IMPACT OF THE CPF HOUSING GRANT ON FIRST-TIME APPLICANTS OF HDB RESALE FLATS

Abstract

Since independence in 1965, Singapore has transformed from a Third-World economy into a modern and advanced nation. In this short span of time, with the vast changes, exposure to Westernized values and influences from other cultures is inevitable. It has since the erosion of Asian values like family cohesiveness and community bonding. With the inception of the CPF housing grant in 1994, it serves the Government's aim to promote such Asian values and to build a greater sense of community bonding. Thus, the aim of my study is to examine the impact of the CPF housing grant on its' applicants and suggest ways to improve the current scheme. Direct housing subsides has often been criticized by many academics as being inequitable and have exacerbated inflation. However, the purpose of the CPF housing grant is solely based on social benefits. In addition, results of the survey show that the grant does help to promote greater family cohesiveness. However, it was found that the take-up rate is still relatively low at 20%. The area of research will also examine the pertinent factors affecting the willingness to take up the grant and attempts to suggest ways to increase the attractiveness to the scheme.