I REFER to the current discussion on the relevance and fairness of the $8,000 income ceiling for buying a Housing Board flat.

The HDB should refine the calculation of the ceiling as it does not factor in the greater financial burden faced by a larger family, given the same income level.

Consider an example of two families, each with a similar combined income of $8,000.

One couple has four children while the other has a single child. The family with four children obviously faces a heavier financial load and may have a greater need for a flat, perhaps a larger one.

A better formula is a ceiling of total household income divided by the number of direct family members.

For example, the Housing Board could use a per family member income ceiling of, say, $3,000 to qualify for a flat.

This formula could also be calibrated to include parents who do not own their own property and live with the applicants.

The Ministry of Education uses the same approach to decide school fee subsidies.

The current flat rate ruling exposes the formula to more debate over its fairness, and discourages Singaporeans from having more children as HDB flats become more expensive or are beyond their means.

Xavier Chua

This article was first published in The Straits Times.