What is HDB's ethnic integration policy and why this property agent was issued Pofma order for his video

Minister for National Development Desmond Lee has ordered the Pofma Office to issue a correction direction to property agent Shaik Amar for the "false and misleading" statements regarding HDB's Ethnic Integration Policy (EIP) on Thursday (Aug 1). 

In a video posted on his TikTok and lnstagram accounts on July 24 and YouTube on July 25, Shaik claimed that the EIP causes significant financial detriment to minorities when they sell their flats. 

In his video, Shaik, who goes by 'thatproperty.guy' on social media, used the example of his Malay neighbour, who lives in a five-room flat at SkyOasis@Dawson, a SERS HDB block known for million-dollar transactions.

He claimed that his neighbour would not be able to sell his flat at such high prices due to the limited pool of buyers as a result of the EIP, which he deemed an outdated policy. 

An ethnic minority flat owner would have to "give close to a half a million (dollar) discount to sell their house," he said.

In a statement released on Thursday, the Ministry of National Development (MND) said that Shaik's claims were "false and misleading". 

What is EIP?

The EIP, introduced in 1989, was a move to counteract the trend of ethnic enclaves forming in certain HDB estates, explained MND.

EIP limits are set at block and neighbourhood levels based on the ethnic make-up of Singapore, according to HDB.

"By setting limits on the proportion of each ethnic group allowed in a HDB block or neighbourhood, it has been possible to have ethnically diverse neighbourhoods across Singapore, and opportunities for interaction and understanding across races," said the ministry. 

Today, nearly one in three HDB blocks and 11 per cent of HDB neighbourhoods have reached their EIP limits. 

The policy benefits minorities by ensuring that a defined proportion of flats are set aside for them in Build-To-Order (BTO), Sale of Balance Flats (SBF) exercises, as well as the open booking of flats. EIP guarantees that a minimum number of flats in HDB estates are available to them, including those neighbourhoods that are highly sought after.

While flats in these neighbourhoods are generally higher-priced, significant subsidies from the Government make them affordable, MND explained.

"Without the EIP, there will be a significant risk that the proportion of owners from minority communities in much sought-after areas will be much less, even at point of sale by HDB," said the ministry. 

Applying the EIP at the point of resale will thus ensure that people from minority communities can continue to own HDB flats in different estates. 

Shaik himself has also benefitted from the EIP, as his household would not have been able to select an SBF flat at SkyOasis @ Dawson if the policy didn't exist, said MND.

The ministry also shared that during the exercise where Shaik booked his three-room flat, all minority first-timer applicants were invited to select a unit. On the other hand, only 40 per cent of Chinese first-timer applicants could select a flat in the estate due to the Chinese EIP limit. 

Measures to assist EIP-constrained flat owners 

To help flat owners mitigate the differences in resale prices, HDB has put in place a range of measures to assist home owners. 

These include giving EIP-constrained flat owners more time to sell their existing flat if they have already purchased another one, and waiving EIP limits in exceptional circumstances. 

In 2022, HDB introduced the EIP Buyback Assistance Scheme, where flat owners have a fallback option to sell their flats back to HDB at a fair price, based on prevailing market conditions. 

Such flats will then be offered for sale through SBF exercises, or via open booking of flats. HDB will also give significant subsidies to the assessed market value of the flat to determine the sale price, MND said. 

In the event that Chinese EIP limits are reached, only buyers from minority communities will be allowed to purchase these flats. 

Videos to carry correction notes

In its statement, MND said that Shaik will be required to carry correction notices on his TikTok, Instagram and YouTube accounts. 

The notices will have to state that the videos posted carry false and misleading statements, and include a link to the Government's clarification. 

"This will allow viewers to consider both versions and draw their own conclusions," said the ministry. 

At the time of writing, Shaik has removed the video on his TikTok and Instagram accounts, but it remains accessible on his YouTube channel. 

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claudiatan@asiaone.com