New ‘Plus’ BTO category, more housing options for singles: 5 key takeaways from PM Lee’s National Day Rally

SINGAPORE: Prime Minister Lee Hsien Loong on Sunday (Aug 20) announced several developments on the housing front, along with a new S$7 billion Majulah Package to help seniors meet their retirement needs.

In his National Day Rally speech – Singapore’s most important political speech of the year – Mr Lee also spoke about leadership renewal, reassuring Singaporeans that his succession plans are back on track now that the COVID-19 pandemic is over.

Here are five key takeaways from his speech:

1. Classification of BTO flats will change

The way the Housing and Development Board (HDB) classifies Build-to-Order (BTO) projects will change starting in the second half of 2024.

They will fall under three categories – Standard, Plus and Prime – instead of the mature and non-mature framework that has been around since the early 1990s.

Explaining the change, Mr Lee said the public housing landscape has evolved over the years. Many more new BTO projects are built in estates that are effectively “mature”, as the non-mature estates such as Punggol now have a full suite of amenities.

Therefore, the distinction between both types is now blurring. The mature and non-mature classification will no longer work, Mr Lee added.

The new classification system will differentiate BTO projects by their locational attributes.

Standard flats – the bulk of HDB projects – will come with the usual subsidies and restrictions currently applied to BTO flats, such as the five-year minimum occupation period.

Plus flats – a new category – will be in what Mr Lee described as “choicer locations” across Singapore, such as near MRT stations or town centres. 

They will come with more subsidies and tighter restrictions compared with Standard flats. These include a minimum occupation period of 10 years and stricter resale conditions like an income ceiling on resale buyers.

Prime flats – which are currently offered under the Prime Location Public Housing model – will be in the “choicest” locations, usually closer to the city centre. They will come with the most subsidies and the tightest conditions.

2. More HDB housing options for singles

With more Singaporeans choosing not to get married, singles will have more housing choices when the new BTO classification kicks in, said Mr Lee.

Currently, first-timer singles aged 35 or above are only allowed to apply for new two-room Flexi flats in non-mature estates. They can also buy resale flats in any estate, with the exception of BTO flats under the Prime Location Public Housing model.

With the new classification, eligible first-timers can:

• Apply for two-room Flexi BTO flats in all locations across the three categories
• Buy a Standard or Plus resale flat of any size, except Three-Generation flats
• Buy a two-room Prime resale flat

3. Existing HDB flats, precincts will be upgraded to become more senior-friendly

HDB will include more senior-friendly features in its precincts to promote fitness and active ageing, as well as allow seniors to commute more safely and comfortably.

For example, more shelters and rest points will be built. There will also be more therapeutic gardens, fitness trails and exercise machines to encourage seniors to stay active.

Seniors will soon also be able to choose from a wider suite of senior-friendly fittings under an HDB improvement scheme called the Enhancement for Active Seniors (EASE) 2.0 programme. These include foldable shower seats and widened toilet entrances for wheelchair-bound seniors.

Currently, they can install fittings like ramps at the entrances of their homes, as well as grab bars in toilets.

Finally, more Community Care Apartments will be launched. Aimed at providing more housing options for seniors, the flats come with care services that can be tailored to the needs of elderly residents.

4. Majulah Package to help older Singaporeans meet their retirement needs

Eligible Singaporeans aged 50 and above this year – that is, those born in 1973 or earlier – will get more money in their Central Provident Fund (CPF) accounts to boost their retirement savings.

Mr Lee called it the Majulah Package, which is aimed at helping “young seniors” in their 50s and early 60s, especially those with lower incomes and less wealth. But the Pioneer and Merdeka Generations will get this support as well.

There are three components to the Majulah Package, tiered according to an individual’s income and CPF savings.

The first is a yearly Earn and Save Bonus for older Singaporeans who are working – either full-time or part-time. Lower- and middle-income workers will get a CPF bonus of up to S$1,000 a year.

The second is a retirement savings bonus for eligible seniors who have not reached the CPF basic retirement sum. These people will receive a one-time CPF bonus of up to S$1,500.

Homemakers and those not working will get this bonus too.

The third is a one-time MediSave bonus of up to S$1,000.

The Majulah Package will benefit 1.4 million older people across generations, said Mr Lee.

All Singaporeans who meet the eligibility criteria will benefit. There is no need to have obtained citizenship by a certain year to be eligible, the Manpower Ministry said separately.

Further details on the payouts and eligibility criteria will be announced in 2024.

5. Leadership succession is back on track

Mr Lee spoke briefly about leadership renewal, recalling his original plan to hand over and step down as Prime Minister by 2022 – before his 70th birthday. 

While the COVID-19 pandemic disrupted this, he said his succession plans are now back on track. Mr Lee is 71 years old this year.

"Recently, several controversial issues have drawn Singaporeans’ attention. I have spoken about them in parliament and in my National Day Message. We dealt with each of them thoroughly and transparently,” Mr Lee noted.

“Let me assure you – these incidents will not delay my timetable for renewal. We are on track.”

These issues included an extramarital affair between former Speaker of Parliament Tan Chuan-Jin and former Tampines GRC MP Cheng Li Hui, which emerged in the public eye about a month ago. The pair have resigned from parliament and the People’s Action Party.

Shortly before that, Transport Minister S Iswaran was arrested in relation to a corruption probe.

Mr Lee said that more and more, his task is to support the 4G (fourth-generation) team led by Deputy Prime Minister Lawrence Wong and their agenda.

He asked Singaporeans to give Mr Wong and his team their fullest support now and after they take over.

“Our nation’s future depends on them, working as one with you to take Singapore forward. I have every confidence in Lawrence Wong and his team,” Mr Lee added.