors and other payables 16 1,397,741 1,206,504 1,420,560 1,224,397Amount due to subsidiary 4,504 356 - -Provision for income tax 9 - - 2,481 1,745
7,974,850 6,828,781 7,995,646 6,848,063
Net current (liabilities)/assets (41,014) 1,380,903 (10,898) 1,405,041
Non-current liabilitiesLoans payable 15 51,255,748 55,588,607 51,255,748 55,588,607Deferred income 17 594,650 601,438 594,650 601,438
51,850,398 56,190,045 51,850,398 56,190,045
Net assets 14,376,448 14,219,424 14,485,697 14,326,150
The accompanying notes form part of the financial statements.
JAMES KOH CHER SIANG MAH LAI SEONGChairman Director (Finance)
30 May 2008
BALANCE SHEETSof the Housing and Development Board and Subsidiaries as at 31 March 2008
HDB Annual Report 2007/2008 [88]
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
Note S$'000 S$'000 S$'000 S$'000
Sale proceeds 2,621,710 1,211,677 2,621,710 1,211,677Cost of sales (2,517,738) (1,160,787) (2,517,738) (1,160,787)Gross profit 103,972 50,890 103,972 50,890
Income 18 3,004,300 2,941,546 3,090,981 3,004,144Financial expenses 19 (1,613,883) (1,725,520) (1,613,883) (1,725,520)Operating expenses 20 (2,359,926) (1,695,488) (2,439,115) (1,768,957)Other expenses 20 (215,496) (311,283) (215,496) (311,283)
(1,081,033) (739,855) (1,073,541) (750,726)
Share of results of associates 7 - - (20) (91)Net deficit before government grant and taxation (1,081,033) (739,855) (1,073,561) (750,817)
Government grant 12 1,247,991 745,824 1,247,991 745,824Net surplus/(deficit) before taxation 166,958 5,969 174,430 (4,993)
Income tax expense 9 - - (1,833) (3,912)Net surplus/(deficit) after taxation 166,958 5,969 172,597 (8,905)
Minority interests - - (2,641) (2,398)Net surplus/(deficit) for the year 166,958 5,969 169,956 (11,303)
Retained earnings at the beginning of the year - - 68,742 86,014
Transfer from asset revaluation reserve 89,547 90,163 89,547 90,163
Transfer to capital gains reserve (256,505) (96,132) (256,505) (96,132)
Retained earnings at the end of the year - - 71,740 68,742
The accompanying notes form part of the financial statements.
INCOME AND EXPENDITURE STATEMENTSof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
HDB Annual Report 2007/2008 [89]
HDBCapital Asset Total
Capital Gains Revaluation Retained Capital andAccount Reserve Reserve Earnings Reserves
S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at 1 April 2007 2,463,628 5,736,308 6,019,488 - 14,219,424
Reversal on return of land to the Government - - (9,481) - (9,481)
Reversal of impairment losses - 120,773 109 (120,773) 109
Assets overstated in prior years (1) - (561) - (562)
Capital gains set aside on disposal of assets - 135,732 - (135,732) -
Release on sale and demolition of assets - - (89,547) 89,547 -
Net gains/(losses) recognised directly incapital and reserves (1) 256,505 (99,480) (166,958) (9,934)
Net surplus for the year - - - 166,958 166,958
Total recognised gains/(losses) for the year (1) 256,505 (99,480) - 157,024
Balance as at 31 March 2008 2,463,627 5,992,813 5,920,008 - 14,376,448
The accompanying notes form part of the financial statements.
STATEMENTS OF CHANGES IN CAPITAL AND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
HDB Annual Report 2007/2008 [90]
STATEMENTS OF CHANGES IN CAPITAL AND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
HDBCapital Asset Total
Capital Gains Revaluation Retained Capital andAccount Reserve Reserve Earnings Reserves
S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at 1 April 2006 2,463,681 5,640,176 6,144,743 - 14,248,600
Reversal on return of land to the Government - - (32,804) - (32,804)
Impairment losses - (26,758) - 26,758 -
Assets overstated in prior years (53) - (2,288) - (2,341)
Capital gains set aside on disposal of assets - 122,890 - (122,890) -
Release on sale and demolition of assets - - (90,163) 90,163 -
Net gains/(losses) recognised directly incapital and reserves (53) 96,132 (125,255) (5,969) (35,145)
Net surplus for the year - - - 5,969 5,969
Total recognised gains/(losses) for the year (53) 96,132 (125,255) - (29,176)
Balance as at 31 March 2007 2,463,628 5,736,308 6,019,488 - 14,219,424
The accompanying notes form part of the financial statements.
HDB Annual Report 2007/2008 [91]
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITALAND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
GroupForeign
Capital Asset Currency TotalCapital Gains Revaluation Translation Fair Value Retained Minority Capital and
Account Reserve Reserve Reserve Reserve Earnings Interests ReservesS$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at 1 April 2007 2,468,128 5,736,308 6,019,488 (19) 6,371 68,742 27,132 14,326,150
Reversal on return of landto the Government - - (9,481) - - - - (9,481)
Reversal of impairmentlosses - 120,773 109 - - (120,773) - 109
Assets overstated inprior years (1) - (561) - - - - (562)
Fair value changes onavailable-for-saleassets - - - - (1,030) - (343) (1,373)
Transfer from foreigncurrency translationreserve to Income andExpenditure Statement - - - (2) - - (1) (3)
Capital gains set asideon disposal of assets - 135,732 - - - (135,732) - -
Release on sale anddemolition of assets - - (89,547) - - 89,547 - -
Effect of disposal ofsubsidiary (Note 6) - - - - - - (100) (100)
Net gains/(losses)recognised directly incapital and reserves (1) 256,505 (99,480) (2) (1,030) (166,958) (444) (11,410)
Net surplus for the year - - - - - 169,956 2,641 172,597
Total recognised gains/(losses) for the year (1) 256,505 (99,480) (2) (1,030) 2,998 2,197 161,187
Dividends paid - - - - - - (1,640) (1,640)
Balance as at31 March 2008 2,468,127 5,992,813 5,920,008 (21) 5,341 71,740 27,689 14,485,697
The accompanying notes form part of the financial statements.
HDB Annual Report 2007/2008 [92]
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITALAND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
GroupForeign
Capital Asset Currency TotalCapital Gains Revaluation Translation Fair Value Retained Minority Capital and
Account Reserve Reserve Reserve Reserve Earnings Interests ReservesS$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at1 April 2006 2,468,181 5,640,176 6,144,743 (24) 4,179 86,014 32,156 14,375,425
Reversal on return of landto the Government - - (32,804) - - - - (32,804)
Impairment losses - (26,758) - - - 26,758 - -
Assets overstated inprior years (53) - (2,288) - - - - (2,341)
Fair value changes onavailable-for-saleassets - - - - 2,192 - 731 2,923
Share of associates’foreign currencytranslation reserves - - - 5 - - 2 7
Capital gains set asideon disposal of assets - 122,890 - - - (122,890) - -
Release on sale anddemolition of assets - - (90,163) - - 90,163 - -
Net gains/(losses)recognised directly incapital and reserves (53) 96,132 (125,255) 5 2,192 (5,969) 733 (32,215)
Net surplus/(deficit)for the year - - - - - (11,303) 2,398 (8,905)
Total recognised gains/(losses) for the year (53) 96,132 (125,255) 5 2,192 (17,272) 3,131 (41,120)
Dividends paid - - - - - - (8,155) (8,155)
Balance as at31 March 2007 2,468,128 5,736,308 6,019,488 (19) 6,371 68,742 27,132 14,326,150
The accompanying notes form part of the financial statements.
HDB Annual Report 2007/2008 [93]
CONSOLIDATED CASH FLOW STATEMENTof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
Group2007/2008 2006/2007
Note S$'000 S$'000
Cash flows from operating activitiesNet deficit before government grant and taxation (1,073,561) (750,817)Adjustments for:
Interest income 18 (1,416,616) (1,479,723)Interest expense 19 1,614,774 1,726,307Depreciation 20 313,946 309,369Provision for loss for properties under development/for sale 467,313 58,449Gain on disposal/write-off of assets (21,043) (1,714)(Reversal of impairment losses)/Impairment losses on property, plant
and equipment, and investment properties 20 (120,773) 23,783(Reversal of allowance)/Allowance for impairment losses on loans
receivable and debtors (25,642) 26,577Amortisation of deferred income (73,840) (70,933)Amortisation of premium/discount on bonds 19 (891) (787)Investment income (3,829) (5,557)Share of results of associates 7 20 91Gain on disposal of associate (24) -
Deficit before working capital changes (340,166) (164,955)
(Increase)/Decrease in working capital:Properties under development (1,682,677) (1,050,963)Properties for sale 2,549,180 1,015,705Inventories of building materials (10,823) (804)Debtors and other receivables (121,026) (1,812)Creditors and other payables 243,888 (27,886)
978,542 (65,760)
Loans repayment and interest received 7,033,643 7,086,526Loans granted (3,071,874) (3,271,530)Interest paid (1,406,752) (1,430,874)Income tax paid 9 (1,163) (3,797)Deferred income received 69,690 65,516Net cash from operating activities 3,261,920 2,215,126
HDB Annual Report 2007/2008 [94]
CONSOLIDATED CASH FLOW STATEMENTof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
Group2007/2008 2006/2007
Note S$'000 S$'000
Cash flows from investing activitiesProceeds from disposal of property, plant and equipment, and
investment properties 99,164 43,361Capital expenditure (354,394) (150,858)Purchase of property, plant and equipment, and investment properties (51,387) (14,597)Interest received 2,264 3,700Dividends received from other investments 1,772 2,382Proceeds from disposal of other investments 19,749 24,340Purchase of investments (11,501) (4,645)Proceeds from disposal of associate 7 21 -Disposal of subsidiary 6 (100) -Net cash used in investing activities (294,412) (96,317)
Cash flows from financing activitiesProceeds from loans payable 10,105,972 11,388,221Repayment of loans payable (13,487,256) (13,826,517)Interest paid (310,029) (349,427)Net government grant received 748,419 673,992Dividends paid to minority shareholders (1,640) (8,155)Net cash used in financing activities (2,944,534) (2,121,886)
Net increase/(decrease) in cash and cash equivalents 22,974 (3,077)
Cash and cash equivalents at the beginning of the year 39,877 42,954
Cash and cash equivalents at the end of the year 14 62,851 39,877
The accompanying notes form part of the financial statements.
HDB Annual Report 2007/2008 [95]
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1 GENERAL
The Housing and Development Board (HDB) is a statutory body incorporated under the Housing and Development Act
(Cap. 129, 2004 Revised Edition) under the purview of the Ministry of National Development (MND). As a statutory board,
the HDB is subject to the directions of the MND and is required to implement policies and comply with instructions from
its supervisory Ministry and other Government Ministries and Departments such as the Ministry of Finance (MOF).
The address of HDB is HDB Hub 480 Lorong 6 Toa Payoh Singapore 310480.
The principal activities of the HDB consist of the sale and rental of residential flats, the upgrading and redevelopment
of older estates, and the provision of mortgage loans to eligible purchasers of flats under the public housing schemes.
In addition, the HDB develops and manages ancillary facilities such as commercial properties, industrial properties, car
parks, markets, hawker centres, and other amenities in the housing estates.
The financial statements of the HDB and the consolidated financial statements for the Group for the year ended 31
March 2008 were authorised for issue in accordance with the approval of the Board on 28 May 2008.
2 SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of PreparationThe Accounting Standards Act 2007 (No. 39 of 2007) came into effect on 1 November 2007. Under the Act, the
Accountant-General is appointed as the legal authority to prescribe accounting standards for Statutory Boards.
Every Statutory Board specified in the First Schedule of the Act shall prepare its financial statements in compliance
with the accounting standards established by the Accountant-General. On 11 March 2008, the Accountant-
General issued the Statutory Board Financial Reporting Standards (SB-FRS) (http://www.assb.gov.sg/), which
take effect retrospectively.
The financial statements for the Group have been prepared in accordance with the provisions of the Housing
and Development Act and SB-FRS, including related Interpretations and Guidance Notes. The SB-FRS are
equivalent to the Singapore Financial Reporting Standards (SFRS) with the exception of certain related party
disclosures which are optional under SB-FRS 24. As the Group continues to make these related party disclosures
which are now optional, the adoption of the SB-FRS in place of the SFRS applied previously does not have
material impact on the accounting policies and figures presented in the financial statements for the financial year
ended 31 March 2008.
The financial statements are expressed in Singapore Dollars (S$), which is the HDB’s functional currency, and
rounded to the nearest thousand, unless otherwise stated. They are prepared under the historical cost convention,
except as disclosed in the accounting policies below.
The preparation of financial statements in conformity with SB-FRS requires management to exercise judgement
in the process of applying the accounting policies. It also requires the use of accounting estimates and assumptions
that affect the reported amounts of assets, liabilities, income and expenditure and disclosure of contingent assets
and liabilities in the financial statements. Although these estimates are based on management’s best knowledge
of current events and actions, actual results may ultimately differ from those estimates. Significant areas of
estimation and management judgement with regard to valuation of assets are disclosed in Note 2.9 and 2.18.
NOTES TO THE FINANCIAL STATEMENTSof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
HDB Annual Report 2007/2008 [96]
2.1 Basis of Preparation (Continued)The Group has not yet adopted SB-FRS 108: Operating Segments that has been issued as of the balance sheet
date but is only mandatory for financial years beginning on or after 1 January 2009. The adoption of SB-FRS
108 is not expected to have a significant impact on the Group’s financial statements.
2.2 Group Accountingi) Consolidation
The consolidated financial statements include the financial statements of the HDB and its subsidiaries
prepared up to the end of the financial year after the elimination of all material inter-company transactions.
The equity and net surplus attributable to minority shareholders’ interest are shown separately in the
consolidated Balance Sheet and Income and Expenditure Statement respectively.
In the consolidated financial statements, subsidiaries are accounted for using the purchase method. The
subsidiaries are consolidated from the date of formation up to the effective date of disposal. Interest in
associates is accounted for using the equity method of accounting. Equity accounting is discontinued when
the carrying amount of the investment in an associate reaches zero, unless the Group has incurred obligations
or guaranteed obligations in respect of the associate.
ii) SubsidiariesA subsidiary is a company in which the Group has power to govern the financial and operating policies,
generally accompanying a shareholding of more than one half of the voting rights. The investments held in
the subsidiaries are stated at cost less any impairment loss in the Balance Sheet. The investments in
subsidiaries are assessed when there is an indication that an investment has been impaired or the impairment
losses recognised in the prior year no longer exist.
iii) AssociatesAn associate is a company in which the Group has significant influence over the company’s financial and
operating policy decisions, but not control, generally accompanying a shareholding of between 20% and
50% of the voting rights. The Group’s investments in the associates are accounted for using the equity
method. Under the equity method, the Group’s investments in associates are carried in the Balance Sheet
at cost, plus post-acquisition changes in the Group’s share of net assets of the associates, less allowance
for impairment, if any. The Group’s share of the operating results of the associates is included in the Income
and Expenditure Statement. Where the share of associates’ losses exceeds the Group’s interest in the
associates, such excess is not recognised in the Income and Expenditure Statement.
2.3 Capital AccountThe capital account represents:
(i) the effects of identification and valuation of all properties and changes in accounting when the HDB adopted
the present conventional accounting system on 1 April 1985; and
(ii) the premium on the sale of land under the previous accounting system.
HDB Annual Report 2007/2008 [97]
2.4 Capital Gains ReserveUnder the Constitution of the Republic of Singapore, reserves of the HDB which were not accumulated during
the current term of office of the Government cannot be drawn on without the approval of the President. The
capital gains reserve was created to enable the HDB to preserve the capital gains attributable to past governments
on disposal of assets held at the changeover date of the Government.
2.5 Asset Revaluation ReserveThe previous system did not maintain individual asset accounts and the HDB was unable to identify the historical
cost of each asset. When the HDB adopted the present conventional accounting system in 1985, all properties
owned by the HDB at 1 April 1985 were valued at that date for the purpose of creating asset accounts arising
from a change in accounting policy. The bases of valuation were:
(i) Land and buildings of residential properties together with ancillary facilities such as car parks, markets and hawker
centres were valued at replacement cost less depreciation since the date of completion of construction; and
(ii) Land and buildings for commercial and industrial properties were valued at open market value.
The HDB conducted a second valuation for the commercial and industrial properties on 31 March 1986. The
valuations were conducted by its in-house valuers. The surplus over the estimated historical cost of the properties
which could be reasonably identified is carried forward as the asset revaluation reserve. On 1 April 2005, the
asset revaluation reserve in respect of investment properties was reclassified to capital gains reserve.
The balance in the asset revaluation reserve is released directly to retained earnings upon disposal of the other
properties [Note 2.7(ii)].
When properties which were previously carried at revalued amounts are impaired, the impairment loss would
be charged to the asset revaluation reserve unless the balance in the asset revaluation reserve is insufficient to
cover the loss, in which case the amount by which the loss exceeds the amount in the asset revaluation reserve
is charged to the Income and Expenditure Statement.
2.6 Fair Value ReserveThe fair value reserve includes the cumulative net change in the fair value of available-for-sale financial assets
that is recognised directly to reserves until the financial assets are derecognised.
2.7 Property, Plant and Equipmenti) Measurement
All land and buildings owned by the HDB at 1 April 1985 were valued at that date for the purpose of creating
asset accounts arising from a change in accounting policy. Additional information on the valuation of the
properties is made in Note 2.5.
All land and buildings acquired or constructed after 1 April 1985 are recorded at cost less accumulated
depreciation and impairment losses. Cost of properties includes the cost of land, construction cost,
development overheads and financing cost until completion of the project.
When a building comprises major components having different useful lives, they are accounted for as separate
items of property, plant and equipment.
Plant, equipment and others are stated at cost less accumulated depreciation and impairment losses. Assets
costing less than S$2,000 each are written off in the year of acquisition.
2.7 Property, Plant and Equipment (Continued)ii) Derecognition
An item of property, plant and equipment is derecognised upon its disposal. The difference between the net
disposal proceeds and its carrying amount is taken to the Income and Expenditure Statement.
iii) Subsequent ExpenditureSubsequent expenditure relating to property, plant and equipment that have been recognised is added to
the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally
assessed standard of performance before the expenditure was made, will flow to the Group and the cost
can be reliably measured. All other subsequent expenditure is recognised as an expense in the period in
which it is incurred.
iv) DepreciationNo depreciation is provided on freehold land, leasehold land of 999 years and artworks. All other property,
plant and equipment are depreciated on a straight-line basis over their estimated useful lives, as follows:
Leasehold land - 99 years or the remaining lease period
Buildings - 60 years
Leasehold property - remaining lease period
Plant and machinery - 3 - 10 years
Office equipment, furniture, fixtures and fittings - 3 - 12 years
Motor vehicles - 6 years
Fully depreciated property, plant and equipment are retained in the financial statements until they are no
longer in use.
The useful lives and residual values of property, plant and equipment are reviewed and adjusted as appropriate
at each balance sheet date.
2.8 Investment PropertiesInvestment properties are held for their long-term rental yields or for capital appreciation or both, and are not
occupied by the companies of the Group.
Investment properties, comprising industrial properties and commercial complexes, are stated at cost less
accumulated depreciation and impairment losses. The fair value of the investment properties disclosed in Note
4 is based on the comparable sales method or the income approach as stated in Note 2.9. Depreciation is
determined on a straight-line basis over the estimated useful lives. The useful lives are stated in Note 2.7(iv).
Property that is being developed for future use as investment property is classified as property under development
until the development is completed, at which time it is classified and accounted for as investment property.
On disposal of an investment property, the difference between the net proceeds and the carrying amount is
taken to the Income and Expenditure Statement.
HDB Annual Report 2007/2008 [98]
HDB Annual Report 2007/2008 [99]
2.9 Impairment of Property, Plant and Equipment, and Investment Properties
Property, plant and equipment, and investment properties are reviewed for impairment whenever events or
changes in circumstances indicate that these assets may be impaired. If any such indication exists, the recoverable
amount (i.e. the higher of the fair value less cost to sell and the value-in-use) of the asset is estimated to determine
the amount of impairment loss.
The recoverable amount is determined in-house using the comparable sales method or the income approach
based on contractual or market rents. Valuations based on income approach are further verified with a sampling
of market valuations by a private valuer.
Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised
as operating expenses in the Income and Expenditure Statement unless it reverses a previous revaluation credited
to asset revaluation reserve, in which case it is charged to asset revaluation reserve.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment
losses recognised for the asset no longer exist or have decreased. The reversal is recorded in the Income and
Expenditure Statement unless the asset is carried at revalued amount, in which case the reversal is treated as
a revaluation increase. However, the increased carrying amount of the asset due to a reversal of impairment
losses is recognised to the extent it does not exceed the carrying amount that would have been determined,
net of depreciation, had no impairment losses been recognised for that asset in prior years.
For properties where the fees and charges recoverable from the rental of these properties are gazetted, or
applicable only to eligible tenants under criteria which are in line with the Government’s housing and social
policies, no review for impairment is carried out.
2.10 Properties under DevelopmentProperties under development include assets under construction, properties for sale under development, cost
of reconfiguration, and cost of upgrading sold properties that is recoverable from lessees and Town Councils
on completion.
The cost of properties under development includes acquisition costs, borrowing costs and other related
development expenditure. Borrowing costs are capitalised until the completion of development.
Assets under construction are stated at cost less foreseeable loss. Depreciation will commence when the asset
is available for use.
Properties for sale under development are stated at the lower of cost and net realisable value. The net realisable
value is the estimated selling price in the ordinary course of business, less selling expenses.
Development of flats for sale is expected to incur a loss on sale. Provision is made for foreseeable loss for the
difference between estimated development costs and net realisable value, and charged to operating expenses
in the Income and Expenditure Statement. On completion, the loss is reclassified to provision for unrealised loss
of the properties for sale or realised when the flat is sold.
HDB Annual Report 2007/2008 [100]
2.11 Properties for SaleProperties for sale are stated at the lower of cost and net realisable value. Cost is determined on the specific
identification basis. The net realisable value is the estimated selling price in the ordinary course of business, less
selling expenses.
Provision for unrealised loss for flats developed or acquired is made for the difference between the cost and
estimated selling price less selling expenses, and charged to operating expenses in the Income and Expenditure
Statement. The unrealised loss previously provided is realised on sale of the flat.
2.12 Inventories of Building MaterialsInventories of building materials are stated at the lower of cost and net realisable value. Cost is determined by
the weighted average basis.
2.13 Loans Receivable, Debtors and Other ReceivablesLoans receivable, debtors and other receivables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method, less allowance for impairment.
If there is objective evidence that an impairment on loans receivable, debtors and other receivables has occurred,
the carrying amount of the asset shall be reduced either directly or through the use of an allowance account.
The amount of the loss shall be recognised in the Income and Expenditure Statement.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed.
Any subsequent reversal of an impairment loss is recognised in the Income and Expenditure Statement, to the
extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date.
2.14 Investments in Financial Assetsi) Classification and Measurement
The investments in financial assets of the Group are classified into two categories: held-to-maturity investments
and available-for-sale financial assets.
Held-to-maturity investmentsIf the Group has the positive intent and ability to hold debt securities to maturity, they are classified as held-
to-maturity investments. These investments are measured at amortised cost using the effective interest
method, less any impairment losses.
Available-for-sale financial assetsThe Group’s investments in certain equity securities and debt securities are classified as available-for-sale
financial assets if they are not classified in any of the other categories. Subsequent to initial recognition, they
are measured at fair value (Note 2.18) and changes therein, other than for impairment losses, are recognised
directly in equity. When an investment is derecognised, the cumulative gain or loss in equity is transferred
to the Income and Expenditure Statement.
HDB Annual Report 2007/2008 [101]
2.14 Investments in Financial Assets (Continued)ii) Impairment
A financial asset is assessed at each reporting date to determine whether there is any objective evidence
that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or
more events have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the
original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated
by reference to its current fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial
assets are assessed collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in the Income and Expenditure Statement. Any cumulative loss in
respect of an available-for-sale financial asset recognised previously in equity is transferred to the Income
and Expenditure Statement.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognised. For financial assets measured at amortised cost and available-for-sale
financial assets that are debt securities, the reversal is recognised in the Income and Expenditure Statement.
For available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.
2.15 Cash and Cash EquivalentsCash and cash equivalents comprise fixed deposits and cash and bank balances. They are subject to an
insignificant risk of change in value.
2.16 Loans PayableThe housing development loans, mortgage financing loans and upgrading financing loans are borrowed from
the Government under an Agreement for Loan Facility.
The mortgage financing loans and upgrading financing loans are taken to finance the mortgage loans granted
to lessees for purchase of flats under public housing schemes and loans granted to lessees of upgraded flats
under the deferred payment scheme. The housing development loans, bonds and bank loans are to finance the
HDB’s development programmes and operational requirements. The housing development loans were fully repaid
as at 31 March 2008. The HDB would continue to issue bonds and obtain bank loans for its funding requirements,
with the MOF acting as the lender of last resort.
The loans and bonds are initially recognised at fair value. After initial recognition, they are subsequently measured
at amortised cost using the effective interest method.
2.17 Creditors and Other PayablesCreditors and other payables are initially recognised at fair value and subsequently measured at amortised cost
using the effective interest method.
HDB Annual Report 2007/2008 [102]
2.18 Fair Value EstimationThe fair value of financial instruments traded in active markets is based on quoted market prices at balance
sheet date. The quoted market price used for financial assets held by the Group is the current bid price. The
indicative bid price is used for the bonds issued by the Group.
The carrying amounts of loans receivable, government and bank loans, cash and cash equivalents, current
receivables and current payables are assumed to approximate their fair values. The Group does not anticipate
the carrying amounts recorded at the balance sheet date to be significantly different from the values that would
eventually be received or settled.
2.19 ProvisionsA provision is recognised in the Balance Sheet when the Group has a legal or constructive obligation as a result
of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation
and a reliable estimate of the amount can be made. Provisions are not recognised for future operating losses.
2.20 Property Leasesi) When the Group is a lessor:
Leases of assets where substantially all risks and rewards incidental to ownership of the assets are transferred
by the Group to the lessees are classified as finance leases. The difference between the present value of
the lump sum lease payment and the carrying amount of the asset less the present value of the estimated
residual value accruing to the Group, is recognised as profit or loss in the Income and Expenditure Statement
in the year in which the lease is granted.
All other leases are treated as operating leases. Assets leased out under operating lease are included in the
investment properties and property, plant and equipment. The rental income from the lease (net of any
incentives) is recognised in the Income and Expenditure Statement on a straight-line basis over the lease term.
ii) When the Group is a lessee:Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the lease
term, are classified as operating leases. Operating lease payments are recognised as an expense in the
Income and Expenditure Statement on a straight-line basis over the lease term.
2.21 Employee Benefitsi) Defined Contribution Plans
Contributions on employees’ salaries are made to the Central Provident Fund (CPF), as required by law. The
CPF contributions are recognised as an expense in the period when the employees rendered their services.
ii) Employee Leave EntitlementEmployee entitlements to annual leave are recognised when they accrue to the employees. An accrual of the
estimated liability for annual leave, based on services rendered by employees, is made at balance sheet date.
iii) Termination BenefitsTermination benefits are payable whenever an employee accepts voluntary redundancy in exchange for these
benefits. Termination benefits are recognised as a result of an offer made due to redundancy.
HDB Annual Report 2007/2008 [103]
2.22 Income Recognitioni) Sale Proceeds
Proceeds from sale of properties and building materials are recognised as income when they are sold.
ii) InterestInterest income is earned mainly from mortgage loans granted to purchasers of flats under public housing
schemes. It is accrued based on the effective interest rate.
iii) Rental and Related IncomeRental and related income from operating leases on investment and other properties are recognised on a
straight-line basis over the lease term.
iv) Car Park ChargesSeason parking fees are recognised on the accrual basis. Parking coupon income is recognised upon the
sale of coupons. Parking fines and other charges are recognised upon receipt of payments.
v) RecoveriesRecoveries from the lessees and Town Councils for their share of the upgrading cost are recognised as
income upon completion of the upgrading works.
vi) Agency and Consultancy FeesAgency fees from agency projects and consultancy fees are recognised as income when services are rendered.
vii) Investment IncomeInterest income is accrued based on the effective interest rate.
Dividend income is recognised when the shareholder’s right to receive payment is established.
2.23 Financial Expensesi) Housing Development Loans, Bank Loans and Bonds
The HDB’s development programmes and operational requirements are financed by housing development
loans from the Government (Note 2.16), bank loans and bonds issued. Financial expenses comprise interest
incurred on these loans and bonds and net amortised discount or premium on bonds. Financial expenses
are accrued based on the effective interest rates and recognised in the Income and Expenditure Statement,
except to the extent that they are capitalised based on an average capitalisation rate during the period of
time that is required to complete and prepare the asset for its intended use.
ii) Mortgage and Upgrading Financing LoansThe HDB provides financing schemes to purchasers of flats under public housing schemes and lessees of
upgraded flats. The schemes are financed by mortgage and upgrading financing loans from the Government.
Interest expenses are charged to the Income and Expenditure Statement when incurred.
HDB Annual Report 2007/2008 [104]
2.24 TaxationThe HDB is exempt from tax under section 13(1)(e) of the Income Tax Act (Cap. 134, 2004 Revised Edition).
Income tax expense of its subsidiaries comprises current and deferred tax. Income tax expense is recognised
in the Income and Expenditure Statement except to the extent that it relates to items recognised directly in
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
2.25 Government GrantThe HDB’s deficit is financed by government grant. In addition, a grant is given to the HDB so that the reserves
of past governments are protected in accordance with the Constitution.
Grant is recognised as income on an accrual basis when conditions are met. Grant to finance the HDB’s deficit,
other than the provision for foreseeable loss in properties for sale and impairment allowance of loans receivable,
is received in advance. The grant relating to the provision for foreseeable loss and impairment allowance of loans
receivable is drawn when the loss is realised.
The financing arrangement is subject to the MOF’s review from time to time. The cumulative grant received from
the Government since the establishment of the HDB is disclosed in Note 21.
2.26 Foreign Currency Items included in the financial statements of each entity in the Group are measured using the currency that best
reflects the economic substance of the underlying events and circumstances relevant to that entity.
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at
the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies
at the reporting date are retranslated to the functional currency at the exchange rate at the reporting date. Non-
monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated
to the functional currency at the exchange rate at the date on which the fair value was determined. Foreign
currency differences arising on retranslation are recognised in the Income and Expenditure Statement.
The assets and liabilities of foreign operations are translated to Singapore Dollars at exchange rates prevailing
at the reporting date. The income and expenses of foreign operations are translated to Singapore Dollars at
average exchange rates. Foreign currency differences are recognised in the foreign currency translation reserve.
When a foreign operation is disposed of, in part or full, the relevant amount in the foreign currency translation
reserve is transferred to the Income and Expenditure.
HDBOffice
Plant Equipment,Freehold Leasehold Leasehold and Furniture
Land Land Buildings Property Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Cost or valuationAt 1 April 2007 78,905 11,418,651 6,352,146 - 11,028 71,130 17,931,860Additions 25 88,608 150,514 12,095 1,001 3,187 255,430Disposals/Write-off (3,235) (99,278) (24,445) - (853) (9,036) (136,847)Transfer to investment
properties - (16,106) (28,163) - - - (44,269)Transfer to properties for sale - (89,396) (61,840) - - - (151,236)Reclassifications - 115 (706) - - 591 -At 31 March 2008 75,695 11,302,594 6,387,506 12,095 11,176 65,872 17,854,938
Representing:Valuation
1 April 1985 48,815 4,628,972 870,450 - - - 5,548,23731 March 1986 24,110 825,138 298,326 - - - 1,147,574
Cost 2,770 5,848,484 5,218,730 12,095 11,176 65,872 11,159,12775,695 11,302,594 6,387,506 12,095 11,176 65,872 17,854,938
Accumulated depreciationand impairment losses
At 1 April 2007 - 1,727,145 1,377,679 - 9,741 63,826 3,178,391Depreciation - 119,494 112,131 - 518 3,461 235,604Disposals/Write-off - (33,341) (5,940) - (767) (8,997) (49,045)Transfer to investment
properties - (2,542) (9,043) - - - (11,585)Transfer to properties for sale - (14,654) (20,754) - - - (35,408)Reclassifications - 24 (69) - - 45 -Impairment losses - 728 339 - - - 1,067Reversal of impairment losses - (2,505) (1,217) - - - (3,722)At 31 March 2008 - 1,794,349 1,453,126 - 9,492 58,335 3,315,302
Carrying amountsAt 31 March 2008 75,695 9,508,245 4,934,380 12,095 1,684 7,537 14,539,636
Land and buildings include markets and hawker centres which are managed by the National Environment Agency (NEA).
Under the agreement to manage and maintain the markets and hawker centres, the NEA shall retain the rental collected,
bear the operating expenses and reimburse HDB for holding and maintaining these properties. The net book value of
these markets and hawker centres was S$436 million (FY 2006/2007: S$435 million).
The impairment losses of S$1 million (FY 2006/2007: S$10 million) and the reversal of S$4 million (FY 2006/2007: S$1
million) in respect of some commercial properties were based on the estimated recoverable values, taking into account
the recent tenders and market comparables for these properties.
HDB Annual Report 2007/2008 [105]
3 PROPERTY, PLANT AND EQUIPMENT
HDB Annual Report 2007/2008 [106]
HDBOffice
Plant Equipment,Freehold Leasehold and Furniture
Land Land Buildings Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Cost or valuationAt 1 April 2006 49,361 11,561,683 6,308,947 11,770 75,311 18,007,072Additions - 47,349 92,093 153 1,738 141,333Disposals/Write-off (205) (117,964) (14,581) (895) (5,919) (139,564)Transfer from investment properties - 2,879 - - - 2,879Transfer to properties under development - (8,361) - - - (8,361)Transfer to properties for sale - (37,071) (34,428) - - (71,499)Reclassifications 29,749 (29,864) 115 - - -At 31 March 2007 78,905 11,418,651 6,352,146 11,028 71,130 17,931,860
Representing:Valuation
1 April 1985 48,944 4,728,257 908,096 - - 5,685,29731 March 1986 24,110 840,694 300,780 - - 1,165,584
Cost 5,851 5,849,700 5,143,270 11,028 71,130 11,080,97978,905 11,418,651 6,352,146 11,028 71,130 17,931,860
Accumulated depreciation andimpairment losses
At 1 April 2006 - 1,666,415 1,278,318 10,237 65,614 3,020,584Depreciation - 116,035 111,715 398 4,076 232,224Disposals/Write-off - (54,550) (4,991) (894) (5,864) (66,299)Transfer from investment properties - 527 - - - 527Transfer to properties under development - (1,394) - - - (1,394)Transfer to properties for sale - (5,386) (10,616) - - (16,002)Reclassifications - (19) 19 - - -Impairment losses - 6,513 3,693 - - 10,206Reversal of impairment losses - (996) (459) - - (1,455)At 31 March 2007 - 1,727,145 1,377,679 9,741 63,826 3,178,391
Carrying amountsAt 31 March 2007 78,905 9,691,506 4,974,467 1,287 7,304 14,753,469
3 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
HDB Annual Report 2007/2008 [107]
GroupOffice
Plant Equipment,Freehold Leasehold Leasehold and Furniture
Land Land Buildings Property Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Cost or valuationAt 1 April 2007 78,905 11,418,651 6,357,715 - 11,294 74,585 17,941,150Additions 25 88,608 150,514 12,095 1,051 3,727 256,020Disposals/Write-off (3,235) (99,278) (24,445) - (856) (10,194) (138,008)Transfer to investment
properties - (16,106) (28,163) - - - (44,269)Transfer to properties for sale - (89,396) (61,840) - - - (151,236)Reclassifications - 115 (706) - - 591 -At 31 March 2008 75,695 11,302,594 6,393,075 12,095 11,489 68,709 17,863,657
Representing:Valuation
1 April 1985 48,815 4,628,972 870,450 - - - 5,548,23731 March 1986 24,110 825,138 298,326 - - - 1,147,574
Cost 2,770 5,848,484 5,224,299 12,095 11,489 68,709 11,167,84675,695 11,302,594 6,393,075 12,095 11,489 68,709 17,863,657
Accumulated depreciationand impairment losses
At 1 April 2007 - 1,727,145 1,378,292 - 9,991 66,350 3,181,778Depreciation - 119,494 112,226 - 534 3,792 236,046Disposals/Write-off - (33,341) (5,940) - (770) (10,131) (50,182)Transfer to investment
properties - (2,542) (9,043) - - - (11,585)Transfer to properties for sale - (14,654) (20,754) - - - (35,408)Reclassifications - 24 (69) - - 45 -Impairment losses - 728 339 - - - 1,067Reversal of impairment losses - (2,505) (1,217) - - - (3,722)At 31 March 2008 - 1,794,349 1,453,834 - 9,755 60,056 3,317,994
Carrying amountsAt 31 March 2008 75,695 9,508,245 4,939,241 12,095 1,734 8,653 14,545,663
3 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
HDB Annual Report 2007/2008 [108]
GroupOffice
Plant Equipment,Freehold Leasehold and Furniture
Land Land Buildings Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Cost or valuationAt 1 April 2006 49,361 11,561,683 6,314,516 12,040 79,120 18,016,720Additions - 47,349 92,093 159 2,177 141,778Disposals/Write-off (205) (117,964) (14,581) (905) (6,712) (140,367)Transfer from investment properties - 2,879 - - - 2,879Transfer to properties under development - (8,361) - - - (8,361)Transfer to properties for sale - (37,071) (34,428) - - (71,499)Reclassifications 29,749 (29,864) 115 - - -At 31 March 2007 78,905 11,418,651 6,357,715 11,294 74,585 17,941,150
Representing:Valuation
1 April 1985 48,944 4,728,257 908,096 - - 5,685,29731 March 1986 24,110 840,694 300,780 - - 1,165,584
Cost 5,851 5,849,700 5,148,839 11,294 74,585 11,090,26978,905 11,418,651 6,357,715 11,294 74,585 17,941,150
Accumulated depreciationand impairment losses
At 1 April 2006 - 1,666,415 1,278,837 10,477 68,617 3,024,346Depreciation - 116,035 111,809 418 4,384 232,646Disposals/Write-off - (54,550) (4,991) (904) (6,651) (67,096)Transfer from investment properties - 527 - - - 527Transfer to properties under development - (1,394) - - - (1,394)Transfer to properties for sale - (5,386) (10,616) - - (16,002)Reclassifications - (19) 19 - - -Impairment losses - 6,513 3,693 - - 10,206Reversal of impairment losses - (996) (459) - - (1,455)At 31 March 2007 - 1,727,145 1,378,292 9,991 66,350 3,181,778
Carrying amountsAt 31 March 2007 78,905 9,691,506 4,979,423 1,303 8,235 14,759,372
3 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
HDB Annual Report 2007/2008 [109]
HDB GroupS$'000 S$'000
CostAt 1 April 2007 6,669,299 6,688,426Additions 23,906 23,906Disposals/Write-off (584) (584)Transfer from properties, plant and equipment 44,269 44,269Transfer to properties under development (34,676) (34,676)At 31 March 2008 6,702,214 6,721,341
Accumulated depreciation and impairment lossesAt 1 April 2007 1,847,052 1,848,022Depreciation 77,414 79,516Disposals/Write-off (248) (248)Transfer from properties, plant and equipment 11,585 11,585Transfer to properties under development (15,553) (15,553)Reversal of impairment losses (118,227) (118,227)At 31 March 2008 1,802,023 1,805,095
Carrying amountsAt 31 March 2008 4,900,191 4,916,246
Fair valueAt 31 March 2008 11,225,062 11,257,562
HDB GroupS$'000 S$'000
CostAt 1 April 2006 6,676,826 6,695,953Additions 124 124Disposals/Write-off (4,772) (4,772)Transfer to properties, plant and equipment (2,879) (2,879)At 31 March 2007 6,669,299 6,688,426
Accumulated depreciation and impairment lossesAt 1 April 2006 1,751,520 1,755,422Depreciation 79,550 79,550Disposals/Write-off (1,455) (1,455)Transfer to properties, plant and equipment (527) (527)Impairment losses 19,818 19,848Reversal of impairment losses (1,854) (4,816)At 31 March 2007 1,847,052 1,848,022
Carrying amountsAt 31 March 2007 4,822,247 4,840,404
Fair valueAt 31 March 2007 10,663,823 10,684,423
The reversal of impairment losses of S$118 million (FY 2006/2007: S$5 million) was made to reflect the estimatedrecoverable amount based on the prevailing market conditions. The impairment losses of S$20 million in FY2006/2007 in respect of leased lands at various sites were based on the revised gross plot ratio and tender ofleases of similar usage then.
4 INVESTMENT PROPERTIES
HDB Annual Report 2007/2008 [110]
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Loans receivableMortgage loans for flats 49,640,231 52,185,442 49,640,231 52,185,442Loans for shops sold 77 44 77 44Staff loans - - 199 395
49,640,308 52,185,486 49,640,507 52,185,881Less:
Allowance for impairment losses onmortgage loans for flats (84,809) (114,985) (84,809) (114,985)
49,555,499 52,070,501 49,555,698 52,070,896Deferred receivable
Upgrading costs due from lessees 124,505 124,458 124,505 124,458Balance as at 31 March 49,680,004 52,194,959 49,680,203 52,195,354
Represented by amount receivable:Within 1 year 2,853,471 2,743,609 2,853,552 2,743,745Later than 1 year but not more than 2 years 2,404,962 2,439,223 2,405,015 2,439,332Later than 2 years but not more than 5 years 7,328,836 7,451,256 7,328,901 7,451,400Later than 5 years 37,092,735 39,560,871 37,092,735 39,560,877
46,826,533 49,451,350 46,826,651 49,451,60949,680,004 52,194,959 49,680,203 52,195,354
The mortgage loans are granted to the buyers of flats under the public housing schemes, with the flats beingtaken as collateral.
Under the Agreement for Loan Facility with the Government, mortgage and upgrading financing loans are obtainedfrom the Government to finance loans granted to eligible purchasers of flats under the public housing schemesat concessionary or market interest rates, in accordance with prevailing mortgage financing policy and upgradingprogramme of the Government.
The loans receivable and deferred receivable are denominated in Singapore Dollars.
Loans receivableThe movements of loans receivable during the year for the Group:
Balance Balanceas at Loans as at
1.4.2007 granted Repayment 31.3.2008S$’000 S$’000 S$’000 S$’000
Mortgage loans for flats 52,185,442 3,039,992 5,585,203 49,640,231Loans for shops sold 44 47 14 77Staff loans 395 16 212 199
52,185,881 3,040,055 5,585,429 49,640,507
The movements in allowance for impairment losses on mortgage loans for flats for the Group:
Reversal of Bad debtsBalance allowance for written off Balance
as at impairment against as at1.4.2007 losses allowance 31.3.2008
S$’000 S$’000 S$’000 S$’000
Allowance for impairment losses onmortgage loans for flats 114,985 30,002 174 84,809
5 LOANS RECEIVABLE
HDB Annual Report 2007/2008 [111]
Interest rates and repayment terms on the loans are:
Interest rate (per annum) Repayment term
Mortgage loans granted to lessees for purchase of 2.60% to 3.82% Up to 30 yearsflats under public housing schemes (FY 2006/2007: 2.60% to 3.72%)
Loans granted to tenants for the purchase of shops 5.25% 4 years(FY 2006/2007: 5.25%)
Loans granted to staff 4.25% Up to 6 years(FY 2006/2007: 4.25% to 5%)
Deferred receivableUnder the deferred payment scheme, lessees of upgraded flats can pay for their share of the upgrading coststhrough monthly instalments at interest rates ranging from 2.60% to 3.82% (FY 2006/2007: 2.60% to 3.72%)per annum over periods of up to 25 years.
5 LOANS RECEIVABLE (CONTINUED)
6 INVESTMENTS IN SUBSIDIARY
HDB2007/2008 2006/2007
S$’000 S$’000
SubsidiaryEM Services Pte Ltd(a) (unquoted shares at cost) 1,500 1,500
Country of Percentage of equityPrincipal activities incorporation held by the Group
2007/2008 2006/2007% %
Subsidiary of HDBEM Services Pte Ltd (a) Property management Singapore 75 75
and engineering services
Subsidiaries of EM Services Pte LtdEM (China) Pte Ltd (b) Property management Singapore - 60
E M Property Management Property management Singapore 100 100Pte Ltd (a)
Yi An Property Agency Pte Ltd (a) Real estate agency Singapore 100 100
(a) Audited by SP Tan & Co.(b) The Company was struck off in October 2007. The cash and cash equivalents prior to the striking off was
S$252,000. Upon completion of the striking off, S$100,000 was refunded to the minority shareholders.
HDB Annual Report 2007/2008 [112]
Group2007/2008 2006/2007
S$’000 S$’000
AssociatesUnquoted shares at cost 525 725
Balance as at 1 April 497 581Share of losses (20) (91)Foreign currency translation differences - 7Balance as at 31 March 477 497
Country of Percentage of equityPrincipal activities incorporation held by the Group
2007/2008 2006/2007% %
Associates of EM Services Pte LtdPengda Investment & Investment and real estate Singapore 35 35 Development Pte Ltd (a) developer
Yihe Holding Pte Ltd (b) Facilities and project Singapore - 20 management consultants
(a) Audited by SP Tan & Co.(b) The investment in Yihe Holding Pte Ltd was disposed of in March 2008 for a cash consideration of S$21,000.
7 INVESTMENTS IN ASSOCIATES
Group2007/2008 2006/2007
S$’000 S$’000
Non-current investments:Held-to-maturity debt securities 20,524 20,533Available-for-sale equity securities 35,276 36,649
55,800 57,182
Current investments:Held-to-maturity debt securities 4,000 8,338Available-for-sale debt securities 4,000 8,000
8,000 16,338
Fair value of held-to-maturity debt securities 24,914 29,102
Available-for-sale debt securities have stated interest rates of 3.12% (FY 2006/2007: 3.32% to 4.99%) per annumand mature within the next 12 months. Held-to-maturity debt securities have interest rates of 4.04% to 5.5%(FY 2006/2007: 4.04% to 6%) per annum and mature in one to five years.
8 OTHER INVESTMENTS
HDB Annual Report 2007/2008 [113]
Group2007/2008 2006/2007
S$’000 S$’000
Current tax expense- Current year 2,470 1,174- (Over)/under provision in respect of prior years (571) 1,642
1,899 2,816
Deferred tax expense- Origination and reversal of temporary differences (66) 709- Reduction in tax rate - 319- Under provision in respect of prior years - 68
(66) 1,096
Total income tax expense 1,833 3,912
Reconciliation of effective tax rate:
Group2007/2008 2006/2007
S$’000 S$’000
Net surplus/(deficit) before taxation 174,430 (4,993)Less :Net surplus/(deficit) of HDB excluding dividends from subsidiary
(Note 18), not subject to taxation 162,038 (18,496)Net surplus subject to taxation 12,392 13,503
Income tax at applicable tax rate of 18% 2,231 2,431Effect of reduction in tax rate - 319Tax effect of partial tax exemption and tax relief (71) (67)Income tax at concessionary rate (92) (38)Income not subject to tax (316) (669)Expenses not deductible for tax purposes 652 226(Over)/under provision in respect of prior years (571) 1,710
1,833 3,912
9 INCOME TAXa) Income tax expense
Group2007/2008 2006/2007
S$’000 S$’000
Balance as at 1 April 1,745 2,726Charge for the year 2,470 1,174Payments made during the year (1,163) (3,797)(Over)/under provision in respect of prior years (571) 1,642Balance as at 31 March 2,481 1,745
b) Movements in provision for income tax
HDB Annual Report 2007/2008 [114]
The movements in deferred tax assets and liabilities for the Group during the year are as follows:
Recognised in Recognised inAt Income and At Income and At
1 April Expenditure 31 March Expenditure 31 March2006 Statement 2007 Statement 2008
S$’000 S$’000 S$’000 S$’000 S$’000
Deferred tax liabilitiesProperty, plant and equipment 136 (9) 127 1 128Other items 204 (204) - - -Total 340 (213) 127 1 128
Deferred tax assetsProvisions (2,896) 679 (2,217) (67) (2,284)Accrued interest receivable (630) 630 - - -Total (3,526) 1,309 (2,217) (67) (2,284)
Net deferred tax assets (3,186) 1,096 (2,090) (66) (2,156)
9 INCOME TAX (CONTINUED)c) Deferred tax
HDB and Group2007/2008 2006/2007
S$’000 S$’000
Land 2,741,329 2,339,771Buildings 851,107 971,599Upgrading works 150,610 81,286Improvement works 1,000 8,175
3,744,046 3,400,831Less:Provision for foreseeable loss (Note 2.10) (1,300,552) (765,242)Balance as at 31 March 2,443,494 2,635,589
Represented by :Properties for sale under development 1,821,780 2,207,176Assets under construction 471,104 347,127Upgrading works 150,610 81,286
2,443,494 2,635,589
Interest capitalised during the year (Note 19) 49,882 43,971
During the financial year, interest capitalised as properties under development amounted to S$50 million (FY2006/2007: S$44 million) at an average capitalisation rate of 3.47% (FY 2006/2007: 3.86%).
10 PROPERTIES UNDER DEVELOPMENT
HDB Annual Report 2007/2008 [115]
11 PROPERTIES FOR SALE
HDB and Group2007/2008 2006/2007
S$’000 S$’000
Cost of flats 983,705 1,870,713Less:Provision for unrealised loss (Note 2.11) (68,587) (127,945)Balance as at 31 March 915,118 1,742,768
12 GOVERNMENT GRANT RECEIVABLE
HDB and Group2007/2008 2006/2007
S$’000 S$’000
Balance as at 1 April 728,102 656,270Less:Amount received (748,419) (673,992)
(20,317) (17,722)Transfer from Income and Expenditure Statement 1,247,991 745,824Balance as at 31 March 1,227,674 728,102
The amount transferred from Income and Expenditure Statement is the deficit to be financed by the Governmentunder the existing financing arrangement (Note 2.25).
13 DEBTORS AND OTHER RECEIVABLES
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Debtors 354,706 254,740 360,131 259,250Less:Allowance for impairment losses (15,396) (22,801) (15,536) (22,851)
339,310 231,939 344,595 236,399
Other receivables 43,806 32,959 44,746 33,921Less:Allowance for impairment losses (26) - (26) -
43,780 32,959 44,720 33,921Prepayments and deposits 19,443 22,033 19,747 22,191Balance as at 31 March 402,533 286,931 409,062 292,511
HDB Annual Report 2007/2008 [116]
13 DEBTORS AND OTHER RECEIVABLES (CONTINUED)
The movements in allowance for impairment on debtors and other receivables for the HDB and Group are asfollows:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Balance as at 1 April 22,801 23,305 22,851 23,305Allowance for impairment losses 1,691 6,032 1,781 6,082Bad debts written off against allowance (9,070) (6,536) (9,070) (6,536)Balance as at 31 March 15,422 22,801 15,562 22,851
14 CASH AND CASH EQUIVALENTS
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Bank balances and cash 38,378 20,321 41,327 22,089Fixed deposits - - 21,524 17,788
38,378 20,321 62,851 39,877
15 LOANS PAYABLE
HDB and Group2007/2008 2006/2007
S$’000 S$’000
Government loansHousing development loans (Note 2.16) - 2,018,057Mortgage financing loans 49,669,338 52,472,895Upgrading financing loans 116,127 115,797
49,785,465 54,606,749Bonds
Principal 5,200,000 4,900,000Unamortised premium/discount 1,388 2,279
5,201,388 4,902,279Bank loans (unsecured) 2,841,500 1,701,500Balance as at 31 March 57,828,353 61,210,528
Represented by amount payable:Within 1 year 6,572,605 5,621,921Later than 1 year but not more than 2 years 4,835,748 3,784,604Later than 2 years but not more than 5 years 12,595,383 13,906,987Later than 5 years 33,824,617 37,897,016
51,255,748 55,588,60757,828,353 61,210,528
Fair value of bonds 5,350,027 4,975,106
The loans and bonds are denominated in Singapore Dollars.
HDB Annual Report 2007/2008 [117]
15 LOANS PAYABLE (CONTINUED)
The movements during the year for the Group:
Balance Balanceas at as at
1.4.2007 Borrowings Repayment 31.3.2008S$’000 S$’000 S$’000 S$’000
Government loansHousing development loans 2,018,057 - 2,018,057 -Mortgage financing loans 52,472,895 2,358,623 5,162,180 49,669,338Upgrading financing loans 115,797 23,349 23,019 116,127
54,606,749 2,381,972 7,203,256 49,785,465
BondsPrincipal 4,900,000 800,000 500,000 5,200,000Premium/discount on bonds 2,279 - 891 1,388
4,902,279 800,000 500,891 5,201,388
Bank loans (unsecured) 1,701,500 6,924,000 5,784,000 2,841,50061,210,528 10,105,972 13,488,147 57,828,353
Interest rates and repayment terms on the loans are:
Interest rate (per annum) Repayment term
Housing development loans 4.50% 20 years (FY 2006/2007: 4.50%)
Mortgage financing loans 2.50% to 3.72% Up to 30 years (FY 2006/2007: 2.50% to 3.62%)
Upgrading financing loans 2.50% 10 years (FY 2006/2007: 2.50%)
Bank loans (unsecured) 1.28% to 3.00% Up to 1 year (FY 2006/2007: 3.11% to 3.70%)
Bonds are issued to finance the HDB’s development programme and working capital requirements. The bondsare as follows:
PrincipalSeries number S$M Coupon rate (per annum) Tenure Maturity
003 300 5.070% 10 years 21 September 2009003 300 5.070% Approximately 21 September 2009 (Re-opened) (effective interest rate: 4.740%) 10 years007 250 2.420% 5 years 23 February 2009008 250 3.560% 10 years 23 February 2014009 300 2.520% 5 years 3 November 2009010 500 3.375% 10 years 21 April 2015011 400 2.820% 5 years 6 October 2010012 100 3.200% 10 years 12 October 2015013 400 3.455% 5 years 1 March 2011
HDB Annual Report 2007/2008 [118]
15 LOANS PAYABLE (CONTINUED)
PrincipalSeries number S$M Coupon rate (per annum) Tenure Maturity
014 100 3.730% 10 years 7 March 2016015 400 3.805% 5 years 14 July 2011016 100 3.995% 10 years 14 July 2016017 250 3.520% 5 years 31 October 2011018 250 3.622% 10 years 18 October 2016019 250 3.420% 5 years 14 February 2012020 250 3.550% 10 years 14 February 2017021 150 2.690% 2 years 11 June 2009022 150 3.350% 12 years 11 June 2019023 200 1.640% 2 years 1 March 2010024 300 3.630% 15 years 27 February 2023
The coupon rate is the effective interest rate of the bonds issued by the HDB, except for Series No. 003 (Re-opened).
16 CREDITORS AND OTHER PAYABLES
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Creditors 605,850 420,407 625,737 434,922Deposits and advances 509,009 453,948 509,009 453,948Deferred income (Note 17) 74,287 71,429 75,008 72,370Interest payable 187,551 239,676 187,551 239,676Provisions 21,044 21,044 23,255 23,481
1,397,741 1,206,504 1,420,560 1,224,397
Provisions were made for restoration works for the former quarry sites, pending firm development plans of therespective agencies taking over the sites.
The movements in provisions for the HDB and Group are:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Balance as at 1 April 21,044 21,044 23,481 23,563Provisions utilised - - (226) (82)Balance as at 31 March 21,044 21,044 23,255 23,481
HDB Annual Report 2007/2008 [119]
17 DEFERRED INCOME
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Within 1 year (Note 16) 74,287 71,429 75,008 72,370After 1 year but within 5 years 147,174 148,117 147,174 148,117After 5 years 447,476 453,321 447,476 453,321
594,650 601,438 594,650 601,438668,937 672,867 669,658 673,808
Deferred income relates principally to amount received in advance in respect of operating leases of land,commercial and industrial properties (Note 2.20).
18 INCOME
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Interest income 1,416,604 1,479,703 1,416,616 1,479,723Rental and related income 842,281 792,577 857,497 800,652Car park charges 416,191 386,883 415,646 386,374Recoveries for upgrading and others 69,978 78,378 69,978 78,378Levy on resale flats and sales premium 41,184 28,475 41,184 28,475Agency and consultancy fees 40,921 24,423 114,002 98,405Gain on disposal of assets 60,902 21,848 60,907 21,851Investment income 5,323 25,013 3,931 5,704Fees and other income 110,916 104,246 111,220 104,582
3,004,300 2,941,546 3,090,981 3,004,144
Investment income includes dividend income as follows:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Dividends from- Unquoted subsidiary 4,920 24,465 - -- Others - - 1,751 2,339
HDB Annual Report 2007/2008 [120]
19 FINANCIAL EXPENSES
HDB and Group2007/2008 2006/2007
S$’000 S$’000
Interest expense from- Government loans 1,421,712 1,562,257- Bank loans 62,567 54,986- Bonds 180,377 153,035
1,664,656 1,770,278Less:Interest capitalised in properties under development (Note 10) (49,882) (43,971)Bond amortisation (891) (787)
1,613,883 1,725,520
20 EXPENSES BY NATURE
Expenses include the following:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Upgrading, improvements and demolition 625,102 438,915 623,033 436,656Depreciation 311,402 308,947 313,946 309,369Property tax 108,468 99,690 108,539 99,755Impairment losses on property, plant and
equipment, and investment properties 1,067 30,024 1,067 30,054Reversal of impairment losses on
property, plant and equipment, andinvestment properties (121,840) (3,309) (121,840) (6,271)
Provision for loss for properties underdevelopment/for sale 783,757 194,989 783,757 194,989
(Reversal of allowance)/Allowance forimpairment losses on loans receivableand debtors (25,732) 26,276 (25,642) 26,326
Manpower costs 390,538 333,451 443,082 385,498CPF Housing grant 215,496 311,283 215,496 311,283Auditors’ remuneration 630 630 676 662Board members’ fees 125 76 125 76Directors’ fees and remuneration - - 467 454Manpower costs and overheads
capitalised in:- properties under development (7,901) (7,329) (7,901) (7,329)- inventories of building materials (5,055) (5,757) (5,055) (5,757)
HDB Annual Report 2007/2008 [121]
20.1 MANPOWER COSTS
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Salaries and bonuses 341,834 292,648 388,129 338,417Contribution to CPF 34,590 28,280 39,476 33,693Staff benefits 6,862 6,711 7,909 7,420Training/development costs and others 7,252 5,812 7,568 5,968
390,538 333,451 443,082 385,498
Manpower costs include the key management personnel’s remuneration as follows:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Salaries and other short-term employee benefits 5,970 4,675 6,437 5,129
21 GOVERNMENT GRANT
Cumulative grant from the Government since the establishment of the HDB in 1960 amounts to:
HDB2007/2008 2006/2007
S$’000 S$’000
Total grant as at 1 April 15,992,631 15,246,807Grant for the financial year 1,247,991 745,824Total grant as at 31 March 17,240,622 15,992,631
HDB Annual Report 2007/2008 [122]
22 SIGNIFICANT RELATED PARTY TRANSACTIONS
The HDB is a statutory body incorporated under the Housing and Development Act (Note 1). As a statutoryboard, all Government ministries and departments, and statutory boards are deemed related parties of the HDB.
The Group had the following significant transactions with its supervisory Ministry, MND, and other related partiesduring the year:
2007/2008 2006/2007S$’000 S$’000
HDB’s transactions with:Subsidiaries- Property management (374) (467)- Telemonitoring management, mechanical and electrical services (2,677) (2,910)- Other services (513) (513)- Rental income 7,162 3,298- Sale of parking labels 545 509
MND- Agency fee income 31,551 10,601
Singapore Land Authority- Purchase of land (1,236,573) (549,805)- Proceeds from return of land, flats and other properties to Government 96,400 41,617- Agency fees and other income 2,020 2,137- Temporary occupation licence fees (2,386) (2,176)
NEA- Agency fees and recoveries 17,838 25,543
Other Ministries and Statutory Boards- Agency fees, recoveries and others 676 1,612- Rental income 1,349 1,458
Town Councils- Operating fee for car park maintenance expenses (33,483) (32,112)
Subsidiaries’ transactions with:Town Councils and Statutory Boards- Estate management agency fee income 73,029 72,797
Amounts due to related parties as at 31 March 33,467 33,318Amounts due from related parties as at 31 March 4,672 4,347
The outstanding amounts are unsecured. There are no guarantees provided or received in respect of the relatedparty balances. For FY 2007/2008, the Group had not made any allowance for impairment relating to amountsowed by related parties (FY 2006/2007: Nil).
HDB Annual Report 2007/2008 [123]
23 FINANCIAL RISK MANAGEMENT
The Group's activities expose it to interest rate risk, credit risk and liquidity risk.
The HDB’s exposure to market risk for changes in interest rate relates primarily to the government loans. TheHDB manages its interest rate exposure by largely matching the terms of the government loans with that of theloans receivables. The HDB uses various sources of funding to manage interest costs. In addition to governmentloans (Note 2.16), the HDB also accesses the capital market and financial institutions for its funding requirements.The bank loans (unsecured) are short-term in nature and any future variation in interest rates will not have amaterial impact on the results of the Group. Information relating to the Group’s interest rate exposure is disclosedin Note 15 on the loans payable.
The Group's loans receivable comprise largely mortgage loans to purchasers of flats under the public housingschemes. Policies on loan quantum and credit assessment are in place for the granting of mortgage loans toflat buyers, and the flats are taken as collateral. An allowance for impairment is made in respect of non-performingmortgage loans of which the collateral held is insufficient to discharge the outstanding mortgage loan. Theallowance represents the aggregate amount by which management considers it necessary to write down itsmortgage loan in order to state it in the Balance Sheet at its estimated net realisable value (Note 5).
The Group is of the view that there is no liquidity risk as the Group monitors and maintains a level of cash andcash equivalents deemed adequate to finance the Group’s operations. Funding is also made available throughan adequate amount of committed credit facilities. The MOF will act as the lender of last resort to the HDB forits funding requirements.
24 SEGMENTAL INFORMATION
BUSINESS SEGMENTSThe Group operates predominantly in Singapore, and therefore the revenues are generated mainly from theoperations in Singapore and the assets are located principally in Singapore.
The Group’s results are presented under seven business segments in respect of the Group’s main activities andthe government programmes implemented:
Home Ownership SegmentThe Home Ownership segment focuses on providing home ownership flats to eligible purchasers of flats underthe various home ownership schemes for public housing.
Upgrading SegmentThe Upgrading segment focuses on the upgrading programmes to renew and rejuvenate the older HDB estates.
Residential Ancillary Functions SegmentThe Residential Ancillary Functions segment focuses on implementing housing policies, managing ancillaryfacilities such as car parks in housing estates, and planning and building administration.
Rental Flats SegmentThe Rental Flats segment focuses on providing rental flats to eligible tenants under the various rental housing schemes.
Other Rental and Related Businesses SegmentThe Other Rental and Related Businesses segment focuses on the tenancy and management of investmentproperties and other properties owned by the HDB.
Mortgage Financing SegmentThe Mortgage Financing segment focuses on providing housing loans to eligible purchasers of flats under thevarious public housing schemes.
Agency and Others SegmentThe Agency and Others segment encompasses estate management services, architectural and engineeringconsultancy services, strategic building resource management and agency projects on behalf of the Government.
HDB Annual Report 2007/2008 [124]
24 SEGMENTAL INFORMATION (CONTINUED)FY 2007/2008
OtherRental
andHome Residential Related Agency
Owner- Ancillary Rental Busin- Mortgage and Elimin-ship Upgrading Functions Flats esses Financing Others ations GroupS$M S$M S$M S$M S$M S$M S$M S$M S$M
Sale proceeds 2,463 - 138 - 19 - 2 - 2,622Cost of sales (2,389) - (149) - - - - 20 (2,518)Gross profit/(loss) 74 - (11) - 19 - 2 20 104
Income- External 53 56 456 22 928 1,432 144 - 3,091- Inter-segment 2 - 28 - 18 - 8 (56) -Total income 55 56 484 22 946 1,432 152 (56) 3,091
Segment result (1,006) (516) (173) (77) 632 37 35 (5) (1,073)Government grant 1,248Taxation (2)Minority interests (3)Net surplus 170
Other segment itemsUpgrading, improvements
and demolition - (510) (65) (21) (29) - - 2 (623)
Depreciation (2) - (133) (38) (130) - (11) - (314)
Impairment losses onproperty, plant andequipment, andinvestment properties - - - - (1) - - - (1)
Reversal of impairmentlosses on property,plant and equipment,and investmentproperties - - - - 122 - - - 122
Provision for loss forproperties underdevelopment/for sale (784) - - - - - - - (784)
Reversal of allowance/(Allowance) forimpairment losses onloans receivable anddebtors - - - (1) (3) 30 - - 26
CPF Housing grant (215) - - - - - - - (215)
Investment properties:- Rental and related
income - - - - 432 - - - 432- Operating expenses - - - - (125) - - - (125)
Segment assets 4,132 284 9,101 2,398 7,907 49,626 885 - 74,333Unallocated assets 111Total assets 74,444
Segment liabilities 2,472 267 3,419 14 3,369 49,794 354 - 59,689Unallocated liabilities 269Total liabilities 59,958
Capital additions 46 - 153 12 65 - 4 - 280
HDB Annual Report 2007/2008 [125]
24 SEGMENTAL INFORMATION (CONTINUED)FY 2006/2007
OtherRental
andHome Residential Related Agency
Owner- Ancillary Rental Busin- Mortgage and Elimin-ship Upgrading Functions Flats esses Financing Others ations GroupS$M S$M S$M S$M S$M S$M S$M S$M S$M
Sale proceeds 1,117 - 88 - - - 7 - 1,212Cost of sales (1,081) - (82) - - - (2) 4 (1,161)Gross profit 36 - 6 - - - 5 4 51
Income- External 38 57 423 21 852 1,494 119 - 3,004- Inter-segment 1 - 6 - 16 - 28 (51) -Total income 39 57 429 21 868 1,494 147 (51) 3,004
Segment result (576) (353) (159) (65) 381 1 45 (25) (751)Government grant 746Taxation (4)Minority interests (2)Net deficit (11)
Other segment itemsUpgrading, improvements
and demolition - (352) (39) (15) (33) - - 2 (437)
Depreciation (2) - (131) (39) (128) - (9) - (309)
Impairment losses onproperty, plant andequipment, andinvestment properties - - - - (30) - - - (30)
Reversal of impairmentlosses on property,plant and equipment,and investmentproperties - - - - 3 - 3 - 6
Provision for loss forproperties underdevelopment/for sale (195) - - - - - - - (195)
Allowance for impairmentlosses on loansreceivable and debtors - - - (1) (6) (19) - - (26)
CPF Housing grant (311) - - - - - - - (311)
Investment properties:- Rental and related
income - - - - 414 - - - 414- Operating expenses - - - - (252) - - - (252)
Segment assets 4,329 231 9,160 2,503 8,109 52,284 773 - 77,389Unallocated assets 73Total assets 77,462
Segment liabilities 2,448 194 3,645 10 3,593 52,629 404 - 62,923Unallocated liabilities 213Total liabilities 63,136
Capital additions 5 - 67 - 67 - 3 - 142
HDB Annual Report 2007/2008 [126]
The following commitments for capital expenditure are not recognised in the financial statements:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Authorised and contracted for 1,814,763 1,139,961 1,816,480 1,139,961Authorised but not contracted for 1,304,066 942,154 1,304,066 942,154
3,118,829 2,082,115 3,120,546 2,082,115
25 COMMITMENTSa) Capital commitments
The Group leases out its properties to non-related parties. The future minimum lease receivables under non-cancellable operating leases contracted for at the balance sheet date but not recognised as receivables, areas follows:
HDB Group2007/2008 2006/2007 2007/2008 2006/2007
S$’000 S$’000 S$’000 S$’000
Within 1 year 114,670 104,936 122,022 108,036After 1 year but within 5 years 267,387 246,015 264,041 245,965After 5 years 291,654 317,329 291,654 317,329
673,711 668,280 677,717 671,330
b) Operating lease commitments – where the Group is a lessor
The future minimum lease payments under non-cancellable operating leases contracted for at the balancesheet date but not recognised as liabilities, are as follows:
Group2007/2008 2006/2007
S$’000 S$’000
Within 1 year 1,379 1,317After 1 year but within 5 years 421 289
1,800 1,606
c) Operating lease commitments – where the Group is a lessee
HDB Annual Report 2007/2008 [127]
26 CONTINGENT LIABILITIES
MODIFICATION WORKA claim involving rebar works for structural columns for S$2.4 million had been made by a contractor inFY2005/2006. The matter had proceeded to arbitration. Based on the legal advice and information presentlyavailable, the HDB believes that the claim will not succeed and accordingly, no provision had been made inrespect of the claim.
27 COMPARATIVE FIGURESComparative figures have been reclassified to conform to the current year’s presentation.
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Housing & Development BoardHDB Hub, 480 Lorong 6
Toa PayohSingapore 310480
HDB InfoWEB www.hdb.gov.sg