Hong Kong can forget about copying S'pore's public housing model: SCMP

Singapore's policies stems from its politics, which Hong Kongers might never accept.

Matthias Ang | May 05, 2019, 10:02 PM

Hong Kong's media has taken to praising and voicing their awe of Singapore's public housing -- so as to criticise its own country's policies.

Recent videos that they have published, include Where You Live (人住公屋 我住公屋) and "Why can everybody in Singapore live in big houses? There are three keys to planning" by HK01 back in August 2018.

They often juxtaposed the policies of Singapore and Hong Kong -- to criticise how poorly Hong Kong has been doing on this front.

However, that's not to say they are all in agreement that Singapore presents a solution for Hong Kong.

Singapore's success cannot be replicated in Hong Kong

On May 5, the South China Morning Post struck a contrarian note by pointing out that neither Singapore's past experience nor present circumstances made it a model for Hong Kong.

The article was co-written by Singaporean economist Donald Low, the former Associate Dean of the Lee Kuan Yew School of Public Policy, and Lee Hsin, a PhD student at the Lee Kuan Yew School of Public Policy.

In particular, the article took aim at rebutting an earlier opinion piece that SCMP published, "How would Lee Kuan Yew have solved Hong Kong’s housing and health care problems?", which attributed Singapore's housing success to land reclamation.

Land reclamation not solution

Low and Lee argued that Singapore's success was due to its various policies and levers -- other than land reclamation, given that Singapore's reclaimed land has mostly been used for non-residential purposes.

Moreover, these policies were unique and context-specific, which meant that for Hong Kong to emulate Singapore's success, it would first have to mimic Singapore's politics and society -- a very big ask, if there ever was one.

SCMP added that this then raised the question of how desirable it would even be for Hong Kong to model itself after Singapore's society and politics.

Singapore's success was largely the result of the following factors, Low and Lee wrote.

Draconian legislation

The law of the land in Singapore is pretty much everything -- the first and last word on things.

SCMP referenced the repealing of the 1920 Land Acquisition Ordinance and enactment of the Land Acquisition Act (LAA) in 1966, which gave the Singapore government the power of compulsory land acquisition for public development.

Additionally, the act was further amended in November 1973, allowing government officials to either acquire private land in exchange for compensation at market value, or at the date of gazette notification, whichever was lower.

SCMP noted that the acquisitions were seldom challenged in court and that they ended up facilitating programmes of housing and development.

This also meant that by 1985, the Singapore government owned 76 percent of Singapore's land.

On top of that, the government also passed legislation ensuring that leases on state-owned land did not exceed 99 years, so as to ensure a constant supply, SCMP highlighted.

Why it will not work in Hong Kong

Why wouldn't such legislation work in Hong Kong then?

Much of it has to do with how subordinating the interests of landowners to the state was "unthinkable", SCMP reported.

In implying that it was likely the other way around in Hong Kong -- subordinating the interests of the state to the landowners -- SCMP highlighted that the only legal means of the state taking land from private ownership is limited.

This is because the process entails the Hong Kong Land Development Corporation (LDC) having to show that there is no "undue detriment" to the landowners.

Unfettered state autonomy

SCMP further highlighted that this meant the Singapore government, for its part, was not subordinate to, or bound by the interests of businesses, landowners, labour, finance or property developers.

As such, the Singapore government could plan for the long-term, without being straddled too much by established interests.

SCMP also stated that the Singapore government's setup was accepted by the citizens, given that it led to visible improvements, not just in housing.

This autonomy would also come to be reflected in HDB's handling of housing, in which it assumed responsibility for every aspect, including planning, development, design, building and maintenance.

Sacrifices by Singaporeans, such as the CPF

Apart from affordable housing, the mandatory CPF savings was also another reason why Singaporeans could purchase a home.

As a mandatory savings programme, CPF allows Singaporeans to finance home purchases, but demands a sacrifice.

Forced savings make citizens spend less as there is less disposable income.

Why it will not work in Hong Kong

Hong Kong residents, if confronted by laws enacted by a government that takes land away and makes people save for their own good, would gravitate towards regarding such moves as being all too paternalistic.

Additionally, many Hong Kongers would not accept having to take home lower pay.

Singapore's policies socially and politically difficult to accept in Hong Kong

All of this appears to suggest then, that perhaps the reason why Singapore's model is unworkable in Hong Kong is because such policies are socially and politically difficult to stomach.

That SCMP does not articulate an alternate model to Singapore, apart from pointing out why it's unworkable, brings to mind the words of Jasper Tsang Yok-sing, one of the hosts for the Singapore edition of Where You Live.

That show basically pointed out that Hong Kong's housing problem might be intractable.

In the words of Tsang:

"I don’t think there’s any solution (to the housing problem in Hong Kong). Hong Kongers can only be envious for now. It’s not easy to change our current reality, because there are too many interests involved."

More details on why Hong Kong's housing problem is so serious

Top image collage by Kevin Utting and Brian Jeffery Beggerly via Flickr

 

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