Wage trap and housing policy
The truth is hitting us faster by the days. Our workers' salary cannot keep going up like the PMETs. No matter how we try, the larger pool of hungry and equally adaptable workers in the world will compete with our workers for jobs. And there is no way we can keep pushing our wages up. In fact the trend is to push them down. How is this going to affect the cost of living here? Everything is up, gravity defying. Now public housing for 4 rm flats in prime area are costing $500k, 3 rm flats $400k. How can our workers pay for such luxurious public flats? As the prices of flats cannot come down or many HDB owners will lose the value attached to their only asset, it can be expected that more and more will opt for rental flats. How many working class young people can afford to pay for a $300k flat? It is time that HDB turn to building rental flats and the existing HDB flat owners can hope that there will be people with the money to buy their flats with a profit down the road. Look out for en bloc sales. These people will be cash rich to buy cheap HDB flats. Or they may upgrade to private properties with their new found cash.