{"id":7893,"date":"2021-07-05T20:50:04","date_gmt":"2021-07-05T12:50:04","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=7893"},"modified":"2024-10-04T10:52:57","modified_gmt":"2024-10-04T02:52:57","slug":"ethnic-integration-policy-eip-hdb","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/ethnic-integration-policy-eip-hdb\/","title":{"rendered":"Is the HDB Ethnic Integration Policy and ethnic quota still relevant?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><a href=\"https:\/\/sg.news.yahoo.com\/woman-allegedly-racist-comments-viral-videos-police-probe-095158405.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Beow Tan harassing minorities<\/a>, the <a href=\"https:\/\/www.channelnewsasia.com\/news\/singapore\/police-arrest-man-racial-slurs-kicked-indian-woman-mask-14787558\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">racial slur and kicking incident in Choa Chu Kang<\/a>, the <a href=\"https:\/\/www.todayonline.com\/singapore\/ngee-ann-poly-suspends-teaching-staff-member-seen-racist-video-confronting-inter-ethnic\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">former Ngee Ann Polytechnic lecturer\u2019s racist confrontation<\/a> and as recently as last week, the racist remarks, and assault <a href=\"https:\/\/www.channelnewsasia.com\/news\/singapore\/man-charged-public-nuisance-investigate-wounding-racial-feelings-15147210\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">at East Coast Park<\/a>.<\/p>\n\n\n\n<p>These are just a few events that reflect an increased resentment between the races. It is also a stark reminder to Singaporeans that racial tensions and disharmony are not yet obsolete, even in the most cosmopolitan of nations.<\/p>\n\n\n\n<p>It was in recognition of the perils of racial disharmony that the <a href=\"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-ethnic-integration-policy-eip\/\" target=\"_blank\" rel=\"noopener\">Ethnic Integration Policy (EIP) <\/a>was introduced back in 1989. More commonly referred to as the HDB ethnic quota, the EIP discouraged the forming of racial enclaves in Singapore.<\/p>\n\n\n\n<p>It is human nature to seek the company of your own group, be it along racial lines or otherwise. Our government recognised that the risk of our three main ethnic groups in Singapore \u2013 Malays, Chinese, and Indians \u2013 segregating themselves over time is real. Hence implementing the ethnic quota under the EIP.<\/p>\n\n\n<div class=\"wp-block-image wp-block-image aligncenter is-resized wp-image-7894\">\n<figure class=\"\"><img decoding=\"async\" width=\"647\" height=\"469\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/12\/HDB-quotas.jpg\" alt=\"ladies interacting with their neighbours in front of an HDB flat\" class=\"wp-image-7894\"\/><figcaption class=\"wp-element-caption\">Is there still a place for the Ethnic Integration Policy, or is it an outdated concept in contemporary Singapore? Source: HDB<\/figcaption><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-ethnic-integration-policy-eip\"><b>What is the Ethnic Integration Policy (EIP)?<\/b><\/h2>\n\n\n\n<p>The EIP is just one of the many initiatives that have been put forward by the government, hoping to foster better integration and respect between the various ethnicities of Singapore. The policy is like the Singapore Permanent Resident (SPR) quota implemented by HDB.<\/p>\n\n\n\n<p>Under the EIP, limits are set on the total percentage of a block or neighbourhood that may be occupied by a certain ethnicity. These ethnic quotas, which are updated at the first of every month, reflect the racial composition in Singapore.<\/p>\n\n\n\n<p>What this means is that while people are free to buy and sell their flats if they are of the same ethnicity (since this will not affect the percentage of ownership), should they want to buy or sell from someone of a different ethnicity, they will only be able to do so if the sale will not cause the percentage of that ethnicity going over their allotted quota.<\/p>\n\n\n\n<p>(EIP quotas based on ethnic proportions are updated on the first of every month. Check if you fulfil the EIP quota of a specific block\/neighbourhood via <a href=\"https:\/\/services2.hdb.gov.sg\/webapp\/BB29ETHN\/BB29STREET\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">HDB\u2019s portal<\/a>.)<\/p>\n\n\n<div class=\"wp-block-image wp-block-image aligncenter is-resized wp-image-18030\">\n<figure class=\"\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2018\/07\/EIP-quota.png\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" width=\"915\" height=\"412\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2018\/07\/EIP-quota.png\" alt=\"Ethnic Integration Policy quota\" class=\"wp-image-18030\"\/><\/a><figcaption class=\"wp-element-caption\">Source: HDB<\/figcaption><\/figure><\/div>\n\n\n<p>The impetus for such a policy was the government\u2019s recognition of a growing trend of Singaporeans to form certain ethnic enclaves. Bedok, for example, was inhabited predominantly by Malays, while the Chinese favoured settling in Hougang. There is also the fear that such a division would beckon the return to the 1960s level of distrust amongst the different races in Singapore, which led to some of the most <a href=\"https:\/\/en.wikipedia.org\/wiki\/1964_race_riots_in_Singapore\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">devastating riots in our short history<\/a>\u00a0as an independent nation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-effects-and-criticisms-of-the-ethnic-integration-policy\"><b>Effects and criticisms of the Ethnic Integration Policy<\/b><\/h2>\n\n\n\n<p>To the government\u2019s credit, the EIP has been successful in its main aim of preventing the \u2018racial enclaves\u2019 it was engineered to avert. Each HDB estate is a melting pot of races, with a certain interaction and integration amongst the different races.<\/p>\n\n\n\n<p>But its successes have come with a string of criticisms as well, particularly in respect of how the EIP disadvantages certain ethnicities over others, as recently debated in the <a href=\"https:\/\/www.todayonline.com\/singapore\/pritam-singh-ministers-spar-over-whether-ethnic-integration-policy-public-housing-should\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">parliamentary session<\/a>.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/r51_5WoeLk4\" width=\"560\" height=\"315\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n\n\n\n<p class=\"has-text-align-center\"><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/5q_fLlwU85s\" width=\"560\" height=\"315\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-the-eip-leads-to-some-bto-units-being-left-unpicked-in-land-scarce-singapore\"><b>1. The EIP leads to some BTO units being left unpicked in land-scarce Singapore<\/b><\/h3>\n\n\n\n<p>As <a href=\"https:\/\/www.99.co\/singapore\/insider\/census-2020-meaning-race-property-types-future-plans\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">reported<\/a> in Census 2020, there is a difference<a href=\"https:\/\/www.singstat.gov.sg\/-\/media\/files\/publications\/cop2020\/sr2\/cop2020sr2.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> in the household income<\/a> between the three major races of Singapore.<\/p>\n\n\n\n<p>The effect of this is visible in HDB&#8217;s build-to-order (BTO) flat selection processes, where there are unfilled Chinese quota leftover flats in cheaper, non-mature estates such as Tengah and unfilled Malay quota leftover flats in more expensive, mature estates such as Geylang.<\/p>\n\n\n\n<p>For instance, despite the <a href=\"https:\/\/www.todayonline.com\/singapore\/4-5-room-units-draw-keen-interest-latest-bto-exercise\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">high application rate<\/a>, 42 4-room units from the Dakota Breeze and Pine Vista BTO (launched in the May 2017 sales exercise) were put up for sale during the <a href=\"https:\/\/esales.hdb.gov.sg\/bp25\/launch\/20nov\/bto\/20NOVSBF_page_9483\/about0.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">November 2020 SBF<\/a>. As of writing, three units are still available for selection. But they are only available for Malays. No Chinese can buy these vacant units under the EIP with the ethnic quotas maxed out.<\/p>\n\n\n<div class=\"wp-block-image wp-block-image aligncenter is-resized\">\n<figure class=\"\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-sbf-november-2020-flat-selection-malay-quota.png\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" width=\"378\" height=\"606\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-sbf-november-2020-flat-selection-malay-quota.png\" alt=\"November 2020 SBF flat selection for Geylang 2017 BTO\" class=\"wp-image-41528\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-sbf-november-2020-flat-selection-malay-quota.png 378w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-sbf-november-2020-flat-selection-malay-quota-150x240.png 150w\" sizes=\"(max-width: 378px) 100vw, 378px\" \/><\/a><figcaption class=\"wp-element-caption\">Out of the leftover four-room units in Geylang put up for the November 2020 SBF, the three unpicked units are set aside for Malays. These are from the May 2017 BTO launch. Source: HDB<\/figcaption><\/figure><\/div>\n\n\n<p>We see a reverse of this in Tengah, the newest non-mature estate in Singapore. During the last <a href=\"https:\/\/www.hdb.gov.sg\/-\/media\/doc\/CCG\/25052021-BTO-Annexes\/25052021-Annex-B.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">SBF exercise in May 2021<\/a>, a higher number of 2-room Flexi and 3-room units were available for Chinese applicants. These units are all leftovers from previous BTO launches in the estate, since as of writing, none of the projects has been completed yet.<\/p>\n\n\n<div class=\"wp-block-image wp-block-image aligncenter is-resized\">\n<figure class=\"\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-may-2021-sbf-tengah-race-quota.png\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" width=\"625\" height=\"103\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-may-2021-sbf-tengah-race-quota.png\" alt=\"Race quota in Tengah for the May 2021 SBF\" class=\"wp-image-41527\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-may-2021-sbf-tengah-race-quota.png 625w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/07\/ethnic-integration-policy-may-2021-sbf-tengah-race-quota-150x25.png 150w\" sizes=\"(max-width: 625px) 100vw, 625px\" \/><\/a><figcaption class=\"wp-element-caption\">A higher number of 2-room Flexi and 3-room units were put up during the May 2021 SBF. Source: HDB<\/figcaption><\/figure><\/div>\n\n\n<p>Critics may argue that given Singapore&#8217;s land scarcity, it is perhaps foolish to leave these units unpicked rather than allocating them to citizens with a genuine housing need.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-ethnic-quotas-may-lead-to-price-differences-in-the-same-property\"><b>2. Ethnic quotas may lead to price differences in the same property<\/b><\/h3>\n\n\n\n<p>According to a <a href=\"http:\/\/pages.stern.nyu.edu\/~agavazza\/Wong.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2012 study<\/a>, Chinese-constrained HDB resale units (i.e. only Chinese buyers eligible) were 5 to 8% more expensive than Malay or Indian-constrained units, which were 3 to 4% cheaper than the average resale price. This could mean that flats owned by the Chinese were more to sell at a price over HDB valuation, whereas flats owned by Malay or Indians were more to sell at below HDB valuation.<\/p>\n\n\n\n<p>Besides the rather unfair situation of two \u2013 identical \u2013 flats being sold for a huge difference in price simply because of the ethnicity of the person to whom the flat could be sold, this also highlights the possibility that the ethnic quota could make racial income inequality <em>worse<\/em>.<\/p>\n\n\n\n<p>As a <a href=\"https:\/\/sudhirtv.com\/2021\/06\/21\/how-structural-racism-penalises-minorities-is-your-hdb-flat-worth-less\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">recent opinion piece<\/a>\u00a0argues, the system &#8220;financially benefits one family over another purely based on race.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-the-ethnic-quotas-could-make-it-harder-for-people-to-sell-their-flats\"><b>3. The ethnic quotas could make it harder for people to sell their flats<\/b><\/h3>\n\n\n\n<p>It is therefore been argued that what needs to be championed instead are \u201ccommon spaces\u201d or \u201cbridging social capital\u201d between communities. This means having events and encouraging community participation between people of different races, rather than maintaining a strict focus on housing quotas. This would arguably be harder work, but perhaps, a better solution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-buyback-assistance-scheme\"><strong>Buyback Assistance Scheme<\/strong><\/h2>\n\n\n\n<p>In March 2022, the Singapore government announced that it will\u00a0<a href=\"https:\/\/www.todayonline.com\/singapore\/ethnic-integration-policy-buyback-scheme-long-overdue-minimal-impact-resale-market-analysts-1840591\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">buy back HDB flats from eligible owners affected by the EIP<\/a>, on a case-by-case basis. The policy targets EIP-affected homeowners who have encountered \u201cgenuine difficulties selling their flats because of constraints they face under the EIP\u201d.<\/p>\n\n\n\n<p>This change was made in response to feedback from HDB flat owners who have been affected by the EIP. Some homeowners have found it difficult to sell their flats because of the ethnic quota and have had to sell their flats at a lower price.<\/p>\n\n\n\n<p>Buyback Assistance Scheme eligibility criteria:<\/p>\n\n\n\n<p>To qualify for buyback consideration, homeowners will have to meet the following criteria:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fulfil a minimum occupation period and ownership period of at least 10 years.<\/li>\n\n\n\n<li>Display proof of genuine attempts to sell their flat at a reasonable price over a continuous period. A reasonable price is one that is comparable to recent HDB transactions\u00a0<a href=\"https:\/\/services2.hdb.gov.sg\/webapp\/BB33RTIS\/BB33PMobileReslTrans.jsp\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">occurring within a 200m radius of their flat<\/a>. Adjustments may be made to account for differences in flat attributes, including storey height and orientation. Flat owners should keep records of any marketing attempts made, whether online or in print, and submit them to HDB. These records should ideally include property listing details, such as the asking price, listing date, record of flat viewings and more.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Only flats that have spent a longer than average amount of time that it takes for similar properties to be sold will be considered for HDB buyback.&nbsp;<\/p>\n\n\n\n<p>The benchmark for the average time taken for an HDB flat to sell currently stands at six months, although this is subject to change in the future depending on prevailing market conditions.<\/p>\n\n\n\n<p>It is important to note that the change to the EIP does not mean that the policy has been abolished. The EIP is still in place, but the government is now willing to buy back flats from eligible owners who are affected by the policy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-should-the-nbsp-ethnic-integration-policy-be-removed\"><strong>Should the&nbsp;Ethnic Integration Policy be removed?<\/strong><\/h2>\n\n\n\n<p>The EIP, and its prescriptive and rigid natures, is undoubtedly one of the most talked-about policies in Singapore. Each person here will have their own view on whether it should remain, be tweaked, or abolished in its entirety.<\/p>\n\n\n\n<p>There are definitely some strong arguments against it. From the disadvantages it imposes on sellers, to questions on its efficacy in bringing the community together. And let\u2019s face it, it feels like your parents forcing you to eat your vegetables with the true but tired line: it is good for you, so do it!<\/p>\n\n\n\n<p>It would be hasty to do away with the EIP completely. The US, UK, and France are prime examples of countries that, in allowing pure market forces to drive homeownership, have led racial enclaves to form. And it would be foolish to think that we will not slowly revert to such a situation ourselves soon.<\/p>\n\n\n\n<p>Perhaps what is required instead is a fine-tuning of the system, as\u00a0<a href=\"https:\/\/www.todayonline.com\/singapore\/pritam-singh-ministers-spar-over-whether-ethnic-integration-policy-public-housing-should\" target=\"_blank\" rel=\"noreferrer noopener\">brought up in the recent parliamentary session<\/a>. On top of the appeals, a little more flexibility should be allowed, taking into consideration the market when enforcing the EIP.[Read more about\u00a0<a href=\"https:\/\/www.99.co\/singapore\/insider\/the-99-co-housing-manifesto-for-singapore-part-1-hdb-flats\/\" target=\"_blank\" rel=\"noreferrer noopener\">our suggested tweaks on the policy here<\/a>.]<\/p>\n\n\n\n<p>More work needs to be done to put in place actual initiatives to encourage the mixing of the races in Singapore, rather than hoping that mere proximity will do all the hard work.<\/p>\n\n\n\n<p>As the recent racist incidents have shown, we are just not there yet with racial sensitivity and acceptance.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-do-you-think-of-the-ethnic-integration-policy-let-us-know-in-the-comments-section-nbsp\"><strong>What do you think of the Ethnic Integration Policy? Let us know in the comments section.&nbsp;<\/strong><\/h2>\n\n\n\n<p>If you found this article helpful, 99.co recommends&nbsp;<a href=\"https:\/\/www.99.co\/singapore\/insider\/can-pr-buy-hdb-resale-flat\/\" target=\"_blank\" rel=\"noreferrer noopener\">Your Question Answered: Can a Singapore PR buy an HDB flat?<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.99.co\/singapore\/insider\/rental-racism-discrimination-singapore-rental-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">We need to talk about racial discrimination in Singapore\u2019s rental market<\/a>.<\/p>\n\n\n\n<p>One of the major&nbsp;<a href=\"https:\/\/www.straitstimes.com\/politics\/parliament-no-plans-to-buy-back-hdb-flats-from-owners-who-cannot-sell-them-due-to-ethnic\" target=\"_blank\" rel=\"noreferrer noopener\">gripes with the ethnic quota<\/a>&nbsp;is that it often results in sellers, who are ready and willing to sell their units, having to turn away willing buyers, simply because the buyer is of the ethnicity whereby the quota has been maxed out.<\/p>\n\n\n\n<p>It is therefore been argued that what needs to be championed instead are \u201ccommon spaces\u201d or \u201cbridging social capital\u201d between communities. This means having events and encouraging community participation between people of different races, rather than maintaining a strict focus on housing quotas. This would arguably be harder work, but perhaps, a better solution.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Beow Tan harassing minorities, the racial slur and kicking incident in Choa Chu Kang, the former Ngee Ann Polytechnic lecturer\u2019s racist confrontation and as recently as last week, the racist remarks, and assault at East Coast Park. These are just a few events that reflect an increased resentment between the races. It is also a&hellip;<\/p>\n","protected":false},"author":31,"featured_media":60335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"25769,15455,35422,59914,17319,4567","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"no","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53631,53632,53589,57131],"tags":[54092,54093,53636,53915,53644,54094],"persona":[57126],"class_list":{"2":"type-post","18":"entry","19":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is the HDB Ethnic Integration Policy and ethnic quota still relevant? - 99.co<\/title>\n<meta name=\"description\" content=\"Race relations are tricky, but do we still need the Ethnic Integration Policy and quota to maintain harmony in this day and age in Singapore?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.99.co\/singapore\/insider\/ethnic-integration-policy-eip-hdb\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is the HDB Ethnic Integration Policy and ethnic quota still relevant?\" \/>\n<meta property=\"og:description\" content=\"Race relations are tricky, but do we still need the Ethnic Integration Policy and quota 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