hdb ar 2008

FULFILLINGASPIRATIONS

HDB annual report 2007/2008

CONTENTSChairman’s Statement 10

Vision and Mission 14

Shared Values 15

Environmental Policy 17

Corporate Governance 18

Awards 19

Highlights of FY 2007/2008 20

Members of the Board 22

Key Officers 24

Organisation Chart 26

Staff Strength 27

A Place Called Home 28

Making The Link 36

Looking Ahead 44

Agency Projects 50

Subsidiary and Associated Companies 51

Visitors 52

Statistics and Charts 54

Financial Report 73

HDB has transformed Singapore's housing landscapeand created homes and communities that residents andstaff are proud of.

Beyond building on past achievements, public housing isset to scale greater heights. As HDB approaches 50 yearsof public housing in Singapore, a new blueprint has beenunveiled to remake the heartland and transform it into avibrant home for all.

This exciting phase has warranted a new HDB vision andmission that would position the organisation, galvanisestaff for the future and propel HDB's plans to fruition.

Fulfilling aspirations and a continuation of excellence.It's more than a cherished dream.

Affordable Homes of Qualityand Value

Providing variety of housing options; meeting needs andexpectations.

With home ownership a reality for about 95 percent ofthose who live in HDB flats, high-quality reasonably-priced apartments are now common landmarks inSingapore's housing landscape.

More than just building blocks, HDB builds homes bycatering for the diverse needs of its residents throughthe provision of more housing options, financial assistanceschemes and the promise of a world class livingenvironment.

Vibrant and Sustainable Towns

Developing town identities and lifestyles; unveiling plansand vision.

Comprehensive and well-supported towns bring aboutconvenience and add buzz to the environment. Keepingpace with increased expectations, HDB towns constantlyundergo physical renewal to ensure that quality of life inthe heartland is never compromised.

Plans have been unveiled to sustain HDB towns to meetlife-cycle needs and uphold new lifestyle concepts - keyfactors in creating endearing homes for all.

Active andCohesive Communities

Establishing ties and attachments; promoting ownership andengagement.

A harmonious and cohesive community does not come aboutovernight. Through its housing policies and the creation ofshared common spaces for all, HDB integrates residentsfrom all walks of life and fosters ties that bind.

With the hardware in place, developing the heartware of acommunity entails the promotion of more active communityengagement and a greater sense of ownership amongresidents.

Staff Giving Their BestHarnessing resources and capabilities; enhancingservice and excellence.

Staff development takes centrestage in ensuringorganisational effectiveness and in building capabilitiesto meet current needs. Equipped with the necessaryskills set and attitude, HDB staff are set to aim higherand further in their quest for innovation and excellence.

On the service front, increased efficiency wouldtransform into greater convenience and benefits, andenhance the service experience for our customers.

In meeting the housing needs of Singaporeans, HDB had set itself

a mission to provide affordable homes of value and quality in vibrant

towns where families and communities can flourish. Notwithstanding

the complexity of the task, it had been a constantly rewarding

challenge keeping faith with this mission and keeping pace with

changing aspirations.

CHAIRMAN’SSTATEMENT

HDB Annual Report 2007/2008 [10]

In June 2008, HDB received

resounding validation of its work when

it received the United Nations Public

Service Award for its Home Ownership

Programme that had given

Singaporeans a valuable and

permanent asset in the form of their

HDB home. I am proud to share this

historic moment with all HDB staff,

past and present, as well as Singapore.

A Compelling Vision

Over the last 47 years, HDB had

achieved a great deal for Singapore

and its people. It had set new

benchmarks for public housing and

transformed the way Singaporeans

live, work and play. Approaching its

50th Anniversary, a refocus of vision

and mission objectives would give

HDB new impetus and spur both

organisation and people towards

greater heights to take public housing

further.

With management and staff crafting

it together, we launched HDB’s new

Vision and Mission Statements on 20

November 2007. The Vision called

upon HDB to become an outstanding

organisation, to meet aspirations for

the kind of homes and communities

Singaporeans take pride in. The

Mission Statements highlighted key

thrusts that were central to achieving

excellence and relevance - ensuring

housing quality and affordability, town

development and vibrancy and the

community life within.

Affordable Homes of Quality and

Value

Singapore saw strong economic

growth and upturns in its property

market in FY 2007/2008. With the

robust property market impacting

housing demand and prices, home

buyers were assured of HDB’s housing

commitments. In November 2007, the

Minister for National Development

announced that 6,000 new Build-To-

Order (BTO) flats would come on-

stream between December 2007 and

June 2008. Together with balance

units from previous BTO and other

sales exercises, there would be ample

supply of flats to choose from.

In February 2008, over 10,000

applications were received for the 278

flats offered during the Bi-monthly

Sale of 4–room and bigger flats, an

all-time high. The home buyers had

homed in on flats in the mature towns

where land for new flats was limited,

causing a spike in demand for such

flats. They were advised to consider

instead flats being offered under the

BTO system which formed the main

supply of new flats. BTO flats in the

newer towns such as Punggol and

Sengkang were attractive options for

those who were able to wait out the

construction period.

Those with immediate housing needs

were encouraged to consider the wider

resale market. HDB released more

public housing data such as

information on median resale prices

and Cash-Over-Valuation amounts to

help buyers and sellers make informed

decisions in their flat transactions.

To meet the more pressing housing

needs of newly weds to set up home

and start a family, HDB implemented

the Improved Priority Scheme for First-

Timers. Ninety percent of the BTO

and Balloting Exercise flat supply were

set aside for first-timers, and their

chances of being shortlisted were

further enhanced with each

subsequent application.

To give greater assistance to lower-

income working families, the Additional

CPF Housing Grant (AHG) introduced

in 2006 to help such families own their

first home was enhanced. The income

ceiling was raised from $3,000 to


$4,000, and the maximum housing

grant from $20,000 to $30,000.

Despite ensuring the affordability of

HDB homes, rental housing remained

the main option for families falling

within the truly needy segments of the

population unable to move on to home

ownership. To meet their needs, HDB

increased the supply by converting

existing flats into rental flats and

resuming the building of new rental

flats. In January 2008, the first batch

of 180 newly converted rental flats

was ready for allocation to rental flat

applicants. In March 2008, another

748 converted units were added to

the rental housing supply, with another

353 units expected by early 2009.

Construction for some 976 new rental

flats had also started. While increasing

supply, HDB announced it would look

into tightening the eligibility criteria as

the heavily subsidised rental housing

should rightly be only for those in real

need of it.

Vibrant and Sustainable Towns

During the National Day Rally, the

Prime Minister announced the

Remaking Our Heartland (ROH) plans

that promised innovative housing

forms, an improved living environment,

and exciting lifestyle transformations

for all HDB towns - young, old and

middle-aged. The Remaking plans

for the first three showcase towns,

Punggol, Dawson and Yishun, were

launched in end August 2007 with the

objective of inviting public feedback

to help shape them further. More than

80 percent of the large turnout at all

the ROH exhibitions gave their ringing

endorsement to the plans to transform

their heartland home.

Sustainability in housing also featured

prominently in the remaking plans. As

a leader in housing provision, HDB had

long recognised its responsibility in

promoting environmentally sound

practices, starting with design

considerations to ensure energy-

efficient HDB buildings to

environmentally-friendly construction

methods and materials. With the shift

towards creating and maintaining

sustainable living environments, more

innovative eco-features were being

introduced. Guided by a broad

sustainability framework, they included

green roof tops for all multi-storey car

parks at new HDB residential

developments and the use of the sturdy

but lightweight Ferrolite Partition walls.

The milestone in HDB’s sustainability

efforts, the eco-precinct

Treelodge@Punggol was recognised

for its various pioneering technology

with the receipt of the Green Mark

Platinum Award from the Building and

Construction Authority. Its launch

drew an overwhelming 3,356

applications for the 712 units, showing

that Singaporeans were indeed ready

to embrace an eco-lifestyle. It also

affirmed that HDB’s thrust into

sustainable living was firmly aligned

with evolving perceptions of quality

homes and responsible lifestyles.

Research & Development in

programmes like Lift Upgrading (LUP)

resulted in innovations such as the

Machine Roomless Lift that could be

fabricated off site and reduce reliance

on sand – thus saving cost for both

the Government and residents.

Alternative technologies such as home

lifts and shaftless lifts were also

explored. As a result, about 700 more

blocks would now qualify for LUP

where previously it would have been

too costly to offer such blocks direct

lift accessibility.

Active and Cohesive Communities

Bringing improvements to the living

environment through various

upgrading programmes under the

umbrella of HDB’s Estate Renewal

Strategy had also helped in preserving

and enhancing community life and

spirit in HDB towns.


At the Forum on HDB Heartware led

by Senior Minister of State for National

Development in August 2007, HDB’s

mission of growing active and engaged

communities was reaffirmed. During

the dialogue, residents asked for more

active engagement in matters affecting

their homes and living environments.

As a result, two new upgrading

programmes were announced - the

Home Improvement Programme (HIP)

and the Neighbourhood Renewal

Programme (NRP). Taking on a more

consultative approach, HIP and NRP

would give residents greater

opportunity to choose the

enhancements they want for their flat

and precinct surroundings.

Established programmes like the

Selective En bloc Redevelopment

Scheme (SERS) were also reviewed

to offer greater resident engagement.

Advisers, grassroots organisations,

town councils and SERS residents

were consulted on the provision of

common facilities for their new

replacement precinct. The first two

consultation exercises were held in

October 2007 for the residents of

Kampong Silat and Henderson Road.

About two-thirds of the residents

responded and gave useful feedback,

and an overwhelming 93 percent

agreed that the exercise was useful

and effective in promoting community

bonding and instilling a greater sense

of ownership of their new precinct.

HDB precincts were also enlivened to

support more vibrant community and

commercial life. Fourteen sites were

chosen to pilot the Revitalisation of

Shops Scheme to encourage retailers

to enhance and improve their business

competitiveness in order to serve

residents’ needs better. With HDB co-

funding the upgrading of their common

areas or organisation of crowd-pulling

promotional activities, the scheme got

off to a flying start.

Blazing Ahead

Having blazed ahead, expectations of

HDB are now higher. To meet these

new and challenging aspirations, we

must develop creative housing forms,

yet maintain affordability and

accessibility. We must ensure that

public housing meets the special

needs of our ageing society, yet caters

for the lifestyle of young families. We

must formulate our policies and

programmes such that they will

continue to advance home ownership,

yet at the same time, encourage

responsible, prudent home buying

decisions. To achieve all of these, we

need staff that are enabled and

inspired to create, initiate and drive

the changes and innovations. This is

why HDB’s Mission now includes a

fourth thrust to develop its people and

talent.

With the new Vision and Mission

charting HDB’s directions and

priorities, and working together in one

spirit, I am confident we will be able

to stay on track to achieve our goals.

Looking ahead, the year 2010 is when

HDB and the nation will be celebrating

a golden anniversary - 50 years of

public housing in Singapore. That is

an exciting milestone to look forward

to, as we strive to realise our vision to

be a truly outstanding organisation,

fulfilling Singaporeans’ aspirations for

homes and communities that all are

proud of.

Mr James Koh Cher Siang

Chairman


VISIONAn outstanding organisation with people committed to fulfilling aspirationsfor homes and communities all are proud of

MISSIONWe provide affordable homes of quality and valueWe create vibrant and sustainable townsWe promote the building of active and cohesive communitiesWe inspire and enable all staff to give of their best


SHARED VALUES

CareWe respect and trust each other, always showing concern for one another’s well-being. We care for our community and

the environment.

LearningWe practise lifelong learning, constantly upgrading our skills and knowledge so that we can give of our best to HDB.

InnovationWe pursue new and creative ideas to improve our products, services and processes.

QualityWe aim for the highest standards of professionalism and integrity, delivering products and services that are of quality

and value to our customers.

TeamworkWe value and appreciate each other’s contribution. We work as a team to achieve our shared vision and goals.


ENVIRONMENTAL POLICY

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

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;

• 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

COMMUNICATE with and educate all persons working for or on behalf of HDB, business partners, customers and the

public to achieve our environmental goals.

Board MembersThe HDB Board derives its strength

from the extensive and complementary

background and qualifications of its

members who bring with them

experience in the public and corporate

sectors, and are respected individuals

in their fields. All Board Members are

non-executive members, except for

the Chief Executive Officer.

Internal Control FrameworkHDB’s internal control system ensures

that assets are safeguarded, proper

accounting records are maintained,

and that financial information is reliable.

The overall control framework includes

clearly defined authority and delegation

limits and reporting mechanisms,

appropriate terms of reference for

management of core policy areas,

comprehensive policies/procedures

relating to operations and financial

controls, and an annual budgeting and

monthly financial reporting system for

all operating units.

Audit CommitteeThe Audit Committee assists the Board

to maintain 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 it believes should be brought

to the Board’s attention and has

explicit authority to investigate any

matter within its terms of reference.

The Chairman of the Audit Committee

is Mr James Koh Cher Siang, also

Chairman of HDB. Other members

include Board Members Mrs Quek Bin

Hwee, Associate Professor Sim Loo

Lee and RADM Chew Men Leong.

Internal Audit FunctionHDB’s Internal Audit Department

advises all levels of management on

the quality of HDB and the Group’s

operations with emphasis on systems

of control. Reporting directly to the

Audit Committee, it conducts risk-

based audits and addresses its

findings and recommendations to the

level of management who need to

know and are able to take appropriate

action. It adheres to the Code of

Ethics, Standards and Guidelines of

The Institute of Internal Auditors.

Annual Financial AuditThe audit findings by the Auditor-

General's Office in the course of the

annual financial audit are submitted

to management and reported to the

Audit Committee and Ministry of

National Development. The Board is

also informed of these audit findings.

The Audit Committee reviews the

annual financial statements with

management and the Auditor-

General's Office, before endorsing

them for the Board’s approval.

Business and Ethical ConductHDB 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 HDB Conduct and

Discipline Rules which include

guidelines on receiving gifts and

entertainment from contractors/

subcontractors, suppliers, vendors

and any member of the public whom

staff have contact with in the course

of their official duties.

Dissemination of Public

InformationHDB’s full-year financial results are

reported to the Board and

disseminated to the public via the HDB

InfoWEB and the Singapore Exchange

(SGX) website. The HDB InfoWEB

also contains up-to-date corporate

information such as annual reports,

latest developments, and press

releases.

CORPORATE GOVERNANCE

HDB is committed to good corporate governance. Various self-regulatoryand monitoring mechanisms have been put in place to achieve this aim.



2008 United Nations Public

Service Award for Home

Ownership Programme

PRISM Awards 2008 – Best

Public Service Campaign (Public

Sector) > S$500,000Excellence Award Winner for

Remaking Our Heartland

Distinguished Public Service

Award 2008

IBM Innovation Excellence

Award 2007/2008

BCA Construction Excellence

(Merit) Award 2007 - Residential

Buildings Category (Below

$1,200/m2 )- Bukit Merah Redevelopment

Contract 29

- Queenstown Redevelopment

Contract 14

PS21 ExCEL IQ Convention 2007- Gold Award for FerroLite Partition

Wall

IES Prestigious Engineering

Achievement Award 2007- Transforming Rooftops to Sky-

rise Greenery Instantly - The

Modular Way

BCA Best Buildable Design

Awards 2007- Queenstown RC14 (Gold)

- Sengkang N2C32 (Gold)

- Marine Terrace Precinct MUP 18A

(Silver)

Institute of Internal Auditors’

(IIA) Standards for the

Professional Practice of Internal

Auditing (IIA Standards)- Quality Assessment Review (QAR)

2007

Excellent Service Awards (EXSA)

2007- Star Award (14)

- Gold Award (20)

- Silver Award (57)

PS21 Star Service Award 2007- Distinguished Star

Service Award (1)

National Innovation & Quality

Circle Convention 2007/2008- Star Award (2)

- Gold Award (11)

- Silver Award (10)

- Bronze Award (1)

NTUC May Day Model Workers’

Awards 2007- Company Commendation

Home Team NS Awards for

Employers (Special Award) 2007

Total Defence Awards

(Distinguished Defence Partner

Award) 2007

Community Chest Awards 2007- SHARE Platinum Award

- Special Event (Gold) Award

National Day Awards 2007- Public Administration

Medal (Silver) (1)

- Public Administration

Medal (Bronze) (2)

- Commendation Medal (3)

- Efficiency Medal (13)

- Long Service Medal (239)

AWARDS


Policy Changes

• Implementation of improved

priority for first-timers applying

for HDB flats [14 August 2007].

• Announcement of the Lease

Buyback Scheme for elderly

lessees to unlock the value of their

flats [19 August 2007].

• Enhancement to the Additional

CPF Housing Grant Scheme to

help first-timer lower-income

households own their first homes

[24 August 2007].

Service Improvements

• Implementation of revamped

Bi-Monthly Sale of 4-room and

Bigger Flats to replace the

Walk-In Selection system

[10 April 2007].

• Implementation of e-Service - sale

proceeds calculator [7 May 2007].

• Quarterly release of additional

public housing data on HDB resale

and rental market as well as the

upcoming supply of new flats for

sale [16 July 2007].

• Introduction of the revamped

‘Flats On Offer’ webpage in HDB

InfoWEB (e-Sales) [14 August

2007].

• Introduction of the Family Season

Parking Ticket to facilitate family

visits [1 October 2007].

• Launch of Home Locator in e-

Sales [25 October 2007].

• Introduction of SMS alerts via the

HDB eAlert Service [1 November

2007].

Events

• Launch of first integrated

development comprising Studio

Apartments and bigger flat types

under the BTO system

[25 October 2007].

• Launch of inaugural public talk on

subletting of flats for public to

better understand HDB’s policies

and guidelines [27 October 2007].

• Inaugural public consultation with

Advisers, grassroots

organisations, town councils and

SERS residents at Kampong Silat

and Henderson Road, on the

provision of common facilities at

replacement precinct at Kim Tian

Road [September-October 2007].

• Announcement of first batch of

Home Improvement Programme

(HIP) and Neighbourhood

Renewal Programme (NRP)

precincts [February-March 2008].

HIGHLIGHTS OF FY 2007/2008

CHAIRMAN

1) Mr James Koh Cher Siang

BOARD MEMBERS

2) Mr Edmund Koh

3) Mdm Halimah Yacob

4) Mr Tan Boon Huat

5) Mrs Quek Bin Hwee


1

MEMBERSOF THE BOARD

2

4 5

3

6 7

9 10

8


BOARD MEMBERS

6) Associate Professor Sim Loo Lee

7) Associate Professor (Dr) Milton Tan

8) Mr Tay Kim Poh

9) RADM Chew Men Leong

10) Mr Goh Sin Teck


TOP MANAGEMENT

Tay Kim Poh

Chief Executive Officer

(centre)

Tan Poh Hong

Deputy Chief Executive Officer (Estates & Corporate)

(left)

Er. Lau Joo Ming

Deputy Chief Executive Officer (Building)

(right)

KEY OFFICERS

TOP MANAGEMENT

BUILDING GROUP

BUILDING GROUP

(from left)

Sng Cheng Keh

Director (Development & Procurement)

Raymond Toh Chun Parng

Director (Research & Planning)

Fong Chun Wah

Director (Building Quality)

Er. Yap Tiem Yew

Director (Building Technology)

ESTATES GROUP

CORPORATE GROUP


ESTATES GROUP

(from left)

Yap Chin Beng

Director (Estate Administration & Property)

Tan Kim Chwee

Director (Housing Administration)

Loh Loon Tong

Director (Properties & Land)

Khoo Teng Seong

Director (Industrial Properties)

CORPORATE GROUP

(from left)

Lau Chay Yean

Director (Corporate Development)

Mah Lai Seong

Director (Finance) till 1 June 2008

Leong Chin Yew

Director (Information Services)

Balakrishna Madhubala

Director (Legal)

Soh-Leo Lan Hiang

Director (Internal Audit)


Directly reporting to Chairman

DEPUTY CHIEFEXECUTIVE OFFICER

(BUILDING)ER. LAU JOO MING

Administrativelyreporting toDeputy ChiefExecutive Officer(Estates &Corporate)

BUILDING GROUP

DIRECTORSSng Cheng Keh

Development & Procurement

Raymond Toh Chun ParngResearch & Planning

Fong Chun WahBuilding Quality

Er. Yap Tiem YewBuilding Technology

DEPUTY CHIEFEXECUTIVE OFFICER

(ESTATES &CORPORATE)

TAN POH HONG

CHAIRMANJAMES KOH CHER SIANG

BOARD MEMBERS

CHIEF EXECUTIVEOFFICER

TAY KIM POH

ESTATES GROUP CORPORATE GROUP

DIRECTORSYap Chin Beng

Estate Administration & Property

Tan Kim ChweeHousing Administration

Loh Loon TongProperties & Land

Khoo Teng SeongIndustrial Properties

DIRECTORSLau Chay Yean

Corporate Development

Mah Lai SeongFinance

Leong Chin YewInformation Services

Balakrishna MadhubalaLegal

Soh-Leo Lan HiangInternal Audit

ORGANISATION CHART


STAFF STRENGTH

Figures as at 31 March 2008, including employees under the Part-Time Employment Scheme.

BUILDING GROUP

302

94

7

339

3

745

ESTATES GROUP

773

1,515.5

35

793

52

3,168.5

CORPORATE GROUP

286

324.5

65

14

21

710.5

TOTAL

1,361

1,934

107

1,146

76

4,624

CATEGORIES OF STAFF

Management/Professional

Management Support

IT Support

Technical Support

Office Administration Support

Total

A PLACECALLED

HOMETransforming a house into a home that you can call your

own. A process that many may take for granted but which

in itself is a challenge for HDB from year to year.

More than just providing a key to your new home, HDB’s

work extends to the integration of an increasingly diverse

population, the forging of new communities and managing

the different needs and expectations of our customers.


The initiatives introduced during the FYreinforced this sense of purpose inproviding a place that you can call home.

A RANGE OF OPTIONS

The demand for new HDB flats was

particularly high during the year. To

increase the flat supply, HDB launched

eight Build-To-Order (BTO) exercises

with a total of 11 BTO projects, and

proceeded with tender for the

construction of all. This was in addition

to two Balloting Exercises (BE) in July

2007 and January 2008 which met

with very good responses.

In addition to increasing flat supply,

HDB took several measures to improve

the certainty, transparency and

convenience, as well as success rates

with regard to applications for new

HDB flats from first-timer buyers.

The revamped Bi-Monthly Sale of 4-

room and Bigger Flats replaced the

previous Walk-In Selection (WIS)

system for unsold flats from April 2007.

Under this system, unsold 4-room and

bigger flats were grouped into three

sectors according to towns/estates,

and one sector would be launched for

sale on the 10th day of each even

month on a rotation basis. This

ensured that there would be a sales

launch for unsold flats in each sector

every six months. At the same time,

3-room and smaller flats were offered

for sale on the first working day of

every month under the ‘Monthly Sale

of 3-room and Smaller Flats’ which

replaced the monthly WIS for 3-room

flats. HDB also recognised the more

urgent housing needs of newly-weds.

Therefore, at least 90 percent of the

flat supply was allocated to first-timers

in recognition of their more urgent need

for housing. First-timers were also

given double chances under the ballot.

Public housing flats developed by the

private sector provided another source

of homes for interested flat buyers.

Under the Design, Build and Sell

Scheme (DBSS), City View@Boon

Keng was sold by tender to M/s Hoi

Hup Sunway Development Pte Ltd in

June 2007. The 714-unit project was

five times oversubscribed. In addition,

two DBSS sites at Ang Mo Kio and

Bishan were sold by tender and

awarded to private developers. Under

the Executive Condominium (EC)

Housing Scheme, the Government

released new sites for EC development

in Punggol, Yishun and Jurong West.

In tandem with this, HDB revised the

policies relating to the purchase of


Jurong West Street 64 (left)Bedok North Road (right)

ECs to align with public housing

policies. Changes included the lifting

of permanent debarment for first-timer

EC buyers; removal of the resale levy

for purchase of new ECs by second-

timers; and priority allocation of new

EC units for first-timers.

While new flats were the first choice for

many buyers, HDB also encouraged

applicants to buy a resale flat from the

open market to meet their urgent

housing needs. There was a two

percent increase in the number of resale

applications registered in FY 2007/2008,

and resale demand remained strong

despite rising resale prices, due in part

to the buoyant economy and positive

market sentiments.

LENDING A HAND

A recurrent message throughout the

year was an HDB reminder for

applicants to plan their flat purchases

carefully and to buy flats that were

within their means. The HDB Loan

Eligibility (HLE) Letter and financial

counselling from HDB helped home

buyers take stock of their financial

commitments so that they could make

informed decisions before committing

to a flat purchase. Against this overall

backdrop of encouraging financial

prudence, HDB also focused on the

specific needs of the more vulnerable

groups such as the elderly and lower-

income through policies and schemes

that protected their interests as well as

provided them with a financial helping

hand.

HDB’s stable of monetisation options

was expanded with the announcement

of the Lease Buyback Scheme during

the National Day Rally in August 2007.

Targeted at the lower-income elderly,

the scheme would allow elderly lessees

to unlock the value of their flats and

receive a steady stream of income to

meet their needs while allowing them

to stay on in the same flat to enjoy the

familiarity of home and community.

The initiative to build new 2-room and

3-room flats proved to be a boon for

lower-income families. Those wishing

to downgrade from bigger HDB flats

because of financial or life-cycle

reasons were eligible for the smaller

flats if their household income was not

more than $2,000 a month for a 2-

room flat and not more than $3,000 a


Clementi Avenue 4

month for a 3-room flat. Rental tenants

aiming to upgrade to home ownership

flats were given priority under the

Tenants’ Priority Scheme to buy the

2-room/3-room flats offered under the

BTO system and BE exercises. In

spite of this helping hand towards

encouraging and maintaining home

ownership, there was no respite in the

demand for rental flats as HDB

received 327 more applications

compared to the last FY under the

Public Rental Scheme. To up the

supply of rental flats, vacant 3-room/4-

room flats in Boon Lay and Woodlands

were converted to 1-room/2-room

rental flats, adding 928 units to the

overall rental flat supply.

The CPF Housing Grant and the

Additional CPF Housing Grant (AHG)

schemes which have been key in

helping citizens become home owners,

were enhanced to provide greater

financial assistance. Since March

2007, a first-timer citizen and their

second-timer citizen spouse could

apply for the Half-Housing Grant of

$15,000, or $20,000 if they applied to

live near their parents. The AHG was

also enhanced in August 2007 to

provide greater assistance to more

lower-income families to own their first

homes. The average gross monthly

household income ceiling was raised

from $3,000 to $4,000. The AHG

quantum was raised from $20,000 to

$30,000 for the purchase of either a

new or resale flat.


Average grossmonthlyhouseholdincome over thepast two years

$1,500 or less

$1,501 - $2,000

$2,001 - $2,500

$2,501 - $3,000

$3,001 - $3,500

$3,501 - $4,000

Current AHG

$30,000

$25,000

$20,000

$15,000

$10,000

$ 5,000

Punggol Drive

Bedok North Road


Jalan Membina

Integrating a community at EdgedaleGreen’s Welcome Party

REACHING OUT TO HOMEOWNERS

With the premise that an integrated

and united community would not only

make HDB living more pleasant but

also instill a stronger sense of

commitment and ownership, HDB

launched its first pilot SERS

consultation exercise for residents of

Kampong Silat and Henderson Road

in October 2007. Residents were given

a say in the precinct name, the precinct

marker design and other common

facilities for their new homes.

Consultation exercises were held for

two more sites in January and March

2008. Based on the survey results of

the first three sites, 93 percent of the

survey respondents agreed that the

consultation exercise was useful and

effective in promoting community

bonding, and instilling in HDB residents

a greater sense of ownership of their

precinct.

As a way of integrating and easing

new residents into the community,

HDB organised welcome parties for

residents of new developments in

Compassvale Arcadia and The Coris.

The parties were well established

activities in the FY, serving as a

platform for new residents to get to

know each other and their new

environment better. Other community

integration initiatives included mixed

developments like Telok Blangah

Towers which was launched for sale

in October 2007. HDB’s first integrated

development, it offered a mixture of

Studio Apartments which are

customised housing for the elderly,

together with other flat types built

under the BTO system. Such

developments would achieve a better

resident mix and promote social

interaction between elderly and

younger residents.

Supporting its community integration

efforts were family friendly provisions

like the Family Season Parking Ticket.

Since October 2007, residents with a

regular Season Parking Ticket for their

residential car park and who required

season parking at another car park

due to family arrangements, could buy

a Family Season Parking Ticket at 50

percent of the regular Season Parking

Ticket price.

In line with its aim to reach out and be

more accessible to residents, HDB

launched its inaugural public talk on

‘Subletting of Flats’ in October 2007.

To be held on a quarterly basis, and

as part of HDB’s community outreach

efforts to foster greater neighbourliness

in the heartland, more public talks on

topics close to the hearts of residents

were lined up for the coming year.

Even as HDB stepped up its various

community bonding activities, it

continued to be well aware of the

practical considerations that moving

into a new home and community

entailed. For all new building contracts

with tenders called from January 2008

and beyond, HDB would provide

complimentary spare tiles in the form

of five spare tiles for each tile type

installed in the residential unit. This

additional service would be useful to

flat owners who required additional

wall/floor tiles during their renovation

works. Its Building Service Centres

(BSCs) for newly completed building

projects were also fitted with a

centralised monitoring system that

tracked all defects reported and

ensured that repairs were carried out

promptly and properly. Surveys were

conducted to gather feedback from

residents on the competency of

contractors and the effectiveness of

repair methods. The data collected

would enable HDB to conduct trend

analyses and make improvements to

the design and construction of future

projects.


Key StatisticsFigures are for FY 2007/2008, or as at 31 March 2008

RESIDENTIAL PROPERTIES

Residential properties under management 885,140

Home ownership flats under management 838,488 (94.7%)

Rental flats under management# 46,652 (5.3%)

Total bookings for new flats* 12,580

- Balloting Exercise 1,888

- Build-To-Order System 5,097

- Monthly Sale of 3-Room and Smaller Flats 1,446

- Bi-monthly Sale of 4-room and Bigger Flats 3,521

- DBSS 628

Bookings for Studio Apartments 319

New flats sold 11,991

- 2-room flats 142

- 3-room flats 1,852



- Executive flats 1,598

Resale transactions (based on registered cases) 29,612

- 1-room flats 19

- 2-room flats 269




- Executive/Multi-Generation flats 2,569

- HUDC 76

Resale applications registered under the CPF Housing Grant Scheme 4,459

- Family grant (living near parents/married child) 1,533

- Family grant 1,987

- Singles grant 902

- Joint singles grant 37

Households that benefited from the Additional CPF Housing Grant 3,600


Number of HDB loans granted 18,824

Number of HDB Loan Eligibility (HLE) letters issued 28,061

Applications received from flat buyers and existing 16,389

flat owners to finance purchases or refinance

existing mortgage loan with bank loans

- New flat buyers 1,622

- Resale flat buyers 14,759

- Existing flat owners (refinance) 8

Applications for rental flats 5,970

Flats rented out 2,735

Approved applications for financial assistance measures 8,475

Approved applications for Home Office Scheme 33,724

Active cases of Subletting of Whole Flat 18,735

HDB households that benefited from Goodwill Repairs Assistance Measures 15,963

HDB blocks with upgraded electrical supply 27


* Refers to bookings received by HDB for 2-room and bigger flats under the various allocation exercises, including Design, Build and

Sell Scheme flats. It includes projected bookings under the January 2008 Balloting Exercise, February 2008 and March 2008 Build-

To-Order Exercises and City View @ Boon Keng under the Design, Build and Sell Scheme.#Includes 44,206 rental units under the Public Rental Scheme.

Applications with Bank Loan from 1 April 2007 - 31 March 2008

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08

Refinancing Sale Resale Monthly Total

1 0 0 1 0 1 0 1 1 0 0 3

21

406

79131 73

19196 106 115 71 66

267

1,2491,378 1,410 1,366 1,343

1,1211,251 1,211

1,053

1,296

860

1,221

1,271

1,784

1,489 1,498 1,416

1,313 1,347 1,318

1,169

1,367

926

1,491

MAKINGTHELINK

Making the link between the present

and future. That summed up the

initiatives that HDB put in place for key

renewal and rejuvenation programmes,

as well as the R&D efforts invested to

bring about greater conservation and

a more sustainable environment.


With an eye on future needs, whether inthe residential heartland or the businessenvironment, our works translated intoincreased opportunities for all.

REMAKING OUR HEARTLAND

Under the Estate Renewal Strategy

(ERS), HDB had implemented a

comprehensive range of renewal and

rejuvenation programmes since the

1990s. These included the Main

Upgrading Programme (MUP), IUP

Plus, Lift Upgrading Programme (LUP)

and SERS.

The urban regeneration of HDB estates

is set to go beyond current upgrading

programmes in scale and scope with

the Remaking Our Heartland plans that

were unveiled by the Prime Minister

during the National Day Rally in August

2007. Formulated to transform new,

middle-aged and old HDB estates into

more vibrant homes for Singaporeans,

the Remaking plans will be an integral

part of HDB’s effort to build an

endearing home for Singaporeans.

Following the announcement of the

plans, a public consultation/Remaking

Our Heartland exhibition was launched

to obtain feedback from the community

on the proposed plans. The large

turnout at the exhibitions and the

positive response of more than 80

percent expressing excitement over

the plans indicated strong support and

interest to transform the heartland.

For new estates like Punggol, the plans

would focus on realising the town’s

vision and fulfilling its potential.

Punggol has been envisioned as a

‘Waterfront Town of the 21st Century’,

with a waterway that would run through

the housing estates, sports

complex/town park and the town

centre. The town centre itself would

be the centrepiece, serving as a

commercial and social hub for

residents, providing attractive

recreational opportunities and lifestyle

choices.

For middle-aged estates such as

Yishun with strong, well-established

community links, preserving the

community spirit that had been built

up over the years would be key to

re-igniting the vibrancy of the town.

The remaking plans therefore would

centre on revitalising the town centre,

introducing more outdoor community

and family facilities, as well as

increasing awareness of and enhancing

the town’s unique heritage as a means

of increasing residents’ sense of

belonging to and pride in their town.


Obtaining feedback from the community onRemaking Our Heartland plans


Old estates such as Dawson estate in

Queenstown that was developed in

the 1960s and 1970s would be

transformed with a new generation of

public housing that include such ideas

as ‘Housing-In-The-Park’, sky gardens,

community greens and multi-

generation living. Where possible,

heartland heritage would be retained

and integrated with the new

developments to preserve memories

of the place.

While the Remaking plans formed the

new blueprint to transform HDB living

environments, it also recognised that

its success hinged on the stronger

engagement of residents in shaping

their living environment. New

upgrading programmes such as the

Home Improvement Programme (HIP)

and Neighbourhood Renewal

Programme (NRP) were therefore

launched to benefit the residents by

giving them increased flexibility in the

choice of upgrading items, and greater

consultation in the type of

improvements within and outside their

flats.

SUSTAINABLE LIVING

As the largest developer in Singapore,

HDB recognises the important role it

plays in implementing efficient and

cost-effective designs and building

methods, as well as reducing the

impact of construction related activities

on the environment to ensure a

sustainable future for HDB housing.

A broad framework for public housing

has therefore been drawn up, which

combined with the efforts of other

agencies, would support Government

initiatives to promote sustainable

development.

Moving towards more sustainable

public housing therefore, a strategic

resource release system was set up

to ensure sufficient raw materials could

be supplied for various building

projects in the event of a supply

disruption of sand and granite, while

the HDB Direct Procurement and

Supply Scheme managed the

procurement and supply of these

materials.

More important than managing

procurement and supply, was reducing

dependence on raw materials like

concrete, sand and aggregates. To

this end, HDB put in place a plan to

reduce the reliance on concrete for

construction by 50 percent in 2010.

Engaging residents in shaping theliving environment

The concrete reduction measure was

implemented in June 2007 for all public

housing projects. R&D efforts and

collaborations with business partners

also focused on finding substitutes to

replace sand or granite in concrete

mix. Other innovative in-house efforts

included the development of the

FerroLite Partition Wall System that

was also implemented for all building

contracts since June 2007. The

patented new generation of lightweight

partition wall system uses up to 20

percent less sand with no aggregates

required. It won the Gold Award at

the PS21 ExCEL Convention 2007.

The various initiatives resulted in a 41

percent concrete reduction for the year

under review.

HDB’s sustainability efforts also saw

the intensification of green initiatives

in both new and existing estates. As

a result, all Multi-Storey Car Parks at

new residential developments have

green roof tops. A skyrise greening

programme using the Prefabricated

Extensive Green (PEG) Roof System,

a sustainable green roof system for

tropical climates, was implemented at

10 Multi-Storey Car Parks. This

innovative PEG Roof System won the

IES Prestigious Engineering

Achievement Award 2007. The

successful development of the modular

vertical greening system at the BTO

development, The Coris, also

presented a greater potential for skyrise

greenery on building facades.

HDB’s most impactful sustainability

initiative, eco-precinct

Treelodge@Punggol set new

benchmarks for future sustainable

green housing development when it

was first launched in March 2007. The

project was the first public housing

project to be conferred the Green Mark

Platinum Award by the Building and

Construction Authority for its innovative

housing concept. Industrial

developments such as Gourmet East

Kitchen and Shimei East Kitchen were

also Green Mark certified.


Clementi Avenue 4

Toa Payoh Central


Punggol Drive

Gek Poh Shopping Centre atJurong West Street 75

Even as HDB embarked on new

initiatives to ensure the sustainability

of its housing developments, it

continued with valuable R&D into

existing programmes like Lift

Upgrading. The adoption of more cost

effective solutions like the machine

roomless lift, home lifts and shaftless

lifts have allowed more residents to

benefit from the programme. These

technologies meant that about 96

percent of HDB blocks built without

full lift access could now be provided

with lift access. Other benefits

included substantial savings amounting

to some $170 million, compared to

conventional solutions.

KEEPING THE BUZZ

An essential ingredient in maintaining

the buzz in HDB towns is the range of

businesses that offer residents not only

an extensive menu of products and

services, but employment

opportunities as well. They are that

vital link in self-sufficiency that is a

hallmark of HDB living, a crucial

component in the town planning

process. As such, HDB introduced

several measures to improve the

business viability of the industrial and

commercial properties under its

management.

The Revitalisation of Shops (ROS)

Scheme was introduced in March 2007

to enhance the vibrancy and

competitiveness of HDB shops, and

better serve the needs of residents

through co-funding for the upgrading

of common areas, co-funding for

promotional activities and rent-free

periods for tenants to renovate their

shops. In November 2007, a total of

14 sites were selected for the pilot

ROS. The pilot scheme would be

reviewed in end-2008 to determine if

it could be extended to other sites.

HDB also continued with Batch 3 of

the Restructuring Programme for

Shops (RPS) to help commercial

tenants in areas with an over-supply

of shops and where business was poor,

to exit from business. In response to

requests to allow more shop tenants

to benefit from RPS, HDB would

consider blocks with at least 30

percent of tenants wanting to quit if

there was a feasible regrouping plan

for the remaining tenants at existing

blocks. However, if the majority of

tenants opted to quit, then the

remaining tenants would be regrouped

to other blocks with vacancies. In

November 2007, 11 blocks with 121

tenants were offered the RPS. Of the

121 tenants, 57 of them opted to quit,

and were given till 31 May 2008 to

vacate their premises.

HDB’s Industrial Relocation

Programme (IRP) also set out to

achieve similar aims of helping

businesses. Building 14 new industrial

complexes for over 3,000 affected

tenants, IRP would continue to

emphasize intensified usage of HDB

land, and meet relocation demand

through the clustering of similar trades

and the release of land for the

expansion of Multi-National

Corporations and Small Medium

Enterprises.

A financial helping hand was also

extended to industrial tenants where

needed. Measures included granting

a stagger-rent plan for an estimated

1,600 tenants. This was aimed at

helping those faced with rental

increases of more than 20 percent

upon renewal. HDB also gave rental

remissions of a month for adjacent

units affected by fire, as well as a lease

extension for industrial lessees to

better plan for their future businesses.


Key StatisticsFigures are for FY 2007/2008 or as at 31 March 2008

RESIDENTIAL PROPERTIES

Flats completed 6,247

Flats under construction 18,073

NON-RESIDENTIAL PROPERTIES

Commercial properties under management 17,720

Industrial properties under management 12,372

Parking lots under management 713,180

LAND MANAGEMENT

State land managed and maintained by HDB on behalf of the Government 3,291 hectares

State land sold on behalf of the Government 8 residential sites

2 commercial sites

1 ancillary site


Estate Renewal Strategy

MAIN UPGRADING PROGRAMME (MUP)

Total number of precincts (units) announced under Main Upgrading Programme 131 (130,848)

(Steady State Phase)

Completed 106 precincts

In Progress 15 precincts

INTERIM UPGRADING PROGRAMME (IUP)

Total number of precincts (units) announced/completed under 190 (156,443 units)

Interim Upgrading Programme

LIFT UPGRADING PROGRAMME (LUP)

Total number of precincts (units) announced under Lift Upgrading 219 (182,647 units)

Programme since 2001



IUP PLUS

Total number of precincts (units) announced under IUP Plus since 2002 84 (68,011 units)



SELECTIVE EN BLOC REDEVELOPMENT SCHEME (SERS)

Total number of sites under Selective En bloc Redevelopment 71 sites comprising

Scheme since 1995

- 32,741 sold flats

- 1,452 commercial properties

- 8 markets/ hawker centres

- 88 social/ communal premises

Completed Clearance 48 sites

In Progress 23 sites


LOOKINGAHEAD

HDB launched a new vision in 2007,

one that speaks of committed people

making positive transformations in

the lives of Singaporeans.


A NEW VISION

HDB launched its new Vision and

Mission on 20 November 2007. In his

first official address to HDB staff, HDB

Chairman touched on the spirit and

essence of the new vision and mission.

He also shared his firm belief in the

power of the people and highlighted

the new thrusts of the mission, one of

which focused on inspiring and

enabling staff to give of their best.

Together, HDB’s new Vision and

Mission would guide the organisation

to meet the challenges ahead.

The year also saw the launch of the

HDB 2010 Plan which would chart the

organisation’s directions for the next

three years. With its tagline of ‘Soaring

to Greater Heights’, the HDB 2010 Plan

focuses on the four thrusts of HDB’s

mission – to meet the housing needs

of a diverse population, create vibrant

and sustainable living environments,

build cohesive communities as well as

develop staff with the right capabilities

and mindsets to make HDB an

outstanding organisation.

These would be important areas for

HDB to focus on in order to meet the

housing demands of a new generation

of more affluent Singaporeans, as well

as the more specific needs of the

elderly and lower-income. The

‘Remaking Our Heartland’ plans had

also opened up a new chapter in the

public housing programme. To achieve

all of this, HDB would need people

with the right mindsets and capabilities

to take on the challenges ahead.

Prior to the launch, four working

committees were formed to formulate

the various strategies under each thrust

of the HDB 2010 Plan. And to give

staff a better understanding of the

details of the Plan, an exhibition was

held at the HDB Hub from 20 to 27

November 2007. The compact but

comprehensive exhibition with its

colourful displays, interactive panels

and multi-media shows, gave staff a

clearer idea of the journey that had

been mapped out for the next three

years, and how staff could contribute.

HDB’s receipt of the United Nations

Public Service Award for our Home

Ownership Programme was another

affirmation in that direction. The win

reinforced the achievements realised

under the Home Ownership

Programme, the cornerstone of public


In fact HDB’s passion to provide itscustomers with quality service and itspursuit of innovation excellence wasevident in the many new initiatives thatput the organisation firmly on track tobeing outstanding.

Forging ahead at the launch of the new HDB visionand at the Senior Management Retreat

housing in Singapore, and its continued

role in the future of public housing.

WITH PASSION

A central focus for the year in HDB’s

efforts at staff development lay in the

area of developing and encouraging a

more passionate approach to work

and relationships among individuals,

teams and departments.

With this aim in mind, seven runs of

residential workshops involving 225

middle managers were conducted to

instill greater passion for service and

innovation excellence and to foster

greater bonding. Three post

workshops were also held to help

middle managers create an

environment of learning, sharing and

committing to company goals. An

inaugural 1-day HDB Administrative

Heads Workshop was also held on 21

June 2007 as part of HDB’s initiatives

to enhance communication and

collaboration amongst departments.

Leading with Passion, HDB’s top

management demonstrated their

commitment to walking the talk with

impromptu walkabouts to the frontline

service counters and branch offices.

During such management walkabouts,

frontline staff had the opportunity to

speak with HDB’s CEO and Deputy

CEOs on a personal, one-to-one basis.

The visits allowed management to

recognise the good work done by the

frontline staff and show their

appreciation.

Moving towards a greater focus on

staff engagement, the Staff Opinion

Survey was replaced by the HDB

Employee Engagement Survey. The

Civil Service College Consultants

(CSCC) was engaged to conduct the

first Employee Engagement Survey,

launched on 24 March 2008. The

survey would also enable HDB to

benchmark its performance with the

public sector on key areas that were

critical to employee engagement.

THE INNOVATION PARADIGM

The importance of innovation continued

to feature in various established and

new initiatives while staff members

were constantly encouraged to

innovate at work.


Top management on their visits tothe frontline service counters andbranch offices

The highlight of the year in the

innovation arena was the launch of

HDB’s 5 Paradigms of Innovation –

Product, Process, Service, Policy, and

Business Model Innovation. As part

of the HDB 2010 plan to be a leader in

innovation excellence, the tagline

’Innovation for all by all’ aimed to

disseminate the message that everyone

could innovate and innovation was the

responsibility of all. Expanding from

the traditional domains of innovation

which focused essentially on product

and service, the 5 paradigms of

Innovation with the inclusion of process,

policy and business model innovations

would further bring clarity when

innovating at work.

The Lessee & Tenant File System was

one major example of how innovation

had brought great transformations and

convenience to both public and staff.

Some 880,000 files, equivalent to 14

million pieces of paper were converted

into electronic documents. The essence

of the fileless operation centred on the

re-engineering and transformation of

business processes. Enabled by

electronic workflow and

documentation, many processes were

re-engineered and automated resulting

in a much faster workflow and

improved customer service.

As service innovation continued to be

an important area for HDB, customer

feedback remained a priority for the

organisation. Forbes Research Pte Ltd,

the consultant for the civil service-wide

External Customer Perception Survey

(ECPS), was engaged to conduct HDB's

latest Customer Satisfaction Surveys.

This would provide a more aligned

comparison of HDB’s performance with

respect to the ECPS results. There was

an improvement in overall satisfaction

scores for Counter Services and

Telephone Services in the 2007 survey

compared with 2006's CSS scores.


An Innovation Showcase

Key StatisticsFigures are for FY 2007/2008 or as at 31 March 2008

2007 CUSTOMER SATISFACTION SURVEY FINDINGS

On a scale of 1 to 6 (with 1 being very dissatisfied, and 6 being very satisfied)

Customer satisfaction (Overall) 4.6

Customer satisfaction (Counter Service) 5.3

Customer satisfaction (Telephone Services) 4.3

Customer satisfaction (Written Correspondence) 4.1

Customer satisfaction (Home/Office Visits) 4.5

Customers who rated HDB’s service levels as similar or 79%

better than selected organisations

Rated best for counter services Jurong East Branch Office

Rated best for telephone services Sims Drive Branch Office

Rated best for home/site visit Bedok Branch Office

POWER SESSION

Processes simplified /reduced 20%

CUT WASTE PANEL

Number of suggestions referred by Cut Waste Panel 71

IQC ACTIVITIES

IQCs in HDB 284

Projects completed in FY 2007/2008 619

Cost savings from IQC projects $4,819,000

M.A.G.I.C. CHA CHA CHA RECOGNITION SCHEME

M.A.G.I.C. Achiever Awards 1370

M.A.G.I.C. Hero Awards 90

M.A.G.I.C. Champion Awards 5


STAFF SUGGESTION SCHEME (SSS)

Suggestions received 26,575

Suggestions accepted 17,181

STAFF DEVELOPMENT

HDB Undergraduate Scholarships awarded 10

HDB Postgraduate Scholarships awarded 2

Sponsorship for Postgraduate (Part-Time) & Undergraduate Studies 7

Sponsorship for Part-Time Diploma and Certificate Studies 183

STAFF RECOGNITION

Recipients for 25, 30, 40 and 45-Year Long Service Awards 455

Recipients for 10, 15, and 20-Year Long Service Awards 406

RECIPIENTS FOR NATIONAL DAY AWARDS

Public Administration Medal (Silver) 1

Public Administration Medals (Bronze) 2

Commendation Medals 3

Efficiency Medals 13

Long Service Medals (including a posthumous award) 239

STAFF CONTRIBUTIONS TO COMMUNITY

Staff who contributed to SHARE 92.18%

Amount raised under GRAINS $52,345.70

Beneficiaries under GRAINS 937


HDB was the agent for the Government and other authorities on land reclamation projects, and infrastructure works in

HDB towns.

Land Reclamation ProjectsPulau Tekong Reclamation

HDB was the agent for the Ministry of National Development (MND) to execute the reclamation of land around Pulau

Tekong. The project would be carried out in three separate phases. Phase 1 of the project began in November 2000 and

is presently ongoing.

Infrastructure WorksOn behalf of MND, HDB carried out major infrastructure works for public housing development programmes, estate

renewal, government land sales programme and other large-scale HDB developments. The infrastructure works comprised

earthworks, the construction of major roads, road bridges, trunk sewers, outlet drains and road related facilities, such

as bus bays and shelters, and overhead pedestrian bridges. For FY 2007/2008, a total sum of $49 million was spent

on major infrastructure works.

Other Agency ProjectsHDB was also the agent for Sentosa Development Corporation (SDC) to carry out reclamation and infrastructure works

at the Southern Islands for development into a recreational and tourist resort. HDB has completed the reclamation works

at the Southern Islands and the laying of a submarine services link between Sentosa Cove and Kias Island. Phase 1 of

the main road network on the Southern Islands was also completed in October 2007.

The restoration of beaches at East Coast Park and Pasir Ris Park was another agency project undertaken by HDB on

behalf of the Building & Construction Authority (BCA). The restoration works involve shore protection works and nourishment

of the beach. The tender for the beach restoration works would be called in the second half of 2008.

AGENCY PROJECTS


EM ServicesEM Services was formed in 1988 to offer estate management, engineering, contracts administration and project management

services to Town Councils. HDB holds a 75 percent stake in the subsidiary, while Keppel Land Ltd holds the remaining

25 percent stake.

During the year, EM Services maintained its position as the largest managing agent for public housing in Singapore. It

managed more than 490,000 units of residential and commercial properties on behalf of Town Councils. The total revenue

and management fees of the company for FY2007/2008 was $98 million.

The company provides essential maintenance and lift monitoring services to Town Councils, property management

services to both private and Government agencies, and also housing agency services.


SUBSIDIARY AND ASSOCIATED COMPANIES

In FY 2007/2008, HDB welcomed 3,145 visitors in 172 visits. Among them were the following dignitaries:

01) His Excellency Wen JiabaoPremier of the State Council, People’s Republic of China

02) His Excellency Datuk Wira Abu Seman Bin YusopDeputy Minister, Ministry of Federal Territories, Malaysia

03) His Excellency Mansoor Hassan Bin RajabMinister for Municipalities and Agricultural Affairs, Kingdom of Bahrain

04) Dr Samir Saeed Mahmoud FaragGovernor of Luxor, Arab Republic of Egypt

05) Mr Sergey V PchelintsevDeputy Head of State Legal Board attached to the President of the Russian Federation

VISITORS

HDB played host to distinguished overseas and local visitors interestedin our successful public housing programme.



01

03

05

02

04


CONTENTS

HDB’s Achievements since 1960

Demand for Flats 55

Building Statistics 56

Cumulative Achievements 57

HDB’s Achievements for FY 2007/2008

Statistical Highlights 58

Town Developments 59

Population Housed in HDB Flats 60

Location of HDB Developments 61

Price Range of Flats Offered 62

Residential Properties 63

Non-Residential Developments 64

Properties under Management 65

Allocations 67

Floor Plans 68

STATISTICS AND CHARTS


HDB’S ACHIEVEMENTS SINCE 1960

DEMAND FOR FLATS

Home1960 - 1990/91 Rental Ownership

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

Home1991/92 - 2007/2008 Rental Ownership

1991/92 - 1995/96 39,200 308,454*

1996/97 - 2000/01 27,787 126,413*

2001/02 - 2005/06 22,968 50,308*

2006/2007 5,643 8,455*

2007/2008 5,970 12,580*

+ Only for applications received in 1964 and 1965 to purchase Home Ownership flats.* From FY 1989 / 1990, applications for resale flats are not included in the figure on demand for Home Ownership flats.

Notes:i 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.ii 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 andthose who had previously applied for flats in mature estates.

iii Figures from FY 1997/1998 to FY 2001/2002 refer to new applications received under RFS. These include 3-room applications received under RFSup till May 1999 and bookings for 3-room flats under Walk-In Selection (WIS) with effect from June 1999. These exclude requests received underthe Balloting Exercise.

iv Figures from FY 2003/2004 to FY 2007/2008 are based on bookings received by HDB for 2-room and bigger flats under the various allocation exercises.It includes projected bookings under the January 2008 Balloting Exercise, February 2008 and March 2008 Build-To Order Exercises, and City View@Boon

Keng under the Design, Build and Sell Scheme.


BUILDING STATISTICS

Commercial1960 - 1990 Total Dwelling Units Developments

1960-1965 54,430 53,777 653

1966-1970 66,239 63,448 2,791

1971-1975 113,819 110,362 3,457

1976-1980 137,670 130,981 6,689

1981-1985 200,377 189,299 11,078

1986-1990* 121,400 119,708 1,692

Commercial1991 - 2007 Total Dwelling Units Developments

1991 - 1995 99,557 98,994 563#

1996 - 2000 158,621 157,919 702

2001 - 2005 55,515 55,135 380

2006 2,752 2,733 19

2007 5,111 5,063 48

Figures are for calendar years* Includes HUDC units built by the Urban Redevelopment Authority (URA).# Before July 1992, commercial developments referred only to eating houses, shops with living quarters, and lock-up shops.



CUMULATIVE ACHIEVEMENTS

Building Projects Units Completed

ResidentialDwelling Units 990,320

CommercialShops and Eating Houses 16,581Markets and Food Centres 223Offices 1,895Kiosks 766

IndustrialTerrace Workshops 4,786*Industrial Workshops 5,900*Warehouses 97Flatted/Ramp-up Factories 2,869Prototype Factories 207Canteens/Eating Houses 61*#

Land Leases 0Wholesale 1,145

Shops and RecreationalSwimming Complexes 18Sports Complexes 12Indoor Stadiums, Training Halls and Sports Halls 9Town Gardens and Parks 72

HDB or Government/InstitutionalCivil Defence Shelters 446Area Offices, Branch Offices and Town Council Offices 67Community Centres/Clubs 44Bus Interchanges 25

Engineering Projects: Completed Land Reclamation Area Reclaimed (hectares)East Coast Phases 1-7 1,525.0North-Eastern Coast Phases 1-3 472.0North-Eastern Coast Phase 4 126.1Punggol 276.0Kallang Basin 199.0West Coast 86.0Pasir Ris 44.0Marina Bay 38.0Tuas 20.0Woodlands Checkpoint 9.7Tanjong Rhu 5.6Pasir Panjang 4.7Southern Islands 34.0Pulau Tekong 833.4


* Includes Woodlands Park D units (comprising 342 terrace workshops, 218 industrial workshops and 3 canteens) hived off to Jurong Town Corporationin 1995.

# Includes 1 canteen in Tampines demolished in 1996.


STATISTICAL HIGHLIGHTS

PercentageKey Indicators FY 2006/2007 FY 2007/2008 Change %

Estimated percentage of resident population living in HDB flats 81 82 1.0Percentage of resident population living in Home Ownership flats 79 80 1.0Bookings for new flats# ^ 8,455 12,580 48.8Applications registered for resale flats 29,034 29,612 2.0Applications to rent flats 5,643 5,970 5.8Flats sold under Home Ownership for the People Scheme# ^^ 5,712 11,991 110.0Resale transactions completed 29,063 28,449 -2.1Rental flats let 4,037 2,735 -32.3

Projects CompletedResidential 1,764 6,247 254.1Commercial* 19 44 131.6Industrial 0 0 0.0

Projects Under ConstructionResidential 14,212 18,073 27.2Commercial* 100 78 -22.0Industrial 0 178 0.0

Units AwardedResidential 3,405 10,108 196.9Commercial** 17 33 94.1Industrial 0 0 0.0

# Excludes Studio Apartments.* Includes shops and eating houses, mini-markets and food courts, restaurants and fast-food restaurants, emporiums and supermarkets.** Includes shops, eating houses and markets.^ Figures refer to bookings received by HDB for 2-room and bigger flats under the various allocation exercises, as well as bookings for Design, Build

and Sell Scheme flats.^^ 'Flats sold under Home Ownership for People Scheme' refers to completed flats where the buyers have taken possession of the flats that they have

booked (i.e. collected keys). These flats would therefore comprise those booked in the reported financial year and those booked in previous financialyears when the flats were under construction.

HDB’S ACHIEVEMENTS FOR FY 2007/2008


TOWN DEVELOPMENTS

Land Area (Hectares) Dwelling UnitsUnder Management Projected Ultimate**

Town Total* Residential** As At 31 March 2008

Ang Mo Kio 638 283 48,069 58,000Bedok 937 408 59,359 74,000Bishan 690 172 19,367 32,000Bukit Batok 785 291 31,731 47,000Bukit Merah 858 312 50,873 68,000Bukit Panjang 489 228 29,498 43,000Choa Chu Kang 583 307 39,173 62,000Clementi 408 198 23,877 35,000Geylang 678 214 30,418 49,000Hougang 1,276 354 48,473 68,000Jurong East 384 165 22,300 29,000Jurong West 987 480 69,650 92,000Kallang/Whampoa 799 176 34,289 43,000Pasir Ris 601 318 27,515 44,000Punggol 957 474 16,734 96,000Queenstown 687 210 29,312 50,000Sembawang 708 376 17,664 64,000Sengkang 1,055 507 42,090 95,000Serangoon 737 156 21,292 29,000Tampines 1,200 500 61,483 83,000Toa Payoh 463 210 36,281 48,000Woodlands 1,198 525 58,025 88,000Yishun 810 445 46,613 84,000Other Estates# - 126 21,054 25,000Total 885,140 1,406,000

* 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.




POPULATION HOUSED IN HDB FLATS

Estimated Resident Population* by Townas at 31 March 2008

HDB Town Population

Ang Mo Kio 148,600Bedok 196,200Bishan 67,300Bukit Batok 113,400Bukit Merah 142,900Bukit Panjang 109,100Choa Chu Kang 150,800Clementi 72,800Geylang 95,900Hougang 170,800Jurong East 79,700Jurong West 236,600Kallang/Whampoa 100,900Pasir Ris 107,600Punggol 53,600Queenstown 82,300Sembawang 62,700Sengkang 143,000Serangoon 74,700Tampines 230,300Toa Payoh 104,600Woodlands 219,800Yishun 167,300Other Estates:

Central Area 30,300Bukit Timah 8,300Marine Parade 22,600

Total 2,992,100

* Refers to Singaporeans and Permanent Residents only. Figures are rounded off to the nearest '00.

3,8003,6003,4003,2003,0002,8002,6002,4002,2002,0001,8001,6001,4001,2001,000

800600400200

0

Population in Singapore and in HDB Flats

PO

PU

LAT

ION

(’00

0)

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008(Mar)

YEAR

Estimated resident population in Singapore(Source: Singapore Department of Statistics)

Estimated resident population living in HDB flats(Source: Research & Planning Department, HDB)

3.0 million

3.6 million

100

90

80

70

60

50

40

30

20

10

0

Population in Singapore and in HDB Flats

PE

RC

EN

T

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008(Mar)

YEAR

Estimated percentage of resident population living in HDB flats(Source: Research & Planning Department, HDB)

9%

23%

35%

47%

67%

81%

87%

86% 86%83%

82%



LOCATION OF HDB DEVELOPMENTS

CompletedUnder ConstructionHDB Development Boundary

Legend

Map of Singapore

Scale5 kilometres

N

0



PRICE RANGE OF FLATS OFFERED

Town 2-Room ($) 3-Room ($) 4-Room/Type A ($) 5-Room/Type B ($)

Jurong West - - 160,000 - 205,000 190,000 - 260,000Bukit Panjang - 116,000 - 143,000 181,000 - 231,000 -Sembawang - - 135,000 - 200,000 -Yishun 77,000 - 97,000 118,000 - 141,000 183,000 - 253,000 -Punggol 73,000 - 89,000 117,000 - 152,000 184,000 - 259,000 -Sengkang 60,000 - 87,000 100,000 - 143,000 145,000 - 243,000 -

Note :i The prices indicated are the actual prices of flats in selected towns under development and comprise new flats at various stages of development.ii Prices of 2-room and 3-room flats are based on flats in new projects, and exclude those offered under the Monthly Sale exercises.iii Prices of 4-room flats exclude smaller and 4-room (Budget) flats.iv Prices exclude some isolated units with exceptionally different attributes and some exercises with very small supply of flats.v Price differential between flat types may not be directly comparable due to the different attributes, such as location, design, storey height, orientation,

market conditions, etc.



RESIDENTIAL PROPERTIESDwelling Dwelling

Dwelling Units Under Management Total Units UnitsSold Flats Rental Flats Dwelling Under Completed

HDB Town* 1-Rm 2-Rm 3-Rm 4-Rm 5-Rm Exec SA HUDC Total 1-Rm 2-Rm 3-Rm 4-Rm 5-Rm Exec SA HUDC Total Units Construction FY 07/08

Ang Mo Kio 0 630 24,426 13,023 5,252 481 0 0 43,812 1,318 2,863 73 3 0 0 0 0 4,257 48,069 1,221 0

Bedok 0 672 22,402 19,854 10,135 2,711 130 0 55,904 2,250 1,155 38 12 0 0 0 0 3,455 59,359 572 386

Bishan 0 0 2,359 9,199 5,395 1,660 0 358 18,971 396 0 0 0 0 0 0 0 396 19,367 176 0

Bukit Batok 0 0 10,268 13,850 4,832 2,732 0 0 31,682 20 20 9 0 0 0 0 0 49 31,731 0 0

Bukit Merah 653 1,145 16,425 13,838 9,098 44 212 0 41,415 4,231 4,913 218 96 0 0 0 0 9,458 50,873 1,218 1,306

Bukit Panjang 0 0 2,620 13,980 9,517 3,381 0 0 29,498 0 0 0 0 0 0 0 0 0 29,498 0 0

Choa Chu Kang 0 0 1,312 19,437 13,422 4,762 0 0 38,933 0 240 0 0 0 0 0 0 240 39,173 468 0

Clementi 0 41 12,132 7,677 2,407 620 0 0 22,877 454 479 67 0 0 0 0 0 1,000 23,877 388 0

Geylang 0 750 11,382 9,363 3,601 831 107 330 26,364 1,044 2,401 609 0 0 0 0 0 4,054 30,418 447 0

Hougang 0 0 9,219 23,160 9,923 4,310 0 622 47,234 538 315 380 6 0 0 0 0 1,239 48,473 0 0

Jurong East 0 0 6,879 7,333 5,898 1,871 143 0 22,124 0 0 176 0 0 0 0 0 176 22,300 0 0

Jurong West 0 123 11,107 28,401 20,821 6,506 0 0 66,958 84 1,147 1,459 2 0 0 0 0 2,692 69,650 981 228

Kallang/Whampoa 0 444 12,934 9,079 4,843 501 0 0 27,801 4,401 2,025 58 4 0 0 0 0 6,488 34,289 1,056 0

Pasir Ris 0 21 155 10,716 9,054 7,460 0 98 27,504 0 0 11 0 0 0 0 0 11 27,515 0 0

Punggol 0 0 0 5,335 10,273 1,126 0 0 16,734 0 0 0 0 0 0 0 0 0 16,734 2,074 425

Queenstown 0 1,365 15,485 6,207 3,337 359 114 0 26,867 575 1,702 168 0 0 0 0 0 2,445 29,312 3,959 720

Sembawang 0 0 0 7,238 7,556 2,870 0 0 17,664 0 0 0 0 0 0 0 0 0 17,664 757 0

Sengkang 0 84 240 17,988 19,316 4,462 0 0 42,090 0 0 0 0 0 0 0 0 0 42,090 2,556 2,024

Serangoon 0 66 4,547 10,231 3,751 2,365 0 244 21,204 0 88 0 0 0 0 0 0 88 21,292 0 0

Tampines 0 0 12,240 27,057 15,833 5,845 208 0 61,183 154 126 20 0 0 0 0 0 300 61,483 0 0

Toa Payoh 0 659 15,708 9,304 5,211 853 156 175 32,066 1,170 2,954 91 0 0 0 0 0 4,215 36,281 0 1,158

Woodlands 0 51 5,380 25,843 19,010 6,190 0 0 56,474 932 385 75 159 0 0 0 0 1,551 58,025 0 0

Yishun 0 0 13,025 23,301 7,280 2,741 169 0 46,516 16 16 63 2 0 0 0 0 97 46,613 352 0

Other Estates:

Central Area 0 341 4,697 2,282 283 9 0 38 7,650 2,073 975 53 14 0 0 0 0 3,115 10,765 1,848 0

Bukit Timah 0 0 441 920 682 380 0 0 2,423 0 0 0 0 0 0 0 0 0 2,423 0 0

Marine Parade 0 26 3,043 1,798 1,673 0 0 0 6,540 0 1,324 2 0 0 0 0 0 1,326 7,866 0 0

Total 653 6,418 218,426 336,414 208,403 65,070 1,239 1,865 838,488 19,656 23,128 3,570 298 0 0 0 0 46,652 885,140 18,073 6,247

* Equivalent to Town Registration Boundary.



NON-RESIDENTIAL DEVELOPMENTS

UnderConstruction

as atType Awarded 31 March 2008 Completed

CommercialShops, Lock-Up Shops and Eating Houses 32 49 35Mini-Markets 0 0 0Markets and Hawker Centres 1 1 0Kiosks and Shoplets 0 0 0Food Courts 0 1 0Restaurants and Fast Food Restaurants 0 0 0Emporiums and Supermarkets 0 4 1Offices 0 0 0Commercial Spaces 0 2 0

Industrial 0 178 0

Sports and RecreationalNeighbourhood Parks* 3 8 2

HDB or Government/InstitutionalBus Interchanges 0 1 0Community Clubs 0 1 0Branch Offices / Service Centres 0 1 0Town Council Offices 0 0 0Education Centres 3 6 3Residents' Committee Centres 1 8 3Child-Care Centres 0 4 2

* Includes common green



PROPERTIES UNDER MANAGEMENT

Units Units Units Unitsas at Taken over Reclassified/ as at

31 March in FY converted/ 31 MarchType 2007 2007/2008 demolished 2008 Residential1-Room Flats 20,145 0 164 20,3092-Room Flats 28,712 0 834 29,5463-Room Flats 222,098 710 (812) 221,9964-Room Flats 331,787 4,958 (33) 336,7125-room Flats 207,975 421 7 208,403Executive Flats 65,150 0 (80) 65,070Studio Apartments 1,081 158 0 1,239HUDC Flats 1,865 0 0 1,865Total 878,813 6,247 (80) 885,140 CommercialShops 13,112 50 (115) 13,047Kiosks and Shoplets 747 - (9) 738Eating Establishments 842 6 (16) 832Supermarkets and Emporiums 150 6 (5) 151Offices 2,129 16 (3) 2,142Cultural Complexes 1 - - 1Shopping Complexes 1 - - 1Automated Teller Machines 222 8 (2) 228Civil Defence Shelters 367 - - 367TAS Radio Equipment Rooms 212 - 1 213Total 17,783 86 (149) 17,720

IndustrialTerrace Workshops 2,813 - (5) 2,808Industrial Workshops 4,883 - - 4,883Warehouses 89 - - 89Flatted/Ramp-up Factories 2,706 - (1) 2,705Prototype Factories 201 - - 201Canteens/Eating Houses/Cafeterias 47 - - 47Land Leases 538 - (4) 534Coldrooms & Other Facilites 1,105 - - 1,105Total 12,382 - (10) 12,372

Car ParksCar Lots 529,971 6,071 (5,400) 557,855Lorry Lots 3,137 0 (98) 7,752Motorcycle Lots 142,686 1,486 (2,148) 147,573Total 675,794 7,557 (7,646) 713,180*

* From FY 2007/2008, the carpark figures also include 27,213 car lots, 4,713 lorry lots and 5,549 motorcycle lots that are managed by external service

providers.


PROPERTIES UNDER MANAGEMENT

Units Units Units Unitsas at Taken over Reclassified/ as at

31 March in FY converted/ 31 MarchType 2007 2007/2008 demolished 2008 Social and Communal FacilitiesChildcare Centres 369 4 - 373Education Centres 483 6 (12) 477Children's Homes/Homes for the Aged 50 3 (5) 48Senior Citizen Centres 39 - 4 43Boys' Clubs 5 - - 5Social Service Centres 162 3 (5) 160Residents' Committee Centres 536 6 1 543Social Function Halls 12 - - 12Community Health/Dialysis Centres 52 1 (1) 52Day Activity Centres 73 2 9 84Neighbourhood Links 24 - 1 25Study Centres 14 - 1 15Student Care Centres 100 - (2) 98Civil Defence Shelters 79 - (2) 77Others** 7 - - 7Total 2,005 25 (11) 2,019

HDB or Government Administrative FacilitiesBranch Offices 27 - (1) 26Administrative Offices 26 - (2) 24Polyclinics 6 - - 6Community Centres*** 31 1 (6) 26Neighbourhood Police Posts/ Satellite Fire Posts 77 - - 77Bus Terminals and Interchanges 5 - - 5HDB Site Offices 13 - (3) 10Libraries 21 - (3) 18Total 206 1 (15) 192 Other FacilitiesBungalows 46 - - 46

** Comprises civil defence centres.*** Refers to void-deck Community Centres. The stand-alone Community Centres are excluded as these are not managed by HDB.

Notesi 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 Servicesand 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.



ALLOCATIONS

Number of UnitsType Sold Percentage% Rented Percentage%

Residential1-Room Flats 0 0.0 1,147 41.92-Room Flats 142 1.2 1,066 39.03-Room Flats 1,852 15.5 272 10.04-Room Flats 6,056 50.5 250 9.15-Room Flats 2,343 19.5 0 0.0Executive Flats 1,598 13.3 - -Total 11,991 100.0 2,735 100.0

CommercialShops and Eating Houses 17 100.0 330 60.9Offices - - 200 36.9Supermarkets & Emporiums - - 9 1.7Civil Defence Shelters (commercial use) - - 3 0.5Total 17 100.0 542 100.0

IndustrialTerrace Workshops 0 0.0 116 24.4Industrial Shops 0 0.0 228 48.0Warehouses 0 0.0 8 1.7Prototype Factories 0 0.0 1 0.2Flatted/Ramp-up Factories 0 0.0 119 25.1Canteens/Eating Houses 0 0.0 1 0.2TOL Land 0 0.0 2 0.4Total 0 0.0 475 100.0

Social Communal FacilitiesChildcare Centres - - 5 7.9Education Centres - - 16 25.4Social Services Centres - - 5 7.9Residents' Committee Centres - - 15 23.8Day Activity Centres - - 11 17.5Neighbourhood Links - - 1 1.6Rehabilitation Centres - - 3 4.7Kidney Dialysis Centres - - 1 1.6Senior Citizens Centres - - 1 1.6Study Centres - - 1 1.6Youth Centres - - 1 1.6Community Centres - - 2 3.2Hospice Care Satellite Centres - - 1 1.6Total - - 63 100.0


FLOOR PLANS


LIVING/DINING

BEDROOM

BATH/WC

HOUSE-HOLDSHELTER

KITCHEN

2 ROOM MODEL ‘A’

Scale:

Area: 45m2

0 1 2 3 4 5 METRES



Scale:

Area: 65m2

0 1 2 3 4 5 METRES

BEDROOM 2

MAIN BEDROOM

LIVING/DINING

HOUSE-HOLDSHELTER

BATH/WC 2

BATH/WC 1

KITCHEN SERVICEYARD


LIVING/DINING

BEDROOM 2 BEDROOM 3

MAIN BEDROOM

HOUSE-HOLDSHELTER

BATH/WC 2

BATH/WC 1

KITCHEN SERVICEYARD


Scale:

Area: 90m2

0 1 2 3 4 5 METRES


LIVING/DINING

BEDROOM 3 BEDROOM 2SUGGESTEDSTUDY

HOUSE-HOLDSHELTER

BATH/WC 2

BATH/WC 1

MAIN BEDROOM

KITCHEN

SERVICEYARD

5 ROOM IMPROVED

Scale:

Area: 110m2

0 1 2 3 4 5 METRES


CONTENTS

Financial Highlights of HDB 74

Financial Review 76

Statement by the Board 84

Report on the Audit of the Financial Statements 85

Balance Sheets 87

Income and Expenditure Statements 88

Statements of Changes in Capital and Reserves 89

Consolidated Statements of Changes in Capital and Reserves 91

Consolidated Cash Flow Statement 93

Notes to the Financial Statements 95

FINANCIAL REPORT


FINANCIAL HIGHLIGHTS OF HDB

S$ millionIncrease/

2007/2008 2006/2007 (Decrease) 2005/2006 2004/2005

INCOMEIncome 3,004 2,941 63 3,089 3,038Gross profit 104 51 53 137 116Income (net) 3,108 2,992 116 3,226 3,154

EXPENDITUREExpenditure 4,252 3,789 463 4,703 4,060Less: Amount capitalised (63) (57) (6) (71) (82)Expenditure (net) 4,189 3,732 457 4,632 3,978Capital expenditure 2,423 1,532 891 1,131 1,658

SEGMENTAL RESULTSHome ownership (1,006) (576) (430) (454) (554)Upgrading (516) (353) (163) (306) (374)Residential ancillary functions (173) (159) (14) (236) (219)Rental flats (77) (65) (12) (71) (100)Other rental and related businesses 632 381 251 (316) 401Mortgage financing 37 1 36 (51) 16Agency and others 22 31 (9) 28 6Deficit (1,081) (740) (341) (1,406) (824)


S$ millionIncrease/

2007/2008 2006/2007 (Decrease) 2005/2006 2004/2005 FINANCIAL POSITIONProperty, plant and equipment, and investment properties 19,440 19,575 (135) 19,912 21,576Loans receivable 49,680 52,195 (2,515) 54,550 56,657Properties under development 2,443 2,636 (193) 2,025 2,359Other assets 2,638 2,832 (194) 3,275 4,201Total assets 74,201 77,238 (3,037) 79,762 84,793Less:Loans payable 57,828 61,211 (3,383) 63,650 67,383Other liabilities 1,997 1,808 189 1,863 1,920Total net assets 14,376 14,219 157 14,249 15,490Capital and reserves 14,376 14,219 157 14,249 15,490 FINANCING OF PUBLIC HOUSINGGovernment grant to HDB 1,248 746 502 755 919

Government loans drawn during the year- mortgage financing 2,359 2,574 (215) 2,361 2,245- upgrading financing 23 15 8 18 20

Outstanding loans payableGovernment loans- mortgage financing 49,669 52,473 (2,804) 54,581 56,552- upgrading financing 116 116 - 120 116- housing development - 2,018 (2,018) 3,705 5,896Bonds 5,200 4,900 300 4,400 3,400Bank loans 2,842 1,702 1,140 841 1,416

Mortgage loans granted to flat buyers 3,040 3,244 (204) 3,592 2,481


FINANCIAL REVIEW

FINANCIAL RESULTS

The HDB reported a deficit before government grant of $1,081 million, $341 million higher than last year.

The net surplus after government grant of $1,248 million was $167 million. The asset revaluation reserve of $89 million was realised

and transferred to retained earnings. The total amount of $256 million transferred to capital gains reserve comprised the reversal

of impairment losses and the capital gains on disposal, of protected properties which were attributable to the past governments.

$ million

5,000

4,000

3,000

2,000

1,000

0

-1,000

-2,000

FINANCIAL RESULTS

2004/2005 2005/2006 2006/2007 2007/2008

(850)

(1,406)

(740)(1,081)

Income (net) Expenditure (net) Deficit before government grant

3,154

3,978

3,226

4,632

2,992

3,732

3,108

4,189


INCOME

Income comprises mainly interest income from mortgage loans, rental and related income from commercial and industrial

properties and car park charges. Income increased due mainly to increase in rental and related income, car park charges and

gain on disposal of assets, offset by lower interest income.

Rental and related income increased due to higher rental rates in tandem with strong market demand. Car park charges were

higher as a result of increase in the number of season parking tickets sold. The gain on disposal of assets increased as higher

compensation was received for the return of some land parcels to the Government.

Provision for foreseeable loss was made for flats acquired or being developed, and released to the cost of sales on subsequent

sale of the flats. The gross profit from the sale of properties and building materials after offsetting the release was $104 million.

The increase in gross profit was due mainly to more units of larger flats and flats in mature estates being sold.

After taking into account the gross profit, net income for the year was $3,108 million.

INCOME

Change over2007/2008 2006/2007 2006/2007

Breakdown $M % $M % $M %

Interest 1,417 46 1,480 49 (63) (4)Rental and related income 842 27 793 27 49 6Car park charges 416 14 387 13 29 7Recoveries for upgrading and others 70 2 78 2 (8) (10)Levy on resale flats and sales premium 41 1 28 1 13 46Agency fees 41 1 24 1 17 71Gain on disposal of assets 61 2 22 1 39 177Others 116 4 129 4 (13) (10)Income 3,004 97 2,941 98 63 2Gross profit 104 3 51 2 53 104Income (net) 3,108 100 2,992 100 116 4

2007/2008:$3,004M

2006/2007:$2,941M


EXPENDITURE

Expenditure for the year was $4,252 million. As compared with last year’s expenditure of $3,789 million, there was an increase

of 12%. The increase in expenditure was due mainly to higher provision for foreseeable loss for properties under development/for

sale, higher upgrading, improvements and demolition expenditure, and manpower costs. The increase was offset by lower

depreciation and impairment due to reversal of impairment losses on properties, lower interest and CPF Housing grant.

EXPENDITURE

2007/2008:$4,252M

2006/2007:$3,789M

Change over2007/2008 2006/2007 2006/2007


Interest 1,664 39 1,769 47 (105) (6)Upgrading, improvements and demolition 625 15 439 11 186 42Depreciation and impairment 190 4 336 9 (146) (43)Property tax 108 3 100 3 8 8Provision for loss for properties 784 19 195 5 589 302

under development/for saleManpower costs 391 9 333 9 58 17CPF Housing grant 215 5 311 8 (96) (31)Others 275 6 306 8 (31) (10)Expenditure 4,252 100 3,789 100 463 12


CAPITAL EXPENDITURE

Capital expenditure for the year was $2,423 million, an increase of $891 million from last year. A large proportion of the year’s

capital expenditure was incurred for purchases of land and construction of public housing. The land and construction expenditure

for the year was higher as more building contracts for dwelling units were awarded.

CAPITAL EXPENDITURE

2007/2008:$2,423M

2006/2007:$1,532M

Change over2007/2008 2006/2007 2006/2007


Buildings 708 29 617 40 91 15Land 1,321 54 602 39 719 119Upgrading and improvement works 187 8 115 8 72 63Flats and assets purchased 207 9 198 13 9 5Capital expenditure 2,423 100 1,532 100 891 58


SEGMENTAL RESULTS

The Home ownership segment recorded a higher deficit of $1,006 million as compared with $576 million last year. The number

of flats sold under the home ownership scheme this year was 11,991, which was 6,279 more than last year. The higher deficit

was mainly attributable to higher provision for foreseeable loss for properties under development, as more new building contracts

were awarded this year.

The Upgrading segment reported a higher deficit of $516 million. The increase in deficit was mainly due to more precincts under

the lift upgrading and interim upgrading plus programmes this year.

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 $173 million as compared with $159 million

last year. The higher deficit was largely due to the write-off of parking lots for the greening of multi-storey car parks, which was

partially offset by the increase in season parking income.

The Rental flats segment recorded a higher deficit of $77 million this year, due mainly to the upgrading of rental flats. The Other

rental and related businesses segment focuses on the tenancy and management of other property developments owned by

the HDB. It reported a higher surplus of $632 million as compared with $381 million last year. The increase in surplus was due

mainly to higher rental, reversal of impairment losses of commercial and industrial properties and land, and higher compensation

received for the return of some land parcels to the Government during the year.

The Mortgage financing segment reported a higher surplus of $37 million this year. The higher surplus was due mainly to the

reversal of allowance for impairment losses made in respect of non-performing mortgage loans, as a result of higher resale

prices of flats.

The Agency and others segment encompasses mainly agency projects on behalf of the Government.

Change over2007/2008 2006/2007 2006/2007

Breakdown $M $M $M

Surplus/(deficit) from:Home ownership (1,006) (576) (430)Upgrading (516) (353) (163)Residential ancillary functions (173) (159) (14)Rental flats (77) (65) (12)Other rental and related businesses 632 381 251Mortgage financing 37 1 36Agency and others 22 31 (9)

(1,081) (740) (341)


FINANCIAL POSITION

As at 31 March 2008, the HDB’s total assets decreased by $3,037 million to $74,201 million. Properties, plant and equipment,

and loans receivable were $19,440 million and $49,680 million respectively. These accounted for 93% of the total assets.

Properties under development were $2,443 million.

Capital and reserves stood at $14,376 million as at 31 March 2008. Reserves were made up of capital gains reserve of $5,992

million and asset revaluation reserve of $5,920 million.

The loans payable of $57,828 million comprised mainly loans due to the Government.

$ billion

100

80

60

40

20

0

FINANCIAL POSITION

04/05 05/06 06/07 07/08 04/05 05/06 06/07 07/08

5%

Other assets

Properties under development

Property, plant and equipment,and investment properties

Loans receivable

Total Assets

Capital and reserves

Other liabilities

Loans payable

Capital, Reserves and Liabilities

4% 4%4%3%

3% 3% 3%25% 25% 25%

26%

67%

67%68%68%

2%

3%

18%18% 19%

19%

80%80% 79%

78%

2% 2%

FINANCING OF PUBLIC HOUSING

The HDB’s annual deficit is fully covered by government grant. In addition, the HDB receives government grant to preserve

the capital gains attributable to past governments on disposal of the protected assets. The cumulative government grant to

the HDB since its establishment in 1960 amounted to $17,241 million.

The main loans which finance the HDB’s operations are:

i) The mortgage financing loans that finance the mortgage loans granted for purchase of flats under the public housing schemes.

Interest rate and repayment term on loans obtained from the Government are:

ii) The housing development loans that finance the development programmes and operations. Interest rate is pegged at two

percentage points above the floating CPF interest rate. The housing development loans were fully repaid as at 31 March 2008.

iii) The bonds are issued to finance the HDB’s development programmes and working capital requirements. During the financial

year, the HDB redeemed $500 million and raised $350 million, $150 million and $300 million of 2-year, 12-year and 15-year

unsecured Fixed Rate Notes respectively to meet funding requirements. Total outstanding notes under the Medium Term Note

Programme was $5,200 million.


Mortgage loans granted to purchasers at

Concessionary interest rate

Market interest rate

Interest rate on loans obtained from the Government

CPF interest rate

0.1% point below adjustable rate mortgage index

Repayment term

20 years

5 to 30 years

$ billion

70

60

50

40

30

20

10

0

TOTAL OUTSTANDING LOANS

2004/2005 2005/2006 2006/2007 2007/2008

Mortgage financing loans Housing development loans Bonds

3.40

5.90

56.55

4.40

3.70

54.58

4.90

2.0052.47

49.67

5.20


RISK MANAGEMENT

The activities of the HDB expose it to interest rate risk, credit risk and liquidity risk.

Interest rate riskThe HDB’s exposure to market risk for changes in interest rate relates primarily to the government loans. The HDB manages

its interest rate exposure by largely matching the terms of the government loans with that of the loans receivables. The HDB

uses various sources of funding to manage interest costs. In addition to government loans, the HDB also accesses the capital

market and financial institutions for its funding requirements. The bank loans are unsecured and short-term in nature. Any future

variation in interest rates is not expected to have a material impact on the results of the HDB.

Credit riskThe HDB’s loans receivables 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 taken as

collateral. An allowance for impairment is made in respect of non-performing mortgage loans of which the collateral held is

insufficient to discharge the outstanding mortgage loan. The allowance represents the aggregate amount by which management

considers it necessary to write down its mortgage loan in order to state it in the Balance Sheet at its estimated net realisable value.

Liquidity riskThe HDB monitors and maintains a level of cash and cash equivalents deemed adequate to finance the operations. Funding

is also made available through an adequate amount of committed credit facilities. The Ministry of Finance will act as the lender

of last resort to the HDB for its funding requirements.


In our opinion, the accompanying balance sheets of the Group and the Housing and Development Board (HDB) as at 31 March

2008, income and expenditure statements and statements of changes in capital and reserves of the Group and the HDB and

the cash flow statement of the Group for the year then ended, and a summary of significant accounting policies and other

explanatory notes as set up on pages 87 to 127 are drawn up so as to give a true and fair view of the state of affairs of the

Group and the HDB as at 31 March 2008, the results and changes in capital and reserves of the Group and the HDB, and

changes in cash flows of the Group for the year ended on that date.

On Behalf of the Board

James Koh Cher SiangChairman

Tay Kim PohChief Executive Officer

30 May 2008

STATEMENT BY THE BOARDof the Housing and Development Board for the year ended 31 March 2008


The accompanying financial statements of the Housing and Development Board (HDB) and its subsidiaries, set out on pages

87 to 127, have been audited under my directions and in accordance with the provisions of the Housing and Development Act

(Cap. 129, 2004 Revised Edition) [“the Act”]. These financial statements comprise the balance sheets of the Group and the HDB

as at 31 March 2008, the income and expenditure statements and statements of changes in capital and reserves of the Group

and the HDB, and cash flow statement of the Group for the year then ended, and a summary of significant accounting policies

and other explanatory notes.

Management’s responsibility for the financial statements

The management is responsible for the preparation and fair presentation of these financial statements in accordance with the

Act and Statutory Board Financial Reporting Standards. This responsibility includes:

a) designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial

statements that are free from material misstatement, whether due to fraud or error;

b) selecting and applying appropriate accounting policies; and

c) making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

My responsibility is to express an opinion on these financial statements based on the audit. The audit was conducted in

accordance with the Act and Singapore Standards on Auditing. Those standards require that ethical requirements be complied

with, and that the audit be planned and performed to obtain reasonable assurance as to 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 judgment, 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 entity’s management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTSof the Housing and Development Board for the year ended 31 March 2008

Opinion

In my opinion,

a) these financial statements are properly drawn up in accordance with the provisions of the Act and Statutory Board Financial

Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the HDB as at 31 March

2008, and the results, changes in capital and reserves of the Group and of the HDB, and cash flows of the Group for the

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 financial

year have been in accordance with the provisions of the Act and the Constitution.

Emphasis of matter

Without qualifying my opinion I draw attention to Note 2.9 to the financial statements. The Board did not carry out impairment

review of rental flats and car parks as according to the HDB, these properties are for the provision of social services and

amenities to the public.

Lim Soo PingAuditor-General

Singapore

30 May 2008


REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTSof the Housing and Development Board for the year ended 31 March 2008


HDB Group2007/2008 2006/2007 2007/2008 2006/2007

Note S$'000 S$'000 S$'000 S$'000

Capital and reservesCapital account 2,463,627 2,463,628 2,468,127 2,468,128Capital gains reserve 5,992,813 5,736,308 5,992,813 5,736,308Asset revaluation reserve 5,920,008 6,019,488 5,920,008 6,019,488Foreign currency translation reserve - - (21) (19)Fair value reserve - - 5,341 6,371Retained earnings - - 71,740 68,742

14,376,448 14,219,424 14,458,008 14,299,018

Minority interests - - 27,689 27,132

Total equity 14,376,448 14,219,424 14,485,697 14,326,150

Non-current assetsProperty, plant and equipment 3 14,539,636 14,753,469 14,545,663 14,759,372Investment properties 4 4,900,191 4,822,247 4,916,246 4,840,404Loans receivable 5 46,826,533 49,451,350 46,826,651 49,451,609Investments in subsidiary 6 1,500 1,500 - -Investments in associates 7 - - 477 497Other investments 8 - - 55,800 57,182Deferred tax asset 9 - - 2,156 2,090

66,267,860 69,028,566 66,346,993 69,111,154

Current assetsProperties under development 10 2,443,494 2,635,589 2,443,494 2,635,589Properties for sale 11 915,118 1,742,768 915,118 1,742,768Inventories of building materials 53,168 52,364 64,997 54,174Loans receivable within 1 year 5 2,853,471 2,743,609 2,853,552 2,743,745Other investments 8 - - 8,000 16,338Government grant receivable 12 1,227,674 728,102 1,227,674 728,102Debtors and other receivables 13 402,533 286,931 409,062 292,511Cash and cash equivalents 14 38,378 20,321 62,851 39,877

7,933,836 8,209,684 7,984,748 8,253,104

Less: Current liabilitiesLoans payable within 1 year 15 6,572,605 5,621,921 6,572,605 5,621,921Creditors and other payables 16 1,397,741 1,206,504 1,420,560 1,224,397Amount due to subsidiary 4,504 356 - -Provision for income tax 9 - - 2,481 1,745

7,974,850 6,828,781 7,995,646 6,848,063

Net current (liabilities)/assets (41,014) 1,380,903 (10,898) 1,405,041

Non-current liabilitiesLoans payable 15 51,255,748 55,588,607 51,255,748 55,588,607Deferred income 17 594,650 601,438 594,650 601,438

51,850,398 56,190,045 51,850,398 56,190,045

Net assets 14,376,448 14,219,424 14,485,697 14,326,150

The accompanying notes form part of the financial statements.

JAMES KOH CHER SIANG MAH LAI SEONGChairman Director (Finance)

30 May 2008

BALANCE SHEETSof the Housing and Development Board and Subsidiaries as at 31 March 2008


HDB Group2007/2008 2006/2007 2007/2008 2006/2007

Note S$'000 S$'000 S$'000 S$'000

Sale proceeds 2,621,710 1,211,677 2,621,710 1,211,677Cost of sales (2,517,738) (1,160,787) (2,517,738) (1,160,787)Gross profit 103,972 50,890 103,972 50,890

Income 18 3,004,300 2,941,546 3,090,981 3,004,144Financial expenses 19 (1,613,883) (1,725,520) (1,613,883) (1,725,520)Operating expenses 20 (2,359,926) (1,695,488) (2,439,115) (1,768,957)Other expenses 20 (215,496) (311,283) (215,496) (311,283)

(1,081,033) (739,855) (1,073,541) (750,726)

Share of results of associates 7 - - (20) (91)Net deficit before government grant and taxation (1,081,033) (739,855) (1,073,561) (750,817)

Government grant 12 1,247,991 745,824 1,247,991 745,824Net surplus/(deficit) before taxation 166,958 5,969 174,430 (4,993)

Income tax expense 9 - - (1,833) (3,912)Net surplus/(deficit) after taxation 166,958 5,969 172,597 (8,905)

Minority interests - - (2,641) (2,398)Net surplus/(deficit) for the year 166,958 5,969 169,956 (11,303)

Retained earnings at the beginning of the year - - 68,742 86,014

Transfer from asset revaluation reserve 89,547 90,163 89,547 90,163

Transfer to capital gains reserve (256,505) (96,132) (256,505) (96,132)

Retained earnings at the end of the year - - 71,740 68,742


INCOME AND EXPENDITURE STATEMENTSof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008


HDBCapital Asset Total

Capital Gains Revaluation Retained Capital andAccount Reserve Reserve Earnings Reserves

S$’000 S$’000 S$’000 S$’000 S$’000

Balance as at 1 April 2007 2,463,628 5,736,308 6,019,488 - 14,219,424

Reversal on return of land to the Government - - (9,481) - (9,481)

Reversal of impairment losses - 120,773 109 (120,773) 109

Assets overstated in prior years (1) - (561) - (562)

Capital gains set aside on disposal of assets - 135,732 - (135,732) -

Release on sale and demolition of assets - - (89,547) 89,547 -

Net gains/(losses) recognised directly incapital and reserves (1) 256,505 (99,480) (166,958) (9,934)

Net surplus for the year - - - 166,958 166,958

Total recognised gains/(losses) for the year (1) 256,505 (99,480) - 157,024

Balance as at 31 March 2008 2,463,627 5,992,813 5,920,008 - 14,376,448


STATEMENTS OF CHANGES IN CAPITAL AND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008


STATEMENTS OF CHANGES IN CAPITAL AND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008

HDBCapital Asset Total

Capital Gains Revaluation Retained Capital andAccount Reserve Reserve Earnings Reserves

S$’000 S$’000 S$’000 S$’000 S$’000

Balance as at 1 April 2006 2,463,681 5,640,176 6,144,743 - 14,248,600

Reversal on return of land to the Government - - (32,804) - (32,804)

Impairment losses - (26,758) - 26,758 -

Assets overstated in prior years (53) - (2,288) - (2,341)

Capital gains set aside on disposal of assets - 122,890 - (122,890) -

Release on sale and demolition of assets - - (90,163) 90,163 -

Net gains/(losses) recognised directly incapital and reserves (53) 96,132 (125,255) (5,969) (35,145)

Net surplus for the year - - - 5,969 5,969

Total recognised gains/(losses) for the year (53) 96,132 (125,255) - (29,176)

Balance as at 31 March 2007 2,463,628 5,736,308 6,019,488 - 14,219,424



CONSOLIDATED STATEMENTS OF CHANGES IN CAPITALAND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008

GroupForeign

Capital Asset Currency TotalCapital Gains Revaluation Translation Fair Value Retained Minority Capital and

Account Reserve Reserve Reserve Reserve Earnings Interests ReservesS$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Balance as at 1 April 2007 2,468,128 5,736,308 6,019,488 (19) 6,371 68,742 27,132 14,326,150

Reversal on return of landto the Government - - (9,481) - - - - (9,481)

Reversal of impairmentlosses - 120,773 109 - - (120,773) - 109

Assets overstated inprior years (1) - (561) - - - - (562)

Fair value changes onavailable-for-saleassets - - - - (1,030) - (343) (1,373)

Transfer from foreigncurrency translationreserve to Income andExpenditure Statement - - - (2) - - (1) (3)

Capital gains set asideon disposal of assets - 135,732 - - - (135,732) - -

Release on sale anddemolition of assets - - (89,547) - - 89,547 - -

Effect of disposal ofsubsidiary (Note 6) - - - - - - (100) (100)

Net gains/(losses)recognised directly incapital and reserves (1) 256,505 (99,480) (2) (1,030) (166,958) (444) (11,410)

Net surplus for the year - - - - - 169,956 2,641 172,597

Total recognised gains/(losses) for the year (1) 256,505 (99,480) (2) (1,030) 2,998 2,197 161,187

Dividends paid - - - - - - (1,640) (1,640)

Balance as at31 March 2008 2,468,127 5,992,813 5,920,008 (21) 5,341 71,740 27,689 14,485,697



CONSOLIDATED STATEMENTS OF CHANGES IN CAPITALAND RESERVESof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008

GroupForeign

Capital Asset Currency TotalCapital Gains Revaluation Translation Fair Value Retained Minority Capital and

Account Reserve Reserve Reserve Reserve Earnings Interests ReservesS$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Balance as at1 April 2006 2,468,181 5,640,176 6,144,743 (24) 4,179 86,014 32,156 14,375,425

Reversal on return of landto the Government - - (32,804) - - - - (32,804)

Impairment losses - (26,758) - - - 26,758 - -

Assets overstated inprior years (53) - (2,288) - - - - (2,341)

Fair value changes onavailable-for-saleassets - - - - 2,192 - 731 2,923

Share of associates’foreign currencytranslation reserves - - - 5 - - 2 7

Capital gains set asideon disposal of assets - 122,890 - - - (122,890) - -

Release on sale anddemolition of assets - - (90,163) - - 90,163 - -

Net gains/(losses)recognised directly incapital and reserves (53) 96,132 (125,255) 5 2,192 (5,969) 733 (32,215)

Net surplus/(deficit)for the year - - - - - (11,303) 2,398 (8,905)

Total recognised gains/(losses) for the year (53) 96,132 (125,255) 5 2,192 (17,272) 3,131 (41,120)

Dividends paid - - - - - - (8,155) (8,155)

Balance as at31 March 2007 2,468,128 5,736,308 6,019,488 (19) 6,371 68,742 27,132 14,326,150



CONSOLIDATED CASH FLOW STATEMENTof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008

Group2007/2008 2006/2007

Note S$'000 S$'000

Cash flows from operating activitiesNet deficit before government grant and taxation (1,073,561) (750,817)Adjustments for:

Interest income 18 (1,416,616) (1,479,723)Interest expense 19 1,614,774 1,726,307Depreciation 20 313,946 309,369Provision for loss for properties under development/for sale 467,313 58,449Gain on disposal/write-off of assets (21,043) (1,714)(Reversal of impairment losses)/Impairment losses on property, plant

and equipment, and investment properties 20 (120,773) 23,783(Reversal of allowance)/Allowance for impairment losses on loans

receivable and debtors (25,642) 26,577Amortisation of deferred income (73,840) (70,933)Amortisation of premium/discount on bonds 19 (891) (787)Investment income (3,829) (5,557)Share of results of associates 7 20 91Gain on disposal of associate (24) -

Deficit before working capital changes (340,166) (164,955)

(Increase)/Decrease in working capital:Properties under development (1,682,677) (1,050,963)Properties for sale 2,549,180 1,015,705Inventories of building materials (10,823) (804)Debtors and other receivables (121,026) (1,812)Creditors and other payables 243,888 (27,886)

978,542 (65,760)

Loans repayment and interest received 7,033,643 7,086,526Loans granted (3,071,874) (3,271,530)Interest paid (1,406,752) (1,430,874)Income tax paid 9 (1,163) (3,797)Deferred income received 69,690 65,516Net cash from operating activities 3,261,920 2,215,126


CONSOLIDATED CASH FLOW STATEMENTof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008

Group2007/2008 2006/2007

Note S$'000 S$'000

Cash flows from investing activitiesProceeds from disposal of property, plant and equipment, and

investment properties 99,164 43,361Capital expenditure (354,394) (150,858)Purchase of property, plant and equipment, and investment properties (51,387) (14,597)Interest received 2,264 3,700Dividends received from other investments 1,772 2,382Proceeds from disposal of other investments 19,749 24,340Purchase of investments (11,501) (4,645)Proceeds from disposal of associate 7 21 -Disposal of subsidiary 6 (100) -Net cash used in investing activities (294,412) (96,317)

Cash flows from financing activitiesProceeds from loans payable 10,105,972 11,388,221Repayment of loans payable (13,487,256) (13,826,517)Interest paid (310,029) (349,427)Net government grant received 748,419 673,992Dividends paid to minority shareholders (1,640) (8,155)Net cash used in financing activities (2,944,534) (2,121,886)

Net increase/(decrease) in cash and cash equivalents 22,974 (3,077)

Cash and cash equivalents at the beginning of the year 39,877 42,954

Cash and cash equivalents at the end of the year 14 62,851 39,877



These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1 GENERAL

The Housing and Development Board (HDB) is a statutory body incorporated under the Housing and Development Act

(Cap. 129, 2004 Revised Edition) 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 HDB is HDB Hub 480 Lorong 6 Toa Payoh Singapore 310480.

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, markets, hawker centres, and other amenities in the housing estates.

The financial statements of the HDB and the consolidated financial statements for the Group for the year ended 31

March 2008 were authorised for issue in accordance with the approval of the Board on 28 May 2008.

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of PreparationThe Accounting Standards Act 2007 (No. 39 of 2007) came into effect on 1 November 2007. Under the Act, the

Accountant-General is appointed as the legal authority to prescribe accounting standards for Statutory Boards.

Every Statutory Board specified in the First Schedule of the Act shall prepare its financial statements in compliance

with the accounting standards established by the Accountant-General. On 11 March 2008, the Accountant-

General issued the Statutory Board Financial Reporting Standards (SB-FRS) (http://www.assb.gov.sg/), which

take effect retrospectively.

The financial statements for the Group have been prepared in accordance with the provisions of the Housing

and Development Act and SB-FRS, including related Interpretations and Guidance Notes. The SB-FRS are

equivalent to the Singapore Financial Reporting Standards (SFRS) with the exception of certain related party

disclosures which are optional under SB-FRS 24. As the Group continues to make these related party disclosures

which are now optional, the adoption of the SB-FRS in place of the SFRS applied previously does not have

material impact on the accounting policies and figures presented in the financial statements for the financial year

ended 31 March 2008.

The financial statements are expressed in Singapore Dollars (S$), which is the HDB’s functional currency, and

rounded to the nearest thousand, unless otherwise stated. They are prepared under the historical cost convention,

except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with SB-FRS requires management to exercise judgement

in the process of applying the accounting policies. It also requires the use of accounting estimates and assumptions

that affect the reported amounts of assets, liabilities, income and expenditure and disclosure of contingent assets

and liabilities in the financial statements. Although these estimates are based on management’s best knowledge

of current events and actions, actual results may ultimately differ from those estimates. Significant areas of

estimation and management judgement with regard to valuation of assets are disclosed in Note 2.9 and 2.18.

NOTES TO THE FINANCIAL STATEMENTSof the Housing and Development Board and Subsidiaries for the year ended 31 March 2008


2.1 Basis of Preparation (Continued)The Group has not yet adopted SB-FRS 108: Operating Segments that has been issued as of the balance sheet

date but is only mandatory for financial years beginning on or after 1 January 2009. The adoption of SB-FRS

108 is not expected to have a significant impact on the Group’s financial statements.

2.2 Group Accountingi) Consolidation

The consolidated financial statements include the financial statements of the HDB and its subsidiaries

prepared up to the end of the financial year after the elimination of all material inter-company transactions.

The equity and net surplus attributable to minority shareholders’ interest are shown separately in the

consolidated Balance Sheet and Income and Expenditure Statement respectively.

In the consolidated financial statements, subsidiaries are accounted for using the purchase method. The

subsidiaries are consolidated from the date of formation up to the effective date of disposal. Interest in

associates is accounted for using the equity method of accounting. Equity accounting is discontinued when

the carrying amount of the investment in an associate reaches zero, unless the Group has incurred obligations

or guaranteed obligations in respect of the associate.

ii) SubsidiariesA subsidiary is a company in which the Group has power to govern the financial and operating policies,

generally accompanying a shareholding of more than one half of the voting rights. The investments held in

the subsidiaries are stated at cost less any impairment loss in the Balance Sheet. The investments in

subsidiaries are assessed when there is an indication that an investment has been impaired or the impairment

losses recognised in the prior year no longer exist.

iii) AssociatesAn associate is a company in which the Group has significant influence over the company’s financial and

operating policy decisions, but not control, generally accompanying a shareholding of between 20% and

50% of the voting rights. The Group’s investments in the associates are accounted for using the equity

method. Under the equity method, the Group’s investments in associates are carried in the Balance Sheet

at cost, plus post-acquisition changes in the Group’s share of net assets of the associates, less allowance

for impairment, if any. The Group’s share of the operating results of the associates is included in the Income

and Expenditure Statement. Where the share of associates’ losses exceeds the Group’s interest in the

associates, such excess is not recognised in the Income and Expenditure Statement.

2.3 Capital AccountThe 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

(ii) the premium on the sale of land under the previous accounting system.


2.4 Capital Gains ReserveUnder 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 was created to enable the HDB to preserve the capital gains attributable to past governments

on disposal of assets held at the changeover date of the Government.

2.5 Asset Revaluation ReserveThe previous system did not maintain individual asset accounts and the HDB was unable to identify the historical

cost of each asset. When the HDB adopted the present conventional accounting system in 1985, all properties

owned by the HDB at 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

(ii) Land and buildings for commercial and industrial properties were valued at open market value.

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 [Note 2.7(ii)].

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

is charged to the Income and Expenditure Statement.

2.6 Fair Value ReserveThe fair value reserve includes the cumulative net change in the fair value of available-for-sale financial assets

that is recognised directly to reserves until the financial assets are derecognised.

2.7 Property, Plant and Equipmenti) Measurement

All land and buildings owned by the HDB at 1 April 1985 were valued at that date for the purpose of creating

asset accounts arising from a change in accounting policy. Additional information on the valuation of the

properties is made in Note 2.5.

All land and buildings acquired or constructed after 1 April 1985 are recorded at cost less accumulated

depreciation and impairment losses. Cost of properties includes the cost of land, construction cost,

development overheads and financing cost until completion of the project.

When a building comprises major components having different useful lives, they are accounted for as separate

items of property, plant and equipment.

Plant, equipment and others are stated at cost less accumulated depreciation and impairment losses. Assets

costing less than S$2,000 each are written off in the year of acquisition.

2.7 Property, Plant and Equipment (Continued)ii) Derecognition

An item of property, plant and equipment is derecognised upon its disposal. The difference between the net

disposal proceeds and its carrying amount is taken to the Income and Expenditure Statement.

iii) Subsequent ExpenditureSubsequent expenditure relating to property, plant and equipment that have been recognised is added to

the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally

assessed standard of performance before the expenditure was made, will flow to the Group and the cost

can be reliably measured. All other subsequent expenditure is recognised as an expense in the period in

which it is incurred.

iv) DepreciationNo depreciation is provided on freehold land, leasehold land of 999 years and artworks. All other property,

plant and equipment are depreciated on a straight-line basis over their estimated useful lives, as follows:

Leasehold land - 99 years or the remaining lease period

Buildings - 60 years

Leasehold property - remaining lease period

Plant and machinery - 3 - 10 years

Office equipment, furniture, fixtures and fittings - 3 - 12 years

Motor vehicles - 6 years

Fully depreciated property, plant and equipment are retained in the financial statements until they are no

longer in use.

The useful lives and residual values of property, plant and equipment are reviewed and adjusted as appropriate

at each balance sheet date.

2.8 Investment PropertiesInvestment properties are held for their long-term rental yields or for capital appreciation or both, and are not

occupied by the companies of the Group.

Investment properties, comprising industrial properties and commercial complexes, are stated at cost less

accumulated depreciation and impairment losses. The fair value of the investment properties disclosed in Note

4 is based on the comparable sales method or the income approach as stated in Note 2.9. Depreciation is

determined on a straight-line basis over the estimated useful lives. The useful lives are stated in Note 2.7(iv).

Property that is being developed for future use as investment property is classified as property under development

until the development is completed, at which time it is classified and accounted for as investment property.

On disposal of an investment property, the difference between the net proceeds and the carrying amount is

taken to the Income and Expenditure Statement.



2.9 Impairment of Property, Plant and Equipment, and Investment Properties

Property, plant and equipment, and investment properties are reviewed for impairment whenever events or

changes in circumstances indicate that these assets may be 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.

The 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 private 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, in which case it is charged to asset revaluation reserve.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment

losses recognised for the asset no longer exist or have decreased. The reversal is recorded in the Income and

Expenditure Statement unless the asset is carried at revalued amount, in which case the reversal is treated as

a revaluation increase. However, the increased carrying amount of the asset due to a reversal of impairment

losses is recognised to the extent it does not exceed the carrying amount that would have been determined,

net of depreciation, had no impairment losses been recognised for that asset in prior years.

For properties where the fees and charges recoverable from the rental of these properties are gazetted, or

applicable only to eligible tenants under criteria which are in line with the Government’s housing and social

policies, no review for impairment is carried out.

2.10 Properties under DevelopmentProperties under development include assets under construction, properties for sale under development, cost

of reconfiguration, and cost of upgrading sold properties that is recoverable from lessees and Town Councils

on completion.

The cost of properties under development includes acquisition costs, borrowing costs and other related

development expenditure. Borrowing costs are capitalised until the completion of development.

Assets under construction are stated at cost less foreseeable loss. Depreciation will commence when the asset

is available for use.

Properties for sale 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, less selling expenses.

Development of flats for sale is expected to incur a loss on sale. Provision is made for foreseeable loss for the

difference between estimated development costs and net realisable value, and charged to operating expenses

in the Income and Expenditure Statement. On completion, the loss is reclassified to provision for unrealised loss

of the properties for sale or realised when the flat is sold.


2.11 Properties for SaleProperties for sale are stated at the lower of cost and net realisable value. Cost is determined on the specific

identification basis. The net realisable value is the estimated selling price in the ordinary course of business, less

selling expenses.

Provision for unrealised loss for flats developed or acquired is made for the difference between the cost and

estimated selling price less selling expenses, and charged to operating expenses in the Income and Expenditure

Statement. The unrealised loss previously provided is realised on sale of the flat.

2.12 Inventories of Building MaterialsInventories of building materials are stated at the lower of cost and net realisable value. Cost is determined by

the weighted average basis.

2.13 Loans Receivable, Debtors and Other ReceivablesLoans receivable, debtors and other receivables are recognised initially at fair value and subsequently measured

at amortised cost using the effective interest method, less allowance for impairment.

If there is objective evidence that an impairment on loans receivable, debtors and other receivables has occurred,

the carrying amount of the asset shall be reduced either directly or through the use of an allowance account.

The amount of the loss shall be recognised in the Income and Expenditure Statement.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively

to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed.

Any subsequent reversal of an impairment loss is recognised in the Income and Expenditure Statement, to the

extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date.

2.14 Investments in Financial Assetsi) Classification and Measurement

The investments in financial assets of the Group are classified into two categories: held-to-maturity investments

and available-for-sale financial assets.

Held-to-maturity investmentsIf the Group has the positive intent and ability to hold debt securities to maturity, they are classified as held-

to-maturity investments. These investments are measured at amortised cost using the effective interest

method, less any impairment losses.

Available-for-sale financial assetsThe Group’s investments in certain equity securities and debt securities are classified as available-for-sale

financial assets if they are not classified in any of the other categories. Subsequent to initial recognition, they

are measured at fair value (Note 2.18) and changes therein, other than for impairment losses, are recognised

directly in equity. When an investment is derecognised, the cumulative gain or loss in equity is transferred

to the Income and Expenditure Statement.


2.14 Investments in Financial Assets (Continued)ii) Impairment

A financial asset is assessed at each reporting date to determine whether there is any objective evidence

that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or

more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference

between its carrying amount, and the present value of the estimated future cash flows discounted at the

original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated

by reference to its current fair value.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial

assets are assessed collectively in groups that share similar credit risk characteristics.

All impairment losses are recognised in the Income and Expenditure Statement. Any cumulative loss in

respect of an available-for-sale financial asset recognised previously in equity is transferred to the Income

and Expenditure Statement.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the

impairment loss was recognised. For financial assets measured at amortised cost and available-for-sale

financial assets that are debt securities, the reversal is recognised in the Income and Expenditure Statement.

For available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.

2.15 Cash and Cash EquivalentsCash and cash equivalents comprise fixed deposits and cash and bank balances. They are subject to an

insignificant risk of change in value.

2.16 Loans PayableThe housing development loans, mortgage financing loans and upgrading financing loans are borrowed from

the Government under an Agreement for Loan Facility.

The mortgage financing loans and upgrading financing loans are taken to finance the mortgage loans granted

to lessees for purchase of flats under public housing schemes and loans granted to lessees of upgraded flats

under the deferred payment scheme. The housing development loans, bonds and bank loans are to finance the

HDB’s development programmes and operational requirements. The housing development loans were fully repaid

as at 31 March 2008. The HDB would continue to issue bonds and obtain bank loans for its funding requirements,

with the MOF acting as the lender of last resort.

The loans and bonds are initially recognised at fair value. After initial recognition, they are subsequently measured

at amortised cost using the effective interest method.

2.17 Creditors and Other PayablesCreditors and other payables are initially recognised at fair value and subsequently measured at amortised cost

using the effective interest method.


2.18 Fair Value EstimationThe fair value of financial instruments traded in active markets is based on quoted market prices at balance

sheet date. The quoted market price used for financial assets held by the Group is the current bid price. The

indicative bid price is used for the bonds issued by the Group.

The carrying amounts of loans receivable, government and bank loans, cash and cash equivalents, current

receivables and current payables are assumed to approximate their fair values. The Group does not anticipate

the carrying amounts recorded at the balance sheet date to be significantly different from the values that would

eventually be received or settled.

2.19 ProvisionsA provision is recognised in the Balance Sheet when the Group has a legal or constructive obligation as a result

of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation

and a reliable estimate of the amount can be made. Provisions are not recognised for future operating losses.

2.20 Property Leasesi) When the Group is a lessor:

Leases of assets where substantially all risks and rewards incidental to ownership of the assets are transferred

by the Group to the lessees are classified as finance leases. The difference between the present value of

the lump sum lease payment and the carrying amount of the asset less the present value of the estimated

residual value accruing to the Group, is recognised as profit or loss in the Income and Expenditure Statement

in the year in which the lease is granted.

All other leases are treated as operating leases. Assets leased out under operating lease are included in the

investment properties and property, plant and equipment. The rental income from the lease (net of any

incentives) is recognised in the Income and Expenditure Statement on a straight-line basis over the lease term.

ii) When the Group is a lessee:Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the lease

term, are classified as operating leases. Operating lease payments are recognised as an expense in the

Income and Expenditure Statement on a straight-line basis over the lease term.

2.21 Employee Benefitsi) Defined Contribution Plans

Contributions on employees’ salaries are made to the Central Provident Fund (CPF), as required by law. The

CPF contributions are recognised as an expense in the period when the employees rendered their services.

ii) Employee Leave EntitlementEmployee entitlements to annual leave are recognised when they accrue to the employees. An accrual of the

estimated liability for annual leave, based on services rendered by employees, is made at balance sheet date.

iii) Termination BenefitsTermination benefits are payable whenever an employee accepts voluntary redundancy in exchange for these

benefits. Termination benefits are recognised as a result of an offer made due to redundancy.


2.22 Income Recognitioni) Sale Proceeds

Proceeds from sale of properties and building materials are recognised as income when they are sold.

ii) InterestInterest income is earned mainly from mortgage loans granted to purchasers of flats under public housing

schemes. It is accrued based on the effective interest rate.

iii) Rental and Related IncomeRental and related income from operating leases on investment and other properties are recognised on a

straight-line basis over the lease term.

iv) Car Park ChargesSeason parking fees are recognised on the accrual basis. Parking coupon income is recognised upon the

sale of coupons. Parking fines and other charges are recognised upon receipt of payments.

v) RecoveriesRecoveries 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 FeesAgency fees from agency projects and consultancy fees are recognised as income when services are rendered.

vii) Investment IncomeInterest income is accrued based on the effective interest rate.

Dividend income is recognised when the shareholder’s right to receive payment is established.

2.23 Financial Expensesi) Housing Development Loans, Bank Loans and Bonds

The HDB’s development programmes and operational requirements are financed by housing development

loans from the Government (Note 2.16), bank loans and bonds issued. Financial expenses comprise interest

incurred on these loans and bonds and net amortised discount or premium on bonds. Financial expenses

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 LoansThe 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 when incurred.


2.24 TaxationThe HDB is exempt from tax under section 13(1)(e) of the Income Tax Act (Cap. 134, 2004 Revised Edition).

Income tax expense of its subsidiaries comprises current and deferred tax. Income tax expense is recognised

in the Income and Expenditure Statement except to the extent that it relates to items recognised directly in

equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively

enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the

carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation

purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences

when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available

against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date

and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

2.25 Government GrantThe HDB’s deficit is financed 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.

Grant is recognised as income on an accrual basis when conditions are met. Grant to finance the HDB’s deficit,

other than the provision for foreseeable loss in properties for sale and impairment allowance of loans receivable,

is received in advance. The grant relating to the provision for foreseeable loss and impairment allowance of loans

receivable is drawn when the loss is realised.

The financing arrangement is subject to the MOF’s review from time to time. The cumulative grant received from

the Government since the establishment of the HDB is disclosed in Note 21.

2.26 Foreign Currency Items included in the financial statements of each entity in the Group are measured using the currency that best

reflects the economic substance of the underlying events and circumstances relevant to that entity.

Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at

the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies

at the reporting date are retranslated to the functional currency at the exchange rate at the reporting date. Non-

monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated

to the functional currency at the exchange rate at the date on which the fair value was determined. Foreign

currency differences arising on retranslation are recognised in the Income and Expenditure Statement.

The assets and liabilities of foreign operations are translated to Singapore Dollars at exchange rates prevailing

at the reporting date. The income and expenses of foreign operations are translated to Singapore Dollars at

average exchange rates. Foreign currency differences are recognised in the foreign currency translation reserve.

When a foreign operation is disposed of, in part or full, the relevant amount in the foreign currency translation

reserve is transferred to the Income and Expenditure.

HDBOffice

Plant Equipment,Freehold Leasehold Leasehold and Furniture

Land Land Buildings Property Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000

Cost or valuationAt 1 April 2007 78,905 11,418,651 6,352,146 - 11,028 71,130 17,931,860Additions 25 88,608 150,514 12,095 1,001 3,187 255,430Disposals/Write-off (3,235) (99,278) (24,445) - (853) (9,036) (136,847)Transfer to investment

properties - (16,106) (28,163) - - - (44,269)Transfer to properties for sale - (89,396) (61,840) - - - (151,236)Reclassifications - 115 (706) - - 591 -At 31 March 2008 75,695 11,302,594 6,387,506 12,095 11,176 65,872 17,854,938

Representing:Valuation

1 April 1985 48,815 4,628,972 870,450 - - - 5,548,23731 March 1986 24,110 825,138 298,326 - - - 1,147,574

Cost 2,770 5,848,484 5,218,730 12,095 11,176 65,872 11,159,12775,695 11,302,594 6,387,506 12,095 11,176 65,872 17,854,938

Accumulated depreciationand impairment losses

At 1 April 2007 - 1,727,145 1,377,679 - 9,741 63,826 3,178,391Depreciation - 119,494 112,131 - 518 3,461 235,604Disposals/Write-off - (33,341) (5,940) - (767) (8,997) (49,045)Transfer to investment

properties - (2,542) (9,043) - - - (11,585)Transfer to properties for sale - (14,654) (20,754) - - - (35,408)Reclassifications - 24 (69) - - 45 -Impairment losses - 728 339 - - - 1,067Reversal of impairment losses - (2,505) (1,217) - - - (3,722)At 31 March 2008 - 1,794,349 1,453,126 - 9,492 58,335 3,315,302

Carrying amountsAt 31 March 2008 75,695 9,508,245 4,934,380 12,095 1,684 7,537 14,539,636

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 holding and maintaining these properties. The net book value of

these markets and hawker centres was S$436 million (FY 2006/2007: S$435 million).

The impairment losses of S$1 million (FY 2006/2007: S$10 million) and the reversal of S$4 million (FY 2006/2007: S$1

million) in respect of some commercial properties were based on the estimated recoverable values, taking into account

the recent tenders and market comparables for these properties.


3 PROPERTY, PLANT AND EQUIPMENT


HDBOffice

Plant Equipment,Freehold Leasehold and Furniture

Land Land Buildings Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000

Cost or valuationAt 1 April 2006 49,361 11,561,683 6,308,947 11,770 75,311 18,007,072Additions - 47,349 92,093 153 1,738 141,333Disposals/Write-off (205) (117,964) (14,581) (895) (5,919) (139,564)Transfer from investment properties - 2,879 - - - 2,879Transfer to properties under development - (8,361) - - - (8,361)Transfer to properties for sale - (37,071) (34,428) - - (71,499)Reclassifications 29,749 (29,864) 115 - - -At 31 March 2007 78,905 11,418,651 6,352,146 11,028 71,130 17,931,860


1 April 1985 48,944 4,728,257 908,096 - - 5,685,29731 March 1986 24,110 840,694 300,780 - - 1,165,584

Cost 5,851 5,849,700 5,143,270 11,028 71,130 11,080,97978,905 11,418,651 6,352,146 11,028 71,130 17,931,860

Accumulated depreciation andimpairment losses

At 1 April 2006 - 1,666,415 1,278,318 10,237 65,614 3,020,584Depreciation - 116,035 111,715 398 4,076 232,224Disposals/Write-off - (54,550) (4,991) (894) (5,864) (66,299)Transfer from investment properties - 527 - - - 527Transfer to properties under development - (1,394) - - - (1,394)Transfer to properties for sale - (5,386) (10,616) - - (16,002)Reclassifications - (19) 19 - - -Impairment losses - 6,513 3,693 - - 10,206Reversal of impairment losses - (996) (459) - - (1,455)At 31 March 2007 - 1,727,145 1,377,679 9,741 63,826 3,178,391

Carrying amountsAt 31 March 2007 78,905 9,691,506 4,974,467 1,287 7,304 14,753,469

3 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)


GroupOffice

Plant Equipment,Freehold Leasehold Leasehold and Furniture

Land Land Buildings Property Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000

Cost or valuationAt 1 April 2007 78,905 11,418,651 6,357,715 - 11,294 74,585 17,941,150Additions 25 88,608 150,514 12,095 1,051 3,727 256,020Disposals/Write-off (3,235) (99,278) (24,445) - (856) (10,194) (138,008)Transfer to investment

properties - (16,106) (28,163) - - - (44,269)Transfer to properties for sale - (89,396) (61,840) - - - (151,236)Reclassifications - 115 (706) - - 591 -At 31 March 2008 75,695 11,302,594 6,393,075 12,095 11,489 68,709 17,863,657


1 April 1985 48,815 4,628,972 870,450 - - - 5,548,23731 March 1986 24,110 825,138 298,326 - - - 1,147,574

Cost 2,770 5,848,484 5,224,299 12,095 11,489 68,709 11,167,84675,695 11,302,594 6,393,075 12,095 11,489 68,709 17,863,657


At 1 April 2007 - 1,727,145 1,378,292 - 9,991 66,350 3,181,778Depreciation - 119,494 112,226 - 534 3,792 236,046Disposals/Write-off - (33,341) (5,940) - (770) (10,131) (50,182)Transfer to investment

properties - (2,542) (9,043) - - - (11,585)Transfer to properties for sale - (14,654) (20,754) - - - (35,408)Reclassifications - 24 (69) - - 45 -Impairment losses - 728 339 - - - 1,067Reversal of impairment losses - (2,505) (1,217) - - - (3,722)At 31 March 2008 - 1,794,349 1,453,834 - 9,755 60,056 3,317,994

Carrying amountsAt 31 March 2008 75,695 9,508,245 4,939,241 12,095 1,734 8,653 14,545,663



GroupOffice

Plant Equipment,Freehold Leasehold and Furniture

Land Land Buildings Machinery and Vehicles TotalS$'000 S$'000 S$'000 S$'000 S$'000 S$'000

Cost or valuationAt 1 April 2006 49,361 11,561,683 6,314,516 12,040 79,120 18,016,720Additions - 47,349 92,093 159 2,177 141,778Disposals/Write-off (205) (117,964) (14,581) (905) (6,712) (140,367)Transfer from investment properties - 2,879 - - - 2,879Transfer to properties under development - (8,361) - - - (8,361)Transfer to properties for sale - (37,071) (34,428) - - (71,499)Reclassifications 29,749 (29,864) 115 - - -At 31 March 2007 78,905 11,418,651 6,357,715 11,294 74,585 17,941,150


1 April 1985 48,944 4,728,257 908,096 - - 5,685,29731 March 1986 24,110 840,694 300,780 - - 1,165,584

Cost 5,851 5,849,700 5,148,839 11,294 74,585 11,090,26978,905 11,418,651 6,357,715 11,294 74,585 17,941,150


At 1 April 2006 - 1,666,415 1,278,837 10,477 68,617 3,024,346Depreciation - 116,035 111,809 418 4,384 232,646Disposals/Write-off - (54,550) (4,991) (904) (6,651) (67,096)Transfer from investment properties - 527 - - - 527Transfer to properties under development - (1,394) - - - (1,394)Transfer to properties for sale - (5,386) (10,616) - - (16,002)Reclassifications - (19) 19 - - -Impairment losses - 6,513 3,693 - - 10,206Reversal of impairment losses - (996) (459) - - (1,455)At 31 March 2007 - 1,727,145 1,378,292 9,991 66,350 3,181,778

Carrying amountsAt 31 March 2007 78,905 9,691,506 4,979,423 1,303 8,235 14,759,372



HDB GroupS$'000 S$'000

CostAt 1 April 2007 6,669,299 6,688,426Additions 23,906 23,906Disposals/Write-off (584) (584)Transfer from properties, plant and equipment 44,269 44,269Transfer to properties under development (34,676) (34,676)At 31 March 2008 6,702,214 6,721,341

Accumulated depreciation and impairment lossesAt 1 April 2007 1,847,052 1,848,022Depreciation 77,414 79,516Disposals/Write-off (248) (248)Transfer from properties, plant and equipment 11,585 11,585Transfer to properties under development (15,553) (15,553)Reversal of impairment losses (118,227) (118,227)At 31 March 2008 1,802,023 1,805,095

Carrying amountsAt 31 March 2008 4,900,191 4,916,246

Fair valueAt 31 March 2008 11,225,062 11,257,562

HDB GroupS$'000 S$'000

CostAt 1 April 2006 6,676,826 6,695,953Additions 124 124Disposals/Write-off (4,772) (4,772)Transfer to properties, plant and equipment (2,879) (2,879)At 31 March 2007 6,669,299 6,688,426

Accumulated depreciation and impairment lossesAt 1 April 2006 1,751,520 1,755,422Depreciation 79,550 79,550Disposals/Write-off (1,455) (1,455)Transfer to properties, plant and equipment (527) (527)Impairment losses 19,818 19,848Reversal of impairment losses (1,854) (4,816)At 31 March 2007 1,847,052 1,848,022

Carrying amountsAt 31 March 2007 4,822,247 4,840,404

Fair valueAt 31 March 2007 10,663,823 10,684,423

The reversal of impairment losses of S$118 million (FY 2006/2007: S$5 million) was made to reflect the estimatedrecoverable amount based on the prevailing market conditions. The impairment losses of S$20 million in FY2006/2007 in respect of leased lands at various sites were based on the revised gross plot ratio and tender ofleases of similar usage then.

4 INVESTMENT PROPERTIES


HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Loans receivableMortgage loans for flats 49,640,231 52,185,442 49,640,231 52,185,442Loans for shops sold 77 44 77 44Staff loans - - 199 395

49,640,308 52,185,486 49,640,507 52,185,881Less:

Allowance for impairment losses onmortgage loans for flats (84,809) (114,985) (84,809) (114,985)

49,555,499 52,070,501 49,555,698 52,070,896Deferred receivable

Upgrading costs due from lessees 124,505 124,458 124,505 124,458Balance as at 31 March 49,680,004 52,194,959 49,680,203 52,195,354

Represented by amount receivable:Within 1 year 2,853,471 2,743,609 2,853,552 2,743,745Later than 1 year but not more than 2 years 2,404,962 2,439,223 2,405,015 2,439,332Later than 2 years but not more than 5 years 7,328,836 7,451,256 7,328,901 7,451,400Later than 5 years 37,092,735 39,560,871 37,092,735 39,560,877

46,826,533 49,451,350 46,826,651 49,451,60949,680,004 52,194,959 49,680,203 52,195,354

The mortgage loans are granted to the buyers of flats under the public housing schemes, with the flats beingtaken as collateral.

Under the Agreement for Loan Facility with the Government, mortgage and upgrading financing loans are obtainedfrom the Government to finance loans granted to eligible purchasers of flats under the public housing schemesat concessionary or market interest rates, in accordance with prevailing mortgage financing policy and upgradingprogramme of the Government.

The loans receivable and deferred receivable are denominated in Singapore Dollars.

Loans receivableThe movements of loans receivable during the year for the Group:

Balance Balanceas at Loans as at

1.4.2007 granted Repayment 31.3.2008S$’000 S$’000 S$’000 S$’000

Mortgage loans for flats 52,185,442 3,039,992 5,585,203 49,640,231Loans for shops sold 44 47 14 77Staff loans 395 16 212 199

52,185,881 3,040,055 5,585,429 49,640,507

The movements in allowance for impairment losses on mortgage loans for flats for the Group:

Reversal of Bad debtsBalance allowance for written off Balance

as at impairment against as at1.4.2007 losses allowance 31.3.2008

S$’000 S$’000 S$’000 S$’000

Allowance for impairment losses onmortgage loans for flats 114,985 30,002 174 84,809

5 LOANS RECEIVABLE


Interest rates and repayment terms on the loans are:

Interest rate (per annum) Repayment term

Mortgage loans granted to lessees for purchase of 2.60% to 3.82% Up to 30 yearsflats under public housing schemes (FY 2006/2007: 2.60% to 3.72%)

Loans granted to tenants for the purchase of shops 5.25% 4 years(FY 2006/2007: 5.25%)

Loans granted to staff 4.25% Up to 6 years(FY 2006/2007: 4.25% to 5%)

Deferred receivableUnder the deferred payment scheme, lessees of upgraded flats can pay for their share of the upgrading coststhrough monthly instalments at interest rates ranging from 2.60% to 3.82% (FY 2006/2007: 2.60% to 3.72%)per annum over periods of up to 25 years.

5 LOANS RECEIVABLE (CONTINUED)

6 INVESTMENTS IN SUBSIDIARY

HDB2007/2008 2006/2007

S$’000 S$’000

SubsidiaryEM Services Pte Ltd(a) (unquoted shares at cost) 1,500 1,500

Country of Percentage of equityPrincipal activities incorporation held by the Group

2007/2008 2006/2007% %

Subsidiary of HDBEM Services Pte Ltd (a) Property management Singapore 75 75

and engineering services

Subsidiaries of EM Services Pte LtdEM (China) Pte Ltd (b) Property management Singapore - 60

E M Property Management Property management Singapore 100 100Pte Ltd (a)

Yi An Property Agency Pte Ltd (a) Real estate agency Singapore 100 100

(a) Audited by SP Tan & Co.(b) The Company was struck off in October 2007. The cash and cash equivalents prior to the striking off was

S$252,000. Upon completion of the striking off, S$100,000 was refunded to the minority shareholders.


Group2007/2008 2006/2007

S$’000 S$’000

AssociatesUnquoted shares at cost 525 725

Balance as at 1 April 497 581Share of losses (20) (91)Foreign currency translation differences - 7Balance as at 31 March 477 497

Country of Percentage of equityPrincipal activities incorporation held by the Group

2007/2008 2006/2007% %

Associates of EM Services Pte LtdPengda Investment & Investment and real estate Singapore 35 35 Development Pte Ltd (a) developer

Yihe Holding Pte Ltd (b) Facilities and project Singapore - 20 management consultants

(a) Audited by SP Tan & Co.(b) The investment in Yihe Holding Pte Ltd was disposed of in March 2008 for a cash consideration of S$21,000.

7 INVESTMENTS IN ASSOCIATES

Group2007/2008 2006/2007

S$’000 S$’000

Non-current investments:Held-to-maturity debt securities 20,524 20,533Available-for-sale equity securities 35,276 36,649

55,800 57,182

Current investments:Held-to-maturity debt securities 4,000 8,338Available-for-sale debt securities 4,000 8,000

8,000 16,338

Fair value of held-to-maturity debt securities 24,914 29,102

Available-for-sale debt securities have stated interest rates of 3.12% (FY 2006/2007: 3.32% to 4.99%) per annumand mature within the next 12 months. Held-to-maturity debt securities have interest rates of 4.04% to 5.5%(FY 2006/2007: 4.04% to 6%) per annum and mature in one to five years.

8 OTHER INVESTMENTS


Group2007/2008 2006/2007

S$’000 S$’000

Current tax expense- Current year 2,470 1,174- (Over)/under provision in respect of prior years (571) 1,642

1,899 2,816

Deferred tax expense- Origination and reversal of temporary differences (66) 709- Reduction in tax rate - 319- Under provision in respect of prior years - 68

(66) 1,096

Total income tax expense 1,833 3,912

Reconciliation of effective tax rate:

Group2007/2008 2006/2007

S$’000 S$’000

Net surplus/(deficit) before taxation 174,430 (4,993)Less :Net surplus/(deficit) of HDB excluding dividends from subsidiary

(Note 18), not subject to taxation 162,038 (18,496)Net surplus subject to taxation 12,392 13,503

Income tax at applicable tax rate of 18% 2,231 2,431Effect of reduction in tax rate - 319Tax effect of partial tax exemption and tax relief (71) (67)Income tax at concessionary rate (92) (38)Income not subject to tax (316) (669)Expenses not deductible for tax purposes 652 226(Over)/under provision in respect of prior years (571) 1,710

1,833 3,912

9 INCOME TAXa) Income tax expense

Group2007/2008 2006/2007

S$’000 S$’000

Balance as at 1 April 1,745 2,726Charge for the year 2,470 1,174Payments made during the year (1,163) (3,797)(Over)/under provision in respect of prior years (571) 1,642Balance as at 31 March 2,481 1,745

b) Movements in provision for income tax


The movements in deferred tax assets and liabilities for the Group during the year are as follows:

Recognised in Recognised inAt Income and At Income and At

1 April Expenditure 31 March Expenditure 31 March2006 Statement 2007 Statement 2008

S$’000 S$’000 S$’000 S$’000 S$’000

Deferred tax liabilitiesProperty, plant and equipment 136 (9) 127 1 128Other items 204 (204) - - -Total 340 (213) 127 1 128

Deferred tax assetsProvisions (2,896) 679 (2,217) (67) (2,284)Accrued interest receivable (630) 630 - - -Total (3,526) 1,309 (2,217) (67) (2,284)

Net deferred tax assets (3,186) 1,096 (2,090) (66) (2,156)

9 INCOME TAX (CONTINUED)c) Deferred tax

HDB and Group2007/2008 2006/2007

S$’000 S$’000

Land 2,741,329 2,339,771Buildings 851,107 971,599Upgrading works 150,610 81,286Improvement works 1,000 8,175

3,744,046 3,400,831Less:Provision for foreseeable loss (Note 2.10) (1,300,552) (765,242)Balance as at 31 March 2,443,494 2,635,589

Represented by :Properties for sale under development 1,821,780 2,207,176Assets under construction 471,104 347,127Upgrading works 150,610 81,286

2,443,494 2,635,589

Interest capitalised during the year (Note 19) 49,882 43,971

During the financial year, interest capitalised as properties under development amounted to S$50 million (FY2006/2007: S$44 million) at an average capitalisation rate of 3.47% (FY 2006/2007: 3.86%).

10 PROPERTIES UNDER DEVELOPMENT


11 PROPERTIES FOR SALE

HDB and Group2007/2008 2006/2007

S$’000 S$’000

Cost of flats 983,705 1,870,713Less:Provision for unrealised loss (Note 2.11) (68,587) (127,945)Balance as at 31 March 915,118 1,742,768

12 GOVERNMENT GRANT RECEIVABLE

HDB and Group2007/2008 2006/2007

S$’000 S$’000

Balance as at 1 April 728,102 656,270Less:Amount received (748,419) (673,992)

(20,317) (17,722)Transfer from Income and Expenditure Statement 1,247,991 745,824Balance as at 31 March 1,227,674 728,102

The amount transferred from Income and Expenditure Statement is the deficit to be financed by the Governmentunder the existing financing arrangement (Note 2.25).

13 DEBTORS AND OTHER RECEIVABLES

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Debtors 354,706 254,740 360,131 259,250Less:Allowance for impairment losses (15,396) (22,801) (15,536) (22,851)

339,310 231,939 344,595 236,399

Other receivables 43,806 32,959 44,746 33,921Less:Allowance for impairment losses (26) - (26) -

43,780 32,959 44,720 33,921Prepayments and deposits 19,443 22,033 19,747 22,191Balance as at 31 March 402,533 286,931 409,062 292,511


13 DEBTORS AND OTHER RECEIVABLES (CONTINUED)

The movements in allowance for impairment on debtors and other receivables for the HDB and Group are asfollows:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Balance as at 1 April 22,801 23,305 22,851 23,305Allowance for impairment losses 1,691 6,032 1,781 6,082Bad debts written off against allowance (9,070) (6,536) (9,070) (6,536)Balance as at 31 March 15,422 22,801 15,562 22,851

14 CASH AND CASH EQUIVALENTS

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Bank balances and cash 38,378 20,321 41,327 22,089Fixed deposits - - 21,524 17,788

38,378 20,321 62,851 39,877

15 LOANS PAYABLE

HDB and Group2007/2008 2006/2007

S$’000 S$’000

Government loansHousing development loans (Note 2.16) - 2,018,057Mortgage financing loans 49,669,338 52,472,895Upgrading financing loans 116,127 115,797

49,785,465 54,606,749Bonds

Principal 5,200,000 4,900,000Unamortised premium/discount 1,388 2,279

5,201,388 4,902,279Bank loans (unsecured) 2,841,500 1,701,500Balance as at 31 March 57,828,353 61,210,528

Represented by amount payable:Within 1 year 6,572,605 5,621,921Later than 1 year but not more than 2 years 4,835,748 3,784,604Later than 2 years but not more than 5 years 12,595,383 13,906,987Later than 5 years 33,824,617 37,897,016

51,255,748 55,588,60757,828,353 61,210,528

Fair value of bonds 5,350,027 4,975,106

The loans and bonds are denominated in Singapore Dollars.


15 LOANS PAYABLE (CONTINUED)

The movements during the year for the Group:

Balance Balanceas at as at

1.4.2007 Borrowings Repayment 31.3.2008S$’000 S$’000 S$’000 S$’000

Government loansHousing development loans 2,018,057 - 2,018,057 -Mortgage financing loans 52,472,895 2,358,623 5,162,180 49,669,338Upgrading financing loans 115,797 23,349 23,019 116,127

54,606,749 2,381,972 7,203,256 49,785,465

BondsPrincipal 4,900,000 800,000 500,000 5,200,000Premium/discount on bonds 2,279 - 891 1,388

4,902,279 800,000 500,891 5,201,388

Bank loans (unsecured) 1,701,500 6,924,000 5,784,000 2,841,50061,210,528 10,105,972 13,488,147 57,828,353

Interest rates and repayment terms on the loans are:

Interest rate (per annum) Repayment term

Housing development loans 4.50% 20 years (FY 2006/2007: 4.50%)

Mortgage financing loans 2.50% to 3.72% Up to 30 years (FY 2006/2007: 2.50% to 3.62%)

Upgrading financing loans 2.50% 10 years (FY 2006/2007: 2.50%)

Bank loans (unsecured) 1.28% to 3.00% Up to 1 year (FY 2006/2007: 3.11% to 3.70%)

Bonds are issued to finance the HDB’s development programme and working capital requirements. The bondsare as follows:

PrincipalSeries number S$M Coupon rate (per annum) Tenure Maturity

003 300 5.070% 10 years 21 September 2009003 300 5.070% Approximately 21 September 2009 (Re-opened) (effective interest rate: 4.740%) 10 years007 250 2.420% 5 years 23 February 2009008 250 3.560% 10 years 23 February 2014009 300 2.520% 5 years 3 November 2009010 500 3.375% 10 years 21 April 2015011 400 2.820% 5 years 6 October 2010012 100 3.200% 10 years 12 October 2015013 400 3.455% 5 years 1 March 2011


15 LOANS PAYABLE (CONTINUED)

PrincipalSeries number S$M Coupon rate (per annum) Tenure Maturity

014 100 3.730% 10 years 7 March 2016015 400 3.805% 5 years 14 July 2011016 100 3.995% 10 years 14 July 2016017 250 3.520% 5 years 31 October 2011018 250 3.622% 10 years 18 October 2016019 250 3.420% 5 years 14 February 2012020 250 3.550% 10 years 14 February 2017021 150 2.690% 2 years 11 June 2009022 150 3.350% 12 years 11 June 2019023 200 1.640% 2 years 1 March 2010024 300 3.630% 15 years 27 February 2023

The coupon rate is the effective interest rate of the bonds issued by the HDB, except for Series No. 003 (Re-opened).

16 CREDITORS AND OTHER PAYABLES

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Creditors 605,850 420,407 625,737 434,922Deposits and advances 509,009 453,948 509,009 453,948Deferred income (Note 17) 74,287 71,429 75,008 72,370Interest payable 187,551 239,676 187,551 239,676Provisions 21,044 21,044 23,255 23,481

1,397,741 1,206,504 1,420,560 1,224,397

Provisions were made for restoration works for the former quarry sites, pending firm development plans of therespective agencies taking over the sites.

The movements in provisions for the HDB and Group are:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Balance as at 1 April 21,044 21,044 23,481 23,563Provisions utilised - - (226) (82)Balance as at 31 March 21,044 21,044 23,255 23,481


17 DEFERRED INCOME

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Within 1 year (Note 16) 74,287 71,429 75,008 72,370After 1 year but within 5 years 147,174 148,117 147,174 148,117After 5 years 447,476 453,321 447,476 453,321

594,650 601,438 594,650 601,438668,937 672,867 669,658 673,808

Deferred income relates principally to amount received in advance in respect of operating leases of land,commercial and industrial properties (Note 2.20).

18 INCOME

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Interest income 1,416,604 1,479,703 1,416,616 1,479,723Rental and related income 842,281 792,577 857,497 800,652Car park charges 416,191 386,883 415,646 386,374Recoveries for upgrading and others 69,978 78,378 69,978 78,378Levy on resale flats and sales premium 41,184 28,475 41,184 28,475Agency and consultancy fees 40,921 24,423 114,002 98,405Gain on disposal of assets 60,902 21,848 60,907 21,851Investment income 5,323 25,013 3,931 5,704Fees and other income 110,916 104,246 111,220 104,582

3,004,300 2,941,546 3,090,981 3,004,144

Investment income includes dividend income as follows:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Dividends from- Unquoted subsidiary 4,920 24,465 - -- Others - - 1,751 2,339


19 FINANCIAL EXPENSES

HDB and Group2007/2008 2006/2007

S$’000 S$’000

Interest expense from- Government loans 1,421,712 1,562,257- Bank loans 62,567 54,986- Bonds 180,377 153,035

1,664,656 1,770,278Less:Interest capitalised in properties under development (Note 10) (49,882) (43,971)Bond amortisation (891) (787)

1,613,883 1,725,520

20 EXPENSES BY NATURE

Expenses include the following:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Upgrading, improvements and demolition 625,102 438,915 623,033 436,656Depreciation 311,402 308,947 313,946 309,369Property tax 108,468 99,690 108,539 99,755Impairment losses on property, plant and

equipment, and investment properties 1,067 30,024 1,067 30,054Reversal of impairment losses on

property, plant and equipment, andinvestment properties (121,840) (3,309) (121,840) (6,271)

Provision for loss for properties underdevelopment/for sale 783,757 194,989 783,757 194,989

(Reversal of allowance)/Allowance forimpairment losses on loans receivableand debtors (25,732) 26,276 (25,642) 26,326

Manpower costs 390,538 333,451 443,082 385,498CPF Housing grant 215,496 311,283 215,496 311,283Auditors’ remuneration 630 630 676 662Board members’ fees 125 76 125 76Directors’ fees and remuneration - - 467 454Manpower costs and overheads

capitalised in:- properties under development (7,901) (7,329) (7,901) (7,329)- inventories of building materials (5,055) (5,757) (5,055) (5,757)


20.1 MANPOWER COSTS

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Salaries and bonuses 341,834 292,648 388,129 338,417Contribution to CPF 34,590 28,280 39,476 33,693Staff benefits 6,862 6,711 7,909 7,420Training/development costs and others 7,252 5,812 7,568 5,968

390,538 333,451 443,082 385,498

Manpower costs include the key management personnel’s remuneration as follows:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Salaries and other short-term employee benefits 5,970 4,675 6,437 5,129

21 GOVERNMENT GRANT

Cumulative grant from the Government since the establishment of the HDB in 1960 amounts to:

HDB2007/2008 2006/2007

S$’000 S$’000

Total grant as at 1 April 15,992,631 15,246,807Grant for the financial year 1,247,991 745,824Total grant as at 31 March 17,240,622 15,992,631


22 SIGNIFICANT RELATED PARTY TRANSACTIONS

The HDB is a statutory body incorporated under the Housing and Development Act (Note 1). As a statutoryboard, all Government ministries and departments, and statutory boards are deemed related parties of the HDB.

The Group had the following significant transactions with its supervisory Ministry, MND, and other related partiesduring the year:

2007/2008 2006/2007S$’000 S$’000

HDB’s transactions with:Subsidiaries- Property management (374) (467)- Telemonitoring management, mechanical and electrical services (2,677) (2,910)- Other services (513) (513)- Rental income 7,162 3,298- Sale of parking labels 545 509

MND- Agency fee income 31,551 10,601

Singapore Land Authority- Purchase of land (1,236,573) (549,805)- Proceeds from return of land, flats and other properties to Government 96,400 41,617- Agency fees and other income 2,020 2,137- Temporary occupation licence fees (2,386) (2,176)

NEA- Agency fees and recoveries 17,838 25,543

Other Ministries and Statutory Boards- Agency fees, recoveries and others 676 1,612- Rental income 1,349 1,458

Town Councils- Operating fee for car park maintenance expenses (33,483) (32,112)

Subsidiaries’ transactions with:Town Councils and Statutory Boards- Estate management agency fee income 73,029 72,797

Amounts due to related parties as at 31 March 33,467 33,318Amounts due from related parties as at 31 March 4,672 4,347

The outstanding amounts are unsecured. There are no guarantees provided or received in respect of the relatedparty balances. For FY 2007/2008, the Group had not made any allowance for impairment relating to amountsowed by related parties (FY 2006/2007: Nil).


23 FINANCIAL RISK MANAGEMENT

The Group's activities expose it to interest rate risk, credit risk and liquidity risk.

The HDB’s exposure to market risk for changes in interest rate relates primarily to the government loans. TheHDB manages its interest rate exposure by largely matching the terms of the government loans with that of theloans receivables. The HDB uses various sources of funding to manage interest costs. In addition to governmentloans (Note 2.16), the HDB also accesses the capital market and financial institutions for its funding requirements.The bank loans (unsecured) are short-term in nature and any future variation in interest rates will not have amaterial impact on the results of the Group. Information relating to the Group’s interest rate exposure is disclosedin Note 15 on the loans payable.

The Group's loans receivable comprise largely mortgage loans to purchasers of flats under the public housingschemes. Policies on loan quantum and credit assessment are in place for the granting of mortgage loans toflat buyers, and the flats are taken as collateral. An allowance for impairment is made in respect of non-performingmortgage loans of which the collateral held is insufficient to discharge the outstanding mortgage loan. Theallowance represents the aggregate amount by which management considers it necessary to write down itsmortgage loan in order to state it in the Balance Sheet at its estimated net realisable value (Note 5).

The Group is of the view that there is no liquidity risk as the Group monitors and maintains a level of cash andcash equivalents deemed adequate to finance the Group’s operations. Funding is also made available throughan adequate amount of committed credit facilities. The MOF will act as the lender of last resort to the HDB forits funding requirements.

24 SEGMENTAL INFORMATION

BUSINESS SEGMENTSThe Group operates predominantly in Singapore, and therefore the revenues are generated mainly from theoperations in Singapore and the assets are located principally in Singapore.

The Group’s results are presented under seven business segments in respect of the Group’s main activities andthe government programmes implemented:

Home Ownership SegmentThe Home Ownership segment focuses on providing home ownership flats to eligible purchasers of flats underthe various home ownership schemes for public housing.

Upgrading SegmentThe Upgrading segment focuses on the upgrading programmes to renew and rejuvenate the older HDB estates.

Residential Ancillary Functions SegmentThe Residential Ancillary Functions segment focuses on implementing housing policies, managing ancillaryfacilities such as car parks in housing estates, and planning and building administration.

Rental Flats SegmentThe Rental Flats segment focuses on providing rental flats to eligible tenants under the various rental housing schemes.

Other Rental and Related Businesses SegmentThe Other Rental and Related Businesses segment focuses on the tenancy and management of investmentproperties and other properties owned by the HDB.

Mortgage Financing SegmentThe Mortgage Financing segment focuses on providing housing loans to eligible purchasers of flats under thevarious public housing schemes.

Agency and Others SegmentThe Agency and Others segment encompasses estate management services, architectural and engineeringconsultancy services, strategic building resource management and agency projects on behalf of the Government.


24 SEGMENTAL INFORMATION (CONTINUED)FY 2007/2008

OtherRental

andHome Residential Related Agency

Owner- Ancillary Rental Busin- Mortgage and Elimin-ship Upgrading Functions Flats esses Financing Others ations GroupS$M S$M S$M S$M S$M S$M S$M S$M S$M

Sale proceeds 2,463 - 138 - 19 - 2 - 2,622Cost of sales (2,389) - (149) - - - - 20 (2,518)Gross profit/(loss) 74 - (11) - 19 - 2 20 104

Income- External 53 56 456 22 928 1,432 144 - 3,091- Inter-segment 2 - 28 - 18 - 8 (56) -Total income 55 56 484 22 946 1,432 152 (56) 3,091

Segment result (1,006) (516) (173) (77) 632 37 35 (5) (1,073)Government grant 1,248Taxation (2)Minority interests (3)Net surplus 170

Other segment itemsUpgrading, improvements

and demolition - (510) (65) (21) (29) - - 2 (623)

Depreciation (2) - (133) (38) (130) - (11) - (314)

Impairment losses onproperty, plant andequipment, andinvestment properties - - - - (1) - - - (1)

Reversal of impairmentlosses on property,plant and equipment,and investmentproperties - - - - 122 - - - 122

Provision for loss forproperties underdevelopment/for sale (784) - - - - - - - (784)

Reversal of allowance/(Allowance) forimpairment losses onloans receivable anddebtors - - - (1) (3) 30 - - 26

CPF Housing grant (215) - - - - - - - (215)

Investment properties:- Rental and related

income - - - - 432 - - - 432- Operating expenses - - - - (125) - - - (125)

Segment assets 4,132 284 9,101 2,398 7,907 49,626 885 - 74,333Unallocated assets 111Total assets 74,444

Segment liabilities 2,472 267 3,419 14 3,369 49,794 354 - 59,689Unallocated liabilities 269Total liabilities 59,958

Capital additions 46 - 153 12 65 - 4 - 280


24 SEGMENTAL INFORMATION (CONTINUED)FY 2006/2007

OtherRental

andHome Residential Related Agency

Owner- Ancillary Rental Busin- Mortgage and Elimin-ship Upgrading Functions Flats esses Financing Others ations GroupS$M S$M S$M S$M S$M S$M S$M S$M S$M

Sale proceeds 1,117 - 88 - - - 7 - 1,212Cost of sales (1,081) - (82) - - - (2) 4 (1,161)Gross profit 36 - 6 - - - 5 4 51

Income- External 38 57 423 21 852 1,494 119 - 3,004- Inter-segment 1 - 6 - 16 - 28 (51) -Total income 39 57 429 21 868 1,494 147 (51) 3,004

Segment result (576) (353) (159) (65) 381 1 45 (25) (751)Government grant 746Taxation (4)Minority interests (2)Net deficit (11)

Other segment itemsUpgrading, improvements

and demolition - (352) (39) (15) (33) - - 2 (437)

Depreciation (2) - (131) (39) (128) - (9) - (309)

Impairment losses onproperty, plant andequipment, andinvestment properties - - - - (30) - - - (30)

Reversal of impairmentlosses on property,plant and equipment,and investmentproperties - - - - 3 - 3 - 6

Provision for loss forproperties underdevelopment/for sale (195) - - - - - - - (195)

Allowance for impairmentlosses on loansreceivable and debtors - - - (1) (6) (19) - - (26)

CPF Housing grant (311) - - - - - - - (311)

Investment properties:- Rental and related

income - - - - 414 - - - 414- Operating expenses - - - - (252) - - - (252)

Segment assets 4,329 231 9,160 2,503 8,109 52,284 773 - 77,389Unallocated assets 73Total assets 77,462

Segment liabilities 2,448 194 3,645 10 3,593 52,629 404 - 62,923Unallocated liabilities 213Total liabilities 63,136

Capital additions 5 - 67 - 67 - 3 - 142


The following commitments for capital expenditure are not recognised in the financial statements:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Authorised and contracted for 1,814,763 1,139,961 1,816,480 1,139,961Authorised but not contracted for 1,304,066 942,154 1,304,066 942,154

3,118,829 2,082,115 3,120,546 2,082,115

25 COMMITMENTSa) Capital commitments

The Group leases out its properties to non-related parties. The future minimum lease receivables under non-cancellable operating leases contracted for at the balance sheet date but not recognised as receivables, areas follows:

HDB Group2007/2008 2006/2007 2007/2008 2006/2007

S$’000 S$’000 S$’000 S$’000

Within 1 year 114,670 104,936 122,022 108,036After 1 year but within 5 years 267,387 246,015 264,041 245,965After 5 years 291,654 317,329 291,654 317,329

673,711 668,280 677,717 671,330

b) Operating lease commitments – where the Group is a lessor

The future minimum lease payments under non-cancellable operating leases contracted for at the balancesheet date but not recognised as liabilities, are as follows:

Group2007/2008 2006/2007

S$’000 S$’000

Within 1 year 1,379 1,317After 1 year but within 5 years 421 289

1,800 1,606

c) Operating lease commitments – where the Group is a lessee


26 CONTINGENT LIABILITIES

MODIFICATION WORKA claim involving rebar works for structural columns for S$2.4 million had been made by a contractor inFY2005/2006. The matter had proceeded to arbitration. Based on the legal advice and information presentlyavailable, the HDB believes that the claim will not succeed and accordingly, no provision had been made inrespect of the claim.

27 COMPARATIVE FIGURESComparative figures have been reclassified to conform to the current year’s presentation.

This page has been intentionally left blank

Housing & Development BoardHDB Hub, 480 Lorong 6

Toa PayohSingapore 310480

HDB InfoWEB www.hdb.gov.sg

hdb ar 2008

Documents