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SINGAPORE – Some Singaporeans living in private property or larger houses may be severely affected by the Covid-19 crisis, but cannot qualify for certain support schemes as eligibility is tied to the annual value of the houses they live in .
Three MPs urged the government on Monday (August 31) to review this resource testing criteria for Singaporeans seeking financial aid to ensure that these people are not left out without realizing it.
For example, newly divorced Singaporeans, single parents returning to live with elderly parents, and soon-to-be-married children hoping to move into build-to-order apartments may not qualify for schemes such as Self Employed Income Relief. Scheme (gentlemen) due to judgment, said Mr. Christopher de Souza (Holland-Bukit Timah GRC) during the debate on the president’s speech.
He called for support schemes to assess eligibility based on home ownership, rather than value and type of residence.
Sirs is open to those who earn a net business income of no more than $ 100,000, live in a property with an annual value of no more than $ 21,000, and do not own two or more properties, among other criteria.
The scheme helps the self-employed who have been affected by the coronavirus pandemic. Those who do not meet the criteria can appeal to the authorities, who will assess their eligibility on a case-by-case basis.
Similarly, Mr. Lim Biow Chuan (Mountbatten) said that the policy of linking welfare to annual property values should be reviewed, even as he agreed that the lower-income and needy should receive more help. .
He noted that citizens who suffer loss of income may need help, regardless of their type of housing, to pay for family expenses, such as medical bills, mortgage payments or school fees.
They may also not be able to sell their home during a financial crisis, he added.
“Why do we have the expectation that people don’t deserve help simply because they have bigger houses? Shouldn’t we consider their loss of income? Should we also insist that these people must sell their houses before receiving short-term help? specifically targeted at those affected by Covid-19? “he asked.
Henry Kwek (Kebun Baru) said it would be timely for the government to reconsider its pact with citizens living on private property, in light of the pandemic.
He recognized that private property residents have benefited from the extensive opportunities offered in Singapore. But, he added, they have financed most of the country’s tax revenue while consuming a limited amount of government aid.
“This is the right balance. As economic winners of our society, it is appropriate that they contribute to helping the rest of Singapore move forward.”
However, policies may need to be adjusted for groups, including retired seniors who are asset rich but cash poor, and residents over 50 who face uncertainty in their careers, he said.
Different criteria can be used to assess eligibility for support schemes, he added.
Their proposals include the use of a combination of non-housing assets, income, and the per capita housing equity of the occupants of a home.
More schemes can also be created to help asset-rich but cash-poor privately owned residents make better use of their home value, he added.
Mr. Kwek suggested that the government actively work with the banking and insurance sectors to create reverse mortgage options for private properties, and allow those over 70 to borrow against the value of their home at a reasonable rate.
This can help residents who are opposed to selling their home because they don’t want to be uprooted from a neighborhood they have become accustomed to.
It can also help seniors who are not financially smart enough to navigate tough global economic waters, he added.
While banks may have reservations about offering reverse mortgages to seniors, the government may explore forcing banks to allow residents to borrow against the value of their home if residents have given someone durable power of attorney, Kwek said.
This will ensure that the bank has someone to work with, without resorting to costly legal recourse should the homeowner become ill or mentally incapacitated.
“If our people can leverage their housing capital effectively, I think the majority of Singaporeans on private property would prefer to fend for themselves, rather than rely on government help,” he said.
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