hdb annual report 2013/2014

Transcription

Housing and Development Board Annual Report 2013/2014
S. 153 of 2014
Presented to Parliament pursuant to Statute.
Ordered by Parliament to lie upon the Table:
7 October 2014
HDB ANNUAL REPORT 2013/2014
2
CONTENTS
50 YEARS OF HOME OWNERSHIP.... 04
OUR CORPORATE STORY
CHAIRMAN’S STATEMENT............... 08
• Vision And Mission.........................................................24
• Corporate Governance.................................................. 28
• Shared Values.................................................................24
• Environmental Policy................................................... 29
• Members of The Board...................................................25
• Visitors............................................................................ 29
• Organisation Chart.........................................................25
• Agency Projects............................................................. 30
• Staff Strength..................................................................25
• Subsidiary and Associated Companies....................... 30
CEO’S WORD....................................... 10
YEAR IN REVIEW. .............................. 11
• Awards.............................................................................26
3
FINANCIAL HIGHLIGHTS................... 31
AVAILABLE ON HDB InfoWEB.. .......... 35
FINANCIAL REVIEW........................... 33
• Key Statistics
• Financial Statements
4 50 Years of Home Ownership
50 Years of Home Ownership
Fifty years ago, in February 1964, the Home
Ownership for the People Scheme was launched
to encourage Singaporeans to take the first sure
steps towards affordable home ownership.
As with most beginnings, the scheme had a slow start.
and about 90% of these resident households own
People were unsure of how it would benefit them. But
their HDB flat – amongst the highest ownership rates
with the launch of the Central Provident Fund (CPF)
in the world.
Public Housing Scheme in September 1968, which
allowed funds from CPF to be used for downpayments
While the policies have made home ownership a viable
and monthly repayments on an HDB flat, as well as a
option, the greater draw is the improvement to their
subsequent slew of liberalisation measures, it made
lives that HDB flat owners could see and experience
better sense to buy, rather than rent an HDB flat.
for themselves. Ownership meant that they are now
an asset-owning class, with a stake in the nation’s
Before long – in fact by 1970 – more than 20,000 had
prosperity.
applied to buy HDB flats and the number of flat buyers
soon exceeded those who wanted to rent. Today, about
Ownership of an HDB flat has also given Singaporeans
80% of Singapore’s resident population live in HDB flats,
a physical as well as an emotional anchor, deepening
their sense of rootedness to home and country. The
Home Ownership Highlights through the Years
(A Pictorial Journey from the 1960s...)
push for home ownership was an important factor in
nation building 50 years ago, and remains equally vital
today.
•
1 February 1960, immediately set to work, building
at an exponential rate in its early years. Instead of
Generations of Singaporeans can relate to the soaring
providing public housing for rent, HDB took a different
HDB blocks that define the Singapore skyline. These
approach, promoting and enabling home ownership
HDB towns and flats spell heartwarming homes for the
through the Home Ownership for the People Scheme
majority of them, with the common experience of HDB
from February 1964, allowing more citizens to
living the unifying arc.
This Annual Report takes you down memory lane
through the reminiscences of our residents and HDB
staff. We hope their sharings will help jog into memory
some of your own sweet recollections.
The Housing & Development Board (HDB), formed on
purchase affordable and quality flats for their homes.
•
The Government offered generous grants for public
housing development and subsidised mortgage
financing for HDB flat owners. In September 1968,
Singaporeans were allowed to use their CPF savings
to pay for their HDB flats, rendering home ownership
even more affordable, with minimal impact on their
take-home pay.
1960s
“
We share the joy and happiness of our customers
each time they receive the house keys from
us. It is a very significant event of these home
owners’ lives, and as an HDB flat owner myself,
I too remember the day, many years ago, when
I collected my keys. At that time, they were
packaged in a small, brown envelope.
Today, we put the keys in a nice, handy key
pouch, and important information in a folder
for the new home owners. We have also become
photographers! With camera phones, we often
end up snapping photos of these proud new home
owners posing with the keys to their new HDB flat
– a request we are more than happy to oblige.
”
– Having worked in HDB for over 37 years,
Senior Estate Manager Tan Chong Hock has been
part of the home ownership experience for decades.
To read more about Chong Hock’s story,
scan the QR code.
Chong Hock, second from left, and his colleagues at the HDB Centre
in Bukit Merah
1970s
5
6 50 Years of Home Ownership
•
To better promote racial integration and harmony, HDB
implemented the Ethnic Integration Policy (EIP) in 1989,
to achieve a balanced ethnic mix among the various
communities in HDB towns, thus strengthening the overall
sense of well-being.
•
Addressing the needs of maturing flats and towns, HDB
committed to continual and systematic upgrading of homes
and estates through various programmes and schemes –
the Main Upgrading Programme (MUP) in 1992, the Interim
Upgrading Programme (IUP) in 1993, the Selective En bloc
Redevelopment Scheme (SERS) in 1995, Home Improvement
Programme (HIP) and Neighbourhood Renewal Programme
(NRP) in 2007, as well as the Remaking Our Heartland (ROH)
programme in the same year.
•
The Build-To-Order (BTO) system was piloted in 2001 and
replaced the Registration for Flats System in 2002. Under
the BTO system, applicants could choose the location, flat
type and timing of purchase. Flats would be tendered for
•
From that first sale right up to 1983, flats were
sold on a first come, first served basis. The
Member of Parliament (MP) would draw two
pieces of paper, one bearing a sales registration
number and the other, a house unit.
•
In 1983, this manual balloting system was
replaced by a selection process, during which
buyers were allowed to pick a flat based on their
queue numbers.
“
I share many fond memories of my old HDB flat and life with
my sisters. We were a pretty playful lot in our growing up
years, from sliding down hills on old cardboard boxes, to
playing at the nearby badminton court.
We used to share a room in our old flat. My sisters and I
would build ‘houses’ from the mattresses which we slept
on. Not only did we build the exterior of our ‘house’ with
mattresses, we also ‘creatively’ decorated the interior with
bolsters and pillows. The blankets would be used as curtains
at the entrance of our ‘house’. There was always a great
sense of accomplishment when we were finally able to move
in – a mini sanctuary within our actual HDB home!
”
– Ms Wu Jinghang’s heartwarming memories of HDB living.
To read more about Jinghang’s story,
scan the QR code.
Childhood memories of Jinghang, pictured centre, include
adventures at the playground with her sisters
1980s
1990s
7
construction when majority of the new flats offered were
booked. However, in May 2011, given the strong demand
for new flats, HDB ramped up the building programme and
proceeded to build ahead of demand. As the increased
supply cleared much of the demand backlog from firsttimer flat applicants, in 2014, HDB started to taper the
BTO supply to a more sustainable level.
•
HDB also rolled out policies to help different groups
of home buyers through various means – from housing
subsidies to priority and quota schemes. These benefitted
first-timers and second-timers, low-income and middleincome earners, multi-generation families and the elderly,
and more recently, singles as well.
•
In 2011, HDB rolled out the ‘Roadmap to Better Living in
HDB Towns’, which set out the key priorities for HDB’s
professional focus over the next five to 10 years, and to
guide the development approach for various housing
areas, old and new, towards greater liveability and
“
sustainability practices.
I met my husband at the
playground near Block 38 at
Toa Payoh Lorong 5. Our story
started in 2003 and is still
going strong today. It is our
regular meet-up place, and we
often hang out there whenever
we plan to meet with friends.
The playground also holds
dear memories of the ups and
downs of our relationship and
is symbolic of our marriage. We
have always come back to this
place, whether it is to celebrate,
or to resolve a big fight. We
will never let go of the many
memories we share here.
”
– Mdm Mandy Thio shares a special place
which holds a lot significance
in her relationship.
2000s
8 Chairman’s Statement
Chairman’s
Statement
2013 was a packed and busy year for HDB as we
focused and consolidated our efforts to bring home
ownership within reach of more Singaporeans, and our
towns a better place to live in.
Our policies were fine-tuned and new ones added, to help
more groups of home buyers purchase a new or resale
flat, and assure rental tenants and vulnerable families in
need of shelter. We continued to deliver on the building
programme, nurture the growth of vibrant communities
as well as introduce innovative, sustainable, and green
solutions.
More than just activities and events, each effort and
initiative worked towards, and revolved around HDB’s
vision and mission – creating a housing environment for
the future of Singaporeans, one aiming at being inclusive,
harmonious and strong, and also supportive of families,
individuals and the community.
Housing and Home Ownership
Housing demand remained strong. HDB added to
the supply of new flats through six Build-To-Order
(BTO) sales exercises in the calendar year, comprising
34 projects with a total of 25,139 flats. Another 7,074
flats were released under the Sale of Balance Flats (SBF)
exercise across all 26 HDB towns and estates.
The policies reviewed during
home ownership accessible to
Singaporeans were timed to take
of BTO sales exercises in July
the year to make
a wider segment of
effect from the launch
and September. The
changes included the revision in the income ceiling for
the Special CPF Housing Grant (SHG) and its extension
to 4-room standard and premium flats in non-mature
estates as well. A new Step-Up CPF Housing Grant was
introduced to help families in subsidised 2-room flats in
non-mature estates upgrade to new 3-room standard
flats in non-mature estates, together with an increase in
the monthly household income ceiling for families applying
for 2-room flats in non-mature estates. For singles, they
could henceforth buy a 2-room standard BTO flat in nonmature estates and enjoy the Additional CPF Housing
Grant (AHG) and SHG, if they met the qualifying criteria.
Refinements to policies to encourage and enable families
to live close together for mutual support and care, either
in the same flat, or nearby in the neighbourhood, were
effected. The Multi-Generation Priority Scheme (MGPS)
was extended to include 3-room flats, besides the
existing options for parent-applicants to buy a Studio
Apartment (SA) or 2-room flat. In the Financial Year (FY),
318 Three-Generation (3Gen) flats were offered to cater
for multi-generation family living.
HDB worked on ensuring a stable and sustainable
public housing market through a series of cooling
measures since January 2013. The measures
implemented in August 2013 included tightening
of mortgage financing and a wait out period for Singapore
Permanent Residents wanting to buy an HDB resale flat.
An indication of their efficacy was seen in the decline
in resale flat prices by 3.4% in the FY, in contrast to a
7.3% growth in the last FY.
Apart from helping home owners, rental flat tenants
also received assistance. In the FY, 8,577 of them were
helped under the ComCare Work Support or ComCare
Transitions programme, while 41 tenants with rental
arrears moved into smaller rental flats. HDB worked with
the Ministry of Social and Family Development to provide
support to vulnerable families, and to help improve their
circumstances.
Revitalising and Upgrading Journey
Besides building new homes for Singaporeans, HDB
continued to revitalise older towns and estates to meet
the evolving needs of residents through various upgrading
programmes.
The Remaking Our Heartland (ROH) programme, aimed
at creating a vibrant, sustainable and barrier-free HDB
heartland, continued to shape new developments in
various towns. In the FY, various ROH initiatives were
implemented. Yishun Town’s transformation into a vibrant
hub was well on track with a mixed development project
in the town centre, integrating residences, commercial
retail space, a bus interchange, a community club, and a
town plaza. In East Coast, a new shopping centre, Bedok
Mall, started operations in December 2013. Moving
forward, three other HDB towns identified for ROH
Batch 3 would be announced in 2015.
The Lift Upgrading Programme (LUP), since its introduction
in 2001, is expected to benefit 500,000 families in
terms of lift accessibility. All eligible blocks for the LUP
had been announced, with the last batch in 2011. The
Neighbourhood Renewal Programme (NRP) and Home
Chairman’s Statement
Improvement Programme (HIP) also progressed on target
and were well-received by residents. During the FY, 12
NRP projects and 27 HIP precincts were announced.
Launched in 2012, the Enhancements for Active Seniors
(EASE), to retrofit seniors’ homes with elderly-friendly
features, had, as at 31 March 2014, benefitted 7,040
households who applied directly, with another 17,000
households opting for EASE with HIP. An e-Service
of referrals for EASE by hospitals was launched in
September 2013.
Commercial properties were revitalised and improved
as part of the rejuvenation efforts under the ROH, with
improvement works at Taman Jurong Shopping Centre
completed in the second quarter of 2013.
thrusts on environmental sustainability, and covered a
wide spectrum of initiatives.
In this FY, HDB developed the Biophilic Town Framework
to address the needs of the eco-system and guide HDB
in enhancing existing natural assets to achieve a greater
sense of place, quality and well-being for residents. HDB
embarked on the development of a Complex Systems
Modelling Tool to aid in the finer aspects of town planning,
under a 21-month research collaboration agreement,
starting first with the HDB Greenprint pilot project in
Yuhua, to be followed by Punggol.
HDB aims to involve the community in its sustainable
living efforts, and thus, launched the $1 million HDB
Greenprint Fund in February 2013. It attracted 31
9
as well as accolades for 33 housing developments at
the BCA Awards. Following in the footsteps of previous
accolades, these awards affirmed HDB’s commitment to
delivering quality homes as well as vibrant and sustainable
towns, and fostering active and cohesive communities.
Even as we strive for the best outcomes, we can be sure
the future will bring numerous challenges. The changing
social landscape will test our limits and capabilities. As
communities become more diverse in their world views,
new challenges will arise. We will need to look into
diverse needs, such as a greying population and different
vulnerable groups, as well as tend to the other changing
demographics of the HDB public through the provision
of the right infrastructure, policies, and programmes. But
with everyone’s dedication and continued support, I am
Our policies were fine-tuned and new ones added, to help more
groups of home buyers purchase a new or resale flat, and assure
rental tenants and vulnerable families in need of shelter.
Active Communities
HDB’s proactive role in community building, as well as
strengthening neighbourhood identity and memories,
saw many programmes initiated to address specific areas
of need.
Through public education and engagement programmes,
HDB promoted responsible and caring communities,
and encouraged residents to take greater pride of the
community they live in. The annual HDB Community Week
held in May 2013 attracted 52,000 visitors in various
fun activities. Other initiatives launched during the HDB
Community Week included the inaugural Community
Building Seminar on mobilising neighbourhood assets
for stronger communities, and the Good Neighbour
Award (GNA) to create a close-knit community. Alongside
ongoing community engagement programmes, the
‘Building Our Neighbourhood’s Dreams’ (BOND!) project
was piloted in a Bukit Panjang precinct, for residents to
co-design community facilities under the NRP.
proposals from the public, five of which were selected
for test-bedding in Yuhua. HDB turned to crowdsourcing
to harvest ideas and solutions from residents to address
daily issues faced in HDB living. The ‘Cool Ideas for
Better HDB Living’ initiative attracted 220 ideas since
2011. HDB launched the Cool Ideas Fund in the FY to
provide funding for participants to turn their winning ideas
into workable prototypes for test-bedding.
The Next Frontier
confident that we will overcome whatever challenges the
next year, or future years, may bring to our doorstep. And
with determination, realise many of our plans.
HDB is fortunate that in our efforts to make Singapore
an endearing home for all, we have the strong support of
our partners and fellow stakeholders – Members of the
Board, Management and staff, as well as the HDB Union.
We have worked together as a team to overcome our
challenges.
During the FY, HDB completed the master planning for
three new housing areas – Bidadari, Tampines North and
Punggol Matilda, which was publicised at the ‘Future
Homes, Better Lives’ exhibition. The plans made good
use of the areas’ history and local features to create a
unique identity and living experience for each town. They
also embraced some of the best ideas and practices that
HDB envisioned for its towns of the future, making them
the kind of homes our next generation of home owners
would take pride in, and be happy to live in.
I would like to thank all of you for your continuing support
and dedication. Let us continue to do our best to serve
the nation.
Mr James Koh Cher Siang
Sustainable Living
With each successive phase of HDB homes, HDB
considered and incorporated the best possible design
and planning ideals of their time. As we celebrate the
50th Anniversary of the Home Ownership for the People
Scheme this FY, we have a great sense of pride knowing
that HDB had always striven to do its best in providing
homes for Singaporeans that were highly liveable, and
sustainable.
As a green advocate, HDB’s work in ensuring the
liveability of public housing towns formed part of its key
In the FY, HDB received several local and international
awards, including the Minister’s Awards (Team) 2014,
Besides connecting with residents, HDB also continued
to work with Grassroots Leaders (GRLs). About 90% of
the participants found the two GRL Dialogue Sessions
held in October 2013 useful in helping them better
understand the rationale behind HDB’s key policies and
schemes.
Chairman
10 CEO’s Word
CEO’s Word
The housing policy refinements in the FY
covered the different needs of a wider
spectrum of home buyers – from singles, to
middle-income and multi-generation families,
giving each more help and options.
We have launched 77,000 Build-To-Order (BTO) flats
over the past three years and despite the massiveness
of our Building Programme, the challenge presented
opportunities to inject new ideas. HDB’s ‘Roadmap to
Better Living in HDB Towns’ to create well-designed,
sustainable, and community-centric towns, was drawn
up during such a time of change, and it has since proved
useful in helping us shape a stronger development
approach for all our various individual projects.
At the same time, we looked into emerging needs to
better equip HDB towns to meet the evolving future.
We developed a holistic framework on the planning
and design of towns to meet these different needs, an
ageing population being one of them. The framework
also aspired to bridge the gaps between current and
future HDB towns, and where possible, identify areas of
collaboration and partnerships with related agencies to
make the endeavour more fruitful.
In this Financial Year (FY), we unfolded the development
plans for a new generation of public housing – the
completion of the masterplans for three new housing
areas: Bidadari, Tampines North and Punggol Matilda,
and the development plans for each town’s demonstration
precincts. These plans are the rich result of painstaking
and studied efforts to envision a future home and
environment that Singaporeans would readily embrace.
The positive feedback from the public when we exhibited
the plans affirmed that we had taken the right first steps
towards creating liveable, sustainable, and exciting
homes and towns.
Correspondingly, we introduced new policies and
enhanced existing ones, with the view to benefitting
our residents and ensuring a more sustainable housing
situation. The housing policy refinements in the FY
covered the different needs of a wider spectrum of home
buyers – from singles, to middle-income and multigeneration families, giving each more help and options.
The various cooling measures to temper the market
had, in turn, helped lend greater market stability and
sustainability.
Throughout the FY, we also focused on improving
the quality of HDB towns and homes through various
upgrading programmes. Each programme played its
different part to contribute to the overall rejuvenation of
existing estates – from lift upgrading to upgrades within
the flat and the precinct, and the revitalisation of HDB
commercial and industrial properties.
And HDB living would not be complete without its
community of people who make up the social fabric
of our heartland – and around which HDB’s range of
community outreach programmes revolve. Just as how
we engaged HDB residents as our stakeholder partners
in forging a better town and home, we sought out industry
partners, professionals and institutions to improve
building standards and sharpen capabilities. In the FY,
the HDB Community Week and the HDB Professional
Engagement And Knowledge-sharing (PEAK) Forum
continued to serve as important rallying platforms for their
different audience groups.
In this FY, we also crossed a milestone – the 50th
Anniversary of HDB’s Home Ownership for the People
Scheme. Introduced in 1964, it has helped many
Singaporeans to own their homes. Today, over 90% of
Singaporeans living in HDB flats own their flat. It is not just
a statistical achievement, but one that has put Singapore
firmly on the world map for the distinctive quality of its
public housing programme.
In this, we have many people and partners to thank for
the support, hard work and dedication that have helped
HDB realise the scheme’s aim. This Annual Report FY
2013/14 celebrates the anniversary of the scheme from
the viewpoint of our residents and staff.
Dr Cheong Koon Hean
Chief Executive Officer
Year in Review
11
Year in Review
2013/2014
HOME, WHERE THE
HEART IS
VIBRANT AND
SUSTAINABLE LIVING
PEOPLE AND COMMUNITY
AN INSPIRATION TO ALL
• Sustainable Building Programme
• Maintenance and Upgrading of
Homes and Estates
• Community Engagement and
Bonding
• Caring for Staff
• Caring for the Elderly
• Understanding Residents’ Needs
• Stabilising the Resale Market
• New and Rejuvenated Towns
• Helping the Lower-Income
• Sustainable Efforts and Living
• Strengthening HDB’s Customer
Touch Points
• Stronger Support for Home
Ownership
• Increasing Productivity through
Innovation
• Revitalising Commercial and
Industrial Properties
• Dedication to Excellence
12 Year in Review
Home, Where the Heart is
“
We have just moved in to our flat in Bukit Panjang. The colour scheme of the estate
is lovely, and I really enjoy the view of the nature reserve from my living room.
We are also fortunate to have playgrounds and exercise stations conveniently
located on our doorstep. We can’t wait to check out the shops and eateries which
will be opened soon. Once our new neighbours have settled in their new homes,
I plan to host a housewarming party and invite them over, as it will definitely be
a great way to get to know them.
”
– New home owner Mdm Jane Yeo
is excited to transform her new flat into a home.
To read more about Jane’s story,
scan the QR code.
Year in Review
13
It was a good year for home buyers and owners with
new measures and policies calibrated to bring about a more stable
housing situation that also took care of vulnerable groups.
Sustainable Building Programme
Stronger Support for Home Ownership
For the last three years, HDB had ramped up its building
programme to an average of 26,000 new HDB flats per
year. This, coupled with a series of cooling measures,
had largely stabilised the public housing situation, and
allowed a tapering of the building programme to achieve
a more sustainable supply.
Apart from ensuring timely flat supply, a series of
measures were introduced in the FY to meet the diverse
needs and aspirations of various segments of HDB flat
buyers and home owners. These included not only firsttime flat buyers, but also second-timers, as well as multigeneration families and singles, vulnerable families, and
the elderly.
In Financial Year (FY) 2013, HDB launched six Build-ToOrder (BTO) sales exercises, comprising 34 projects, with
a total of 24,531 units. This was slightly fewer than the
26,252 units launched in FY 2012. HDB also released
7,074 units of balance flats for sale in the May and
November 2013 Sale of Balance Flats (SBF) exercises.
The flats included both completed units and those under
construction located across 26 towns and estates. Also
released for sale were seven Executive Condominium
sites with a combined yield of about 3,337 units.
As at 31 March 2014, 16,881 dwelling units for BTO,
Selective En bloc Redevelopment Scheme (SERS) and
Rental were completed, with another 86,298 units under
construction.
from HDB. Previously, the SHG was available only to
households with incomes not more than $ 2,250, buying
2-room and 3-room standard flats in non-mature estates.
During the 2013 Committee of Supply debate, three
new housing measures were announced that increased
the chances of owning a home for first-timers, secondtimers, vulnerable families, and the elderly, through priority
schemes, enhanced grants, and allocation quotas. These
took effect from the May 2013 sales exercises.
For lower-income households, two new measures helped
to increase their ability to purchase a flat. The Step-Up
CPF Housing Grant of $15,000, implemented from the
July 2013 BTO sales exercise, meant that families living
in subsidised 2-room flats in non-mature estates could
upgrade to 3-room standard flats in non-mature estates
from HDB. Before this, the housing grant was only
available to first-time buyers of HDB flats. The increase
in the monthly household income ceiling from $2,000
to $5,000 for families applying for 2-room flats in nonmature estates, was also rolled out with effect from the
July 2013 BTO sales exercise.
More supportive measures, to help middle-income
families afford their first home, followed soon after. These
were implemented from the July 2013 BTO sales exercise
onwards. The income ceiling for the Special CPF Housing
Grant (SHG) was increased from $2,250 to $6,500,
while the SHG was extended to first-time buyers of
4-room standard or premium flats in non-mature estates
Also introduced from the July 2013 BTO sales exercise
was a new housing policy enabling first-timer singles
aged at least 35 years, and with a monthly income of
up to $5,000, to buy 2-room standard BTO flats in nonmature estates from HDB. And to help them afford their
first flat, the Additional CPF Housing Grant (AHG) and
SHG were also extended to eligible first-timer singles.
14 Year in Review
From the September 2013 BTO sales exercise, HDB
enhanced the Multi-Generation Priority Scheme (MGPS)
to facilitate mutual care and support for multi-generation
families. The parent-applicants could purchase 3-room
flats, in addition to the existing options of purchasing
a Studio Apartment (SA) or 2-room flat. This was to
encourage more families to live in close proximity.
Stabilising the Resale Market
The September 2013 BTO sales exercise also piloted
Three-Generation (3Gen) flats, meant for multi-generation
families wishing to live under one roof. Since then,
318 units of 3Gen flats had been offered in FY 2013.
In FY 2013, resale prices decreased by 3.4%, in contrast
to the 7.3% growth in FY 2012, marking the first annual
decline since FY 2005. There were 17,552 resale
applications registered in FY 2013, which was about 26%
lower than the 23,579 applications registered in FY 2012.
With the Singapore property market heating up over
the last few years, which also affected the HDB resale
market, HDB had introduced several rounds of cooling
measures to bring about a more balanced and stable
housing situation.
In August 2013, the cooling measures announced
were aimed at encouraging financial prudence and
discouraging over-consumption in the purchase of public
housing. The maximum tenure for HDB housing loans for
Year in Review
new and resale flats was shortened from 30 to 25 years,
while the Mortgage Servicing Ratio limit was reduced
from 35% to 30% of a borrower’s gross monthly income.
For new housing loans and refinancing facilities granted
by MAS-regulated financial institutions for the purchase
of HDB flats, the maximum tenure was also shortened
from 35 to 30 years, while new loans with tenures
exceeding 25 years and up to 30 years, would be subject
to tighter Loan-to-Value limits. It was also announced
that from August 2013, Singapore Permanent Resident
households could buy a resale HDB flat only after a wait
of three years from the date of obtaining their residency
status.
In March 2014, HDB announced changes to the resale
process to help buyers and sellers focus on the total price
of the resale flat itself, and not negotiate based on the
Cash-Over-Valuation (COV) component. The transacted
resale prices of HDB flats on the HDB website would be
updated daily, as soon as they were registered. This would
enable buyers and sellers to refer to the latest information
during price negotiations. HDB would also only accept
valuation requests from buyers or their salespersons,
after buyers were granted an Option to Purchase by the
flat sellers. The Option Period was also extended from
14 calendar days to 21 calendar days, to allow buyers
more time to get a valuation during this period.
Helping the Lower-Income
HDB continued to care for the needs of the lower-income
group, providing help to those who required rental
housing, or had fallen into arrears. As at 31 March 2014,
420 rental units were completed, and 6,217 were under
construction. A total of 8,577 rental flat tenants were
15
assisted under the ComCare Work Support or ComCare
Transitions programme in FY 2013. HDB also assisted 41
tenants who faced difficulty in paying rent to transfer to
smaller rental flats.
HDB’s efforts in helping families manage their arrears
saw a steady decline in the Non-Performing Loan level
for home ownership flats, from 5.2% in March 2013 to
4.7% in March 2014. In the FY, HDB continued to work
with the Ministry of Social and Family Development to
provide support to vulnerable families, improve their
circumstances and raise developmental prospects for
their children.
16 Year in Review
Vibrant and
Sustainable Living
“
When considering where to purchase our BTO flat four years ago, my wife and
I wanted a place that was close to our parents and also convenient in terms of
amenities. We decided to live near my wife’s parents, which is near transport
nodes and shopping centres. We planned to settle down four years later, and as
promised, the BTO flat came just at the right time. I love the estate as it is quite
peaceful. We also have an array of facilities at our doorstep, such as a nice park
and playground for my daughter. My family and I often take leisure walks around
the park.
”
– Mr Elreno Bin Subari enjoys the convenient
access of his new BTO estate.
Year in Review
17
HDB’s ‘Roadmap to Better Living in HDB Towns’, envisioned a more
sustainable future for residents of both its older and newer towns.
Various upgrading programmes in the FY, and the master planning for
three new housing areas – Bidadari, Tampines North and Punggol Matilda
– afforded HDB excellent opportunities to incorporate relevant best
practices to create a better living environment.
Maintenance and Upgrading of Homes and Estates
As at 31 March 2014, there were 888,234 home
ownership flats, 52,637 rental flats, and 749,350 parking
lots in residential estates under HDB’s management.
HDB continually looked into ways to better the living
environment.
More than 5,000 blocks had been offered the Lift
Upgrading Programme (LUP) since it started in 2001, and
the LUP is expected to benefit 500,000 families in terms
of lift accessibility. And for the Neighbourhood Renewal
Programme (NRP), 85 projects had been announced
since it was introduced in FY 2007. Public consultation
exercises had been carried out for 73 of them. Involving
the upgrading of blocks and precincts at no cost to the
residents, it continued to receive strong support from
residents, with an average support level of 85%.
The Home Improvement Programme (HIP) was
announced in 2007, offering improvements to the interiors
of flats for the benefit of residents. It also addressed
common maintenance issues in older flats, such as
spalling concrete. Flats built up to 1986 and which had
not undergone the Main Upgrading Programme (MUP),
were eligible to be nominated for HIP. In total, about
300,000 flats are eligible for HIP.
As at 31 March 2014, about 103,000 flats (115 precincts)
had been announced for HIP. Polling for about 75,000
flats (86 precincts) were completed, during which strong
support was received from residents, with an average
support level of 90.6%. HDB completed the HIP works for
about 27,000 flats (30 precincts). Works for the remaining
flats were progressing well on track.
On flat renovations, HDB made it a requirement from
January 2014, for all Registered Renovation Contractors
to engage only certified workers to carry out demolition
or hacking of walls, to mitigate the risk of damage during
renovation. Only workers who had undergone the training
course conducted by the BCA Academy and passed the
test were allowed to carry out the works.
To meet residents’ needs for car park spaces and to ease
the shortage of localised car parks, HDB constructed an
additional 765 car lots and 211 motorcycle lots for existing
car parks. It also piloted the Mechanised Parking System
(MPS) at three sites, namely Yishun, Bukit Panjang, and
Changi Village. And to provide greater convenience to
residents and visitors, HDB rolled out a 5-year Car Park
Lift Installation programme to install lifts at all Multi-Storey
Car Parks (MSCPs) from 2013 to 2017. In FY 2013, HDB
completed the lift installation at 21 MSCPs and works
were in progress for 49 others.
Caring for the Elderly
In the FY, HDB continued to work with the Ministry of
Health, Ministry of Social and Family Development, and the
Urban Redevelopment Authority to plan for and facilitate
ageing-in-place. Since November 2012, HDB had been
collaborating with Khoo Teck Puat Hospital and Tan
Tock Seng Hospital to refer patients to HDB who would
benefit from the Enhancement for Active Seniors (EASE)
programme. This was extended to Alexandra Hospital
in March 2014. With EASE, eligible HDB flats would be
retrofitted with elderly-friendly home improvements. To
simplify and speed up the process, an e-Service for referrals
of EASE (Direct Application) by hospitals was launched
in September 2013. HDB also set up EASE booths at
community events and events organised by stakeholders
such as hospitals and the Council for Third Age.
18 Year in Review
As at 31 March 2014, about 7,040 households had
applied for EASE (Direct Application) since its pilot launch
on 1 July 2012, and approximately another 17,000
households had opted for EASE together with HIP.
retail space, a bus interchange, a community club, and
a town plaza. The town plaza will serve as a focal point
for residents to gather and participate in a wide range of
community activities.
New and Rejuvenated Towns
For the East Coast ROH, the new shopping centre,
Bedok Mall, began operations in December 2013. The
improvement works at Taman Jurong Shopping Centre,
as part of the rejuvenation efforts under the Jurong Lake
ROH, was also completed in the second quarter of 2013.
During the FY, HDB completed the master planning for
three new housing areas – Bidadari, Tampines North
and Punggol Matilda. The plans capitalised on their
distinctive characteristics, such as their history, local
flavours and features, to create a unique identity and
living experience for each town. Launched at the ‘Future
Homes, Better Lives’ exhibition from 30 August to
15 September 2013, the plans garnered widespread and
positive public response.
HDB’s ongoing Remaking Our Heartland (ROH)
programme sought to transform our HDB towns and
estates – both young and old – into vibrant, sustainable
and barrier-free homes. Its first batch of makeover works,
announced in 2007, covered Yishun, Punggol, as well
as Dawson estate in Queenstown. In 2011, Hougang,
East Coast, and Jurong Lake areas were selected for the
second batch of ROH. The third batch of ROH would be
announced in 2015, with three more HDB towns being
identified to undergo developmental transformation.
As part of ROH efforts to revitalise Yishun Town Centre,
HDB progressed with the planning of a new mixed
development project, including residences, commercial
Sustainable Efforts and Living
To keep every estate vibrant and sustainable, HDB
created more environmentally-sustainable homes and
towns. It also rolled out new green initiatives to advocate
a greener lifestyle amongst residents.
In the FY, HDB introduced a standard suite of ecofeatures in all new public housing developments from
the January 2014 BTO sales exercise, to increase the
efficiency of water, energy and waste management.
Examples included eco-pedestals in bathrooms which
would use water from hand washing for toilet flushing,
LED lighting with motion sensor controls, and regenerative
lifts that helped to lower energy consumption, as well as
Centralised Chutes for Recyclables to promote recycling.
More covered bicycle parking lots and bicycle wheel
ramps were also added to new projects to encourage
residents to adopt environmentally-friendly modes of
transportation.
The HDB Greenprint project was introduced to bring
sustainable living to existing HDB estates, piloting first
with Yuhua, where tours and exhibitions during the FY
raised residents’ awareness on green benefits and
initiatives. In February 2013, the $1 million Greenprint
Fund was launched, attracting 31 proposals from the
public, of which five were selected for test-bedding in
Yuhua. Some of the proposals commenced works in
early 2014.
Since the launch of the ‘Cool Ideas for Better HDB Living’
crowdsourcing initiative in 2011, HDB had received more
than 220 proposals. In March 2014, HDB launched the
Cool Ideas Fund to provide funding for winning ideas to
be developed into workable prototypes. Each feasible
proposal would be given a grant capped at $10,000
to support the cost of developing and test-bedding
the project. The second ‘Cool Ideas for Better HDB
Living’ exhibition was held from 29 to 31 March 2014
and showcased 17 winning ideas and prototypes by
innovative residents.
HDB had been building up its Solar Capability Building
Programme to test-bed solar photovoltaic systems to
generate better yields of solar energy. Solar leasing was
rolled out for 120 residential blocks in Punggol, and
would subsequently be introduced on a larger scale in
Sembawang, Jurong East, Tampines and Marine Parade.
HDB also developed the Biophilic Town Framework in
FY 2013 to address the needs of ecosystem services
Year in Review
in terms of environmental, ecological, economical and
socio-cultural aspects. The framework outlined strategies
to sustain and enhance HDB’s urban environment, and
also to help build up the science in achieving greener
towns.
industry towards design and construction excellence.
The HDB Landscape Guide, which consolidated key
design principles and considerations, was also launched
at the PEAK Forum.
Revitalising Commercial and Industrial Properties
Increasing Productivity through Innovation
HDB continued to work towards greater construction
productivity and better quality projects, such as carrying
out environmental modelling for project plans, and looking
to sharing and learning from industry best practices.
The Revitalisation of Shops (ROS), part of the
Government’s ongoing measures to provide support to
HDB retailers, started in November 2007. It had since
benefitted 51 sites, or 4,500 shops, covering about 50%
of HDB’s Town and Neighbourhood Centres.
In June 2013, HDB signed a 21-month Research
Collaboration Agreement with the Electricite de France
and Veolia to develop a Complex Systems Modelling Tool
for town planning. The computer modelling tool was able
to simulate various built environments and recommend
an optimal scenario to meet the desired outcome of
the living environment. The development of the tool
commenced for the Greenprint pilot neighbourhood of
Yuhua and would be followed by Punggol Town.
In the FY, 32 sites were identified for ROS under Batch 5 of
the scheme. HDB worked with Grassroots Organisations
(GROs), agencies and organisations such as the National
Heritage Board, North East Community Development
Council and the Restroom Association of Singapore to
organise activities and events to inject vibrancy into these
HDB shopping centres. In addition, major upgrading
works were completed for Rivervale Plaza, Fajar Shopping
Centre and Taman Jurong Shopping Centre.
The HDB Professional Engagement And Knowledgesharing (PEAK) Forum, held in September 2013, provided
a key platform for HDB to engage building and construction
professionals, to share best practices and help steer the
The HDB Industrial Redevelopment Programme (IRP)
was launched in February 1997 to recycle, redevelop and
intensify the existing HDB-managed industrial land, and
to relocate pollutive trades. To date, HDB had announced
19
14 IRP Batches and relocated about 3,900 industrial units
to new high-rise industrial complexes with better facilities.
Plans for the first phase of the Defu Master Plan (DMP)
for Defu Industrial Estate, announced in 2012, proceeded
during the FY. This included the appointment of architect
consultants for the Bedok Food City and Defu Industrial
City. HDB also held focus group discussions with the
affected Defu industrialists so that feedback on their
operational requirements could be incorporated into the
preliminary designs.
In March 2014, HDB announced that Eunos Industrial
Estate had been identified under Batch 14 of the IRP.
The affected units would be relocated to a new high-rise
industrial complex in Ang Mo Kio Industrial Park 3.
In the FY, HDB also revised the assignment policy for
commercial and industrial properties. From October
2013, HDB disallowed assignment for new commercial
and industrial tenancies to reduce the upward trend of
average assignment fee and tendered rent, resulting in
higher operating costs.
20 Year in Review
People and Community
“
I have an Indian family living next to me, and on the other side is a Chinese family.
We greet each other and exchange goodies during festive periods; we also look out
for one another, to make our estate a safer, more comfortable place to live in. My
neighbours are all really friendly and nice too … it really feels like those television
drama series in which the neighbours are all so perfectly amazing!
”
– The friendly neighbours living next to Mr Syahril Salleh
contribute to a better community in Pioneer Estate.
To read more about Syahril’s story,
scan the QR code.
Year in Review
21
HDB persevered with its efforts to draw residents together
to contribute to active community bonding. This was in furtherance
of its aim to foster community-centric towns that emphasised
social harmony and integration.
Community Engagement and Bonding
Understanding Residents’ Needs
The HDB Community Week, an annual key component
of HDB’s overall community engagement efforts, took off
on 29 May 2013. It featured a wide range of activities
that catered to various community segments. Activities
such as Celebrating LIFE in the Heartlands Photography
Exhibition, Amazing Heartland Race, Heartland Youthoria!
Exhibition, and Good Neighbour Award (GNA) ceremony
were held to focus on spreading the message of
neighbourliness, and to encourage greater involvement
in community building. Out of the 2,500 GNA nomination
entries received in 2013, 11 were selected as winners.
A total of 52,000 visitors attended the Community Week
activities in 2013.
HDB engaged Grassroots Leaders (GRLs) by working
with the National Community Leadership Institute (NACLI)
to organise two GRL Dialogue Sessions in October 2013.
Each dialogue session comprised a presentation on
HDB’s policies and schemes, followed by a Q&A segment
with HDB Senior Management. A total of 498 participants
attended the two dialogue sessions. About 90% of the
survey respondents found the dialogue sessions useful
in helping them better understand the policies, schemes,
and measures which HDB had put in place to address
residents’ needs.
In conjunction with HDB Community Week 2013, the
inaugural Community Building Seminar was also held in
May 2013. 300 practitioners from public sector agencies,
welfare organisations, GROs, and tertiary institutions
attended the seminar. Besides learning from local and
overseas success stories, participants also embarked on
an experiential learning journey to discover neighbourhood
assets and to identify ways to mobilise them.
The ‘Building Our Neighbourhood’s Dreams’ (BOND!)
project was piloted in a Bukit Panjang precinct, during
which residents were invited to co-design their community
facilities under NRP. In FY 2013, HDB completed the
engagement phase of this pilot project. A total of 53
residents signed up to be BOND! champions, a role
entailing the initiation and sustaining of interest groups
within their community.
In 2013, HDB also completed the Sample Household
Survey (SHS), a 5-yearly large-scale survey on the HDB
resident population. More than 7,800 residents were
surveyed on various aspects of public housing, including
physical and social aspects. Overall results showed that
the level of community bonding among HDB residents
has improved. Satisfaction with the provision of estate
facilities was high at 96%, while the overall satisfaction
level in young towns also saw significant improvements.
HDB also carried out surveys to better understand the
different communities living in HDB estates.
Strengthening HDB’s Customer Touch Points
Good customer service remained a key focus of HDB’s
daily work since the development of the HDB Service
Masterplan in 2011, which sought to map out and enhance
key touch points in customers’ service experience with
HDB. Various projects had been implemented as part
of the masterplan, such as the Design Thinking Project
piloted at Punggol Branch, the development of the
Customer Management Portal, as well as enhanced
service delivery at the Building Services Centres.
HDB continued to tap on a wide range of media platforms,
from mainstream channels to online and ground
outreaches, to explain key policies and programmes,
given its wide customer group. At the same time, it profiled
the organisation’s professionalism and care in reaching
out to various target groups. Examples included features
on how the EASE project team worked the ground to
better understand the needs of elderly residents, and
another, on HDB frontline staff who worked diligently on
Sundays to serve flat buyers.
On online platforms, HDBSpeaks continued to be the
main point of clarification for misconceptions about HDB
policies and programmes. In the FY, HDBSpeaks received
over 67,000 visits and 131,000 page views. Lending a
softer touch, MyNiceHome, a resource portal providing
aggregated housing and home-related information and
services also saw good growth. It attracted more than
64,900 visitors, 145,800 page views, and garnered over
7,300 new Facebook fans in FY 2013. Other HDB online
platforms, such as HDB’s corporate YouTube channel,
garnered more than 65,000 views in the same period,
while HDB’s corporate Twitter grew by 7,396 followers, a
132% increase from the previous year.
22 Year in Review
An Inspiration to All
“
I enjoy my work and find it very meaningful as I feel housing is an important and
relevant aspect in everyone’s lives. It makes me feel good to be involved in helping
people understand the various options and loans available, allowing them to make
a decision on which is most suitable and comfortable in their flat purchases.
My work is challenging as it is a frontline job and I face different customers every
day. However, there are heartwarming experiences, such as when a couple bought
lozenges for me upon noticing my bad throat! I have learnt much on the job as I
mature as an individual and as an HDB officer. I am also pursuing my degree in
psychology currently, which can help me understand my customers better.
”
– Customer Relations Executive Shamalandeswari D/O N Rahzoo
shares her thoughts and challenges faced at work.
To read more about Shamala’s story,
scan the QR code.
Year in Review
23
HDB was conferred numerous accolades in various fields,
from design and construction, to organisational practices in the FY.
These awards showed the dedication of the organisation and
the staff to continual improvement and innovation.
Caring for Staff
In the FY, HDB recruited staff to strengthen its
organisational staffing. It also enhanced its talent pool
through Undergraduate and Mid-Term Scholarships. In a
bid to cultivate a strong learning culture, it implemented
training customised to the different learning needs of staff.
latest HDB housing policies and programmes, key HDB
operations, and iconic HDB projects. This was in addition
to regular updates on platforms such as the in-house
newsletter ‘@home’ and its new interactive portal, as well
as the HDB Annual Conference, Groups’ Conferences
and the Groups’ Work Plans Exposition.
Dedication to Excellence
HDB collaborated with the HDB Staff Union and NTUC
LearningHub to develop a formalised Workplace Safety
and Health awareness programme for officers involved
in defects inspection of residents’ flats, commercial
properties or industrial areas. A total of 1,071 staff had
been trained since the launch of the programme in
August 2013.
As part of measures to increase organisational knowledge
and foster pride among HDB staff, 11 HDB Staff Seminars
were organised in 2013, to provide updates on the
In FY 2013, HDB garnered several local and international
awards. On the international front, HDB won the iCMG
Enterprise & IT Architecture Excellence Awards 2013
for its Enterprise & IT Architecture. Locally, HDB won
the Minister’s Awards (Team) 2014 for three aspects:
‘Measures for a Stable and Sustainable Public Housing
Market’, ‘Master Planning of Bidadari, Tampines North
and Punggol Matilda’, as well as ‘An HDB Branch Like
No Other At Punggol Town’.
Four of HDB’s projects also bagged the Singapore
Landscape Architecture Awards during the FY,
comprising a Gold award for My Waterway@Punggol, as
well as Merits for Greenwood Sanctuary@Admiralty, Casa
Clementi, as well as Punggol Breeze. My Waterway@
Punggol also won the Gold award for the Singapore Good
Design Mark Award 2013 in the Public Category, while
Casa Clementi was conferred the Project Management
Institute (PMI) Distinguished Project Award 2013. These
awards affirmed HDB’s dedication to creating vibrant and
sustainable towns, while housing active and cohesive
communities.
Wrapping off the FY on a high note, a total of 33 projects
and an outstanding HDB officer also garnered accolades
at the BCA Awards 2014. The awards recognised
developers and builders for their contribution in shaping
a safe, sustainable, friendly, and high quality built
environment in Singapore.
24 Our Corporate Story
Our Corporate Story
VISION
An outstanding organisation with
people committed to fulfilling
aspirations for homes and
communities all are proud of.
MISSION
We provide affordable homes of quality
and value.
We create vibrant and sustainable towns.
We promote the building of active and cohesive
communities.
We inspire and enable all staff to give of their best.
SHARED VALUES
INTEGRITY
We perform our duties with
honesty, fairness, and courage
so as to uphold the public’s
trust in us.
TEAMWORK
We share and respect
different views, and
build on each other’s
strengths to achieve
our vision and goals.
LEARNING
We practise life-long
learning, share our
knowledge, and constantly
seek ways to do our
work better.
EXCELLENCE
We take pride in what
we do, and deliver
quality work for our
organisation and
customers.
CARE
We care for our
colleagues, community,
and the environment.
Our Corporate Story
MEMBERS OF THE
BOARD
25
ORGANISATION CHART
CHAIRMAN
Chairman
Board Members
BOARD MEMBERS
Dr Cheong Koon Hean
Mr Matthias Yao Chih
Mr Tham Kui Seng
Mrs Chng Sok Hui
Ms Ong Toon Hui
Associate Professor Yu Shi Ming
Dr Cheong Koon Hean
Mr Ong Chong Tee
Mr Tham Sai Choy
BG Mervyn Tan Wei Ming
Mr Mohd Sa’at bin Abdul Rahman
Senior Advisor
Er Lau Joo Ming
Deputy Chief
Executive Officer
(Building)
Sng Cheng Keh
Deputy Chief Executive Officer
(Estate & Corporate)
Yap Chin Beng
(1)
HDB Building
Research Institute
Building
Estate
Corporate
Group Director
Group Directors
Group Directors
Group Directors
Er Dr Johnny Wong
Liang Heng
Fong Chun Wah
Tan Chew Ling
Heng-Ng Mien Joo
Development & Procurement
Estate Administration & Property
Corporate Development
Raymond Toh Chun Parng (2)
Mike Chan Hein Wah
Joyce Ng Swee Lin
Research & Planning
Housing Management
Corporate Communications
Thomas Seow
Lau Chay Yean
Audrey Leong Yue Yoke
Building Quality
Community Relations
Finance
Er Yap Tiem Yew
Loh Loon Tong (3)
Leong Chin Yew
Building & Infrastructure
Properties & Land
Information Services
Khoo Teng Seong
Balakrishna Madhubala
Industrial Properties
Legal
Building Research Institute
Constance Ng-Yip
Chew Ngoh#
Internal Audit
(1)
(2)
(3)
#
Technical Advisor to HDB Building Research Institute and Building
Dr Chong Fook Loong assumed the position of Group Director (Research & Planning) on 22 September 2014
Ms Kee Lay Cheng will assume the position of Group Director (Properties & Land) on 11 October 2014
Group Director (Internal Audit) reports directly to the Audit Committee and administratively to Deputy Chief Executive Officer (Estate & Corporate)
STAFF STRENGTH
Categories of Staff
HDB BRI
Management/ Professional
101.5
Management Support
Estate
Corporate
Total
427
1,103.5
372.5
2,004.5
8
91
1,756
315.5
2,170.5
IT Support
0
7
25 58.590.5
Technical Support
57 38990214 1,362
Office Administration Support
Total
Building
0
2
34 17.553.5
166.5
916
3,820.5
778
5,681
AWARDS
INTERNATIONAL
NATIONAL
Asia Pacific ICT Awards 2013 (APICTA)
(Government and Public Sector Category)
BCA Construction Excellence Award 2014
BCA Green Mark for New Non-Residential Buildings
• Casa Clementi
• Bedok Hawker Centre & Multi-Storey Car Park (Gold)
• SECAD - The Answer to Greater Productivity
through Technology Innovation by HDB (Merit)
• Punggol Breeze
• Punggol Spectra
iCMG Enterprise & IT Architecture Excellence Awards
2013 (Best Enterprise & IT Architecture in Government/
Defence/ Public Sector Category)
• Damai Grove (Merit)
• Fernvale Lodge (Merit)
• HDB Enterprise & IT Architecture
• Senja Green (Merit)
IT Excellence Awards 2013
(Best Bottom-line IT Category)
BCA Construction Productivity Award 2014
(Residential Non-Landed Buildings Category
[for projects with GFA ≥25,000 m2])
• Casa Clementi (Platinum)
• HDB’s Integrated Car Parks System
APEX Awards (2014) for Excellence
(Custom Published Newsletter)
• Punggol Breeze (Platinum)
• Havelock View (Gold)
• Life Storeys Issue 6
BCA Green Mark for Non-Buildings (District)
Green Apple Award
• Defu Industrial Park (Southern) (Certified)
• My Waterway@Punggol
BCA Green Mark for New Residential Buildings
IFLA Asia Pacific Region (APR) Awards
for Landscape Architecture (Merit)
Malaysia Landscape Architecture Award (MLAA)
(International Project Category)
• Fernvale Rivergrove (Sengkang N4 C26) (Gold Plus)
• Fernvale Rivergrove (Sengkang N4 C27) (Gold Plus)
• Kallang Trivista (Gold Plus)
• Punggol Edge (Gold Plus)
BCA Green Mark for Existing Non-Residential Buildings
• Connection ONE (Platinum)
• HDB Centre of Building Research (Platinum)
• HDB Hub (Platinum)
• Limbang Shopping Centre (Gold)
• Taman Jurong Shopping Centre (Gold)
• Tampines Central Community Complex (Gold)
BCA Green Mark for Existing Residential Buildings (Gold)
• Blocks 173 - 176 Edgedale/ Edgefield Plains/
Punggol Field
• Blocks 101 - 105 Punggol Field/ Edgefield Plains
• Blocks 196 - 199 Punggol Field
BCA Universal Design Award for the Built
Environment 2014
• Kampung Admiralty (Gold Plus)
• Segar Grove (Gold)
• Firefly Park@Clementi (Certified)
• Fernvale Palms (Certified)
• Skyline I @ Bukit Batok (Gold Plus)
• Skyline II @ Bukit Batok (Gold Plus)
• Waterway Ridges (Gold Plus)
• Waterway Sunbeam (Gold Plus)
• Waterway SunDew (Gold Plus)
• Compassvale Ancilla (Gold)
• McNair Tower (Gold)
• Montreal Dale (Gold)
Community Chest Awards 2013 SHARE Platinum Award
Community Chest Awards 2013 Special Events Silver Award
Our Corporate Story
27
Singapore Landscape Architecture Awards (SLAA)
(General Design, Parks & Public Spaces Category)
Energy Efficiency National Partnership (EENP) Awards
2013 (Best Energy Efficiency Practices in the Public
Sector - Large Building Category)
PS21 Excel Award 2013 - Most Innovative Project
• Connection ONE
Singapore Concrete Institute (SCI) Award
(Innovators Category)
LOO (Let’s Observe Ourselves) Award 2013 Public Organisation
• Designed for Disassembly Building Systems in
Singapore
Minister’s Awards (Team) 2014
Singapore Concrete Institute (SCI) Award
(Innovators Category)
(Residential Design, Local Residences Category)
• SECAD - The Answer to Greater Productivity through
Technology Innovation by HDB
• Casa Clementi (Merit)
• Measures for a Stable and Sustainable Public
Housing Market
• Master Planning of Bidadari, Tampines North and
Punggol Matilda
• Enhancement for Active Seniors (EASE) (Silver)
• Greenwood Sanctuary@Admiralty (Merit)
• An HDB Branch Like No Other At Punggol Town
Singapore Good (SG) Design Mark Award 2013
(Public Category)
NTUC May Day Model Partnership Awards
(Management and Union/ Partners Category)
• My Waterway@Punggol (Gold)
Ong Teng Cheong (OTC) Institute Workplace
Partnership Award 2013 - Gold
Project Management Institute (PMI) Distinguished
Project Award 2013
• Casa Clementi (Clementi N4 C8)
PS21 Best Practice Award (Regulation)
• Housing Policies To Meet The Diverse Needs of
Citizens
Singapore Infocomm Technology Federation (SiTF)
Award - Infocomm Productivity
• SECAD
(Integrated Design Category)
• My Waterway@Punggol (Gold)
(Residential Design, Local Residences Category)
• Punggol Breeze (Merit)
Skyrise Greenery Excellence Awards 2013
• Punggol Breeze
Total Defence Awards 2013 Distinguished Defence Partner
CORPORATE GOVERNANCE
Board Members
Audit Committee
Internal Audit Function
The HDB Board derives its strength from the diverse yet
complementary backgrounds and qualifications of its
members. The Board Members are respected individuals
in their fields with extensive public and corporate sector
experience. All Board Members are non-executive
members, except for the Chief Executive Officer.
The Audit Committee assists the Board in maintaining
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 which, in its opinion, should be brought to the
Board’s attention and has explicit authority to investigate
any matter within its terms of reference. The Audit
Committee consists of members from the HDB Board.
HDB’s Internal Audit Group advises all levels of
management on the quality of HDB and its Subsidiary’s
operations with particular emphasis on systems of
control. Reporting directly to the Audit Committee, it
conducts risk-based audits and addresses its findings
and recommendations to the appropriate level of
management who are able to take the necessary action.
It adheres to the Standards and Guidance of The Institute
of Internal Auditors.
Internal Control Framework
HDB’s internal control system ensures that assets are
safeguarded, proper accounting records are maintained,
and financial information is reliable. The overall control
framework includes clearly-defined authority, delegation
limits, reporting mechanisms, appropriate terms
of reference for management of core policy areas,
comprehensive policies/ procedures relating to operations
and financial controls, as well as an annual budgeting and
monthly financial reporting system for all operating units.
Fraud and Wrongful Practices Reporting Channel
HDB has a Fraud and Wrongful Practices Reporting
Channel to reinforce HDB’s commitment to a culture of
integrity and transparency within the organisation. The
channel is a confidential avenue for HDB staff to report
suspected fraudulent incidents and wrongful practices
directly to the Chairman of the Audit Committee of the
Board, who would oversee incidents reported and
investigated.
Annual Audit
The audit findings by the External Auditor in the course
of the annual financial audit are reported to the Audit
Committee, the Board, and the Ministry of National
Development (MND). The annual financial statements
are endorsed by the Audit Committee for the Board’s
approval.
Our Corporate Story
Business and Ethical Conduct
HDB 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 the HDB
Code of Conduct and Discipline Rules.
Block Leave Policy
To complement HDB’s existing risk management
practices and align our internal control measures with
market practice, the block leave policy of five consecutive
working days per calendar year was implemented
with effect from 1 June 2012. Staff who undertake job
functions that are prone to fraud are subject to the block
leave policy.
Dissemination of Public Information
HDB’s audited annual financial statements are available
at the HDB InfoWEB and the Singapore Exchange (SGX)
website. The HDB InfoWEB also contains corporate
information such as Annual Reports, latest developments,
and press releases.
29
ENVIRONMENTAL POLICY
VISITORS
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:
HDB has the honour of hosting distinguished visitors
from various countries and territories who are interested
in our successful public housing programme. From April
2013 to March 2014, HDB welcomed 4,770 visitors in
208 visits.
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
Visits
3 (1%)
8 (4%)
16 (8%)
8 (4%)
29 (14%)
• 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
65 (31%)
79 (38%)
Communicate with and educate all persons working for
or on behalf of HDB, business partners, customers and
the public to achieve our environmental goals
Australia, New Zealand & the Pacific
North East Asia
Europe
South East Asia
Middle East, Africa, South
and Central Asia
Americas
Mixed Countries
SUBSIDIARY AND
ASSOCIATED COMPANIES
AGENCY PROJECTS
Major Infrastructure Works
HDB is currently the largest stakeholder in the installation
of the solar PV system in Singapore, and has progressively
Infrastructure and road-related facilities in 18 towns
were implemented. A total of $124 million spent in
FY 2013 on major infrastructure works for public housing
development programmes, and other large-scale HDB
developments carried out on behalf of MND.
rolled out the test-bedding in both new and existing HDB
precincts. To date, HDB has committed a total of $18
million on 16 MWp of solar PV systems for 350 public
housing blocks located in 13 towns and estates.
Solar Leasing Project
Land Reclamation Projects
Ongoing reclamation projects included works at Pulau
Tekong and Changi East Finger with HDB as an agent
to MND.
Solar Capacity
The solar capability building programme for public
housing involved a wide-scale solar photovoltaic (PV)
test-bedding in new and existing precincts. The test-bed
will enable HDB to achieve the following developmental
The solar leasing model is an enhancement of HDB’s
solar capability building programme, and a continuation
of HDB’s ongoing efforts to test-bed solar energy to
promote sustainable development.
The solar PV system will provide power for common
services in the blocks. A solar leasing tender was
called for 80 blocks in Punggol. Upon completion in the
second quarter of 2014, this project will increase the
total capacity of solar PV panels in Punggol from 3.5
MWp to 5.5 MWp.
objectives such as, conduct study on the performance of
solar PV system based on different block configurations,
geographical settings and technologies in a tropical
setting, gather and learn from its design and development,
help the industry build technical expertise and capability,
and develop more cost-effective solar PV systems.
The solar leasing model has also been expanded
to include implementation in other projects, such
as the HDB Greenprint project at Yuhua. Largerscale deployment of solar PV panels in Singapore
is expected with a solar leasing tender called
in August 2013, for installation in more than 100 blocks
in Ang Mo Kio.
EM Services was formed in 1988 to offer estate
management, engineering, contracts administration and
project management services to Town Councils. HDB
holds a 75% stake in the subsidiary, while Keppel Land
Ltd holds the remaining 25% stake.
During the year, EM Services maintained its position
as the largest managing agent for public housing in
Singapore. It managed more than 500,000 units of
residential and commercial properties on behalf of Town
Councils. The company provided essential maintenance
and lift maintenance services to Town Councils, property
management services to both private and Government
agencies, and also housing agency services. In addition,
it installed and upgraded lifts in various HDB housing
estates under the Lift Upgrading Programme.
The total revenue and management fees of the company
for FY 2013 was $110 million.
Financial Highlights
$ million
2013/2014
2012/2013
Increase/
(Decrease)
2011/2012
2010/2011
1,280
2,503
(1,223)
2,842
3,369
Less: Net operating expenditure
(3,253)
(3,300)
47
(3,285)
(3,512)
Deficit
(1,973)
(797)
(1,176)
(443)
(143)
Capital expenditure
11,459
8,730
2,729
7,133
5,219
OVERALL INCOME AND EXPENDITURE
Total income
RESULTS BY SEGMENT
Deficit from :
(1,927)
(719)
(1,208)
(411)
(506)
Upgrading
(568)
(619)
51
(625)
(613)
Residential ancillary functions
(157)
(116)
(41)
(100)
(60)
Rental flats
(50)
(61)
11
(57)
(49)
Mortgage financing
(30)
(27)
(3)
(24)
(26)
9
9
0
10
10
(2,723)
(1,533)
(1,190)
(1,207)
(1,244)
Home ownership
Elimination of inter-segment transactions
Housing total deficit
Surplus from :
745
723
22
761
1,101
Agency and others
14
22
(8)
13
10
Elimination of inter-segment transactions
(9)
(9)
0
(10)
(10)
750
736
14
764
1,101
(1,973)
(797)
(1,176)
(443)
(143)
Other rental and related businesses
Other activities total surplus
Overall Deficit
31
32
$ million
2013/2014
2012/2013
Increase/
(Decrease)
2011/2012
2010/2011
Property, plant and equipment, and
investment properties
22,928
21,505
1,423
20,807
20,258
Loans receivable
36,665
38,131
(1,466)
40,403
42,470
Properties under development and
for sale
18,032
13,665
4,367
9,491
6,663
Other assets
3,738
2,234
1,504
2,174
2,777
Total assets
81,363
75,535
5,828
72,875
72,168
Loans payable
62,358
56,966
5,392
55,011
55,250
Other liabilities
4,030
3,690
340
3,193
2,500
Total net assets
14,975
14,879
96
14,671
14,418
Capital and reserves
14,975
14,879
96
14,671
14,418
2,119
1,042
1,077
746
345
- mortgage financing
1,807
2,308
(501)
2,029
1,640
- upgrading financing
13
11
2
9
7
2,992
0
2,992
0
0
- mortgage financing
36,607
38,373
(1,766)
40,607
42,441
- upgrading financing
66
67
(1)
73
79
3,885
1,015
2,870
1,065
1,160
18,604
14,363
4,241
9,236
6,533
3,055
2,954
101
3,845
4,934
3,333
3,216
117
3,334
3,484
FINANCIAL POSITION
Less:
FINANCING OF PUBLIC HOUSING
Government grant to HDB
Government loans drawn during the year
- housing development
Outstanding loans payable
Government loans
- housing development
Bonds
Bank loans
Mortgage loans granted to flat buyers
Financial Review
33
Financial Review
FINANCIAL RESULTS
HOUSING RESULTS
HDB provides Singaporeans with affordable homes and a quality living environment,
through its role as the master planner and developer of Singapore’s public housing towns.
The Home ownership segment covers the development and sale of flats to eligible
buyers under the various home ownership schemes for public housing. The Home
ownership segment reported a deficit of $1,927 million in FY 2013/2014 as compared
with $719 million in FY 2012/2013.
To help Singaporeans become home owners, the Government subsidises HDB flats
with price discounts for new flats and by offering a variety of grants. The grants are
the CPF Housing Grant for eligible first-timer Singaporeans buying a resale flat, and
the Additional/Special CPF Housing Grant for lower-income Singaporeans buying their
first flat. HDB also offers housing loans at concessionary interest rates to help eligible
Singaporeans meet their mortgage commitments. For needy Singaporeans, HDB
provides heavily subsidised rental flats.
To ensure that HDB towns continue to be renewed and cater to the changing needs of
residents, HDB rejuvenates its towns and flats through programmes such as Remaking Our
Heartland (ROH) Programme, Home Improvement Programme (HIP) and the Neighbourhood
Renewal Programme (NRP). In addition, HDB is involved in relevant commercial and industrial
activities to provide a range of amenities and employment opportunities in HDB towns.
To reflect the full spectrum of HDB’s operations, the financial results are presented under
‘Housing’ and ‘Other Activities’ in the audited financial statements. ‘Housing’ consolidates
the results of housing programmes implemented. These comprise the Home ownership,
Upgrading, Rental housing, Residential ancillary functions, and Mortgage financing
segments. These segments incur significant deficits. ‘Other Activities’ comprise Other
Rental and Related Business, Agency and Others segments. These segments are
commercial in nature, and generate surpluses.
In FY 2013/2014, HDB incurred a higher overall net deficit of $1,973 million, before
the government grant, as compared with $797 million in FY 2012/2013. The net deficit
comprised the deficit from the ‘Housing’ activities of $2,723 million, offset by the
surplus from the ‘Other Activities’ of $750 million in FY 2013/2014.
HDB received a grant of $2,119 million in FY 2013/2014 from the Government to
finance its deficit, and to protect the reserves of the past governments in accordance
with the Constitution of the Republic of Singapore. The retained earnings of HDB as
at 31 March 2014 remained as zero after the transfers to the capital gains reserve to
protect past reserves.
FY 2013
FY 2012
Change over
FY 2012
$M
$M
$M
Deficit from:
Housing
Home ownership
Upgrading
Residential ancillary functions
Rental flats
Mortgage financing
Inter-segment transactions elimination
Total deficit from Housing
(1,927)
(568)
(157)
(50)
(30)
9
(2,723)
(719)
(619)
(116)
(61)
(27)
9
(1,533)
(1,208)
51
(41)
11
(3)
0
(1,190)
Surplus from:
Other Activities
Other rental and related businesses
Agency and others
Inter-segment transactions elimination
Total surplus from Other Activities
745
14
(9)
750
723
22
(9)
736
22
(8)
0
14
(1,973)
(797)
(1,176)
Net deficit before government grant
The number of sales completed (i.e. keys issued to buyers) this year was 13,310, which
was 2,777 units more than last year. HDB recorded a gross loss of $118 million for the
sales completed in FY 2013/2014. The provision for foreseeable loss of $325 million
that was made in the previous years was released on completion of the sales. In FY
2013/2014, $1,942 million of foreseeable loss for properties under development was
provided. As a result, there was a net increase of $1,617 million in the provision for
foreseeable loss.
In FY 2013/2014, HDB disbursed $136 million in CPF housing grants to eligible buyers
of resale flats, Design, Build and Sell Scheme (DBSS) flats and Executive Condominiums
(ECs). The lower grant disbursed as compared with $178 million in FY 2012/2013 was
mainly due to a drop in the housing grant applications for these flats.
The Upgrading segment reported a deficit of $568 million this year. The Lift Upgrading
Programme was at its tail-end. The Home Improvement and Neighbourhood Renewal
programmes were extended to more housing areas and more units benefitted from the
upgrading under both programmes.
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 $157 million as compared with $116 million
last year. This was due to an increased expenditure on improvement works such as
upgrading of electrical supply to properties and modification works carried out at car
parks.
The Rental flats segment recorded a lower deficit of $50 million this year as there was
lower expenditure on improvement works.
The Mortgage financing segment reported a slightly higher deficit of $30 million in
FY 2013/2014, as compared with $27 million in FY 2012/2013, due mainly to higher
operating expenses.
OTHER ACTIVITIES RESULTS
The segment on other rental and related businesses focuses on the tenancy and
management of commercial and industrial property developments owned by
HDB. It reported a surplus of $745 million as compared with $723 million last year
(FY 2012/2013). The higher surplus was mainly due to improvement in market rentals.
34
Financial Review
CAPITAL EXPENDITURE
Financial Position
$ Billion
Total Assets
Loans Receivable
90
Capital expenditure for the year was $11,459 million, an increase of $2,729 million from
last year. A large proportion of the year’s capital expenditure was incurred for purchases
of land and construction of public housing. More flats were under development as
compared with last year as a result of the ramp-up in HDB’s building programme.
80
70
4%
3%
9%
13%
5%
$72.1B $72.9B $75.5B
3%
18%
22%
28%
29%
29%
20%
20%
3%
4%
20%
Properties, plant
and equipment, and
18%
5%
Properties under
development and
for sale
5%
28%
Other Assets
40
Capital Expenditure
77%
30
12000
$11,459 M
20
11000
77%
59%
55%
50%
76%
75%
Capital, Reserves
and Liabilities
45%
Loans Payable
10
10000
9000
$72.1B $72.9B $75.5B
60
50
$ Million
$81.4B
$81.4B
Total
$8,730 M
FY 10/11 FY 11/12 FY 12/13 FY 13/14
Flats and assets
purchased
8000
7000
Upgrading and
improvement works
6000
5000
Land
4000
Building
Capital and Reserves
FY 10/11 FY 11/12 FY 12/13 FY 13/14
FINANCING OF PUBLIC HOUSING
HDB’s annual deficit is fully covered by government grant. In addition, HDB receives
a government grant to preserve the capital gains attributable to past governments on
disposal of the protected assets, in accordance with the Constitution of the Republic of
Singapore. The cumulative government grant to HDB since its establishment in 1960
amounted to $24,494 million.
3000
2000
The main loans which finance HDB’s operations comprise:
1000
0
Other Liabilities
0
FY 12/13
Breakdown
i) The mortgage financing loans that finance the mortgage loans granted by HDB to
purchasers of flats under the public housing schemes. Interest rate and repayment
term on loans obtained by HDB from the Government are:
FY 13/14
FY 2013/2014
FY 2012/2013
Changes over
FY 2012/2013
$M
%
$M
%
$M
%
Buildings
4,109
36
3,200
37
909
28
Land
7,070
62
5,290
60
1,780
34
Interest rate on loans
obtained from the
Repayment term
Government
CPF interest rate
20 years
0.1% point below Adjustable Up to 30 years
Rate Mortgage Index1
The Adjustable Rate Mortgage Index is computed based on the average of the non-promotional HDB housing
loan rates of the three local banks (i.e. DBS(POSB), OCBC and UOB).
1
Upgrading and
improvement works
135
1
166
2
(31)
(19)
Flats and assets
purchased
145
1
74
1
71
96
11,459
100
8,730
100
2,729
31
Capital Expenditure
Financing of mortgage
loans granted to
purchasers at
Concessionary interest rate
Market interest rate
FINANCIAL POSITION
As at 31 March 2014, HDB’s total assets amounted to $81,363 million. Loans receivable
were $36,665 million. Property, plant and equipment, investment properties, and
properties under development and for sale were $40,960 million. These assets accounted
for 95% of the total assets.
Capital and reserves stood at $14,975 million as at 31 March 2014. Reserves comprised
capital gains reserve of $6,949 million and asset revaluation reserve of $5,562 million.
The loans payable of $62,358 million comprised mainly loans from the Government.
ii) The housing development loans that finance the development programmes and
operations. Interest rate is pegged to the DBS Bank Ltd’s prevailing board rate for
housing loans.
iii) The bonds that finance HDB’s development programmes, working capital
requirements, and refinance existing borrowings. During the year, HDB raised $5.32
billion and redeemed $1.05 billion of unsecured Fixed Rate Notes. Total outstanding
Notes under the Medium Term Note Programme were $18.66 billion as at 31 March
2014.
Total Outstanding Loan
$ Billion
60
50
$6.5B
$1.1B
40
$9.2B
$14.4B
$18.7B
$1.0B
$1.0B
$3.9B
Housing
development
loans
$38.4B
$36.6B
Bonds
FY 12/13
FY 13/14
30
20
$42.4B
$40.6B
10
0
FY 10/11
Mortgage
financing
loans
FY 11/12
35
Available on HDB InfoWEB
Scan the QR code
to view our
online Annual Report
Scan the QR code
to view our
Key Statistics
Scan the QR code
to view our
Financial Statements
No part of this publication may be reproduced
or transmitted in any form or by any means.
Illustrations are artists’ impressions only.
Actual developments may differ.
36
Fulfilling Dreams
Building Homes
Creating Communities
Copyright © Housing & Development Board.
All rights reserved.
Produced and designed by
HDB Corporate Communications Group
Key
Statistics
&
Financial
Statements
Key
Statistics
Contents
Key Statistics since 1960
• Demand for Flats
• Building Statistics
• Cumulative Achievements
01
02
03
Key Statistics for FY 2013/2014
• Statistical Highlights
• Housing Statistics
• Town Developments
• Population Housed in HDB Flats
• Location of HDB Developments
• Price Range of Flats Offered
• Residential Properties
• Non-Residential Developments
• Properties Under Management
•Allocations
• Estate Renewal Strategy
• Floor Plans
04
05
06
07
08
09
10
11
12
14
15
16
DEMAND FOR FLATS
Home
1960 - 1990/91
Rental flats
Ownership flats
+
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
Home
1991/92 - 2013/14
Rental flats
Ownership flats
1991/92 - 1995/96
39,200
308,454
1996/97 - 2000/01
27,787
129,904
2001/02 - 2005/06
22,968
51,052
2006/07 - 2010/11
20,725
64,767
2011/12 - 2013/14
14,416
+
*
93,995*
Only for applications received in 1964 and 1965 to purchase Home Ownership flats.
Figures for FY 2013/2014 include projected bookings for January and March 2014 Build-To-Order (BTO) exercises as their selection exercises are ongoing as at
31 August 2014.
Note:
i
From FY 1989/1990 applicants for resale flats are not included in the figures on demand for Home Ownership flats.
ii
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.
iii 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 and those who had previously
applied for flats in mature estates.
iv
Figures from FY 1997/1998 to FY 2001/2002 refer to new applications received under RFS and bookings under Walk-In-Selection (WIS). Data includes Studio
Apartments, 3-room and bigger flats.
v Figures from FY 2003/2004 to FY 2013/2014 are based on bookings received by HDB for Studio Apartments and bigger flats under the various allocation
exercises, as well as bookings under the Design, Build and Sell Scheme (DBSS).
1
HDB Annual Report 2013/2014
BUILDING STATISTICS
Dwelling
Commercial
1960 - 1990
Total
Units
Developments
1960 - 1965
54,430
53,777
1966 - 1970
66,239
63,448
1971 - 1975
113,819
110,362
1976 - 1980
137,670
130,981
1981 - 1985
200,377
189,299
1986 - 1990
653
2,791
3,457
6,689
11,078*
121,400
119,708
1,692
1991 - 2013
Total
Dwelling
Units
Commercial
Developments
1991 - 1995
99,557
98,994
1996 - 2000
158,621
157,919
2001 - 2005
55,515
55,135
2006 - 2010 30,069
29,935 * *
2011 - 2013
46,796
46,693 * *
#
563
702
380
134
103
Figures are for calendar years
* Includes HUDC units built by the Urban Redevelopment Authority (URA).
** Includes DBSS Flats of 616 units for 2006 - 2010 and 2,132 units for 2011.
#
Before July 1992, commercial developments referred only to eating houses, shops with living quarters, and lock-up shops.
2
CUMULATIVE ACHIEVEMENTS Building Projects
Units Completed
Residential Dwelling Units
Dwelling Units (DBSS)
1,057,396**
4,757
Commercial
Shops and Eating Houses
17,026
Markets and Food Centres
223
Offices
2,218
Kiosks
847
Industrial
Ready-Built Factories
14,098*
Land Leases
0
Wholesale
1,145
Shops and Recreational
Swimming Complexes
18
Sports Complexes
12
Indoor Stadiums, Training Halls, Sports Halls
9
Town Gardens and Parks
72
HDB or Government/Institutional
Civil Defence Shelters
446
Administrative Offices, HDB Branches and Town Council Offices
71#
Community Centres (Void Decks)
47
Bus Interchanges
25
Engineering Projects: Completed Land Reclamation
Area Reclaimed (hectares)
East Coast Phases 1-7
1,525
North-Eastern Coast Phases 1-3
472
North-Eastern Coast Phase 4
126.1
Punggol276
Kallang Basin
199
West Coast
86
Pasir Ris
44
Marina Bay
38
Tuas20
Woodlands Checkpoint
9.7
Tanjong Rhu
5.6
Pasir Panjang
65.5
Southern Islands
34
Pulau Tekong
833.4
**
*
#
Excludes DBSS flats.
Includes Woodlands Park D units (comprising 342 terrace workshops, 218 industrial shops and 3 canteens transferred to Jurong Town Corporation in 1995.
The Area Offices have been taken out as these have been incorporated into the Shops/Offices figures. There is also the inclusion of Administrative Offices that
are located in the Neighbourhood Centres.
3
Key Statistics FY 2013/2014
STATISTICAL HIGHLIGHTS
Percentage
Key Indicators
FY 2013/2014
FY 2012/2013
Change %
Estimated percentage of Singapore resident population living
in HDB flats
82
82
0.0
Estimated percentage of Singapore resident population living in HDB sold flats
79
80
-1.3
+
&
Bookings for new flats^30,638 26,537 15.5
Applications registered for resale flats
17,552
23,579
-25.6
Households that benefitted from the CPF Housing Grant~ 5,046
6,337
-20.4
- Family grant (living near parents/married child)
788
1,123
-29.8
- Family grant
2,611
3,381
-22.8
- Singles grant
1,504
1,668
-9.8
- Singles grant (living with parents)
99
132
-25.0
- Joint Singles grant
44
33
33.3
Households that benefitted from the Additional CPF Housing Grant~ 9,295
12,091
-23.1
#
Households that benefitted from the Special CPF Housing Grant~ 3,380
720
369.4
Applications to rent flats
4,612
4,886
-5.6
No. of flats with keys issued under Home Ownership for the
People Scheme
15,204
12,197
24.7
Rental flats let
3,738
4,451
-16.0
Units Completed
Residential@
16,881
11,541
46.3
Residential: DBSS
806
1,203
-33.0
Commercial*
29
26
11.5
Industrial 0
0
0.0
Units Under Construction
Residential@
86,298
72,737
18.6
Residential: DBSS
3,893
4,699
-17.2
Commercial*
454
323
40.6
Industrial 231
69
234.8
Units Awarded
Residential
30,442
25,547
19.2
Commercial**
156
55
183.6
&&
Industrial 162
0 -
* Includes shops and eating houses, mini-markets and food courts, restaurants and fast-food restaurants, emporiums and supermarkets.
** Includes shops, eating houses, supermarkets, mini-markets and restaurants, fast food restaurants and cafes.
^ Figure refers to bookings received by HDB for Studio Apartments and bigger flats under the various allocation exercises, as well as bookings for Design, Build &
Sell Scheme flats.
+ Figures for FY 2013/2014 include projected bookings from January and March 2014 BTO exercises as the selection exercises for these sales launches are
ongoing as at 31 August 2014.
&
Figures reported for FY 2012/2013 differ from those of the preceding Annual Report which had projected figures from projects launched in FY 2012/2013. Current
figures take into account actual bookings.
&&
Refers to actual units awarded in FY 2012/2013.
~ One family can benefit from more than one type of CPF housing grant.
#
The Special CPF Housing Grant was implemented in FY 2010.
@
Excludes DBSS flats.
4
HOUSING STATISTICS
FY 2013/2014
*^
Total bookings for flats offered by HDB : 28,789
- Build-To-Order System - Sale of Balance Flats
- SERS Replacement Flats
+
- Others ^
Bookings for Studio Apartments #
21,537
4,575
2,532
145
1,849
Bookings for DBSS Flats offered by private developers 0
No. of flats with keys issued for 2-room and bigger flats
- 2-room flats
- 3-room flats
- 4-room flats
- 5-room flats
- Executive flats/Multi-Generation flats
No. of flats with keys issued for Studio Apartments
13,310
967
2,757
7,477
2,073
36
No. of flats with keys issued by private developers for DBSS
- 3-room flats
- 4-room flats
- 5-room flats 815
167
511
137
Resale transactions (based on registered cases) - 1-room flats
- 2-room flats
- 3-room flats
- 4-room flats
- 5-room flats
- Executive flats/Multi-Generation flats - HUDC
17,552
10
581
5,553
6,560
3,549
1,293
6
Number of applications for HDB Loan Eligibility (HLE) letters Applications received from flat buyers and existing flat owners to finance purchases or refinance existing mortgage loan with bank loans
- Flats sold - DBSS flat buyers
- Resale flat buyers
- Existing flat owners (refinance)
66,800
Approved applications for financial assistance measures from April 2013 to March 2014
1,079
13,337
2,474
244
9,213
1,399
3,058
Active cases for Home Office Scheme
20,146
Active cases of Subletting of Whole Flat
46,637
Billing of Upgrading Cost from April 2013 to March 2014
*
^
#
+
47,610
households
Refers to bookings received by HDB for 2-room and bigger flats under the various allocation exercises.
Projected bookings as selection exercises for January and March 2014 BTO exercises are still ongoing as at 31 August 2014.
The Government has not launched any DBSS land sites. Hence there are no DBSS launches in FY 2013/2014.
Includes bookings from those affected by Resettlement and Relocation, Sale of Flats to Sitting Tenants, Rent & Purchase etc.
5
TOWN DEVELOPMENTS
Land Area (Hectares)
Town
Total*
Residential@
Ang Mo Kio
Bedok
Bishan
Bukit Batok
Bukit Merah
Bukit Panjang
Choa Chu Kang
Clementi
Geylang
Hougang
Jurong East
Jurong West
Kallang/Whampoa
Pasir Ris
Punggol
Queenstown
Sembawang
Sengkang
Serangoon
Tampines
Toa Payoh (includes Bidadari)
Woodlands
Yishun
Other Estates #
638
937
690
785
858
489
583
412
678
1,309
384
987
799
601
957
694
708
1,055
737
1,200
556
1,198
778
-
Number of Dwelling Units
Under Management
as at 31 March 2014
Projected
Ultimate@
283
418
172
291
312
219
307
203
214
367
165
480
210
318
374
210
317
397
163
549
248
480
398
126
48,915
59,205
19,665
32,275
51,185
31,497
41,257
24,881
29,257
50,248
23,379
70,323
35,742
27,919
30,877
30,493
19,855
53,458
21,538
64,525
36,616
61,989
52,877
22,895
58,000
79,000
34,000
53,000
68,000
44,000
62,000
39,000
49,000
72,000
30,000
94,000
57,000
44,000
96,000
60,000
60,000
92,000
30,000
110,000
61,000
98,000
84,000
25,000
Total
940,871
1,499,000
Note:
* 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.
6
POPULATION HOUSED IN HDB FLATS
Estimated Resident Population* by Town
as at 31 March 2014
HDB Town/Estate
Population in Singapore and in HDB Flats
Population
POPULATION (’000)
Ang Mo Kio
149,600
Bedok203,900
Bishan65,700
Bukit Batok
113,700
Bukit Merah
146,800
Bukit Panjang
118,700
Choa Chu Kang
160,900
Clementi72,200
Geylang94,200
Hougang179,600
Jurong East
80,300
Jurong West
259,600
Kallang/Whampoa107,200
Pasir Ris
110,600
Punggol92,500
Queenstown83,300
Sembawang71,500
Sengkang182,700
Serangoon75,700
Tampines238,800
Toa Payoh
109,900
Woodlands242,900
Yishun186,200
3.9 million
4,000
3,800
3,600
3,400
3,200
3,000
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
3.2 million
YEAR
Estimated resident population in Singapore
(Source: Singapore Department of Statistics)
Estimated resident population living in HDB flats
(Source: Research & Planning Group, HDB)
Population in Singapore and in HDB Flats
100
Other Estates:
Bukit Timah
Central Area
Marine Parade
8,800
34,400
23,300
90
80
70
60
*
Refers to Singapore Citizens and Permanent Residents only.
Figures are rounded off to the nearest ‘00.
PERCENT
Total3,213,000
50
40
30
20
10
0
YEAR
Estimated percentage of resident population living in HDB flats
(Source: Research & Planning Group, HDB)
7
LOCATION OF HDB DEVELOPMENTS
8
PRICE RANGE OF FLATS OFFERED
Table 1: Price Range for FY 2013/2014
(Price before and after deducting the Additional/Special CPF Housing Grants)
2-Room
3-Room
4-Room
5-Room
Town
Selling
Selling
Selling
Selling
Selling
Price Less
Selling
Price Less
Selling
Price Less
Selling
Price Less
Price
AHG/SHG
Price
AHG/SHG Price
AHG
Price
AHG
($)
($)
($)
($)
($)
($)
($)
($)
Choa Chu Kang
–
– Punggol
Sembawang
Sengkang
Woodlands
140,000 –
90,000 –
240,000 –
205,000 –
308,000 –
298,000 –
172,000 122,000 288,000
253,000 372,000
362,000
81,000 – 21,000 – 176,000 –
126,000 –
279,000 –
244,000 –
365,000 –
355,000 –
141,000
81,000 232,000 182,000 377,000
342,000 495,000
485,000
70,000 – 10,000 – 138,000 –
88,000 –
225,000 –
190,000 –
313,000 –
303,000 –
109,000
49,000 177,000 127,000 304,000
269,000 381,000
371,000
76,000 – 16,000 – 150,000 –
100,000 –
251,000 –
216,000 –
358,000 –
348,000 –
124,000
64,000 189,000 139,000 329,000
294,000 425,000
415,000
73,000 – 13,000 – 133,000 –
83,000 –
223,000 –
188,000 –
276,000 –
266,000 –
118,000
58,000 183,000 133,000 298,000
263,000 369,000
359,000
Yishun
75,000 – 15,000 – 150,000 –
100,000 –
252,000 –
217,000 –
316,000 –
306,000 –
118,000
58,000 234,000 184,000 320,000
285,000 393,000
383,000
Note:
i ‘Selling Price’ indicated are for new flats in selected towns offered under the Build-To-Order (BTO) system.
ii ‘Selling Price less AHG/ SHG’ are net of the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG). The assumed housing grants are:
•
2-room flat: $60,000 (comprising AHG of $40,000 and SHG of $20,000)
•
•
•
5-room flat: $10,000 (AHG only)
iii Eligible first-timer applicants earning not more than $5,000 per month can apply for the AHG of up to $40,000. Over and above the AHG, first-timer families earning
not more than $6,500 can also apply for the SHG of up to $20,000 if they are buying a 2- to 4-room (standard or premium) flats in non-mature towns/estates.
iv
Price differential between flat types and over different years may not be directly comparable as it may be affected by the different attributes of the flats offered such
as location, design, storey height, orientation, etc.
9
RESIDENTIAL PROPERTIES
DWELLING DWELLING
DWELLING
DWELLING
DWELLING UNITS UNDER MANAGEMENT
TOTAL
UNITS
UNITS (DBSS)
UNITS UNITS (DBSS)
SOLD FLATS
RENTAL
DWELLING
UNDER
UNDER COMPLETED COMPLETED
HDB Town
1-Room 2-Room 3-Room 4-Room 5-Room
Exec
SA HUDC
Total
1-Room 2-Room 3-Room 4-Room
Total
UNITS CONSTRUCTION CONSTRUCTION FY 2013/2014 FY 2013/2014
1
Ang Mo Kio
0
638 24,127 13,681 5,653 488 136 0
44,723 1,318 2,855 18 1
4,192 48,915 1,827 0
0
0
2
Bedok
0
680 22,349 19,744 10,184 2,713 130 0
55,800 2,250 1,145 10 0
3,405 59,205 2,585 488
0
0
3
Bishan
0
0
2,359 9,359 5,715 1,660 176 0
19,269 396 0
0
0
396 19,665 408
0
0
0
4
Bukit Batok
0
0
10,279 13,851 4,832 2,732 180 0
31,874 305 95 1
0
401 32,275 2,886 0
180
0
5
Bukit Merah
258 1,157 15,704 14,924 9,323 44 442 0
41,852 4,473 4,599 165 96 9,333 51,185 4,322
0
0
0
6
Bukit Panjang
0
211 3,021 14,926 9,661 3,381 0
0
31,200 223 74 0
0
297 31,497 3,828 0
816
0
7
Choa Chu Kang
0
238 1,731 19,796 13,422 4,762 440 0
40,389 355 513 0
0
868 41,257 7,644
0
874
0
8
Clementi
0
249 11,720 8,075 2,765 618 0
0
23,427 760 683 11 0
1,454 24,881 1,464
888
0
0
9
Geylang
0
752 10,875 9,180 3,590 830 107 0
25,334 1,044 2,398 481 0
3,923 29,257 1,568 0
0
0
10 Hougang
0
268 9,668 23,854 9,958 4,310 192 622 48,872 532 624 220 0
1,376 50,248 3,556 680
464
0
11 Jurong East
0
302 6,791 7,855 5,925 1,871 143 0
22,887 352 110 30 0
492 23,379 518 0
0
0
12 Jurong West
0
461 11,526 27,938 21,191 6,507 287 0
67,910 540 1,169 704 0
2,413 70,323 2,738
682
1,078
0
13 Kallang/Whampoa
0
445 13,144 9,848 5,365 503 0
0
29,305 4,401 2,024 11 1
6,437 35,742 3,453 0
0
0
14 Pasir Ris
0
21 163 10,716 9,055 7,460 185 98 27,698 176 44 1
0 221 27,919 1,386 447
185
0
15 Punggol
0
646 1,764 14,166 11,970 1,126 318 0
29,990 701 186 0
0
887 30,877 14,135
0
2,238
0
16 Queenstown
0
1,529 14,559 7,663 3,767 354 266 0
28,138 575 1,699 81 0
2,355 30,493 2,897
0
557
0
17 Sembawang
0
397 349 8,447 7,556 2,870 0
0
19,619 169 67 0
0
236 19,855 3,076
0
1,434
0
18 Sengkang
0
872
1,961
24,883 20,308 4,462 240 0
52,726 512220
0
0 732 53,458 12,644
0
3,378
0
19 Serangoon
0
77 4,545 10,231 3,752 2,365 0
244 21,214 182 142 0
0
324 21,538 195 0
0
0
20 Tampines
0
251 12,528 27,529 16,777 5,845 417 0
63,347 775 387 16 0
1,178 64,525 2,680 708
849
0
21 Toa Payoh
0
715 14,996 6,016 854 156 175 32,522 1,170 2,898 26 0
4,094 36,616 1,443 0
0
0
22 Woodlands
0
263 6,037 27,285 19,345 6,190 416 0
59,536 1,492 743 64 154 2,453 61,989 3,317
0
1,924
0
23 Yishun
0
438 13,995 26,451 2,741 357 0
52,144 530 180 23 0
733 52,877 7,596
0
2,904
806
9,610 8,162 Other Estates:
24 Central Area
0
345 4,687 3,515 903 9
0
38 9,497 2,075 971 52
14
3,112 12,609 0
0
0
0
25 Bukit Timah
0
0
441 920 682 380 0
0
2,423 0
0
0
0
0
2,423 132
0
0
0
26 Marine Parade
0
26 3,038 1,798 1,676 0
0
0
6,538 0
1,324 1
0
1,325 7,863 0
0
0
0
25,306 25,150 1,915 266 52,637 940,871 86,298
3,893 16,881 806
Total
258 10,981 222,357 366,245 217,553 65,075 4,588 1,177 888,234 10
NON-RESIDENTIAL DEVELOPMENTS Type
Awarded
as at
31 March 2014
Under
Construction as at 31 March 2014
Completed
Commercial
Shops, Lock-Up Shops and Eating Houses
Mini-Markets
Markets and Hawker Centres
Kiosks and Shoplets
#
Food Courts Restaurants and Fast Food Restaurants
Emporiums and Supermarkets
Offices
Commercial Spaces
128285 5
725 2
01 0
00 0
44 0
48 0
1328 0
00 0
00 0
Industrial Complexes
162231
0
Sports and Recreational
Neighbourhood Parks*
40 0
HDB or Government/Institutional
Bus Interchanges
00 0
Community Clubs
00 0
HDB Branches/Service Centres
00 0
Town Council Offices
00 1
Education Centres
623 1
Residents’ Committee Centres
1859 2
Childcare Centres
1753 3
*
#
Includes common green and linear green
Includes cafes
11
PROPERTIES UNDER MANAGEMENT .
Type
Units Units
Units
as at
taken over
reclassified/
31 March in FY
converted/
2013
2013/2014
demolished
Residential
1-Room Flats
25,384
180
0
2-Room Flats
34,716
1,416
(1)
3-Room Flats
222,704
2,746
(1,178)
4-Room Flats
357,940
8,829
(258)
5-Room Flats
214,798
2,860
(105)
Executive Flats
65,078
0
(3) Studio Apartments
2,932
1,656
0
HUDC Flats
1,177
0
0
Units
as at
31 March 2014
25,564
36,131
224,272
366,511
217,553
65,075
4,588
1,177
Total
924,729
17,687
(1,545)
940,871 Commercial
Shops
12,793 56
(11)
12,838 Kiosks and Shoplets
685 0
0
685
Eating Establishments
803
14
(3)
814
Supermarkets and Emporiums
177
7
(1)
183
Offices
2,149 16
(3) 2,162
Automated Teller Machines
195
0
(23)
172 Civil Defence Shelters
370
1
0
371
Radio Equipment Rooms
164
0
0
164 Total
17,336 94 (41)
17,389 Industrial
Terrace Workshops
2,748 0
0
2,748
Industrial Shops
4,883 0
0
4,883
Warehouses
89 0
0
89
2,882 0
0
2,882 Prototype Factories
201 0
0
201 Canteens/Eating Houses
48 0
0
48
Land Leases
539 0
(7)
532 Wholesale
1,105 0
0
1,105
Total
12,495 0
(7)
12,488
Car Parks
Car Lots
579,959 9,253
(3,666)
585,546
Lorry Lots
6,882 32
(66)
6,848 Motorcycle Lots
155,058
3,279
(1,381)
156,956 Total
741,899 12,564 (5,113)
749,350
12
PROPERTIES UNDER MANAGEMENT (Continued)
Type
Units Units
Units
as at
taken over
reclassified/
31 March in FY
converted/
2013
2013/2014
demolished
Units
as at
31 March 2014
Social and Communal Facilities
Childcare Centres
507
45
(16)
536
Education Centres
303 6
(6)
303
Children’s Homes/Homes for the Aged
17 0
0
17 Senior Citizen Centres
44 1
1
46 Boys’ Clubs
4 0
0
4
Social Service Centres
154 23
(8) 169 Residents’ Committee Centres
529 7
(2)
534 Social Function Halls
11 0
0
11 Community Health/Dialysis Centres
57 2
3
62 Day Activity Centres
113 10
2
125 Neighbourhood Links
20 0
(3)
17 Study Centres
13 0
(2) 11 Student Care Centres
83 0
0
83 Civil Defence Shelters
76 0
(1) 75
Others* 7
0
(2)
5
Total
1,938 94 HDB or Government Administrative Facilities HDB Branches/Service Centres
23 0
Administrative Offices
20 0
Polyclinics
6
0
Community Centres**
13 3
Neighbourhood Police Posts/Satellite Fire Posts
74 2
Bus Terminals and Interchanges
2
0
Libraries
8 0
(34) 1,998
0
(2)
0
(1)
0
0 (3)
23
18
6
15
76
2
5
Total
146 5
(6)
145
*
**
Comprises Civil Defence Centres.
Refers to void-deck Community Centres. The stand-alone Community Centres are excluded as these are not managed by HDB. Note:
i
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 Services and 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.
13
ALLOCATIONS Number of Units
Type
Sold
Percentage %
Rented
Residential
1-Room Flats
0
0.0
1,592
2-Room Flats
967
6.4
1,179
3-Room Flats
2,757
18.1
500
4-Room Flats
7,477
49.2
446
5-Room Flats
2,073
13.6
21
Executive Flats/Multi-Generation Flats
36
0.2
0
Studio Apartments
1,079
7.1
0
DBSS 3-Room Flats
167
1.1
0
DBSS 4-Room Flats
511
3.4
0
DBSS 5-Room Flats
137
0.9
0
Percentage %
42.6
31.5
13.4
11.9
0.6
0.0
0.0
0.0
0.0
0.0
Total
15,204
100.0
Commercial Shops and Eating Houses
0
0.0
Offices
0
0.0
Supermarkets and Emporiums
0
0.0
Civil Defence Shelters (commercial use)
0
0.0
3,738
100.0
131
62
5
8
63.6
30.1
2.4
3.9
Total
0
0.0
Industrial Terrace Workshops
0
0.0
Industrial Shops
0
0.0
Warehouses
0
0.0
Prototype Factories
0
0.0
0
0.0
Canteens/Eating Houses
0
0.0
206
100.0
8
15
0
0
10
1
23.5
44.1
0.0
0.0
29.4
2.9
Total
0
0.0
Social Communal Facilities Childcare Centre
0
0.0
Day Activity Centre (Disabled)
0
0.0
Day Activity Centre (Senior Citizens)
0
0.0
Education Centre
0
0.0
Family Service Centre
0
0.0
Medical Free Clinic 0
0.0
Residents’ Committee Centre
0
0.0
Rehabilitation Day Care Centre
0
0.0
Satellite Fire Post
0
0.0
Senior Activity Centre
0
0.0
Social Service Centre
0
0.0
Social Service Office
0
0.0
Student Service Centre
0
0.0
Void Deck Community Centre
0
0.0
Dyslexia Learning Centre 0
0.0
34
99.9*
45
2
3
12
6
2
2
5
2
9
3
3
1
1
1
46.4
2.1
3.1
12.4
6.2
2.1
2.1
5.2
2.1
9.3
3.1
3.1
1.0
1.0
1.0
Total
0
0.0
97
100.2*
* Percentages may not add up to 100% due to rounding.
14
ESTATE RENEWAL STRATEGY
Home Improvement Programme (HIP)
Total number of precincts announced
Total number of precincts completed within FY In Progress as at 31 March 2014
115 precincts
9 precincts
54 precincts
Neighbourhood Renewal Programme (NRP)
Total number of projects announced
85 projects
Lift Upgrading Programme (LUP)
Total number of precincts completed in FY In Progress as at 31 March 2014
72 precincts
105 precincts
Selective En bloc Redevelopment Scheme (SERS)
Total number of sites under Selective En bloc Redevelopment Scheme since 1995 Completed Clearance
In Progress
15
78 sites
71 sites
7 sites
FLOOR PLANS
2-ROOM
Scale:
0
1
2
3
4
Area: 45 m2
16
5 METRES
FLOOR PLANS
3-ROOM
Scale:
0
1
2
3
Area: 65 m2
17
4
5 METRES
FLOOR PLANS
4-ROOM
Scale:
0
1
2
3
Area: 90 m2
18
4
5 METRES
FLOOR PLANS
5-ROOM
Scale:
0
1
2
3
4
Area: 110 m2
19
5 METRES
FLOOR PLANS
3GEN
Scale:
0
1
2
3
Area: 115 m2
20
4
5 METRES
Financial
Statements
Contents
•
•
•
•
•
•
•
•
Statement by the Board of the
Housing & Development Board
Independent Auditor’s Report
Balance Sheets
Income and Expenditure Statements
Statements of Comprehensive Income
Statements of Changes in Capital
and Reserves
Consolidated Statement of Cash Flows
Notes to the Financial Statements
01
02
04
06
08
09
13
15
STATEMENT BY THE BOARD
OF THE HOUSING & DEVELOPMENT BOARD
In our opinion,
(a) the accompanying financial statements of the Housing & Development Board (“HDB”) and its subsidiaries (“Group”) are
properly drawn up in accordance with the provisions of the Housing & Development Act (Cap. 129, 2004 Revised Edition) (the
“Act”) and Singapore Statutory Board Financial Reporting Standards (“SB-FRS”) so as to present fairly, in all material respects,
the state of affairs of the Group and the HDB as at 31 March 2014, and of the results, changes in capital and reserves of the
Group and the HDB and cash flows of the Group for the financial 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 year have
been, in all material respects, in accordance with the provisions of the Act and the Constitution of the Republic of Singapore.
On behalf of the Board
James Koh Cher Siang
Chairman
Dr Cheong Koon Hean
Singapore, 23 May 2014
1
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
THE BOARD OF THE HOUSING & DEVELOPMENT BOARD
Report on the Financial Statements
We have audited the accompanying financial statements of the Housing & Development Board (“HDB”) and its subsidiaries
(“Group”) which comprise the balance sheets of the Group and the HDB as at 31 March 2014, the income and expenditure
statements, statements of comprehensive income and statements of changes in capital and reserves of the Group and the HDB
and the consolidated statement of cash flows of the Group for the year then ended, and a summary of significant accounting
policies and other explanatory notes, as set out on pages 4 to 66.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions
of the Housing & Development Act (Cap. 129, 2004 Revised Edition) (the “Act”) and Singapore Statutory Board Financial Reporting
Standards (“SB-FRS”), and for such internal controls as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about 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 judgement, 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 management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and the balance sheet, income and expenditure statement,
statement of comprehensive income and statement of changes in capital and reserves of the HDB are properly drawn up in
accordance with the provisions of the Act and SB-FRS so as to present fairly, in all material respects, the state of affairs of the
Group and the HDB as at 31 March 2014 and the results and changes in capital and reserves of the Group and the HDB and cash
flows of the Group for the financial year ended on that date.
2
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
THE BOARD OF THE HOUSING & DEVELOPMENT BOARD
(Continued)
Report on Other Legal and Regulatory Requirements
Management’s Responsibility for Compliance with Legal and Regulatory Requirements
Management is responsible for ensuring that the receipts, expenditure, investment of moneys and the acquisition and disposal
of assets, are in accordance with the provisions of the Act and the Constitution of the Republic of Singapore. This responsibility
includes implementing accounting and internal controls as management determines are necessary to enable compliance with the
provisions of the Act and the Constitution of the Republic of Singapore.
Auditor’s Responsibility
Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements. We
conducted our audit in accordance with Singapore Standards on Auditing. We planned and performed the compliance audit to
obtain reasonable assurance about whether the receipts, expenditure, investment of moneys and the acquisition and disposal of
assets, are in accordance with the provisions of the Act and the Constitution of the Republic of Singapore.
Our compliance audit includes obtaining an understanding of the internal control relevant to the receipts, expenditure, investment
of moneys and the acquisition and disposal of assets; and assessing the risks of material misstatement of the financial statements
from non-compliance, if any, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls.
Because of the inherent limitations in any accounting and internal control system, non-compliances may nevertheless occur and
not be detected.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on management’s
compliance.
Opinion
In our opinion:
(a) the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the HDB during the year are, in
all material respects, in accordance with the provisions of the Act and the Constitution of the Republic of Singapore; and
(b) proper accounting and other records have been kept, including records of all assets of the HDB whether purchased, donated
or otherwise.
PricewaterhouseCoopers LLP
Public Accountants and Chartered Accountants
Singapore, 23 May 2014
3
BALANCE SHEETS
As at 31 March 2014
Group
Note
HDB
31 March
31 March
31 March
2014 2013
2014
$’000$’000 $’000
31 March
2013
$’000
CAPITAL AND RESERVES
Share capital
5
11
1
1
Capital account
5
2,468,100 2,468,100
2,463,600
2,463,600
Capital gains reserve
5
6,949,262
6,810,828
6,949,262
6,810,828
Asset revaluation reserve
5
5,561,752
5,604,592
5,561,7525,604,592
Fair value reserve
5,152
6,630
00
Retained earnings
80,269 87,460
0
0
Attributable to Equity Holder of the HDB
15,064,53614,977,611 14,974,61514,879,021
Non-controlling interests
30,475 33,364 0
0
TOTAL EQUITY
15,095,011
15,010,975
14,974,61514,879,021
NON-CURRENT ASSETS
Property, plant and equipment
6
Investment properties
7
Loans receivable
8
Investment in subsidiaries
9
Other investments
10
Deferred tax assets
11
Total non-current assets
18,028,56916,683,778 18,019,99616,675,160
4,923,405
4,845,232
4,907,9104,829,482
34,282,248
35,684,146
34,282,24835,684,146
0
0
1,5001,500
29,974
37,286
00
1,067
2,628
0
0
57,265,263
57,253,070
57,211,65457,190,288
CURRENT ASSETS
Properties under development
12
Properties for sale
13
Inventories of building materials
Loans receivable within 1 year
8
Government grant receivable
14
Trade and other receivables
15
Cash and bank balances
16
Total current assets
16,426,226
12,451,600
16,426,22612,451,600
1,605,5971,213,219 1,605,5971,213,219
43,905
46,233
41,06743,033
2,383,038
2,447,166
2,382,9762,447,081
2,611,9141,011,071 2,611,9141,011,071
1,063,279
1,084,426
1,040,8171,056,384
92,078 141,714 42,971
81,171
24,226,03718,395,429 24,151,56818,303,559
Less:
CURRENT LIABILITIES
Loans payable within 1 year
17
Trade and other payables
18
Amount due to subsidiary
Provision for income tax
11
Total current liabilities
8,298,6937,439,234 8,298,6937,439,234
3,046,811
2,789,706
3,028,0142,766,714
00
179502
64
4,208
0
0
11,345,56810,233,148 11,326,88610,206,450
NET CURRENT ASSETS
12,880,469 8,162,281
The accompanying notes form part of the financial statements.
4
12,824,682 8,097,109
BALANCE SHEETS (Continued)
As at 31 March 2014
Group
HDB
31 March
31 March
31 March
31 March
Note
2014 2013 2014
2013
$’000
$’000
$’000$’000
NON-CURRENT LIABILITIES
Loans payable
17
54,048,56349,522,736 54,059,56349,526,736
Deferred income
19
1,002,158 881,640
1,002,158
881,640
Total non-current liabilities
55,050,72150,404,376 55,061,72150,408,376
NET ASSETS
15,095,01115,010,975 14,974,61514,879,021
James Koh Cher SiangAudrey Leong Yue Yoke
ChairmanGroup Director (Finance)
23 May 2014
5
INCOME AND EXPENDITURE STATEMENTS
For the financial year ended 31 March 2014
HDB
Group
2013/2014
Note
Other
Housing Activities
Total
$’000
$’000
$’000
Sale proceeds
26
Cost of sales before net
increase in provision
for foreseeable loss
Gross loss on sales
26
3,802,722 (3,887,229)
(84,507)
0
2012/2013
Other
Housing Activities Total
Housing
$’000
$’000
$’000
$’000
2013/2014
Other
Activities
Total $’000
$’000
Housing
$’000
3,802,722 3,127,737 0 3,127,737 3,802,722
0
3,802,722 3,127,737 0 (3,887,229)
0
(84,507)
(3,335,428)
(207,691)
0 (3,335,428)
0
(207,691)
(3,887,229)
(84,507)
0
0
(3,887,229)
(84,507)
(3,335,428)
(207,691)
(249,743) (1,616,785)
0
(1,616,785) (249,743)
Net increase in provision for
foreseeable loss 22
(1,616,785)
0
Gross loss after net increase in
provision for foreseeable loss
(1,701,292)
0
Income20
1,833,937 1,229,029
Finance expenses
21
(1,089,417) (79,144)
Operating expenses
22, 23 (1,622,211) (412,822)
Other expenses
22
(135,928)
0
(1,616,785) (1,701,292)
3,062,966 (1,168,561)
(2,035,033)
(135,928)
(249,743)
(457,434)
1,858,762
(1,136,350)
(1,604,486)
(177,718)
0
0
(457,434)
1,207,584 3,066,346
(72,859 ) (1,209,209)
(405,770 ) (2,010,256)
0
(177,718)
(1,701,292)
0
1,834,452 1,147,083 (1,089,562) (79,144)
(1,630,365) (318,584)
(135,928)
0
NET (DEFICIT)/SURPLUS
BEFORE GOVERNMENT
GRANT AND TAXATION26(2,714,911) 737,063 (1,977,848)
(1,517,226)
728,955
(788,271) (2,722,695) 749,355 Government grant
14 2,118,874 1,042,913
NET SURPLUS BEFORE
TAXATION AND TRANSFER
TO RESERVES
141,026 254,642
Income tax expense
11
(829) (3,533)
NET SURPLUS FOR THE YEAR
BEFORE TRANSFER TO
RESERVES
140,197 251,109
(1,701,292)
2,981,535 (1,168,706)
(1,948,949)
(135,928)
0
Total
$’000
3,127,737
0 (3,335,428 )
0
(207,691 )
0
(249,743)
0
(457,434 )
1,101,312 2,960,622
(72,859) (1,209,229 )
(292,723) (1,913,468 )
0
(177,718)
(1,973,340) (1,532,957)
735,730
2,118,874 (797,227 )
1,042,913
145,534 0 245,686
0
145,534 245,686
The accompanying notes form part of the financial statements. Additional information of segments under “Housing” and “Other Activities” is provided in Note 26.
6
(457,434)
1,859,310
(1,136,370)
(1,620,745)
(177,718)
2012/2013
Other
Activities
$’000
INCOME AND EXPENDITURE STATEMENTS (Continued)
HDB
Group
2013/2014
Note
Other
Housing Activities
Total
$’000
$’000
$’000
ATTRIBUTABLE TO:
Equity holder of the HDB
2012/2013
Other
Housing Activities Total
$’000
$’000
$’000
2013/2014
Other
Housing Activities
Total
Housing
$’000
$’000
$’000
$’000
2012/2013
Other
Activities
$’000
Total
$’000
138,343
1,854 247,145 145,534
3,964
0 245,686
0
BEFORE TRANSFER TO
RESERVES
138,343 247,145 145,534 245,686
RETAINED EARNINGS AT THE
BEGINNING OF THE YEAR
87,460 86,001 0
0
AMOUNT ATTRIBUTABLE TO
EQUITY HOLDER OF THE HDB:
Release of asset revaluation reserve
Transfer to capital gains reserve
RETAINED EARNINGS AT THE
END OF THE YEAR
42,846 (188,380)
80,269 34,530 (280,216)
87,460
42,846 (188,380)
The accompanying notes form part of the financial statements. Additional information of segments under “Housing” and “Other Activities” is provided in Note 26.
7
0 34,530
(280,216)
0
STATEMENTS OF COMPREHENSIVE INCOME
BEFORE TRANSFER TO
RESERVES
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to
the income and expenditure statements:
Fair value (losses)/gains on available-for-sale
investment
Group
2013/2014
2012/2013
Total
Total
$’000
$’000
HDB
2013/2014
Total
$’000
140,197
251,109
(1,971)
Items that will not be reclassified subsequently to
the income and expenditure statements: Net reversal of impairment losses previously
charged to asset revaluation reserve
6
2,950
145,534
2012/2013
Total
$’000
245,686
0
0
1,498
6
61,498
1,498
OTHER COMPREHENSIVE (EXPENSE)/
INCOME FOR THE YEAR, NET OF TAX
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR
(1,965)
4,448
138,232
255,557
145,540
247,184
Attributable to:
Equity holder of the HDB
136,871
1,361
138,232
250,856
4,701
255,557
145,540
0
145,540
247,184
0
247,184
8
STATEMENTS OF CHANGES IN CAPITAL AND RESERVES
Group
Attributable
Total
to Equity
Capital
Capital
NonAsset
Fair
Holder of
and
Gains
controlling
Capital
Revaluation
Value
Retained Share the HDB
Reserves
Reserve
Interests
Account
Reserve
Reserve
Earnings
Capital
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance as at 1 April 2012
Net surplus for the year before
transfer to reserves
Other comprehensive income
Net reversal of impairment losses
previously charged to asset
revaluation reserve
Fair value gains on available-forsale investment
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transfer from retained earnings to
capital gains reserve [Note 5(c)]
on disposal of assets
Return of reserves to the Government
Non-controlling interests’ share of
dividend from subsidiary
Balance as at 31 March 2013
1
2,468,100
6,569,660
5,637,624
4,417
86,001 14,765,803
0
0
0
0
0
247,145
247,145
3,964
251,109
0
0
0
1,498
0
0
1,498
0
1,498
0
0
0
0
2,213
0
2,213
737
2,950
0
0
0
1,498
2,213
0
3,711
737
4,448
0
0
0
1,498
2,213
247,145
250,856
4,701
255,557
0
0
280,216
0
0
(280,216)
0
0
0
0
0
0
0
0
(39,048)
(34,530)
0
0
0
34,530
0
0
(39,048)
0
0
0
(39,048)
0
0
0
0
0
0
0
(4,000)
(4,000)
1
2,468,100
6,810,828
5,604,592
6,630
87,460 14,977,611
9
32,663 14,798,466
33,364 15,010,975
STATEMENTS OF CHANGES IN CAPITAL AND RESERVES (Continued)
Group
Attributable
to Equity
Capital
NonAsset
Fair
Holder of
Gains
controlling
Capital
Revaluation
Value
Retained Share the HDB
Reserve
Interests
Account
Reserve
Reserve
Earnings
Capital $’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Net reversal of impairment losses
previously charged to asset
revaluation reserve
Fair value loss on available-for sale investment
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transfer from retained earnings to
capital gains reserve [Note 5(c)]
on disposal of assets
Return of reserves to the Government
Non-controlling interests’ share of
dividend from subsidiary
1
2,468,100 6,810,828
5,604,592
6,630 0
0
0
0
0
138,343
138,343 1,854
140,197
0
0
0
6
0
0
6
0
6
0
0
0
0
(1,478)
0
(1,478)
(493)
(1,971)
0
0
0
6
(1,478)
0
(1,472)
(493)
(1,965)
0
0
0
6
(1,478)
138,343
136,871 1,361
138,232
0
0
188,380
0
0
(188,380)
0
0
0
0
0
0
0
0
(49,946)
(42,846)
0
0
0
42,846
0
0
(49,946)
0
0
0
(49,946)
0
0
0
0
0
0
0
(4,250)
(4,250)
1
2,468,100 6,949,262
5,561,752 5,152 The accompanying notes form part of the financial statements.
10
87,460 14,977,611 Total
Capital
and
Reserves
$’000
80,269 15,064,536 33,364 15,010,975
30,475 15,095,011
HDB
Capital
Total
Asset
Gains
Retained Capital and
Revaluation
Share
Capital
Reserve Reserve Earnings Reserves
Capital
Account
$’000
$’000
$’000
$’000
$’000
$’000
1
2,463,600
6,569,660
5,637,624
Net surplus for the year before transfer to reserves
Net reversal of impairment losses previously charged
to asset revaluation reserve
Other comprehensive income for the year, net of tax
0
0
0
0
245,686
245,686
0
0
0
0
0
0
1,498
1,498
0
0
1,498
1,498
Total comprehensive income for the year
0
0
0
1,498
245,686
247,184
Transfer from retained earnings to capital gains reserve
Release of asset revaluation reserve on disposal of assets Return of reserves to the Government
0
0
0
0
0
0
280,216
0
(39,048)
0
(34,530)
0
(280,216)
34,530
0
0
0
(39,048)
1
2,463,600
6,810,828
5,604,592
11
0 14,670,885
0 14,879,021
HDB
Capital
Total
Asset
Gains
Retained Capital and
Revaluation
Share
Capital
Reserve Reserve Earnings Reserves
Capital
Account
$’000
$’000
$’000
$’000
$’000
$’000
1
2,463,600 6,810,828
5,604,592 Net surplus for the year before transfer to reserves
Net reversal of impairment losses previously charged
to asset revaluation reserve
Other comprehensive income for the year, net of tax
0
0
0
0
145,534
145,534
0
0
0
0
0
0
6
6
0
0
6
6
Total comprehensive income for the year
0
0
0
6
145,534
145,540
Transfer from retained earnings to capital gains reserve
Release of asset revaluation reserve on disposal of assets Return of reserves to the Government
0
0
0
0
0
0
188,380
0
(49,946)
0
(42,846)
0
(188,380)
42,846
0
0
0
(49,946)
1
2,463,600 6,949,262
5,561,752 The accompanying notes form part of the financial statements.
12
0 14,879,021
0 14,974,615
CONSOLIDATED STATEMENT OF CASH FLOWS
Group
Note
2013/20142012/2013
$’000
$’000
OPERATING ACTIVITIES
Net deficit before government grant and taxation
(1,977,848)
(788,271)
Adjustments for:
Interest income
20
(996,729)
(1,058,006)
Interest expense
21
1,160,5251,206,567
Depreciation
22
354,754350,805
Additional/Special CPF Housing Grant netted off
against sale proceeds on sale of the flat
26
162,230103,555
Provision for foreseeable loss for properties under
development/for sale
22
1,941,626752,848
Loss on disposal/write-off of assets (net)
2,2075,933
Reversal of impairment losses on property, plant
and equipment and investment properties (net)
22
(124,868)
(142,677)
Allowance for impairment losses and amount
written off on loans receivable and debtors
22
4,087
6,169
Amortisation of deferred income
(121,562)
(112,379)
Amortisation of transaction cost of bonds
21
8,0362,642
(Gain)/Loss on disposal of investments
(27)138
Investment income
20
(1,459)
(2,091)
Surplus before movement in working capital 410,972325,233
Change in working capital:
Properties under development
Properties for sale
Inventories of building materials
Trade and other receivables
Trade and other payables
Late payment charges on loans receivable
(9,581,221)
(7,607,027)
3,512,1482,813,807
2,328232
(146,283)
(8,287)
241,609
387,938
1,744 1,714
(5,969,675)
(4,411,623)
Mortgage loan repayments and interest received
Mortgage loans granted
Interest paid on mortgage financing loans
Income tax paid
11
Deferred income received
Net cash used in operating activities
5,826,2626,553,638
(3,364,691)
(3,226,730)
(1,049,523)
(1,024,581)
(3,412)
(5,312)
255,137 169,616
(3,894,930)
(1,619,759)
13
CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
Group
Note
2013/20142012/2013
$’000
$’000
INVESTING ACTIVITIES
Proceeds from disposal of property, plant and equipment,
and investment properties
3,615
45,318
Purchase of property, plant and equipment, and
(1,713,613)
(993,956)
Interest received
553324
Dividends received from other investments
1,4592,091
Proceeds from redemption/disposal of other investments
7,39313,781
Purchase of investments
(2,025)
(11,237)
Net cash used in investing activities
(1,702,618)
(943,679)
FINANCING ACTIVITIES
Proceeds from loans payable
Repayment of loans payable
Interest paid
Government grant received
Dividends paid to non-controlling shareholders
Net cash from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year
16
14
37,175,68928,586,639
(31,746,279)
(26,647,072)
(397,718)
(304,205)
518,031961,600
(4,250)
(4,000)
5,545,473 2,592,962
(52,075)29,524
126,863
97,339
74,788
126,863
NOTES TO THE FINANCIAL STATEMENTS
1.GENERAL
The Housing & Development Board (“HDB”) is a statutory board incorporated under the Housing & Development Act
(Cap. 129, 2004 Revised Edition) (“Act”) 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 the HDB is HDB Hub 480, Lorong 6 Toa Payoh, Singapore 310480. The financial statements are
expressed in Singapore dollars, which is HDB’s functional currency, and rounded to the nearest thousand, unless
otherwise stated.
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, and other amenities in the housing estates.
The principal activities of the subsidiary are detailed in Note 9 to the financial statements.
The balance sheet, income and expenditure statement, statement of comprehensive income and statement of changes
in capital and reserves of the HDB and the consolidated financial statements of the Group for the year ended 31 March
2014 were authorised for issue by members of its Board on 23 May 2014.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Accounting and Adoption of New and Revised Standards
The consolidated financial statements of the Group are prepared in accordance with the historical cost
basis, except as disclosed in accounting policies below, and are drawn up in accordance with the provisions
of the Act and Singapore Statutory Board Financial Reporting Standards (“SB-FRS”) including related
interpretations (“INT SB-FRS”) and Guidance Notes.
Interpretations and amendments to published standards effective in 2013
On 1 April 2013, the Group has adopted all the new and revised SB-FRSs, INT SB-FRSs and Guidance
Notes that are relevant to its operations. The adoption of these new/revised SB-FRSs, INT SB-FRSs and
Guidance Notes does not result in changes to the HDB’s accounting policies and has no material effect on
the amounts reported for the current or prior years except for the following:
Amendment to SB-FRS 1 Presentation of Items of Other Comprehensive Income
The Group has adopted the amendment to SB-FRS 1 Presentation of Items of Other Comprehensive Income
on 1 April 2013. The amendment is applicable for annual periods beginning on or after 1 July 2012 (with
early adoption permitted). It requires items presented in other comprehensive income to be separated into
two groups, based on whether or not they may be recycled to the income and expenditure statement in the
future.
15
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
Basis of Accounting and Adoption of New and Revised Standards (continued)
Amendment to SB-FRS 107 Disclosure-Offsetting Financial Assets and Financial Liabilities
This amendment includes new disclosures to enable users of financial statements to evaluate the effect or
potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised
financial assets and recognised financial liabilities, on the entity’s financial position.
This amendment does not have any impact on the accounting policies of the Group. The Group has
incorporated the additional required disclosures into the financial statements.
SB-FRS 113 Fair Value Measurement
SB-FRS 113 aims to improve consistency and reduce complexity by providing a precise definition of fair
value and a single source of fair value measurement and disclosure requirements for use across SB-FRSs.
The requirements do not extend the use of fair value accounting but provide guidance on how it should be
applied where its use is already required or permitted by other standards within SB-FRSs.
The adoption of SB-FRS 113 does not have any material impact on the accounting policies of the Group. The
Group has incorporated the additional disclosures required by SB-FRS 113 into the financial statements.
New or revised accounting standards and interpretations
At the date of authorisation of these financial statements, the following new/revised SB-FRSs, INT SB-FRSs
and Amendments to SB-FRS that are relevant to the Group and the HDB were issued but not yet effective:
•
•
•
•
•
•
SB-FRS 27 Separate Financial Statements
SB-FRS 110 Consolidated Financial Statements
Amendments to SB-FRS 24 Related Party Disclosures
Amendments to SB-FRS 108 Operating Segments
Amendments to SB-FRS 112 Disclosure of Interests in Other Entities
Amendments to SB-FRS 32 Offsetting Financial Assets and Financial Liabilities
Management has considered and is of the view that the adoption of the above SB-FRSs, INT SB-FRSs and
Amendments to SB-FRS will have no material impact on the financial statements in the period of their initial
adoption, except for the following:
Amendments to SB-FRS 32 Offsetting Financial Assets and Financial Liabilities
The amendments do not change the offsetting model in SB-FRS 32, but clarify that in order to offset financial
assets and liabilities, the right of set-off must not be contingent on future events, and must be legally
enforceable in the normal course of business. The amendments also clarify that master netting agreements
where offset is only legally enforceable when future events occur (e.g. defaults), do not allow offsetting.
The amendment is effective for annual periods beginning on or after 1 January 2014.
16
2.
(b)
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the HDB and entities (including
special purpose entities) controlled by the HDB (its subsidiaries), and they are consolidated from the date on
which control is transferred to the Group. Control is achieved where the HDB has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Group.
All significant intra-group transactions, balances, unrealised income and expenses on transactions between
group entities are eliminated on consolidation.
Non-controlling interests are that part of the net results of operations and of net assets of a subsidiary
attributable to the interests which are not owned directly or indirectly by the equity holder of the HDB. They
are shown separately in the consolidated income and expenditure statement, statement of comprehensive
income, statement of changes in capital and reserves and balance sheet.
Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling
interests having a deficit balance.
In the HDB’s financial statements, investment in subsidiary is carried at cost less any impairment in net
recoverable value that has been recognised in the income and expenditure statement.
(c)
Financial Instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group
becomes a party to the contractual provisions of the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and of
allocating interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts or payments (including all fees paid or received that form
an integral part of the effective interest rate, transaction costs and other premium or discounts) through the
expected life of the financial instrument, or where appropriate, a shorter period.
(i)
Financial assets
The classification of financial assets depends on the nature of the asset and the purpose for which
the assets were acquired. Management determines the classification of its financial assets at
initial recognition.
Financial assets are initially recognised at fair value plus transaction costs.
Financial assets are presented as current assets, except for those expected to be realised later
than 12 months after the balance sheet date which are presented as non-current assets.
17
2.
(c)
Financial Instruments (continued)
(i)
Financial assets(continued)
Cash and cash equivalents in the statement of cash flows
Cash and cash equivalents in the statement of cash flows comprise fixed deposits and cash on hand
and at bank that are readily convertible to a known amount of cash and are subject to an insignificant
risk of changes in value.
Loans and receivables
Loans and receivables are measured at amortised cost using the effective interest method less
impairment losses. Interest is recognised by applying the effective interest method.
Held-to-maturity investments
Bonds with fixed or determinable payments and fixed maturity dates where the Group has a positive
intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity
investments are recorded at amortised cost using the effective interest method less impairment losses.
Available-for-sale investments
Certain shares and debt securities held by the Group are classified as being available for sale and
are stated at fair value. Fair value is determined in the manner described in Note 10. Gains and
losses arising from changes in fair value are recognised directly in other comprehensive income and
accumulated in the fair value reserve with the exception of impairment losses, which are recognised
directly in the income and expenditure statement. Where the investment is disposed of or is determined
to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is
included in the income and expenditure statement for the period. Dividends on available-for-sale equity
instruments are recognised in the income and expenditure statement when the Group’s right to receive
payments is established.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at the end of each reporting period whether
there is objective evidence that a financial asset or a group of financial assets is impaired and an
allowance for impairment is recognised when such evidence exists.
18
2.
(c)
(i)
Financial assets (continued)
Impairment of financial assets (continued)
(A)
Loans and receivables
For loans and receivables, the impairment losses are provided based on the Group’s
assessment of the financial status and past performance of the debtor, availability of collateral,
among others.
The carrying amount of these assets is reduced through the use of an impairment allowance
account which is calculated as the difference between the carrying amount and the present
value of estimated future cash flows, discounted at the original effective interest rate. When
the asset becomes uncollectible, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are recognised against the same line item in
income and expenditure statement.
The impairment allowance is reduced through the income and expenditure statement in a
subsequent period when the amount of impairment loss decreases and the related decrease
can be objectively measured. The carrying amount of the asset previously impaired is
increased to the extent that the new carrying amount does not exceed the amortised cost
had no impairment been recognised in prior periods.
(B)
Available-for-sale financial assets
In addition to the objective evidence of impairment described above, a significant or prolonged
decline in the fair value of an equity security below its cost is considered as an indicator that
the available-for-sale financial asset is impaired.
If any evidence of impairment exists, the cumulative loss that was previously recognised
in other comprehensive income is reclassified to the income and expenditure statement.
The cumulative loss is measured as the difference between the acquisition cost (net of any
principal repayments and amortisation) and the current fair value, less any impairment loss
previously recognised as an expense. The impairment losses recognised as an expense on
equity securities are not reversed through the income and expenditure statement.
Derecognition of financial assets
The Group derecognises a financial asset when, and only when the contractual rights to the cash flows
from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity.
19
2.
(c)
(ii)
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance
of the contractual arrangements entered into and the definitions of a financial liability and an equity
instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of
significant direct issue costs.
Financial liabilities
Trade and other payables are initially recognised at fair value, net of significant transaction costs, and
are subsequently measured at amortised cost, using the effective interest method.
Financial liabilities are classified as current liabilities if payment is due within one year or less (or in
the normal operating cycle of the business if longer). Otherwise, they are presented as non-current
liabilities.
The housing development loans, mortgage financing loans and upgrading financing loans are borrowed
from the Singapore Government under the Agreements for Loan Facility.
The mortgage financing loans and upgrading financing loans are obtained to finance the mortgage
loans granted to lessees for purchase of flats under public housing schemes and the deferred payment
scheme granted to lessees of upgraded flats. The housing development loans, bonds and bank loans
are to finance the HDB’s development programmes and operational requirements. The MOF will act
as the lender of last resort to HDB for its funding requirements.
These loans payable are initially recognised at fair value, net of transaction costs, and are subsequently
measured at amortised cost using the effective interest method. Any difference between the proceeds
(net of significant transaction costs) and the settlement or redemption of borrowings is recognised over
the term of the borrowings in accordance with the Group’s accounting policy for borrowing costs [Note
2(n)].
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are
discharged, cancelled or they expire.
20
2.
(c)
(iii) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there
is a legally enforceable right to offset and there is an intention to settle on a net basis or realise the
asset and settle the liability simultaneously. Further details can be found in Note 4(b) to the financial
statements.
(d)
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other leases are classified as operating leases.
(i) The Group as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant
lease unless another systematic basis is more representative of the time pattern in which use benefit
derived from the leased asset is consumed. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognised on a straight-line
basis over the lease term.
(ii)
The Group as lessee
Rentals payable under operating leases are charged to the income and expenditure statement on
a straight-line basis over the term of the relevant lease unless another systematic basis is more
representative of the time pattern in which economic benefits from the leased asset are consumed.
(e)
Property, Plant and Equipment
All land and buildings owned by the HDB on 1 April 1985 were valued at that date for the purpose of
creating asset accounts arising from a change in accounting policy. A second valuation was conducted for
commercial and industrial properties on 31 March 1986. Additional information on the valuation of properties
is made in Note 5(d). The valuation of these properties was taken as the deemed cost of these properties
and subsequently carried at deemed cost less accumulated depreciation and any accumulated impairment
losses.
Property, plant and equipment acquired or constructed after 1 April 1985 are initially carried at cost and
subsequently carried at cost less accumulated depreciation and any accumulated impairment losses.
When a building comprises major components having different useful lives, they are accounted for as
separate items of property, plant and equipment.
21
2.
(e)
Property, Plant and Equipment (continued)
Depreciation is calculated using the straight-line method to allocate their depreciable amounts over their
estimated useful lives as follows:
Years
Leasehold land
99 years or the remaining lease period
Buildings60 years
Leasehold property30 years
Plant and machinery
3 to 10 years
Office equipment, furniture, fittings and fixtures
3 to 10 years
Motor vehicles6 years
Fully depreciated assets still in use are retained in the financial statements.
No depreciation is charged on freehold land, leasehold land of 999 years and artworks.
Assets under development (which are classified as property, plant and equipment) are carried at cost,
less any recognised impairment losses. Depreciation of these assets, on the same basis as other assets,
commences when the assets are ready for their intended use.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.
Property, plant and equipment costing less than $2,000 each are charged to the income and expenditure
statement in the year of purchase.
The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amounts of the asset and is recognised in the
Subsequent expenditure relating to property, plant and equipment that has already been recognised is added
to the carrying amount of the asset only when it is probable that future economic benefits associated with the
item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance
expenses are recognised in the income and expenditure statement when incurred.
(f)
Investment Properties
Investment properties, comprising commercial complexes, industrial properties and land, are held to earn
rentals and/or for capital appreciation. Investment properties include assets under development that are
being constructed or developed for future use as investment properties.
Investment properties are initially recognised at cost and subsequently carried at cost less accumulated
depreciation and any impairment losses. Depreciation is determined on a straight-line basis over the
estimated useful lives. The useful lives are stated in Note 2(e).
Assets under development are initially recognised at cost and subsequently carried at cost less any
impairment losses. Depreciation of these assets, on the same basis as other assets, commences when the
assets are ready for their intended use.
22
2.
(f)
Investment Properties (continued)
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
The gain or loss arising on disposal or retirement of an item of investment properties is determined as the
difference between the sales proceeds and the carrying amounts of the asset and is recognised in the
The cost of major improvements is capitalised and the carrying amounts of the replaced components
are recognised in the income and expenditure statement. The cost of maintenance, repairs and minor
improvements is recognised in the income and expenditure statement when incurred.
(g)
Impairment of Property, Plant and Equipment, Investment Properties, and Investment in
Subsidiaries
At the end of the reporting period, property, plant and equipment, investment properties, and investment in
subsidiaries are reviewed for events or changes in circumstances that may indicate that these assets are
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 on an individual
asset basis. If the asset generates cash inflows that are largely independent of those from other assets, the
recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
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 professional 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 for that asset, in which case the impairment loss is charged to asset
revaluation reserve.
An impairment loss for an asset is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying
amount of this asset is increased to its revised recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined (net of any accumulated amortisation or
depreciation) had no impairment loss been recognised for the asset in prior years.
A reversal of impairment loss for an asset is recognised in the income and expenditure statement, unless
the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.
However, to the extent that an impairment loss on the same revalued asset was previously recognised as an
expense, a reversal of that impairment is also recognised in the income and expenditure statement.
23
2.
(h)
Properties under Development
Properties under development include properties for sale under development and cost of upgrading
sold properties.
The cost of properties under development includes acquisition costs, borrowing costs and other related
development expenditure. Finance expenses are capitalised until the completion of development.
Properties 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.
Development of flats for sale is expected to incur a loss on sale. Provision for foreseeable loss is determined
as the difference between estimated development costs and net realisable value, and charged to the income
and expenditure statement. The net realisable value is the estimated selling price (net of Additional CPF
Housing Grant and Special CPF Housing Grant [Note 2(r)]) in the ordinary course of business. When the
development of flats is completed and the flats are transferred to the properties for sale, the corresponding
provision is transferred and released when the flat is sold.
(i)
Properties for Sale
Properties for sale are stated at the lower of cost and net realisable value. Selling price and cost are on
specific identification. The net realisable value is the estimated selling price (net of Additional CPF Housing
Grant and Special CPF Housing Grant [Note 2(r)]) in the ordinary course of business.
Foreseeable loss for flats developed or acquired is provided for the difference between the cost and net
realisable value, and charged to the income and expenditure statement. The provision for foreseeable loss
is released on sale of the flat.
(j)
Inventories of Building Materials
Inventories of building materials are stated at the lower of cost and net realisable value. Cost is calculated
using the weighted average method. Net realisable value represents the estimated selling price in the
ordinary course of business.
(k)
Government Grant
The HDB’s deficit is fully covered 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 of the Republic of Singapore.
The government grant is recognised as income when conditions are met. The government grant is received in
advance, except for the grant to finance the provision for foreseeable loss on properties under development/
for sale and impairment allowance of loans receivable. The amount to finance the foreseeable loss provision
and impairment allowance is received when the loss is realised.
The cumulative grants received from the Government since the establishment of the HDB are disclosed in
Note 24 to the financial statements.
24
2.
(l)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
(m)
Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is presented, net
of estimated customer returns, rebates and other similar allowances.
(i)
Sale Proceeds
Proceeds (net of Additional CPF Housing Grant and Special CPF Housing Grant [Note 2(r)]) from sale
of flats, proceeds from sale of other properties and building materials are recognised as income when
all the following conditions are satisfied:
•
the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
•
the Group retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
•
•
it is probable that the economic benefits associated with the transaction will flow to the
entity; and
•
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
(ii)
Interest Income
Interest income is earned mainly from mortgage loans granted to purchasers of flats under public
housing schemes and deferred payment scheme granted to lessees of upgraded flats. It is accrued
on a time proportion basis, with reference to the principal outstanding and at the effective interest rate
applicable.
25
2.
(m)
Revenue Recognition (continued)
(iii) Rental and Related Income
Rental and related income from operating leases of rental properties are recognised in accordance
with the accounting policy in Note 2(d)(i) to the financial statements.
(iv) Car Park Income
Season parking fees and licence fees of car parks managed by service providers are recognised on a
time proportion basis. Parking coupon income is recognised upon the sale of coupons. Parking fines
and other charges are recognised upon receipt of payments.
(v)Recoveries
Recoveries 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 Fees
Agency fees from agency projects and consultancy fees are recognised as income when services are
rendered.
(vii) Dividend Income
Dividend income is recognised when the shareholder’s right to receive payment is established.
All other income are recognised as and when they are earned.
(n)
Finance Expenses
(i)
Housing Development Loans, Bank Loans and Bonds
The HDB’s development programmes and operational requirements are financed by housing
development loans from the Government, bank loans and bonds issued [Note 2(c)(ii)]. Financial
expenses, comprising interest incurred on the loans and bonds, 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 Loans
The 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 in the period
in which they are incurred.
26
2.
(o)
Contributions on the Group’s employees’ salaries are made to the CPF as required by law. The CPF
contributions are recognised in the income and expenditure statement in the period when the employees
rendered their services entitling them to the contributions. The Group has no further payment obligations
once the contributions have been paid.
(p)
Defined Contribution Plans: Singapore Central Provident Fund (CPF) Contributions
Employee Leave Entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made
for the estimated liability for annual leave as a result of services rendered by employees up to the end of the
reporting period.
(q)
Income Tax
The HDB is exempt from tax under Section 13(1)(e) of the Income Tax Act (Cap. 134, 2008 Revised Edition).
The Group’s income tax expense represents the sum of the current income tax and deferred tax of the
subsidiaries of the HDB.
Current income tax for current and prior periods is recognised at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date.
Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements except when the deferred income tax arises
from an asset or liability in a transaction that is not a business combination and affects neither accounting
nor taxable income or expenditure at the time of the transaction.
A deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries,
except where the Group is able to control the timing of the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(i)
at the tax rates that are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date; and
(ii)
based on the tax consequence that will follow from the manner in which the Group expects, at
the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities.
Current and deferred tax are recognised as an expense or income in the income and expenditure statement,
except when it relates to transactions which are recognised directly in equity.
27
2.
(r)
CPF Housing Grant
Under the CPF Housing Grant scheme, grants are disbursed to eligible households for purchase of flats in
accordance with the approved housing policy.
The Additional CPF Housing Grant and Special CPF Housing Grant [Note 2(m)(i)] disbursed to eligible
households for the purchase of flats from HDB are recognised as trade and other receivables on disbursement,
and netted off against the sale proceeds on sale of the flat.
The other CPF Housing Grants are recognised as expenses on disbursement to eligible households and
reported as other expenses in the income and expenditure statement.
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
In the application of the Group’s accounting policies, which are described in Note 2, management is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
Management is of the opinion that there are no critical judgements involved that have a significant effect on the
amounts recognised in the financial statements apart from those involving estimates, which are dealt with below.
(a)
Estimation for Allowance for Impairment Losses for Loans Receivable
In the estimation of impairment losses for loans receivable, the Group considers the average resale price of
flats in the same location and of similar flat type, the duration of the loan in arrears and the total outstanding
loans receivable.
Management is of the opinion that adequate impairment losses, as disclosed in Note 8 to the financial
statements, have been made.
The carrying amount of the Group’s loans receivable is disclosed in Note 8 to the financial statements.
(b)
Estimation for Impairment Losses or Reversals of Impairment Losses for Property, Plant and
Equipment, and Investment Properties
At the end of each reporting period, management assesses whether there is any indication that property,
plant and equipment and investment properties have suffered an impairment loss or require a reversal of
previous impairment losses.
In the assessment of the impairment loss, the Group estimates the fair value less cost to sell off the properties
or estimates future cash flows, with an appropriate discount rate to calculate the present value of the cash
flows.
Management is of the opinion that adequate impairment losses, as disclosed in Notes 6 and 7 to the financial
statements, have been made.
The carrying amounts of the Group’s property, plant and equipment, and investment properties are disclosed
in Notes 6 and 7 to the financial statements respectively.
28
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
(c)
Foreseeable Losses relating to Properties under Development
Estimated selling price (net of Additional CPF Housing Grant and Special CPF Housing Grant) [Note 2(m)(i)]
of the location, design and the estimated contract cost of the project are used to determine the foreseeable
loss relating to properties under development.
The carrying amount of properties under development is disclosed in Note 12 to the financial statements.
4.
FINANCIAL RISKS AND MANAGEMENT
The Group’s activities expose it to a variety of risks as follows:
(a)
Categories of financial instruments
The following table sets out the financial instruments as at the end of the reporting period:
Group
Financial Assets
Held-to-maturity debt securities
Loans and receivables (including
(1)
cash and bank balances) Available-for-sale securities
(1)
HDB
31 March
31 March
31 March
2014 2013
2014
$’000$’000 $’000
0 31 March
2013
$’000
1,002
0
0
40,412,098
40,355,560
40,346,865
40,274,843
29,974
36,284
00
Excludes prepayments.
Group
HDB
31 March
31 March
31 March
2014 2013
2014
$’000$’000 $’000
31 March
2013
$’000
Financial Liabilities
(at amortised cost)
Loans payable
Payables (including amount
(2)
due to subsidiary) (2)
62,347,256 56,961,970
62,358,256
56,965,970
1,159,165
1,167,944
1,140,547
1,145,454
Excludes downpayment deposits and advances, deferred income and provisions.
29
4.
FINANCIAL RISKS AND MANAGEMENT (continued)
(b)
Financial instruments subject to enforceable contractual netting arrangements
Financial assets and liabilities subject to offsetting, enforceable contractual netting arrangements and similar
agreements
Group and HDB
31 March 2014
31 March 2013
$’000
$’000
Financial Assets
Trade receivables
Gross amounts of recognised financial assets
51,75143,885
Less:
Gross amounts of recognised liabilities set
off in the balance sheets
(49,352)
(40,604)
Net amounts of assets presented in the balance sheets
2,3993,281
Group and HDB
31 March 2014
31 March 2013
$’000
$’000
Financial Liabilities
Trade payables
Gross amounts of recognised financial liabilities
314,812322,241
Less:
Gross amounts of recognised assets set off
in the balance sheets
(49,352)
(40,604)
Net amounts of liabilities presented in the balance sheets
265,460281,637
30
4.
(c)
The following sets out the Group’s overall business strategies and its risk management
philosophy. The Group’s overall financial risk management programme seeks to minimise potential
adverse effects of financial performance of the Group.
(i)
Credit risk
The Group’s loans receivable 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 held as collateral. An allowance for impairment is made
in respect of non-performing loans receivable from flats buyers where the collateral held is insufficient
to discharge the total loans receivable. The allowance represents the aggregate amount by which
management considers it necessary to write down its loans receivable in order to state it in the balance
sheet at its estimated recoverable value.
Although the Group’s credit exposure is concentrated mainly in Singapore, it has no significant
concentration of credit risk with any single loan recipient or group of loan recipients.
The carrying amount of financial assets recorded in the financial statements, grossed up for any
allowances for losses, represents the Group’s maximum exposure to credit risk without taking into
account the value of any collateral obtained.
Further details of credit risks on loans receivable and other receivables are disclosed in Notes 8 and
15 to the financial statements respectively.
(ii)
Market risk
(A)
Interest rate risk
The Group’s exposure to market risk for changes in interest rate relates primarily to the
mortgage and upgrading financing loans payable and loans receivable both of which are
pegged to the CPF rates. The Group manages its interest rate exposure by largely matching
the terms of the mortgage and upgrading financing loans payable with those of the loans
receivable. The Group also borrows housing development loans from the Government for its
development programmes and operational requirements. The housing development loans
are based on a variable interest rate, which is pegged to the prevailing DBS Bank Ltd’s
board rate for housing loans. There was no movement in the variable interest rate since the
borrowing of the housing development loans in 2008/2009. However, if the variable interest
rate were to increase/decrease by 0.5% (2012/2013: 0.5%) at the end of the reporting period
with all other variables held constant, the Group’s net deficit before government grant and
taxation will be higher/lower by $19.4 million (2012/2013: $5.1 million) respectively.
In addition to government loans, the Group also accesses the capital market and financial
institutions for its funding requirements as and when required. The bank loans are unsecured,
borrowed at fixed interest rates and short-term in nature. Information relating to the Group’s
interest rate exposure is disclosed in the respective notes to the financial statements.
31
4.
(ii) Market risk (continued)
(B)
Foreign currency exchange risk
The Group has limited exposure to foreign currency exchange risk as its operations are
substantially transacted in Singapore dollars.
All financial assets and liabilities reported on the balance sheets are denominated in
Singapore dollars.
(C)
Equity price risk
The Group is not exposed to significant equity risks arising from equity investments classified
as available-for-sale. Available-for-sale equity investments are held for strategic rather than
trading purposes. The Group does not actively trade available-for-sale investments. Any
reasonably possible changes in prices of available-for-sale investments are not expected to
have a significant impact on the Group’s capital and reserves.
Further details of these equity investments can be found in Note 10 to the financial statements.
(iii) Liquidity risk
The Group monitors and maintains a level of cash and cash equivalents deemed adequate to finance
its operations. Funding is also made available through an adequate amount of committed credit
facilities. The MOF will act as the lender of last resort to HDB for its funding requirements.
Financial liabilities
The following tables detail the remaining contractual maturity for financial liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the Group and HDB can be contractually required to pay. The adjustment column represents
mainly the interest payments which are not included in the carrying amount of the financial liability on
the balance sheets.
32
4.
(iii) Liquidity risk (continued)
Group
On demand
or within
1 year
$’000
Within
2 to
5 years
$’000
After
5 years
$’000
Adjustment
$’000
Total
$’000
31 March 2014
Loans payable
Payables (1)
9,766,388
1,159,165
32,698,763
0
28,835,514
0
(8,953,409) 62,347,256
0 1,159,165
31 March 2013
Loans payable
Payables (1)
8,730,377
1,167,944
28,133,205
0
28,439,431
0
(8,341,043) 56,961,970
0 1,167,944
On demand
or within
1 year
$’000
Within
2 to
5 years
$’000
After
5 years
$’000
9,766,388
32,706,763
28,838,514
HDB
31 March 2014
Loans payable
Payables (including
amount due to
subsidiary) (1)
31 March 2013
Loans payable
Payables (including
amount due to
subsidiary) (1)
(1)
1,140,547
8,730,377
1,145,454
0
28,135,205
0
0 1,140,547
(8,341,043) 56,965,970
0
Excludes downpayment deposits and advances, deferred income and provisions.
33
Total
$’000
(8,953,409) 62,358,256
0
28,441,431
Adjustment
$’000
0 1,145,454
4.
(iv) Fair values of financial assets and financial liabilities
The carrying amounts of cash and cash equivalents, trade and other current receivables, payables and
other current liabilities approximate their respective fair values due to the relatively short-term maturity
of these financial instruments. The fair values of loans receivable, loans payable, held-to-maturity debt
securities and available-for-sale equity securities are disclosed in the respective notes to financial
statements.
The fair values of financial assets (such as available-for-sale securities) that are traded in active liquid
markets are determined with reference to quoted market prices at the balance sheet date. The quoted
market price used for financial assets held by the Group is the current bid price.
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance
of the inputs used in making the measurements. The fair value hierarchy has the following levels:
(a)
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(b)
inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and
(c)
inputs for the asset or liability that are not based on observable market data (unobservable
inputs) (Level 3).
Financial instruments measured at fair value:
31 March 2014
Group
Total
$’000
Level 1
$’000
29,974
29,974
36,284
36,284
31 March 2013
34
4.
(v)
Capital risk management policies and objectives
As a statutory board, the HDB’s primary mission is to achieve the Government’s social objectives. The
HDB’s development programmes and operational requirements are financed by housing development
loans from the Government, bank loans and bonds issued. In addition, the MOF will act as the lender
of last resort to the HDB for its funding requirements.
The HDB’s deficit is financed by government grant. A grant is also given to the HDB to protect the reserves
of past governments in accordance with the Constitution of the Republic of Singapore. The HDB’s mission
and financing arrangement with the MOF remains unchanged from the last financial year.
5.
CAPITAL AND RESERVES
(a)
Share Capital
Under the MOF’s Capital Management Framework for Statutory Boards (Finance Circular Minute No.
M26/2008), the HDB received $1,000 equity contribution in 2008/2009 from the Minister for Finance, the
body incorporated by the Minister for Finance (Incorporation) Act.
(b)
Capital Account
The 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
the premium on the sale of land under the previous accounting system.
(ii)
(c)
Capital Gains Reserve
Under 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 relates to capital gains attributable to past governments on disposal of assets held at
the changeover date of the Government.
For properties returned to the Government under Article 22B(9) of the Constitution, an amount equivalent to
the net book value of the properties is charged to the capital gains reserve.
35
5.
CAPITAL AND RESERVES (continued)
(d)
Asset Revaluation Reserve
The previous accounting system did not maintain individual asset accounts and the HDB was unable to
identify the historical cost of each asset. When the HDB first adopted the present conventional accounting
system in 1985, all properties owned by the HDB on 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
Land and buildings for commercial and industrial properties were valued at open market values.
(ii)
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.
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
in respect of the same class of assets is charged to the income and expenditure statement.
36
6.
PROPERTY, PLANT AND EQUIPMENT
Group
Office
Equipment,
Plant
Assets
Furniture
and
Freehold
under
Leasehold
Leasehold
and Vehicles
Machinery
Buildings Total
Land
Development
Land
Property
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Cost
At 1 April 2012
106,374
11,461,099
7,596,904
24,698
955,976
11,544
55,456
20,212,051
Additions
201
3,560
3,176
0
937,020
96
3,181
947,234
Disposals/Write-off
(5,330)
(48,925)
(44,080)
0
(528)
(478)
(3,764)
(103,105)
Transfer from investment
properties
0
16,697
4,971
0
0
0
0
21,668
Transfer to properties
for sale
(289
)
(2,805
)
(2,517
)0000
(5,611
)
Reclassifications
3,392
114,828
308,708
0
(426,899)
0
(29)
0
At 31 March 2013
104,348
11,544,454
7,867,162
24,698
1,465,569
11,162
54,844
21,072,237
Accumulated depreciation and
impairment losses
At 1 April 2012
0 2,178,002
1,924,944
3,210
901
10,649
45,083
4,162,789
Depreciation
0
123,379
140,602
837
0
296
3,863
268,977
Disposals/Write-off
0
(12,113)
(28,125)
0
0
(478)
(3,763)
(44,479)
properties
0
3,572
859
0
0
0
0
4,431
Transfer to properties for sale
0
(435)
(911)
0
0
0
0
(1,346)
Reclassifications
0 606
0
0
(606)
0
0
0
Reversal of impairment losses
0
(1,551)
(362)
0
0
0
0
(1,913)
At 31 March 2013
0
2,291,460
2,037,007
4,047
295
10,467
45,183
4,388,459
Carrying amount:
At 31 March 2013
104,348
9,252,994 5,830,155 20,651
1,465,274
695
9,661
16,683,778
37
6.
PROPERTY, PLANT AND EQUIPMENT (continued)
Group
Office
Equipment,
Plant
Assets
Furniture
and
Freehold
under
Leasehold
Leasehold
and Vehicles
Buildings Total
Machinery
Land
Development
Land
Property
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Cost
At 1 April 2013
104,348
11,544,454
7,867,162
24,698
1,465,569
11,162
54,844
21,072,237
Additions
0
56,843
41,304
0
1,573,111
71
2,961
1,674,290
Disposals/Write-off
0
(69,196)
(2,843)
0
(2,045)
(1,668)
(4,269)
(80,021)
properties
0
1,791
529
0
0
0
0
2,320
Transfer from/(to) properties
for sale
(204
)
(3,602
)
(2,935
)0000
(6,741
)
Reclassifications
11,916
129,282
450,171
0
(591,968)
0
599 0
At 31 March 2014
116,060
11,659,572
8,353,388
24,698
2,444,667
9,565
54,135
22,662,085
Accumulated depreciation and
impairment losses
At 1 April 2013
0 2,291,460
2,037,007
4,047
295
10,467
45,183
4,388,459
Depreciation
0
121,843
144,382
837
0
179
3,702
270,943
Disposals/Write-off
0
(16,879)
(1,474)
0
0
(1,668)
(4,231)
(24,252)
properties
0
327
101
0
0
0
0
428
0
(677)
(1,064)
0
0
0
0
(1,741)
Reclassifications
0
(327)
0
0
327
0
0
0
0
(223)
(98)
0
0
0
0
(321)
At 31 March 2014
0 2,395,524
2,178,854
4,884
622
8,978
44,654
4,633,516
Carrying amount:
At 31 March 2014
116,060
9,264,048
6,174,534
19,814
2,444,045
587
9,481
18,028,569
38
6.
HDB
Office
Equipment,
Plant
Assets
Furniture
and
Freehold
under
Leasehold
Leasehold
and Vehicles
Buildings Total
Machinery
Land
Development
Land
Property
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Cost
At 1 April 2012
106,374
11,461,099
7,562,732
24,698
954,990
11,193
50,179
20,171,265
Additions
201
3,560
2,311
0
935,906
96
3,000
945,074
Disposals/Write-off
(5,330)
(48,925)
(28,622)
0
(528)
(414)
(3,539)
(87,358)
properties
0
16,697
4,971
0
0
0
0
21,668
for sale
(289
)
(2,805
)
(2,517
)0000
(5,611
)
Reclassifications
3,392
114,828
307,722
0
(425,913)
0
(29)
0
At 31 March 2013
104,348
11,544,454
7,846,597
24,698
1,464,455
10,875
49,611
21,045,038
Accumulated depreciation
and impairment losses
At 1 April 2012
0
2,178,002
1,898,997 3,210
901
10,310
41,937
4,133,357
Depreciation
0
123,379
136,257
837
0
285
3,324
264,082
Disposals/Write-off
0
(12,113)
(12,667)
0
0
(414)
(3,539)
(28,733)
properties
0
3,572
859
0
0
0
0
4,431
0
(435)
(911)
0
0
0
0
(1,346)
Reclassifications
0
606
0
0
(606)
0
0
0
0
(1,551)
(362)
0
0
0
0
(1,913)
At 31 March 2013
0
2,291,460
2,022,173
4,047
295
10,181
41,722
4,369,878
Carrying amount:
At 31 March 2013
104,348
9,252,994
5,824,424
20,651
1,464,160
694
7,889
16,675,160
39
6.
HDB
Office
Equipment,
Plant
Assets
Furniture
and
Freehold
under
Leasehold
Leasehold
and Vehicles
Buildings Total
Machinery
Land
Development
Land
Property
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Cost
At 1 April 2013
104,348
11,544,454
7,846,597
24,698
1,464,455
10,875
49,611
21,045,038
Additions
0
56,843
39,084
0
1,573,111
71
2,706
1,671,815
Disposals/Write-off
0
(69,196)
(2,843)
0
(2,045)
(1,655)
(3,865)
(79,604)
properties
0
1,791
529
0
0
0
0
2,320
for sale
(204
)
(3,602
)
(2,935
)0000
(6,741
)
Reclassifications
11,916
129,282
449,057
0
(590,854)
0
599
0
At 31 March 2014
116,060
11,659,572
8,329,489
24,698
2,444,667
9,291
49,051
22,632,828
Accumulated depreciation
and impairment losses
At 1 April 2013
0
2,291,460
2,022,173
4,047
295
10,181
41,722
4,369,878
Depreciation
0
121,843
142,411
837
0
178
3,191
268,460
Disposals/Write-off
0
(16,879)
(1,474)
0
0
(1,655)
(3,864)
(23,872)
properties
0
327
101
0
0
0
0
428
0
(677)
(1,064)
0
0
0
0
(1,741)
Reclassifications
0
(327)
0
0
327
0
0
0
0
(223)
(98)
0
0
0
0
(321)
At 31 March 2014
0
2,395,524
2,162,049
4,884
622
8,704
41,049
4,612,832
Carrying amount:
At 31 March 2014
116,060
9,264,048
6,167,440
19,814
2,444,045
587
8,002
18,019,996
40
6.
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 the holding costs of these properties. The
reimbursement is recorded in “Recoveries” (Note 20). The net book value of these markets and hawker centres was
$396 million (2012/2013: $403 million).
The reversal of impairment losses in respect of certain commercial properties are recognised based on the estimated
recoverable values, taking into account the recent tenders and market comparables for these properties.
7.
INVESTMENT PROPERTIES
Cost
At 1 April 2012
Additions
Disposals/Write-off
Transfer to property, plant and equipment
At 31 March 2013
Group
$’000
HDB
$’000
6,748,920
46,718
(35,987)
(21,668)
6,737,983
6,729,793
46,718
(35,987)
(21,668)
6,718,856
1,964,194
81,828
(6,578)
(4,430)
(142,263)
1,892,751
1,961,072
81,573
(6,578)
(4,430)
(142,263)
1,889,374
Carrying amount
At 31 March 2013
4,845,232
4,829,482
Fair value
At 31 March 2013
15,299,574
15,265,944
Accumulated depreciation and impairment losses
At 1 April 2012
Depreciation
Disposals/Write-off
At 31 March 2013
41
7.
INVESTMENT PROPERTIES (continued)
Cost
At 1 April 2013
Additions
At 31 March 2014
Accumulated depreciation and impairment losses
At 1 April 2013
Depreciation
At 31 March 2014
Carrying amount
At 31 March 2014
Fair value
At 31 March 2014
Group
$’000
6,737,983 39,323
(2,320) 6,774,986
HDB
$’000
6,718,856
39,323
(2,320)
6,755,859
1,892,751 1,889,374
83,811
83,556
(428)(428)
(124,553)
(124,553)
1,851,581
1,847,949
4,923,405
4,907,910
16,729,355
16,698,125
The fair value of the investment properties, which are leasehold in nature, is determined based on the comparable
sales method or the income approach as stated in Note 2(g) to the financial statements based on the properties’
highest and best use.
The fair value of the Group’s investment properties, classified as Level 3 fair value, has been generally derived using the
comparable sales method. In arriving at its fair value, the selling price of shops and office in the vicinity are considered.
Adjustments have been made to reflect the differences in size, location, condition, tenure, prevailing market conditions
including improvements in market rentals and other relevant factors affecting its fair value.
In the absence of available market information on comparable sales, fair value of the Group’s investment properties are
derived based on the income method. In arriving at its fair value, the contractual or market rents are considered with
the application of an appropriate discount rate to obtain the present value of future cash flows.
The property rental income from the Group’s investment properties all of which are leased out under operating leases,
amounted to $611 million (2012/2013: $581 million). Direct operating expenses (including repairs and maintenance)
arising from the rental-generating investment properties amounted to $300 million (2012/2013: $290 million).
The reversal of impairment losses are recognised to reflect the estimated recoverable amount based on the prevailing
market conditions.
42
8.
LOANS RECEIVABLE
Group
31 March 2014
31 March 2013
$’000
$’000
Loans receivable
Mortgage loans for flats
Late payment charges
for mortgage loans
Staff loans
36,612,303
38,089,299
36,612,303
29,611
62
31,465
85
29,611
0
31,465
0
36,641,976
38,120,849
36,641,914
38,120,764
90,319
38,211,168
95,064
36,736,978
90,319
38,211,083
(79,856)
38,131,312
(71,754)
36,665,224
(79,856)
38,131,227
Deferred receivable
Upgrading costs due from
Lessees
95,064
36,737,040
Less:
Allowance for impairment losses
(71,754)
Balance as at 31 March 36,665,286
Group
31 March 2014
31 March 2013
$’000
$’000
Represented by amount receivable:
Within 1 year
Later than 1 year but not more
than 2 years
Later than 2 years but not more
than 5 years
Later than 5 years
HDB
31 March 2014 31 March 2013
$’000
$’000
38,089,299 HDB
31 March 2014 31 March 2013
$’000
$’000
2,383,038
2,447,166
2,382,976
2,102,094
2,131,787
2,102,0942,131,787
6,292,013
25,888,141
34,282,248
6,407,590
27,144,769
35,684,146
6,292,0136,407,590
25,888,14127,144,769
34,282,24835,684,146
36,665,286
38,131,312
36,665,224
2,447,081
38,131,227
The mortgage loans are granted to the buyers of flats under the public housing schemes (Note 17) with the flats held
as collateral. The carrying amounts of loans receivable approximate their fair values.
The loans receivable and deferred receivable are denominated in Singapore dollars.
43
8.
LOANS RECEIVABLE (continued)
The movements in allowance for impairment losses on loans receivable for the Group are as follows:
Balance as at 1 April
Bad debts written off against allowance
Balance as at 31 March
Group and HDB
31 March 2014
31 March 2013
$’000
$’000
79,856
87,536
(1,007)717
(7,095)
(8,397)
71,754 79,856
Interest rates and repayment terms on the loans are:
Interest rate
(per annum)
Repayment term
Mortgage loans granted to lessees for
purchase of flats under public housing schemes
2.60% to 3.38%
(2012/2013: 2.60% to 3.38%)
Up to 30 years
Loans granted to staff
4.25%
(2012/2013: 4.25%)
Up to 7 years
Upgrading costs due from flat lessees
2.60% to 3.38%
(2012/2013: 2.60% to 3.38%)
Up to 25 years
Upgrading costs due from shop lessees
5.00% to 6.75%
(2012/2013: 5.00% to 6.75%)
Up to 5 years
The loans are collected through monthly instalment payments from the loan recipients. Instalment payments are due
on the 1st day of every month. Late payment charges will be imposed based on the outstanding balance as at the end
of each month, in accordance with the Housing & Development (Penalties for Late Payment) Rules and the Housing &
Development (Interest and Penalties for Late Payment of Improvement Contribution) Rules.
A credit assessment based on objective criteria is carried out for loans granted. The loans are secured by the flats that
are sold. Loans that are past due but not impaired as at the year end amounted to $6,178 million (2012/2013: $6,765
million). No allowance for impairment losses has been made on these loans receivable, as the market value of the
collateral is higher than the loans receivable. The average age of these loans receivable is 6.7 months (2012/2013:
6.9 months).
In determining the recoverability of the loans receivable, the HDB considers any change in credit quality of the loan, the
duration of the loan in arrears and the market value of the collateral as at the reporting date. Accordingly, an allowance
of $72 million (2012/2013: $80 million) representing 0.20% (2012/2013: 0.21%) of the total loans receivable had been
made. Management is of the opinion that adequate impairment losses have been made.
44
9.
INVESTMENT IN SUBSIDIARIES
Subsidiary
(a)
E M Services Pte Ltd (unquoted equity shares at cost)
Country of
Principal activities
incorporation
Subsidiary of the HDB
(a)
E M Services Pte Ltd Property management
Singapore and engineering services
HDB
31 March 2014 31 March 2013
$’000
$’000
1,500
1,500
Percentage of equity
held by the Group
31 March 2014 31 March 2013
%
%
75
75
Subsidiaries of E M
Services Pte Ltd
E M Property Management
(a)
Pte Ltd
(a)
Property Inc. Pte Ltd Property management
Singapore
100
100
Real estate agency
Singapore
100
100
(a)
Audited by Deloitte & Touche LLP.
45
10.
OTHER INVESTMENTS
Non-current investments:
Held-to-maturity debt securities, at amortised cost
Available-for-sale equity securities (quoted), at fair value
Available-for-sale debt securities (quoted), at fair value
Fair value of held-to-maturity debt securities
Group
31 March 2014 31 March 2013
$’000
$’000
0
15,656
14,318
29,974
1,002
25,067
11,217
37,286
0
1,002
The fair value of investments in quoted available-for-sale investments is based on the quoted closing market prices on
the last market day of the financial year.
Held-to-maturity debt securities have average effective interest rates ranging from 1.1% to 6.0% per annum with maturity
dates ranging from 2017 to 2049. During the year, the investment is reclassified to available-for-sale investments due
to a change in management intention.
The held-to-maturity and available-for-sale investments are denominated in Singapore dollars.
46
11.
INCOME TAX
(a)
Income tax expense
Group
31 March 2014 31 March 2013
$’000
$’000
Current taxation:
- Current year
- Overprovision in respect of prior years
Deferred taxation
Total income tax expense
65
4,206
(797)
(586)
(732)3,620
1,561
(87)
829 3,533
Reconciliation of effective tax rate:
Net surplus before taxation
Less:
Net surplus of HDB excluding intra-group
transactions
Net surplus subject to taxation
Tax at statutory rate of 17% (2012/2013: 17%)
Tax effect on non-deductible expenses
Exempt income
Tax concession and rebates
Overprovision in respect of prior years
Others
(b)
141,026254,642
(132,667)
8,359 (233,546)
21,096
1,421
3,586
579
982
(45)
(76)
(322)
(373)
(797)
(586)
(7)0
829 3,533
Movements in provision for income tax
Group
31 March 2014 31 March 2013
$’000
$’000
Charge for the year
Payments made during the year
Overprovision in respect of prior years
Balance as at 31 March 4,2085,900
654,206
(3,412)
(5,312)
(797)
(586)
64 4,208
47
11.
INCOME TAX (continued)
(c)
Deferred tax
The movements in deferred tax assets and liabilities for the Group during the year are as follows:
Credited/
Credited/
(Charged) to
(Charged) to
Income and
At
Income and
At
1 April
Expenditure
31 March Expenditure
Statement
2012
Statement
2013
$’000
$’000
$’000
$’000
At
31 March
2014
$’000
Deferred tax (liabilities)/
assets
Capital allowances
Total
12.
(99)
(99)
(109)
(109)
(208)
(208)
232
232
24
24
Provisions
Total
2,640
2,640
196
196
2,836
2,836
(1,793)
(1,793)
1,043
1,043
Net deferred tax assets
2,541
87
2,628
(1,561)
1,067
PROPERTIES UNDER DEVELOPMENT
Land
Buildings
Upgrading works
Less:
Provision for foreseeable loss [Note 2(h)]
13.
15,145,114
10,602,648
4,445,2093,361,937
121,743 125,416
19,712,06614,090,001
(3,285,840)
16,426,226
(1,638,401)
12,451,600
PROPERTIES FOR SALE
Group and HDB
31 March 2014 31 March 2013
$’000$’000
Cost of properties
Less:
Provision for foreseeable loss [Note 2(i)]
48
Group and HDB
31 March 2014 31 March 2013
$’000
$’000
1,695,087
1,333,363
(89,490)
1,605,597
(120,144)
1,213,219
14.
GOVERNMENT GRANT RECEIVABLE
Less:
Amount received
Group and HDB
31 March 2014 31 March 2013
$’000
$’000
1,011,071929,758
(518,031)
(961,600)
493,040
(31,842)
Government grant for the current year
2,118,874 1,042,913
2,611,914
1,011,071 The government grant for the current year covers the deficit to be financed by the Government under the existing
financing arrangement [Note 2(k)].
15.
TRADE AND OTHER RECEIVABLES
Group
31 March 2014
31 March 2013
$’000
$’000
Trade receivables
Less:
Other receivables
Less:
HDB
31 March 2014 31 March 2013
$’000
$’000
1,016,500
1,028,667
1,003,290
1,009,755
(11,100)
1,005,400
(11,617)
1,017,050
(11,100)
992,190
(10,616)
999,139
36,778
53,836
34,173
51,851
(24)
36,754
(26)
53,810
(24)
34,149
(26)
51,825
20,459
666
1,063,279
12,963
603
1,084,426
Prepayments
Deposits
Included in the Group’s trade receivables balance is the Additional CPF Housing Grant and Special CPF Housing Grant
of $672 million (2012/2013: $587 million) that had been disbursed to eligible households for the purchase of flats from
HDB. The Additional/Special CPF Housing Grant disbursed in the current year amounted to $246 million (2012/2013:
$252 million). The amount disbursed will be netted off against the sale proceeds on sale of the flat [Notes 2(m)(i) and
2(r)].
Also included in the Group’s trade receivables balance are debtors with a carrying amount of $29 million (2012/2013:
$31 million) which are past due as at the reporting date but no allowance for impairment losses is made, as there has
not been a significant change in credit quality. The average age of these receivables is 5.1 months (2012/2013: 4.0
months). The Group does not hold any collateral over these balances.
49
14,061
417 1,040,817
5,010
410
1,056,384
15.
TRADE AND OTHER RECEIVABLES (continued)
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade
receivable as at the reporting date. The concentration of credit risk is limited due to the large and unrelated customer
base. Accordingly, management believes that there is no further credit provision required in excess of the allowance for
impairment losses.
The movements in allowance for impairment losses on trade and other receivables for the Group and HDB are as
follows:
GroupHDB
31 March 2014
31 March 2013 31 March 2014 31 March 2013
$’000
$’000
$’000
$’000
Balance as at 1 April 11,643
12,712
10,642
11,511
5,000
4,258
5,0003,507
Bad debts written off against allowance
(5,519)
(5,327)
(4,518)
(4,376)
11,124
11,643
11,124
10,642
16.
CASH AND BANK BALANCES
Group
31 March 2014
31 March 2013
$’000
$’000
Cash and bank balances
Fixed deposits
Less:
Funds held in trust
Cash and cash equivalents
as at 31 March
55,206
36,872 92,078
(17,290)
74,788 98,392
43,322 141,714
(14,851)
126,863
HDB
31 March 2014 31 March 2013
$’000
$’000
40,401
78,673
2,570 2,498
42,97181,171
(16,243)
(14,167)
26,72867,004
Amount held in trust comprises mainly monies maintained by the Group with financial institutions on behalf of its
principal for agency projects, fixed deposits placed on behalf of Club HDB, funds held for management of joint research
projects and funds held for management of properties.
Cash and bank balances comprise cash and short-term bank deposits held by the Group, which includes bank balances
held by Accountant-General’s Department (“AGD”) under the Government’s Centralised Liquidity Management
Framework for Statutory Boards. The carrying amounts of these assets approximate their fair values.
Fixed deposits, excluding those held in trust at the financial year end, bear average effective interest of 0.26%
(2012/2013: 0.27%) per annum and for a tenure from one to three months (2012/2013: one to six months).
50
17.
LOANS PAYABLE
Government loans
Housing development loans
Mortgage financing loans
Upgrading financing loans
Bonds
Principal
Unamortised transaction cost
Bank loans (unsecured)
Interest payable
31 March 2014
$’000
GroupHDB
31 March 2013
31 March 2014
31 March 2013
$’000
$’000
$’000
3,884,846
36,607,650
65,510
40,558,006
1,015,491
38,372,538
67,421
39,455,450
3,884,8461,015,491
36,607,650
38,372,538
65,510
67,421
40,558,006
39,455,450
18,649,000
(56,433)
18,592,567
14,386,000
(27,323)
14,358,677
18,660,00014,390,000
(56,433)
(27,323)
18,603,567
14,362,677
3,055,000
62,205,573
141,683 62,347,256
2,954,000
56,768,127
193,843 56,961,970
3,055,000
62,216,573
141,683
62,358,256 2,954,000
56,772,127
193,843
56,965,970
8,298,693
7,439,234
8,298,693
7,439,234
Represented by amount payable:
Within 1 year
Later than 1 year but not more
than 2 years
Later than 2 years but not more
than 5 years
Later than 5 years
7,268,171
5,002,669
7,268,1715,002,669
21,206,780
25,573,612
54,048,563
62,347,256
19,109,919
25,410,148
49,522,736
56,961,970
21,214,78019,111,919
25,576,612
25,412,148
54,059,563
49,526,736
62,358,25656,965,970
18,483,668 14,792,829
18,494,565 Fair value of bonds
14,796,953
Under the Agreements for Loan Facility with the Government, mortgage and upgrading financing loans are obtained
from the Government to finance loans granted to eligible purchasers of flats under the public housing schemes at
interest rates that are in accordance with prevailing mortgage financing policy and upgrading programmes of the
Government.
The fair value of financial instruments is based on quoted market prices at the end of the reporting period. The indicative
ask price is used for the bonds issued by the Group, which is classified as Level 2 fair value.
The carrying amounts of government loans and bank loans approximate their fair values.
The loans and bonds are denominated in Singapore dollars.
51
17.
LOANS PAYABLE (continued)
The average effective interest rates paid and repayment terms on the loans are:
Interest rate
(per annum)
Repayment term
Housing development loans
4.50%
(2012/2013: 4.50%)
10 years, 20 years
Mortgage financing loans
2.50% to 3.28%
(2012/2013: 2.50% to 3.28%)
Up to 30 years
Upgrading financing loans
2.50%
(2012/2013: 2.50%)
10 years
Bank loans (unsecured)
0.67% to 2.30%
(2012/2013: 0.40% to 0.54%)
Within 1 year
Bonds are issued to finance the HDB’s development programmes and working capital requirements. The bonds are
as follows:
Series
number
Principal
$M
010
012
014
016
018
020
022
024
026
029
032
033
034
035
036
037
038
039
040
041
500
100
100
100
250
250
150
300
300
400
465
320
500
350
400
600
625
650
600
385
Coupon
rate(%)
(per annum)
Effective
interest rate(%)
(per annum)
3.375
3.200
3.730
3.995
3.622
3.550
3.350
3.630
3.950
1.870
2.000
2.0225
3.140
1.685
1.005
2.815
1.010
1.950
1.830
1.105
3.375
3.200
3.730
3.995
3.622
3.550
3.350
3.630
3.950
1.870
2.023
2.044
3.162
1.716
1.015
2.871
1.051
1.983
1.851
1.136
52
Tenure
Maturity
10 years
10 years
10 years
10 years
10 years
10 years
12 years
15 years
10 years
5 years
7 years
5 years
10 years
5 years
3 years
10 years
5 years
10 years
7 years
5 years
21 April 2015
12 October 2015
7 March 2016
14 July 2016
18 October 2016
14 February 2017
11 June 2019
27 February 2023
15 July 2018
25 March 2015
3 November 2017
22 February 2016
18 March 2021
8 June 2016
1 August 2014
26 July 2021
19 September 2016
22 September 2021
21 November 2018
16 February 2017
17.
LOANS PAYABLE (continued)
Series
number
Principal
$M
Coupon
rate(%)
(per annum)
042 360
043 800
044 500
045 585
046 450
047 500
048 600
0491,200
0511,000
053
500
054
520
055
1,450
056
1,500
057
600
058
750
18.
TRADE AND OTHER PAYABLES
Effective
interest rate(%)
(per annum)
1.186
1.165
2.207
2.185
1.573
1.520
2.558
2.505
1.203
1.110
2.155
2.088
0.811
0.760
1.3129
1.230
1.045
0.943
1.368
1.389
1.165
1.201
2.365
2.580
1.875
2.137
3.948
4.015
3.008
3.053
31 March 2014
$’000
Tenure
Maturity
5 years
10 years
7 years
12 years
5 years
10 years
3 years
5 years
3 years
5 years
3 years
5 years
4 years
15 years
7 years
24 April 2017
25 April 2022
18 June 2019
27 June 2024
30 August 2017
30 August 2022
2 November 2015
30 January 2018
21 March 2016
29 May 2018
26 July 2016
19 September 2018
13 November 2017
29 January 2029
26 March 2021
Group
31 March 2013
$’000
31 March 2014
$’000
HDB
31 March 2013
$’000
Trade payables
1,029,511
1,043,585
1,010,714
1,020,593
Downpayment deposits and advances
1,742,664
1,489,861
1,742,664
1,489,861
Other deposits
129,654
124,359
129,654124,359
Deferred income (Note 19)
124,948
111,891
124,948
111,891
Provisions
20,034 20,010 20,034 20,010
3,046,811
2,789,706
3,028,0142,766,714
Provision was mainly made for restoration works for a former quarry site, pending firm development plan of the agency
taking over the site.
The movements in provisions for the Group and HDB are:
Group and HDB
31 March 2014 31 March 2013
$’000
$’000
20,010
20,003
Provisions for the year24
7
20,03420,010
53
19.
DEFERRED INCOME
Group and HDB
31 March 2014 31 March 2013
$’000
$’000
Within 1 year (Note 18)
After 1 year but within 5 years
After 5 years
124,948
111,891
226,577226,986
775,581654,654
1,002,158
881,640
1,127,106993,531
Deferred income relates principally to amount received in advance in respect of operating leases of land, commercial
properties, industrial properties and flats [Note 2(d)].
20.INCOME
2013/2014
$’000
Group
2012/2013
$’000
Interest income
Rental and related income
Car park income
Recoveries for upgrading and others
Levy on resale flats and sales premium
Agency and consultancy fees
Gain on disposal of assets
Investment income
Fees and other income
996,729
1,118,698
593,514
96,268
47,972
103,968
2,295
1,459
102,063 3,062,966
2013/2014
$’000
HDB
2012/2013
$’000
996,5651,057,863
1,105,0891,051,849
594,029569,236
96,268
101,471
47,972
42,491
25,738
31,915
2,32010,092
12,75012,000
100,804 83,705
2,981,5352,960,622
1,058,006
1,092,644
568,688
101,471
42,491
106,666
10,099
2,091
84,190 3,066,346
Investment income includes dividend income as follows:
Dividend from:
- Unquoted subsidiary
- Others
2013/2014
$’000
Group
2012/2013
$’000
0
1,459 54
0
2,091
2013/2014
$’000
12,750
0
HDB
2012/2013
$’000
12,000
0
21.
FINANCE EXPENSES
Interest expense from:
- Government loans
- Bank loans
- Bonds
Less:
Interest capitalised in assets and
properties under development
(Notes 6, 7 and 12)
Bond transaction cost amortisation Group
2013/2014
2012/2013
$’000
$’000
2013/2014
$’000
1,025,723 51,918 317,441 1,068,288 14,191 255,381 1,025,723 51,918
317,586 1,068,288
14,191
255,401
1,395,082
1,337,860 1,395,227 1,337,880
(131,293) 2,642
1,209,209
(234,557) 8,036
1,168,706 (131,293)
2,642
1,209,229
(234,557) 8,036
1,168,561 HDB
2012/2013
$’000
During the financial year, interest capitalised as properties and assets under development amounted to $235 million
(2012/2013: $131 million) at an average capitalisation rate of 2.03% (2012/2013: 2.06%).
55
22.
EXPENSES BY NATURE
Expenses include the following:
Cost of sales before net increase
in provision for foreseeable loss
Provision for foreseeable loss for
properties under development/
for sale
Release of foreseeable loss provided
in previous years, upon sale
2013/2014
$’000
Group
2012/2013
$’000
3,887,229
3,335,428
1,941,626
752,848
2013/2014
$’000
HDB
2012/2013
$’000
3,887,2293,335,428
1,941,626752,848
(324,841)
(503,105)
1,616,785
249,743
1,616,785249,743
Upgrading
585,088
Improvements and demolition
148,608
Depreciation
354,754
Property tax
139,665
Reversal of impairment losses on
property, plant and equipment
and investment properties
(124,868)
Allowance for impairment losses on
loans receivable and debtors3,993
Bad debts written off
94
Operating lease expenses
27,827
Manpower costs
579,301
Manpower costs and overheads
capitalised in:
- properties and assets under
development
(28,475)
- inventories of building materials
(797)
CPF Housing Grant [Note 2(r)]
135,928
637,301
127,523
350,805
133,534
587,907642,860
148,608127,523
352,016
345,655
139,570
133,446
Net increase in provision for foreseeable loss
56
(142,677)
(324,841)
(124,868)
(503,105)
(142,677)
4,975
1,194
28,527
548,352
3,993
4,224
94
334
21,722
13,834
519,191484,338
(27,671)
(1,220)
177,718
(28,475)
(27,671)
(797)
(1,220)
135,928177,718
23.
MANPOWER COSTS
Salaries and bonuses
Contribution to CPF
Staff benefits
Training/development costs
and others
24.
2013/2014
$’000
Group
2012/2013
$’000
2013/2014
$’000
HDB
2012/2013
$’000
502,136
472,803
449,458417,872
57,029
56,109
50,614
47,866
10,1689,535
9,513
8,981
9,968
579,301
9,905 548,352
9,606 9,619
519,191484,338
GOVERNMENT GRANT
Cumulative grant from the Government since the establishment of the HDB in 1960 amounts to:
2013/2014
$’000
22,374,76921,331,856
2,118,874 1,042,913
24,493,64322,374,769
Total grant as at 1 April
Grant for the financial year (Note 14)
Total grant as at 31 March
57
HDB
2012/2013
$’000
25.
SIGNIFICANT RELATED PARTY TRANSACTIONS
Some of HDB’s transactions and arrangements are with related parties and the effect of these on the basis determined
between the parties is reflected in these financial statements. The balances are unsecured, interest-free and repayable
on demand unless otherwise stated.
The Group had the following significant transactions with its supervisory Ministry, MND, and other related parties during
the year:
Group and HDB
2013/2014
2012/2013
$’000
$’000
(i) HDB’s transactions with:
Subsidiaries
Property management
Mechanical and electrical services
Rental income
(4,549)
(4,275)
(8,154)
(16,259)
3,2793,235
MND
Agency fee and other income14,999
21,044
Singapore Land Authority, as an agent for Ministry of Law
Purchase of land
Proceeds from return of land, flats and other properties
to Government
Agency fees and other income
Temporary occupation licence fees
National Environment Agency
Recoveries
Council for Estate Agencies
Consultancy and support services fees
Maritime and Port Authority of Singapore
Agency fee income
Land Transport Authority
Agency fee income
Other Ministries and Statutory Boards
Rental income and others
Town Councils
Operating fee for car park maintenance expenses
and others
58
(6,632,713)
(4,988,407)
52,93340,926
15,137
14,049
(4,755)
(4,044)
13,62213,601
794769
2,1793,415
431,449
3,214
(71,369)
1,803
(68,964)
25.
SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(ii)Subsidiaries’ transactions with:
Ministries, Town Councils and Statutory Boards
Estate management agency fee income
Amounts due to related parties as at 31 March
Amounts due from related parties as at 31 March
Group and HDB
2013/2014
2012/2013
$’000
$’000
73,429
34,164
101,907
76,996
39,412
82,123
The outstanding amounts are unsecured. There are no guarantees provided or received in respect of the related party
balances. For 2013/2014, the Group had not made any allowance for impairment relating to amounts owed by related
parties (2012/2013: $Nil).
(iii)Board Member and Key Management Personnel Remuneration
The remuneration of Board Members/Directors and key management personnel during the year were as follows:
Board Members’ and
Directors’ fees Salaries and other short-term
employee benefits
Contribution to CPF
2013/2014
$’000
Group
2012/2013
$’000
2013/2014
$’000
304
306
201
7,454
210
7,968
6,640
202
7,148
59
HDB
2012/2013
$’000
203
6,9516,141
199
192
7,3516,536
26.
SEGMENTAL INFORMATION
BUSINESS SEGMENTS
The Group operates predominantly in Singapore, and therefore the revenues are generated mainly from the operations
in Singapore and the assets are located principally in Singapore. The accounting policy of the reporting segments are
the same as the Group’s accounting policy as disclosed in Note 2.
The Group’s main operating decision makers are Board Members/Directors and key management personnel of the
Group. The operating segments are determined based on the reports reviewed by the Group’s main operating decision
makers.
The Group’s results are presented under seven business segments in respect of the Group’s main activities and the
government programmes implemented:
Home Ownership Segment
The Home Ownership segment focuses on providing home ownership flats to eligible purchasers of flats under the
various home ownership schemes for public housing.
Upgrading Segment
The Upgrading segment focuses on the upgrading programmes to renew and rejuvenate the older housing estates.
Residential Ancillary Functions Segment
The Residential Ancillary Functions segment focuses on implementing housing policies, managing ancillary facilities
such as car parks in housing estates, and planning and building administration.
Rental Flats Segment
The Rental Flats segment focuses on providing rental flats to eligible tenants under the various rental housing schemes.
Mortgage Financing Segment
The Mortgage Financing segment focuses on providing housing loans to eligible purchasers of flats under the various
public housing schemes.
Other Rental and Related Businesses Segment
The Other Rental and Related Businesses segment focuses on the tenancy and management of commercial and
industrial properties, and land owned by the HDB.
Agency and Others Segment
The Agency and Others segment encompasses estate management services, architectural and engineering consultancy
services and agency projects on behalf of the Government.
60
HOUSING AND DEVELOPMENT BOARD AND ITS SUBSIDIARIES
26.
SEGMENTAL INFORMATION (continued)
2012/2013
Housing
Other Activities
Other
Agency
Rental and
Total
Residential
Home
Mortgage
Total
and
Related
Other
Ancillary
Ownership Upgrading
Financing Eliminations
Housing Others Eliminations
Businesses Activities
Functions Rental Flats
$’M
$’M $’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
Sale proceeds Less: Additional/Special CPF Housing
Grant [Notes 2(m)(i) and 2(r)]
Net sale proceeds
Gross (loss)/profit on sales
foreseeable loss
Gross (loss)/profit after net increase in
External income:
Interest income
Other income
Inter-segment
Total income
Group
$’M
2,899
2,899 0
333
0
0
0
3,232
0
0
0
0
3,232
(104)
(104)
2,795
2,795
0
0
0
333
0
0
0
0
0
0
(104)
3,128
0
0
0
0
0
0
0
0
(104)
3,128
(3,026)
(3,026)
(231)
(231)
0
0
(299)
34
0
0
0
0
(10)
(10)
(3,335)
(207)
0
0
0
0
0
0
0
0
(3,335)
(207)
(250)
(250)
0
0
0
0
0
(250)
0
0
0
0
(250)
(481)
(481)
0
34
0
0
(10)
(457)
0
0
0
0
(457)
00
80
80
00
80
80
3
88
0
91
0
577
(11)
566
0
50
0
50
1,055
5
0
1,060
0
0
11
11
1,058
800
0
1,858
0
1,053
12
1,065
0
155
33
188
0
0
(45)
(45)
0
1,208
0
1,208
Net deficit before government
(719)
grant and taxation
(719)
(619)
(116)
(61)
(27)
25
(1,517)
723
43
(37)
729
Government grant
Net surplus before taxation and
Taxation
61
1,058
2,008
0
3,066
(788)
1,042
254
(3)
251
26.
Housing
2012/2013
Other Activities
Other
Agency
Rental and
Total
Residential
and
Related
Other
Home
Mortgage
Total
Ancillary
Others
Businesses Eliminations
Upgrading
Activities
Ownership
Housing Functions Rental Flats
$’M
$’M $’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
Group
$’M
Segment expenses include:
(25)
Finance expenses
(25)
(2)
(86)
(3)
(1,020)
0
(178)
(178)
0
0
0
0
0
0 0
Upgrading
(635)
0
(7)
0
(6)
(4)(4)
4
(67)
(5)
0
(2)
(7)(7)
Depreciation
0
(145)
(50)
(1)
0
Reversal of impairment losses on property,
plant and equipment and investment
0 0
properties
0
0
0
0
0
Allowance for impairment losses on loans
0 0
receivable and debtors
0
0
(4)
0
0
(1,136)
(178)
(648)
(74)
(203)
(68)
0
(1)
(51)
(134)
(5)
0
0
(2)
(9)
0
0
0
0
0
(73)
0
(1)
(53)
(143)
(1,209)
(178)
(649)
(127)
(346)
0
142
0
0
142
(4)
0
0
0
0
(4)
142
Assets and liabilities
15,210
Segment assets
15,210 320
9,318
2,954
38,098
0 65,900
7,731
914
0
8,645
Unallocated assets
Total assets
74,545
1,011
92
75,648
10,553
Segment liabilities
10,553 338
5,339
274
38,493
0 54,997
4,823
638
0
5,461
Unallocated liabilities
Total liabilities
60,458
180
60,638
Capital additions
312
312 0
359
176
0
62
0
847
142
5
0
147
994
26.
2013/2014
Housing
Other Activities
Other
Total
Agency
Rental and
Residential
Other
Home
Mortgage
Total
and
Related
Ancillary
Activities
Ownership
Housing Others
Businesses Upgrading
Eliminations
Functions Rental Flats
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
Sale proceeds Less: Additional/Special CPF Housing
Grant [Notes 2(m)(i) and 2(r)]
Net sale proceeds
Gross (loss)/profit on sales
foreseeable loss
Gross (loss)/profit after net increase in
Group
$’M
3,534
3,534 0
431 0
0
0
3,965
0
0
0
0
3,965
(162)
(162)
3,372
3,372 0
0
0
431 0
0
0
0
0
0
(162)
3,803
0
0
0
0
0
0
0
0
(162)
3,803
(3,490)
(3,490)
(118)
(118)
0
0
(379)
52 0
0
0
0
(18)
(18)
(3,887)
(84)
0
0
0
0
0
0
0
0
(3,887)
(84)
(1,617)
(1,617)
0
0
0
0
0
(1,617)
0
0
0
0
(1,617)
(1,735)
(1,735)
0
52 0
0
(18)
(1,701)
0
0
0
0
(1,701)
0 0
9797 0 0
9797 3
83 0
86 0
599 (21)
578 0
55 0
55 994 3
0
997 0
0
21 21 997
837
0
1,834
0
1,104
12
1,116
0
125
26
151
0
0
(38)
(38)
0
1,229
0
1,229
External income:
Interest income
Other income
Inter-segment
Total income
Net deficit before government
(1,927)
grant and taxation
(1,927)
(568)
(157)
(50)
(30)
17 (2,715)
745
22
(30)
737
Government grant
Net surplus before taxation and
Taxation
63
997
2,066
0
3,063
(1,978)
2,119
141
(1)
140
26.
Housing
2013/2014
Other Activities
Other
Agency
Rental and
Total
Residential
and
Related
Other
Home
Mortgage
Total
Ancillary
Others
Businesses Eliminations
Activities
Eliminations
Ownership Upgrading
Housing Functions Rental
Flats Financing
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
$’M
Group
$’M
Segment expenses include:
Finance expenses
(29)
(2)
(96)
(4)
(959)
0
(136)
0
0
0
0
0
Upgrading
0
(580)
0
(3)
0
(3)
0
(1)
(100)
1
0
(3)
Depreciation
(11)
0
(148)
(48)
0
0
Reversal of impairment losses on property,
plant and equipment and investment
properties
0
0
0
0
0
0
Allowance for impairment losses on loans
receivable and debtors
0
0
0
(5)
1
0
Assets and liabilities
Segment assets
20,141 269 9,614 3,379 36,609 0 70,012 7,954
857
0
8,811
Unallocated assets
Total assets
78,823
2,612
56
81,491
Segment liabilities
16,525 333 6,102 702 36,637 0 60,299 5,527
455
0
5,982
Unallocated liabilities
Total liabilities
66,281
115
66,396
Capital additions
492 0
476 500 0
64
0
(1,090)
(136)
(586)
(103)
(207)
(73)
0
(4)
(44)
(136)
(6)
0
0
(1)
(9)
0
0
0
0
0
(79)
0
(4)
(45)
(145)
0
124
0
0
124
(4)
0
0
0
0
1,468 242
4
0
246
(1,169)
(136)
(590)
(148)
(352)
124
(4)
1,714
27.
COMMITMENTS
(a)
Building project commitments
The following commitments for building projects are not recognised in the financial statements:
Authorised and contracted for
Authorised but not contracted
for
Group
2012/2013
$’000
2013/2014
$’000
HDB
10,230,088
6,792,572
10,230,088
2,137,983
12,368,071
3,150,141
9,942,713
2,137,9833,150,141
12,368,0719,941,383
2012/2013
$’000
6,791,242
(b)
Operating lease arrangements - where the Group is a lessor
The Group leases out its properties to non-related parties. The future minimum lease receivables under noncancellable operating leases contracted for at the balance sheet date but not recognised as receivables, are
as follows:
2013/2014
$’000
Within 1 year
After 5 years
2013/2014
$’000
Group
2012/2013
$’000
166,212
321,324
308,884 796,420 2013/2014
$’000
HDB
160,457
322,097
308,884 791,438 154,929
274,092
258,106 687,127 2012/2013
$’000
145,948
272,702
258,106
676,756
(c)
Operating lease arrangements - where the Group is a lessee
The Group leases equipment and properties from non-related parties. The future minimum lease payments
under non-cancellable operating leases contracted for at the end of reporting period but not recognised as
liabilities, are as follows:
2013/2014
$’000
Within 1 year
After 5 years
Group
2012/2013
$’000
9,166
14,273
1,149 24,588 65
10,297
12,173
559
23,029 2013/2014
$’000
HDB
2,885
6,986
1,149 11,020 2012/2013
$’000
2,792
5,284
559
8,635
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014
28.
CONTINGENT LIABILITIES
Housing Subsidies for SC/SPR Households
To encourage the Singapore Permanent Resident (“SPR”) family members in such SPR/Singapore Citizen (“SC”)
households to take up citizenship and to reinforce the privilege of citizenship, HDB will withhold $10,000 of the housing
subsidies enjoyed by SPR/SC households when they buy a flat. If they buy a resale flat, a Design, Build and Sell
Scheme (“DBSS”) flat, or an Executive Condominium (“EC”), their Housing Grant will be reduced by $10,000. If they
buy a new flat, they will have to pay a $10,000 premium on top of HDB’s selling price. The withheld subsidy will be
restored when the SPR member in the household obtains Singapore citizenship or when the couple has a SC child.
Factors such as whether and when the SPR member in the household becomes SC or when the couple has a SC child
are beyond HDB’s control. Given the uncertainty in timing and quantum of the obligation, no provision has been made
in respect of this scheme.
29.
RECLASSIFICATIONS AND COMPARATIVE FIGURES
Certain comparative amounts have been reclassified for consistency with the presentation of the current year’s
financial statements. An amount approximating $40.6 million previously reported under trade and other receivables in
the 2012/2013 comparative figures have been reclassified to trade and other payables.
The reclassification relates to receivables from the building contracts which are subject to offsetting against payables
for the same contracts.
The revised presentation does not result in a change in the Group and the HDB’s net assets and net surplus before
and after taxation.
66
Copyright © Housing & Development Board.
All rights reserved.

hdb annual report 2013/2014

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