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SG Low-income S'poreans to get two-year rent increase waiver

Property Here - Wednesday, June 19, 2013

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National Development Minister Khaw Boon Wan said that rental increases will now be waived for two years for incomes that cross the S$800 a month threshold, in order to prevent rises affecting low-income Singaporeans who receive pay increase.

In a blog entry posted on Wednesday, Mr Khaw said it was Emeritus Senior Minister Goh Chok Tong who first alerted him to this “cliff effect” two years ago where “some tenants may be inadvertently discouraged from working hard to improve their incomes.” 

At the end of the renewed two-year tenancy period, income increases that remain relatively low compared to the rent increases, are eligible to get another two-year waiver “to use their additional income to provide for their families and build up their savings”, Mr Khaw noted. 

“To date, about half (1,004 out of 1,869) of all tenants who renewed their tenancies and whose income increased from “$800 or less” to “$801 to $1,500” have benefited from this arrangement,” he further added. 



Nikki De Guzman, Junior Reporter and Shabnam Muzammil, Senior Journalist at PropertyGuru wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg