HDB Ar 2008

FULFILLING ASPIRATIONS
HDB annual report 2007/2008
CONTENTS
Chairmans Statement Vision and Mission Shared Values Environmental Policy Corporate Governance Awards Highlights of FY 2007/2008 Members of the Board Key Officers Organisation Chart Staff Strength A Place Called Home Making The Link Looking Ahead Agency Projects Subsidiary and Associated Companies Visitors Statistics and Charts Financial Report 10 14 15 17 18 19 20 22 24 26 27 28 36 44 50 51 52 54 73
HDB has transformed Singapore's housing landscape and created homes and communities that residents and staff are proud of. Beyond building on past achievements, public housing is set to scale greater heights. As HDB approaches 50 years of public housing in Singapore, a new blueprint has been unveiled to remake the heartland and transform it into a vibrant home for all. This exciting phase has warranted a new HDB vision and mission that would position the organisation, galvanise staff 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 Quality and Value

Providing variety of housing options; meeting needs and expectations. With home ownership a reality for about 95 percent of those who live in HDB flats, high-quality reasonablypriced apartments are now common landmarks in Singapore's housing landscape. More than just building blocks, HDB builds homes by catering for the diverse needs of its residents through the provision of more housing options, financial assistance schemes and the promise of a world class living environment.
Vibrant and Sustainable Towns

Developing town identities and lifestyles; unveiling plans and vision. Comprehensive and well-supported towns bring about convenience and add buzz to the environment. Keeping pace with increased expectations, HDB towns constantly undergo physical renewal to ensure that quality of life in the heartland is never compromised. Plans have been unveiled to sustain HDB towns to meet life-cycle needs and uphold new lifestyle concepts - key factors in creating endearing homes for all.
Active and Cohesive Communities

Establishing ties and attachments; promoting ownership and engagement. A harmonious and cohesive community does not come about overnight. Through its housing policies and the creation of shared common spaces for all, HDB integrates residents from all walks of life and fosters ties that bind. With the hardware in place, developing the heartware of a community entails the promotion of more active community engagement and a greater sense of ownership among residents.
Staff Giving Their Best

Harnessing resources and capabilities; enhancing service and excellence. Staff development takes centrestage in ensuring organisational effectiveness and in building capabilities to meet current needs. Equipped with the necessary skills set and attitude, HDB staff are set to aim higher and further in their quest for innovation and excellence. On the service front, increased efficiency would transform into greater convenience and benefits, and enhance the service experience for our customers.
CHAIRMANS STATEMENT
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.
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.
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
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 FirstTimers. 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 lowerincome 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
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.
robust property market impacting housing demand and prices, home buyers were assured of HDBs housing commitments. In November 2007, the Minister for National Development announced that 6,000 new Build-ToOrder (BTO) flats would come onstream 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
With management and staff crafting it together, we launched HDBs 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
applications were received for the 278 flats offered during the Bi-monthly Sale of 4room 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
$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 energyefficient 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 HDBs 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 HDBs 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 HDBs 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, HDBs 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 cofunding 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 HDBs Mission now includes a fourth thrust to develop its people and talent. With the new Vision and Mission charting HDBs 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
VISION
An outstanding organisation with people committed to fulfilling aspirations for homes and communities all are proud of
MISSION
We provide affordable homes of quality and value We create vibrant and sustainable towns We promote the building of active and cohesive communities We inspire and enable all staff to give of their best
SHARED VALUES
Care
We respect and trust each other, always showing concern for one anothers well-being. We care for our community and the environment.
Learning
We practise lifelong learning, constantly upgrading our skills and knowledge so that we can give of our best to HDB.
Innovation
We pursue new and creative ideas to improve our products, services and processes.
Quality
We aim for the highest standards of professionalism and integrity, delivering products and services that are of quality and value to our customers.
Teamwork
We value and appreciate each others 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.
CORPORATE GOVERNANCE
HDB is committed to good corporate governance. Various self-regulatory and monitoring mechanisms have been put in place to achieve this aim.
Board Members
The 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.
to the Boards 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.
management and the AuditorGeneral's Office, before endorsing them for the Boards approval.
Business and Ethical Conduct

HDB 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.
Internal Audit Function Internal Control Framework

HDBs 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. HDBs Internal Audit Department advises all levels of management on the quality of HDB and the Groups operations with emphasis on systems of control. Reporting directly to the Audit Committee, it conducts riskbased 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.
Dissemination of Public Information

HDBs 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.
Annual Financial Audit

The audit findings by the AuditorGeneral'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
Audit Committee
The 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
AWARDS
2008 United Nations Public Service Award for Home Ownership Programme PRISM Awards 2008 Best Public Service Campaign (Public Sector) > S$500,000
Excellence Award Winner for Remaking Our Heartland
BCA Best Buildable Design Awards 2007

Queenstown RC14 (Gold) Sengkang N2C32 (Gold) Marine Terrace Precinct MUP 18A (Silver)
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
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
Institute of Internal Auditors (IIA) Standards for the Professional Practice of Internal Auditing (IIA Standards)
Quality Assessment Review (QAR) 2007
National Day Awards 2007

Public Administration Medal (Silver) (1) (2) (3) (13) (239) Public Administration Medal (Bronze) Commendation Medal Efficiency Medal Long Service Medal
Excellent Service Awards (EXSA) 2007

Star Award Gold Award Silver Award (14) (20) (57)
PS21 Star Service Award 2007

Distinguished Star Service Award (1)
PS21 ExCEL IQ Convention 2007

Gold Award for FerroLite Partition Wall
National Innovation & Quality Circle Convention 2007/2008

Star Award Gold Award Silver Award Bronze Award (2) (11) (10) (1)
IES Prestigious Engineering Achievement Award 2007

Transforming Rooftops to Skyrise Greenery Instantly - The Modular Way
NTUC May Day Model Workers Awards 2007

Company Commendation
HIGHLIGHTS OF FY 2007/2008
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]. Introduction of SMS alerts via the HDB eAlert Service [1 November 2007]. Launch of Home Locator in eSales [25 October 2007]. Introduction of the Family Season Parking Ticket to facilitate family visits [1 October 2007]. Announcement of first batch of Home Improvement Programme (HIP) and Neighbourhood Renewal Programme (NRP) precincts [February-March 2008].
Introduction of the revamped Flats On Offer webpage in HDB InfoWEB (e-Sales) [14 August 2007].
and Henderson Road, on the provision of common facilities at replacement precinct at Kim Tian Road [September-October 2007].
Events 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]. Inaugural public consultation with Advisers, grassroots organisations, town councils and SERS residents at Kampong Silat Launch of inaugural public talk on subletting of flats for public to better understand HDBs policies and guidelines [27 October 2007]. Launch of first integrated development comprising Studio Apartments and bigger flat types under the BTO system [25 October 2007].
MEMBERS OF THE BOARD
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
10
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
KEY OFFICERS
TOP MANAGEMENT Tay Kim Poh Chief Executive Officer (centre) Tan Poh Hong Deputy Chief Executive Officer (Estates & Corporate) (left) Fong Chun Wah Er. Lau Joo Ming Deputy Chief Executive Officer (Building) (right) Er. Yap Tiem Yew Director (Building Technology) Director (Building Quality) BUILDING GROUP (from left) Sng Cheng Keh Director (Development & Procurement) Raymond Toh Chun Parng Director (Research & Planning)
BUILDING 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)
ESTATES GROUP
CORPORATE GROUP
ORGANISATION CHART
CHAIRMAN JAMES KOH CHER SIANG

Directly reporting to Chairman
BOARD MEMBERS
CHIEF EXECUTIVE OFFICER TAY KIM POH

Administratively reporting to Deputy Chief Executive Officer (Estates & Corporate)
DEPUTY CHIEF EXECUTIVE OFFICER (BUILDING) ER. LAU JOO MING
DEPUTY CHIEF EXECUTIVE OFFICER (ESTATES & CORPORATE) TAN POH HONG
BUILDING GROUP
DIRECTORS Sng Cheng Keh Development & Procurement Raymond Toh Chun Parng Research & Planning Fong Chun Wah Building Quality Er. Yap Tiem Yew Building Technology
ESTATES GROUP
DIRECTORS Yap Chin Beng Estate Administration & Property Tan Kim Chwee Housing Administration Loh Loon Tong Properties & Land Khoo Teng Seong Industrial Properties
CORPORATE GROUP
DIRECTORS Lau Chay Yean Corporate Development Mah Lai Seong Finance Leong Chin Yew Information Services Balakrishna Madhubala Legal Soh-Leo Lan Hiang Internal Audit
STAFF STRENGTH
CATEGORIES OF STAFF Management/Professional Management Support IT Support Technical Support Office Administration Support Total 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
Figures as at 31 March 2008, including employees under the Part-Time Employment Scheme.
A PLACE CALLED HOME
Transforming 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, HDBs 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.
Jurong West Street 64 (left) Bedok North Road (right)
The initiatives introduced during the FY reinforced this sense of purpose in providing 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 4room 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
Clementi Avenue 4
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 secondtimers; 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 lowerincome through policies and schemes that protected their interests as well as provided them with a financial helping hand.
HDBs 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 2room flat and not more than $3,000 a
Bedok North Road
Punggol Drive
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/4room 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 gross monthly household income over the past 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
Integrating a community at Edgedale Greens Welcome Party
Jalan Membina
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. HDBs 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 HDBs 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 Statistics
Figures are for FY 2007/2008, or as at 31 March 2008
RESIDENTIAL PROPERTIES Residential properties under management Home ownership flats under management Rental flats under management# Total bookings for new flats* - Balloting Exercise - Build-To-Order System - Monthly Sale of 3-Room and Smaller Flats - Bi-monthly Sale of 4-room and Bigger Flats - DBSS Bookings for Studio Apartments New flats sold - 2-room flats - 3-room flats - 4-room flats - 5-room flats - Executive flats Resale transactions (based on registered cases) - 1-room flats - 2-room flats - 3-room flats - 4-room flats - 5-room flats - Executive/Multi-Generation flats - HUDC Resale applications registered under the CPF Housing Grant Scheme - Family grant (living near parents/married child) - Family grant - Singles grant - Joint singles grant Households that benefited from the Additional CPF Housing Grant 885,140 838,488 (94.7%) 46,652 (5.3%) 12,580 1,888 5,097 1,446 3,521 628 319 11,991 142 1,852 6,056 2,343 1,598 29,612 19 269 8,368 10,864 7,447 2,569 76 4,459 1,533 1,987 902 37 3,600
Number of HDB loans granted Number of HDB Loan Eligibility (HLE) letters issued Applications received from flat buyers and existing flat owners to finance purchases or refinance existing mortgage loan with bank loans - New flat buyers - Resale flat buyers - Existing flat owners (refinance) Applications for rental flats Flats rented out Approved applications for financial assistance measures Approved applications for Home Office Scheme Active cases of Subletting of Whole Flat HDB households that benefited from Goodwill Repairs Assistance Measures HDB blocks with upgraded electrical supply
18,824 28,061 16,389
1,622 14,759 8 5,970 2,735 8,475 33,724 18,735 15,963 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 BuildTo-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 21 1 Apr 07 0 May 07 406 131 73 191 96 106 115 71 66 1,271 1,378 1,249 1,121 1,410 1,366 1,343 1,251 1,211 1,053 860 267 79 0 Jun 07 1,489 1,498 1,416 1,313 1,347 1,318 1,169 1,296 926 1,221 1,367 1,491 1,784
1 Jul 07
0 Aug 07
1 Sep 07
0 Oct 07
1 Nov 07
1 Dec 07
0 Jan 08
0 Feb 08
3 Mar 08
Refinancing
Sale
Resale
Monthly Total
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.
MAKING THE LINK
Obtaining feedback from the community on Remaking Our Heartland plans
With an eye on future needs, whether in the residential heartland or the business environment, our works translated into increased 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 HDBs 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 towns 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 towns unique heritage as a means of increasing residents sense of belonging to and pride in their town.
Engaging residents in shaping the living environment
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 multigeneration 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.
Toa Payoh Central
Clementi Avenue 4
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.
HDBs 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.
HDBs 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.
Punggol Drive
Gek Poh Shopping Centre at Jurong 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. HDBs 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 Statistics
Figures are for FY 2007/2008 or as at 31 March 2008
RESIDENTIAL PROPERTIES Flats completed Flats under construction NON-RESIDENTIAL PROPERTIES Commercial properties under management Industrial properties under management Parking lots under management LAND MANAGEMENT State land managed and maintained by HDB on behalf of the Government State land sold on behalf of the Government 3,291 hectares 8 residential sites 2 commercial sites 1 ancillary site 17,720 12,372 713,180 6,247 18,073
Estate Renewal Strategy

MAIN UPGRADING PROGRAMME (MUP) Total number of precincts (units) announced under Main Upgrading Programme (Steady State Phase) Completed In Progress INTERIM UPGRADING PROGRAMME (IUP) Total number of precincts (units) announced/completed under Interim Upgrading Programme LIFT UPGRADING PROGRAMME (LUP) Total number of precincts (units) announced under Lift Upgrading Programme since 2001 Completed In Progress IUP PLUS Total number of precincts (units) announced under IUP Plus since 2002 Completed In Progress SELECTIVE EN BLOC REDEVELOPMENT SCHEME (SERS) Total number of sites under Selective En bloc Redevelopment Scheme since 1995 - 32,741 sold flats - 1,452 commercial properties - 8 markets/ hawker centres - 88 social/ communal premises Completed Clearance In Progress 48 sites 23 sites 71 sites comprising 84 (68,011 units) 20 precincts 62 precincts 58 precincts 112 precincts 219 (182,647 units) 190 (156,443 units) 106 precincts 15 precincts 131 (130,848)
HDB launched a new vision in 2007, one that speaks of committed people making positive transformations in the lives of Singaporeans.
LOOKING AHEAD
Forging ahead at the launch of the new HDB vision and at the Senior Management Retreat
In fact HDBs passion to provide its customers with quality service and its pursuit of innovation excellence was evident in the many new initiatives that put the organisation firmly on track to being outstanding.
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, HDBs 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 organisations directions for the next three years. With its tagline of Soaring to Greater Heights, the HDB 2010 Plan focuses on the four thrusts of HDBs 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 HDBs 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 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. 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.
Top management on their visits to the frontline service counters and branch offices
housing in Singapore, and its continued role in the future of public housing. WITH PASSION A central focus for the year in HDBs 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 HDBs initiatives to enhance communication and collaboration amongst departments. Leading with Passion, HDBs 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 HDBs 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.
An Innovation Showcase
The highlight of the year in the innovation arena was the launch of HDBs 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 HDBs 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.
Key Statistics
Figures 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) Customer satisfaction (Counter Service) Customer satisfaction (Telephone Services) Customer satisfaction (Written Correspondence) Customer satisfaction (Home/Office Visits) Customers who rated HDBs service levels as similar or better than selected organisations Rated best for counter services Rated best for telephone services Rated best for home/site visit POWER SESSION Processes simplified /reduced CUT WASTE PANEL Number of suggestions referred by Cut Waste Panel IQC ACTIVITIES IQCs in HDB Projects completed in FY 2007/2008 Cost savings from IQC projects M.A.G.I.C. CHA CHA CHA RECOGNITION SCHEME M.A.G.I.C. Achiever Awards M.A.G.I.C. Hero Awards M.A.G.I.C. Champion Awards 1370 90 5 284 619 $4,819,000 71 20% Jurong East Branch Office Sims Drive Branch Office Bedok Branch Office 4.6 5.3 4.3 4.1 4.5 79%
STAFF SUGGESTION SCHEME (SSS) Suggestions received Suggestions accepted STAFF DEVELOPMENT HDB Undergraduate Scholarships awarded HDB Postgraduate Scholarships awarded Sponsorship for Postgraduate (Part-Time) & Undergraduate Studies Sponsorship for Part-Time Diploma and Certificate Studies STAFF RECOGNITION Recipients for 25, 30, 40 and 45-Year Long Service Awards Recipients for 10, 15, and 20-Year Long Service Awards RECIPIENTS FOR NATIONAL DAY AWARDS Public Administration Medal (Silver) Public Administration Medals (Bronze) Commendation Medals Efficiency Medals Long Service Medals (including a posthumous award) STAFF CONTRIBUTIONS TO COMMUNITY Staff who contributed to SHARE Amount raised under GRAINS Beneficiaries under GRAINS 92.18% $52,345.70 937 1 2 3 13 239 455 406 10 2 7 183 26,575 17,181
AGENCY PROJECTS
HDB was the agent for the Government and other authorities on land reclamation projects, and infrastructure works in HDB towns.
Land Reclamation Projects

Pulau 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 Works
On 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 Projects

HDB 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.
SUBSIDIARY AND ASSOCIATED COMPANIES

EM Services
EM 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.
VISITORS
HDB played host to distinguished overseas and local visitors interested in our successful public housing programme.
In FY 2007/2008, HDB welcomed 3,145 visitors in 172 visits. Among them were the following dignitaries:
01) His Excellency Wen Jiabao

Premier of the State Council, Peoples Republic of China
02) His Excellency Datuk Wira Abu Seman Bin Yusop

Deputy Minister, Ministry of Federal Territories, Malaysia
03) His Excellency Mansoor Hassan Bin Rajab

Minister for Municipalities and Agricultural Affairs, Kingdom of Bahrain
04) Dr Samir Saeed Mahmoud Farag

Governor of Luxor, Arab Republic of Egypt
05) Mr Sergey V Pchelintsev

Deputy Head of State Legal Board attached to the President of the Russian Federation
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STATISTICS AND CHARTS

CONTENTS
HDBs Achievements since 1960 Demand for Flats Building Statistics Cumulative Achievements HDBs Achievements for FY 2007/2008 Statistical Highlights Town Developments Population Housed in HDB Flats Location of HDB Developments Price Range of Flats Offered Residential Properties Non-Residential Developments Properties under Management Allocations Floor Plans 58 59 60 61 62 63 64 65 67 68 55 56 57
HDBS ACHIEVEMENTS SINCE 1960

DEMAND FOR FLATS
1960 - 1990/91 1960-1965 1966-1970 1971-1975/76 1976/77-1980/81 1981/82-1985/86 1986/87-1990/91 Rental 52,408 66,005 57,034 47,958 38,628 15,995 Home Ownership 2,967+ 40,013 123,213 141,430 205,502 194,206
1991/92 - 2007/2008 1991/92 - 1995/96 1996/97 - 2000/01 2001/02 - 2005/06 2006/2007 2007/2008
Rental 39,200 27,787 22,968 5,643 5,970
Home Ownership 308,454* 126,413* 50,308* 8,455* 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 and those 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 RFS up till May 1999 and bookings for 3-room flats under Walk-In Selection (WIS) with effect from June 1999. These exclude requests received under the 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
1960 - 1990 1960-1965 1966-1970 1971-1975 1976-1980 1981-1985 1986-1990* Total 54,430 66,239 113,819 137,670 200,377 121,400 Dwelling Units 53,777 63,448 110,362 130,981 189,299 119,708 Commercial Developments 653 2,791 3,457 6,689 11,078 1,692
1991 - 2007 1991 - 1995 1996 - 2000 2001 - 2005 2006 2007
Total 99,557 158,621 55,515 2,752 5,111
Dwelling Units 98,994 157,919 55,135 2,733 5,063
Commercial Developments 563# 702 380 19 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 Residential Dwelling Units Commercial Shops and Eating Houses Markets and Food Centres Offices Kiosks Industrial Terrace Workshops Industrial Workshops Warehouses Flatted/Ramp-up Factories Prototype Factories Canteens/Eating Houses Land Leases Wholesale Shops and Recreational Swimming Complexes Sports Complexes Indoor Stadiums, Training Halls and Sports Halls Town Gardens and Parks HDB or Government/Institutional Civil Defence Shelters Area Offices, Branch Offices and Town Council Offices Community Centres/Clubs Bus Interchanges Engineering Projects: Completed Land Reclamation East Coast Phases 1-7 North-Eastern Coast Phases 1-3 North-Eastern Coast Phase 4 Punggol Kallang Basin West Coast Pasir Ris Marina Bay Tuas Woodlands Checkpoint Tanjong Rhu Pasir Panjang Southern Islands Pulau Tekong
* #
Units Completed
990,320
16,581 223 1,895 766
4,786* 5,900* 97 2,869 207 61*# 0 1,145
18 12 9 72
446 67 44 25 Area Reclaimed (hectares) 1,525.0 472.0 126.1 276.0 199.0 86.0 44.0 38.0 20.0 9.7 5.6 4.7 34.0 833.4
Includes Woodlands Park D units (comprising 342 terrace workshops, 218 industrial workshops and 3 canteens) hived off to Jurong Town Corporation in 1995. Includes 1 canteen in Tampines demolished in 1996.
HDBS ACHIEVEMENTS FOR FY 2007/2008

STATISTICAL HIGHLIGHTS
Key Indicators Estimated percentage of resident population living in HDB flats Percentage of resident population living in Home Ownership flats Bookings for new flats# ^ Applications registered for resale flats Applications to rent flats Flats sold under Home Ownership for the People Scheme# ^^ Resale transactions completed Rental flats let Projects Completed Residential Commercial* Industrial Projects Under Construction Residential Commercial* Industrial Units Awarded Residential Commercial** Industrial
# * ** ^
FY 2006/2007 81 79 8,455 29,034 5,643 5,712 29,063 4,037
FY 2007/2008 82 80 12,580 29,612 5,970 11,991 28,449 2,735
Percentage Change % 1.0 1.0 48.8 2.0 5.8 110.0 -2.1 -32.3
1,764 19 0
6,247 44 0
254.1 131.6 0.0
14,212 100 0
18,073 78 178
27.2 -22.0 0.0
3,405 17 0
10,108 33 0
196.9 94.1 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 financial years when the flats were under construction.

TOWN DEVELOPMENTS
Land Area (Hectares) Town Ang Mo Kio Bedok Bishan Bukit Batok Bukit Merah Bukit Panjang Choa Chu Kang Clementi Geylang Hougang Jurong East Jurong West Kallang/Whampoa Pasir Ris Punggol Queenstown Sembawang Sengkang Serangoon Tampines Toa Payoh Woodlands Yishun Other Estates# Total Total* 638 937 690 785 858 489 583 408 678 1,276 384 987 799 601 957 687 708 1,055 737 1,200 463 1,198 810 Residential** 283 408 172 291 312 228 307 198 214 354 165 480 176 318 474 210 376 507 156 500 210 525 445 126 Dwelling Units Under Management Projected Ultimate** As At 31 March 2008 48,069 59,359 19,367 31,731 50,873 29,498 39,173 23,877 30,418 48,473 22,300 69,650 34,289 27,515 16,734 29,312 17,664 42,090 21,292 61,483 36,281 58,025 46,613 21,054 885,140 58,000 74,000 32,000 47,000 68,000 43,000 62,000 35,000 49,000 68,000 29,000 92,000 43,000 44,000 96,000 50,000 64,000 95,000 29,000 83,000 48,000 88,000 84,000 25,000 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 Town as at 31 March 2008 HDB Town Ang Mo Kio Bedok Bishan Bukit Batok Bukit Merah Bukit Panjang Choa Chu Kang Clementi Geylang Hougang Jurong East Jurong West Kallang/Whampoa Pasir Ris Punggol Queenstown Sembawang Sengkang Serangoon Tampines Toa Payoh Woodlands Yishun Other Estates: Central Area Bukit Timah Marine Parade Total Population 148,600 196,200 67,300 113,400 142,900 109,100 150,800 72,800 95,900 170,800 79,700 236,600 100,900 107,600 53,600 82,300 62,700 143,000 74,700 230,300 104,600 219,800 167,300 30,300 8,300 22,600 2,992,100
3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1960 1965 1970 1975 1980 1985 YEAR Estimated resident population in Singapore (Source: Singapore Department of Statistics) Estimated resident population living in HDB flats (Source: Research & Planning Department, HDB) 1990 1995 2000 3.6 million
Population in Singapore and in HDB Flats
3.0 million
POPULATION (000)
2005
2008 (Mar)
Population in Singapore and in HDB Flats
100 90 87% 83% 81% 86% 86% 82% 67%
Refers to Singaporeans and Permanent Residents only. Figures are rounded off to the nearest '00.
80 70 60 50 40 35% 30 20 10 0 9% 23% 47%
PERCENT
1960
1965
1970
1975
1980
1985 YEAR
1990
1995
2000
2005
2008 (Mar)
Estimated percentage of resident population living in HDB flats (Source: Research & Planning Department, HDB)

LOCATION OF HDB DEVELOPMENTS
Legend Completed Under Construction HDB Development Boundary

N
Map of Singapore
Scale 0 5 kilometres

PRICE RANGE OF FLATS OFFERED
Town Jurong West Bukit Panjang Sembawang Yishun Punggol Sengkang 2-Room ($) 77,000 - 97,000 73,000 - 89,000 60,000 - 87,000 3-Room ($) 116,000 - 143,000 118,000 - 141,000 117,000 - 152,000 100,000 - 143,000 4-Room/Type A ($) 160,000 - 205,000 181,000 - 231,000 135,000 - 200,000 183,000 - 253,000 184,000 - 259,000 145,000 - 243,000 5-Room/Type B ($) 190,000 - 260,000 -
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 PROPERTIES
Dwelling Units Under Management HDB Town* Ang Mo Kio Bedok Bishan Bukit Batok Bukit Merah Bukit Panjang Choa Chu Kang Clementi Geylang Hougang Jurong East Jurong West 1-Rm 0 0 0 0 653 0 0 0 0 0 0 0 2-Rm 630 672 0 0 1,145 0 0 41 750 0 0 123 444 21 0 1,365 0 84 66 0 659 51 0 3-Rm 24,426 22,402 2,359 10,268 16,425 2,620 1,312 12,132 11,382 9,219 6,879 11,107 12,934 155 0 15,485 0 240 4,547 12,240 15,708 5,380 13,025 Sold Flats 4-Rm 5-Rm 13,023 19,854 9,199 13,850 13,838 13,980 19,437 7,677 9,363 23,160 7,333 28,401 9,079 10,716 5,335 6,207 7,238 17,988 10,231 27,057 9,304 25,843 23,301 5,252 10,135 5,395 4,832 9,098 9,517 13,422 2,407 3,601 9,923 5,898 20,821 4,843 9,054 10,273 3,337 7,556 19,316 3,751 15,833 5,211 19,010 7,280 Exec 481 2,711 1,660 2,732 44 3,381 4,762 620 831 4,310 1,871 6,506 501 7,460 1,126 359 2,870 4,462 2,365 5,845 853 6,190 2,741 SA HUDC 0 130 0 0 212 0 0 0 107 0 143 0 0 0 0 114 0 0 0 208 156 0 169 0 0 358 0 0 0 0 0 330 622 0 0 0 98 0 0 0 0 244 0 175 0 0 Total 43,812 55,904 18,971 31,682 41,415 29,498 38,933 22,877 26,364 47,234 22,124 66,958 27,801 27,504 16,734 26,867 17,664 42,090 21,204 61,183 32,066 56,474 46,516 1-Rm 1,318 2,250 396 20 4,231 0 0 454 1,044 538 0 84 4,401 0 0 575 0 0 0 154 1,170 932 16 Rental Flats 2-Rm 3-Rm 4-Rm 5-Rm Exec SA HUDC 2,863 1,155 0 20 4,913 0 240 479 2,401 315 0 73 38 0 9 218 0 0 67 609 380 176 3 12 0 0 96 0 0 0 0 6 0 2 4 0 0 0 0 0 0 0 0 159 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Dwelling Dwelling Total Units Units Dwelling Under Completed Total Units Construction FY 07/08 4,257 3,455 396 49 9,458 0 240 1,000 4,054 1,239 176 2,692 6,488 11 0 2,445 0 0 88 300 4,215 1,551 97 48,069 59,359 19,367 31,731 50,873 29,498 39,173 23,877 30,418 48,473 22,300 69,650 34,289 27,515 16,734 29,312 17,664 42,090 21,292 61,483 36,281 58,025 46,613 1,221 572 176 0 1,218 0 468 388 447 0 0 981 1,056 0 2,074 3,959 757 2,556 0 0 0 0 352 0 386 0 0 1,306 0 0 0 0 0 0 228 0 0 425 720 0 2,024 0 0 1,158 0 0
1,147 1,459 2,025 0 0 1,702 0 0 88 126 2,954 385 16 58 11 0 168 0 0 0 20 91 75 63
Kallang/Whampoa 0 Pasir Ris Punggol Queenstown Sembawang Sengkang Serangoon Tampines Toa Payoh Woodlands Yishun 0 0 0 0 0 0 0 0 0 0
Other Estates: Central Area Bukit Timah Marine Parade Total 0 0 0 653 341 0 26 6,418 4,697 441 3,043 218,426 2,282 920 1,798 336,414 283 682 1,673 208,403 9 380 0 0 0 0 38 0 0 1,865 7,650 2,423 6,540 2,073 0 0 975 0 1,324 53 0 2 14 0 0 298 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,115 0 1,326 10,765 2,423 7,866 1,848 0 0 18,073 0 0 0 6,247
65,070 1,239
838,488 19,656 23,128 3,570
0 46,652 885,140
Equivalent to Town Registration Boundary.

NON-RESIDENTIAL DEVELOPMENTS
Under Construction as at 31 March 2008
Type Commercial Shops, Lock-Up Shops and Eating Houses Mini-Markets Markets and Hawker Centres Kiosks and Shoplets Food Courts Restaurants and Fast Food Restaurants Emporiums and Supermarkets Offices Commercial Spaces Industrial Sports and Recreational Neighbourhood Parks* HDB or Government/Institutional Bus Interchanges Community Clubs Branch Offices / Service Centres Town Council Offices Education Centres Residents' Committee Centres Child-Care Centres
Awarded
Completed
32 0 1 0 0 0 0 0 0 0
49 0 1 0 1 0 4 0 2 178
35 0 0 0 0 0 1 0 0 0
0 0 0 0 3 1 0
1 1 1 0 6 8 4
0 0 0 0 3 3 2
Includes common green

PROPERTIES UNDER MANAGEMENT
Units as at 31 March 2007 Units Taken over in FY 2007/2008 Units Reclassified/ converted/ demolished Units as at 31 March 2008
Type Residential 1-Room Flats 2-Room Flats 3-Room Flats 4-Room Flats 5-room Flats Executive Flats Studio Apartments HUDC Flats Total Commercial Shops Kiosks and Shoplets Eating Establishments Supermarkets and Emporiums Offices Cultural Complexes Shopping Complexes Automated Teller Machines Civil Defence Shelters TAS Radio Equipment Rooms Total Industrial Terrace Workshops Industrial Workshops Warehouses Flatted/Ramp-up Factories Prototype Factories Canteens/Eating Houses/Cafeterias Land Leases Coldrooms & Other Facilites Total Car Parks Car Lots Lorry Lots Motorcycle Lots Total
20,145 28,712 222,098 331,787 207,975 65,150 1,081 1,865 878,813
0 0 710 4,958 421 0 158 0 6,247
164 834 (812) (33) 7 (80) 0 0 (80)
20,309 29,546 221,996 336,712 208,403 65,070 1,239 1,865 885,140
13,112 747 842 150 2,129 1 1 222 367 212 17,783
50 6 6 16 8 86
(115) (9) (16) (5) (3) (2) 1 (149)
13,047 738 832 151 2,142 1 1 228 367 213 17,720
2,813 4,883 89 2,706 201 47 538 1,105 12,382
(5) (1) (4) (10)
2,808 4,883 89 2,705 201 47 534 1,105 12,372
529,971 3,137 142,686 675,794
6,071 0 1,486 7,557
(5,400) (98) (2,148) (7,646)
557,855 7,752 147,573 713,180*
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 as at 31 March 2007 Units Taken over in FY 2007/2008 Units Reclassified/ converted/ demolished Units as at 31 March 2008
Type Social and Communal Facilities Childcare Centres Education Centres Children's Homes/Homes for the Aged Senior Citizen Centres Boys' Clubs Social Service Centres Residents' Committee Centres Social Function Halls Community Health/Dialysis Centres Day Activity Centres Neighbourhood Links Study Centres Student Care Centres Civil Defence Shelters Others** Total
369 483 50 39 5 162 536 12 52 73 24 14 100 79 7 2,005
4 6 3 3 6 1 2 25
(12) (5) 4 (5) 1 (1) 9 1 1 (2) (2) (11)
373 477 48 43 5 160 543 12 52 84 25 15 98 77 7 2,019
HDB or Government Administrative Facilities Branch Offices 27 Administrative Offices 26 Polyclinics 6 Community Centres*** 31 Neighbourhood Police Posts/ Satellite Fire Posts 77 Bus Terminals and Interchanges 5 HDB Site Offices 13 Libraries 21 Total 206 Other Facilities Bungalows
1 1
(1) (2) (6) (3) (3) (15)
26 24 6 26 77 5 10 18 192
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.
Notes i Childrens Homes, Homes for the Aged, Hostels for the disabled, sheltered housing and hospice care are reclassified under Childrens 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 Services and 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 Childrens Libraries.

ALLOCATIONS
Type Residential 1-Room Flats 2-Room Flats 3-Room Flats 4-Room Flats 5-Room Flats Executive Flats Total Commercial Shops and Eating Houses Offices Supermarkets & Emporiums Civil Defence Shelters (commercial use) Total Industrial Terrace Workshops Industrial Shops Warehouses Prototype Factories Flatted/Ramp-up Factories Canteens/Eating Houses TOL Land Total Social Communal Facilities Childcare Centres Education Centres Social Services Centres Residents' Committee Centres Day Activity Centres Neighbourhood Links Rehabilitation Centres Kidney Dialysis Centres Senior Citizens Centres Study Centres Youth Centres Community Centres Hospice Care Satellite Centres Total Sold Percentage% Number of Units Rented Percentage%
0 142 1,852 6,056 2,343 1,598 11,991
0.0 1.2 15.5 50.5 19.5 13.3 100.0
1,147 1,066 272 250 0 2,735
41.9 39.0 10.0 9.1 0.0 100.0
17 17
100.0 100.0
330 200 9 3 542
60.9 36.9 1.7 0.5 100.0
0 0 0 0 0 0 0 0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
116 228 8 1 119 1 2 475
24.4 48.0 1.7 0.2 25.1 0.2 0.4 100.0
5 16 5 15 11 1 3 1 1 1 1 2 1 63
7.9 25.4 7.9 23.8 17.5 1.6 4.7 1.6 1.6 1.6 1.6 3.2 1.6 100.0

FLOOR PLANS
BEDROOM
LIVING/DINING BATH/ WC HOUSEHOLD SHELTER KITCHEN
2 ROOM MODEL A
Scale:
0 1 2 3 4 5 METRES
Area: 45m2
BEDROOM 2
MAIN BEDROOM LIVING/DINING
HOUSEHOLD SHELTER
BATH/ WC 2
BATH/ WC 1
KITCHEN
SERVICE YARD
3 ROOM MODEL A
Scale:
0 1 2 3 4 5 METRES
Area: 65m2
BEDROOM 2
BEDROOM 3
LIVING/DINING
MAIN BEDROOM
HOUSEHOLD SHELTER
BATH/ WC 2
BATH/ WC 1
KITCHEN
SERVICE YARD
4 ROOM MODEL A
Scale:
0 1 2 3 4 5 METRES
Area: 90m2
SUGGESTED STUDY
BEDROOM 3
BEDROOM 2
LIVING/DINING
HOUSEHOLD SHELTER
BATH/ WC 2
BATH/ WC 1
MAIN BEDROOM
SERVICE YARD KITCHEN
5 ROOM IMPROVED
Scale:
0 1 2 3 4 5 METRES
Area: 110m2
FINANCIAL REPORT
CONTENTS
Financial Highlights of HDB Financial Review Statement by the Board Report on the Audit of the Financial Statements Balance Sheets Income and Expenditure Statements Statements of Changes in Capital and Reserves Consolidated Statements of Changes in Capital and Reserves Consolidated Cash Flow Statement Notes to the Financial Statements 74 76 84 85 87 88 89 91 93 95
FINANCIAL HIGHLIGHTS OF HDB

S$ million 2007/2008 INCOME Income Gross profit Income (net) EXPENDITURE Expenditure Less: Amount capitalised Expenditure (net) Capital expenditure SEGMENTAL RESULTS Home ownership Upgrading Residential ancillary functions Rental flats Other rental and related businesses Mortgage financing Agency and others Deficit 2006/2007 Increase/ (Decrease) 2005/2006 2004/2005
3,004 104 3,108
2,941 51 2,992
63 53 116
3,089 137 3,226
3,038 116 3,154
4,252 (63) 4,189 2,423
3,789 (57) 3,732 1,532
463 (6) 457 891
4,703 (71) 4,632 1,131
4,060 (82) 3,978 1,658
(1,006) (516) (173) (77) 632 37 22 (1,081)
(576) (353) (159) (65) 381 1 31 (740)
(430) (163) (14) (12) 251 36 (9) (341)
(454) (306) (236) (71) (316) (51) 28 (1,406)
(554) (374) (219) (100) 401 16 6 (824)
S$ million 2007/2008 FINANCIAL POSITION Property, plant and equipment, and investment properties Loans receivable Properties under development Other assets Total assets Less: Loans payable Other liabilities Total net assets Capital and reserves FINANCING OF PUBLIC HOUSING Government grant to HDB Government loans drawn during the year - mortgage financing - upgrading financing Outstanding loans payable Government loans - mortgage financing - upgrading financing - housing development Bonds Bank loans Mortgage loans granted to flat buyers 2006/2007 Increase/ (Decrease) 2005/2006 2004/2005
19,440 49,680 2,443 2,638 74,201 57,828 1,997 14,376 14,376
19,575 52,195 2,636 2,832 77,238 61,211 1,808 14,219 14,219
(135) (2,515) (193) (194) (3,037) (3,383) 189 157 157
19,912 54,550 2,025 3,275 79,762 63,650 1,863 14,249 14,249
21,576 56,657 2,359 4,201 84,793 67,383 1,920 15,490 15,490
1,248
746
502
755
919
2,359 23
2,574 15
(215) 8
2,361 18
2,245 20
49,669 116 5,200 2,842 3,040
52,473 116 2,018 4,900 1,702 3,244
(2,804) (2,018) 300 1,140 (204)
54,581 120 3,705 4,400 841 3,592
56,552 116 5,896 3,400 1,416 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.
FINANCIAL RESULTS
$ million
5,000 4,000 3,000 2,000 1,000 0 -1,000 -2,000 2004/2005

(850) 3,154 3,978 3,226
4,632 3,732 2,992 3,108
4,189
(740) (1,406)
(1,081)
2005/2006
2006/2007
2007/2008
Income (net)
Expenditure (net)
Deficit before government grant
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
2007/2008: $3,004M
2006/2007: $2,941M
Breakdown Interest Rental and related income Car park charges Recoveries for upgrading and others Levy on resale flats and sales premium Agency fees Gain on disposal of assets Others Income Gross profit Income (net)
2007/2008 $M % 1,417 842 416 70 41 41 61 116 3,004 104 3,108 46 27 14 2 1 1 2 4 97 3 100
2006/2007 $M % 1,480 793 387 78 28 24 22 129 2,941 51 2,992 49 27 13 2 1 1 1 4 98 2 100
Change over 2006/2007 $M % (63) 49 29 (8) 13 17 39 (13) 63 53 116 (4) 6 7 (10) 46 71 177 (10) 2 104 4
EXPENDITURE
Expenditure for the year was $4,252 million. As compared with last years 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
Breakdown Interest Upgrading, improvements and demolition Depreciation and impairment Property tax Provision for loss for properties under development/for sale Manpower costs CPF Housing grant Others Expenditure
2007/2008 $M % 1,664 625 190 108 784 391 215 275 4,252 39 15 4 3 19 9 5 6 100
2006/2007 $M % 1,769 439 336 100 195 333 311 306 3,789 47 11 9 3 5 9 8 8 100
Change over 2006/2007 $M % (105) 186 (146) 8 589 58 (96) (31) 463 (6) 42 (43) 8 302 17 (31) (10) 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 years 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
Breakdown Buildings Land Upgrading and improvement works Flats and assets purchased Capital expenditure
2007/2008 $M % 708 1,321 187 207 2,423 29 54 8 9 100
2006/2007 $M % 617 602 115 198 1,532 40 39 8 13 100
Change over 2006/2007 $M % 91 719 72 9 891 15 119 63 5 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 over 2006/2007 $M
Breakdown Surplus/(deficit) from: Home ownership Upgrading Residential ancillary functions Rental flats Other rental and related businesses Mortgage financing Agency and others
2007/2008 $M
2006/2007 $M
(1,006) (516) (173) (77) 632 37 22 (1,081)
(576) (353) (159) (65) 381 1 31 (740)
(430) (163) (14) (12) 251 36 (9) (341)
FINANCIAL POSITION
As at 31 March 2008, the HDBs 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.
FINANCIAL POSITION
$ billion 100
5% 18% 4% 3% 25% 68% 4% 3% 25% 68% 18% 4% 3% 26% 67% 2% 80% 19% 19%
80 60
3% 25% 67%
2% 80%
2% 79%
3% 78%
40 20 0 04/05 05/06 06/07
07/08
04/05
05/06
06/07
07/08
Total Assets Other assets Properties under development Property, plant and equipment, and investment properties Loans receivable
Capital, Reserves and Liabilities Capital and reserves Other liabilities Loans payable
FINANCING OF PUBLIC HOUSING

The HDBs 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 HDBs 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: 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
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 HDBs 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.
TOTAL OUTSTANDING LOANS

$ billion 70 60 50 40 30 20 10 0 2004/2005 2005/2006 2006/2007 2007/2008
3.40 4.40 5.90 56.55 3.70 54.58 4.90 2.00 52.47 5.20 49.67
Mortgage financing loans
Housing development loans
Bonds
RISK MANAGEMENT
The activities of the HDB expose it to interest rate risk, credit risk and liquidity risk. Interest rate risk The HDBs 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 risk The HDBs 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 risk The 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.
STATEMENT BY THE BOARD

of the Housing and Development Board for the year ended 31 March 2008
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 Siang

Chairman
Tay Kim Poh

Chief Executive Officer
30 May 2008
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

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. Managements 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. Auditors 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 auditors 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 entitys 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 entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the entitys 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 STATEMENTS

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 Ping

Auditor-General Singapore
30 May 2008
BALANCE SHEETS
of the Housing and Development Board and Subsidiaries as at 31 March 2008
HDB Note Capital and reserves Capital account Capital gains reserve Asset revaluation reserve Foreign currency translation reserve Fair value reserve Retained earnings 2007/2008 S$'000 2006/2007 S$'000
Group 2007/2008 2006/2007 S$'000 S$'000
2,463,627 5,992,813 5,920,008 14,376,448 14,376,448
2,463,628 5,736,308 6,019,488 14,219,424 14,219,424
2,468,127 5,992,813 5,920,008 (21) 5,341 71,740 14,458,008 27,689 14,485,697
2,468,128 5,736,308 6,019,488 (19) 6,371 68,742 14,299,018 27,132 14,326,150
Minority interests Total equity Non-current assets Property, plant and equipment Investment properties Loans receivable Investments in subsidiary Investments in associates Other investments Deferred tax asset
3 4 5 6 7 8 9
14,539,636 4,900,191 46,826,533 1,500 66,267,860
14,753,469 4,822,247 49,451,350 1,500 69,028,566
14,545,663 4,916,246 46,826,651 477 55,800 2,156 66,346,993
14,759,372 4,840,404 49,451,609 497 57,182 2,090 69,111,154
Current assets Properties under development Properties for sale Inventories of building materials Loans receivable within 1 year Other investments Government grant receivable Debtors and other receivables Cash and cash equivalents
10 11 5 8 12 13 14
2,443,494 915,118 53,168 2,853,471 1,227,674 402,533 38,378 7,933,836
2,635,589 1,742,768 52,364 2,743,609 728,102 286,931 20,321 8,209,684
2,443,494 915,118 64,997 2,853,552 8,000 1,227,674 409,062 62,851 7,984,748
2,635,589 1,742,768 54,174 2,743,745 16,338 728,102 292,511 39,877 8,253,104
Less: Current liabilities Loans payable within 1 year Creditors and other payables Amount due to subsidiary Provision for income tax
15 16 9
6,572,605 1,397,741 4,504 7,974,850 (41,014)
5,621,921 1,206,504 356 6,828,781 1,380,903
6,572,605 1,420,560 2,481 7,995,646 (10,898)
5,621,921 1,224,397 1,745 6,848,063 1,405,041
Net current (liabilities)/assets Non-current liabilities Loans payable Deferred income
15 17
51,255,748 594,650 51,850,398 14,376,448
55,588,607 601,438 56,190,045 14,219,424
51,255,748 594,650 51,850,398 14,485,697
55,588,607 601,438 56,190,045 14,326,150
Net assets The accompanying notes form part of the financial statements.
JAMES KOH CHER SIANG

Chairman 30 May 2008
MAH LAI SEONG

Director (Finance)
INCOME AND EXPENDITURE STATEMENTS

of the Housing and Development Board and Subsidiaries for the year ended 31 March 2008
HDB Note Sale proceeds Cost of sales Gross profit Income Financial expenses Operating expenses Other expenses 18 19 20 20 2007/2008 S$'000 2,621,710 (2,517,738) 103,972 3,004,300 (1,613,883) (2,359,926) (215,496) (1,081,033) (1,081,033) 1,247,991 166,958 166,958 166,958 89,547 (256,505) 2006/2007 S$'000 1,211,677 (1,160,787) 50,890 2,941,546 (1,725,520) (1,695,488) (311,283) (739,855) (739,855) 745,824 5,969 5,969 5,969 90,163 (96,132) -
Group 2007/2008 2006/2007 S$'000 S$'000 2,621,710 (2,517,738) 103,972 3,090,981 (1,613,883) (2,439,115) (215,496) (1,073,541) (20) (1,073,561) 1,247,991 174,430 (1,833) 172,597 (2,641) 169,956 68,742 89,547 (256,505) 71,740 1,211,677 (1,160,787) 50,890 3,004,144 (1,725,520) (1,768,957) (311,283) (750,726) (91) (750,817) 745,824 (4,993) (3,912) (8,905) (2,398) (11,303) 86,014 90,163 (96,132) 68,742
Share of results of associates Net deficit before government grant and taxation Government grant Net surplus/(deficit) before taxation Income tax expense Net surplus/(deficit) after taxation Minority interests Net surplus/(deficit) for the year Retained earnings at the beginning of the year Transfer from asset revaluation reserve Transfer to capital gains reserve Retained earnings at the end of the year
12
The accompanying notes form part of the financial statements.
STATEMENTS OF CHANGES IN CAPITAL AND RESERVES

Capital Account S$000 Balance as at 1 April 2007 Reversal on return of land to the Government Reversal of impairment losses Assets overstated in prior years Capital gains set aside on disposal of assets Release on sale and demolition of assets Net gains/(losses) recognised directly in capital and reserves Net surplus for the year Total recognised gains/(losses) for the year Balance as at 31 March 2008 2,463,628 (1) -
Capital Gains Reserve S$000 5,736,308 120,773 135,732 -
HDB Asset Revaluation Reserve S$000 6,019,488 (9,481) 109 (561) (89,547)
Retained Earnings S$000 (120,773) (135,732) 89,547
Total Capital and Reserves S$000 14,219,424 (9,481) 109 (562) -
(1) (1) 2,463,627
256,505 256,505 5,992,813
(99,480) (99,480) 5,920,008
(166,958) 166,958 -
(9,934) 166,958 157,024 14,376,448
STATEMENTS OF CHANGES IN CAPITAL AND RESERVES

Capital Account S$000 Balance as at 1 April 2006 Reversal on return of land to the Government Impairment losses Assets overstated in prior years Capital gains set aside on disposal of assets Release on sale and demolition of assets Net gains/(losses) recognised directly in capital and reserves Net surplus for the year Total recognised gains/(losses) for the year Balance as at 31 March 2007 2,463,681 (53) -
Capital Gains Reserve S$000 5,640,176 (26,758) 122,890 -
HDB Asset Revaluation Reserve S$000 6,144,743 (32,804) (2,288) (90,163)
Retained Earnings S$000 26,758 (122,890) 90,163
Total Capital and Reserves S$000 14,248,600 (32,804) (2,341) -
(53) (53) 2,463,628
96,132 96,132 5,736,308
(125,255) (125,255) 6,019,488
(5,969) 5,969 -
(35,145) 5,969 (29,176) 14,219,424
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL AND RESERVES

Capital Account S$000 Balance as at 1 April 2007 Reversal on return of land to the Government Reversal of impairment losses Assets overstated in prior years Fair value changes on available-for-sale assets Transfer from foreign currency translation reserve to Income and Expenditure Statement Capital gains set aside on disposal of assets Release on sale and demolition of assets Effect of disposal of subsidiary (Note 6) Net gains/(losses) recognised directly in capital and reserves Net surplus for the year Total recognised gains /(losses) for the year Dividends paid Balance as at 31 March 2008
Capital Gains Reserve S$000
Asset Revaluation Reserve S$000
Group Foreign Currency Translation Fair Value Reserve Reserve S$000 S$000
Retained Earnings S$000
Minority Interests S$000
Total Capital and Reserves S$000
2,468,128
5,736,308
6,019,488
(19)
6,371
68,742
27,132
14,326,150
(9,481)
(9,481)
120,773
109
(120,773)
109
(1)
(561)
(562)
(1,030)
(343)
(1,373)
(2)
(1)
(3)
135,732
(135,732)
(89,547)
89,547
(100)
(100)
(1) -
256,505 -
(99,480) -
(2) -
(1,030) -
(166,958) 169,956
(444) 2,641
(11,410) 172,597
(1) -
256,505 -
(99,480) -
(2) -
(1,030) -
2,998 -
2,197 (1,640)
161,187 (1,640)
2,468,127
5,992,813
5,920,008
(21)
5,341
71,740
27,689
14,485,697
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL AND RESERVES

Capital Account S$000 Balance as at 1 April 2006 Reversal on return of land to the Government Impairment losses Assets overstated in prior years Fair value changes on available-for-sale assets Share of associates foreign currency translation reserves Capital gains set aside on disposal of assets Release on sale and demolition of assets Net gains/(losses) recognised directly in capital and reserves Net surplus/(deficit) for the year Total recognised gains /(losses) for the year Dividends paid Balance as at 31 March 2007
Capital Gains Reserve S$000
Asset Revaluation Reserve S$000
Group Foreign Currency Translation Fair Value Reserve Reserve S$000 S$000
Retained Earnings S$000
Minority Interests S$000
Total Capital and Reserves S$000
2,468,181
5,640,176
6,144,743
(24)
4,179
86,014
32,156
14,375,425
(26,758)
(32,804) -
26,758
(32,804) -
(53)
(2,288)
(2,341)
2,192
731
2,923
122,890
(122,890)
(90,163)
90,163
(53)
96,132
(125,255)
2,192
(5,969)
733
(32,215)
(11,303)
2,398
(8,905)
(53) -
96,132 -
(125,255) -
5 -
2,192 -
(17,272) -
3,131 (8,155)
(41,120) (8,155)
2,468,128
5,736,308
6,019,488
(19)
6,371
68,742
27,132
14,326,150
CONSOLIDATED CASH FLOW STATEMENT

Group Note Cash flows from operating activities Net deficit before government grant and taxation Adjustments for: Interest income Interest expense Depreciation Provision for loss for properties under development/for sale Gain on disposal/write-off of assets (Reversal of impairment losses)/Impairment losses on property, plant and equipment, and investment properties (Reversal of allowance)/Allowance for impairment losses on loans receivable and debtors Amortisation of deferred income Amortisation of premium/discount on bonds Investment income Share of results of associates Gain on disposal of associate Deficit before working capital changes (Increase)/Decrease in working capital: Properties under development Properties for sale Inventories of building materials Debtors and other receivables Creditors and other payables 2007/2008 S$'000 2006/2007 S$'000
(1,073,561) 18 19 20 (1,416,616) 1,614,774 313,946 467,313 (21,043) (120,773) (25,642) (73,840) (891) (3,829) 20 (24) (340,166)
(750,817) (1,479,723) 1,726,307 309,369 58,449 (1,714) 23,783 26,577 (70,933) (787) (5,557) 91 (164,955)
20
19 7
(1,682,677) 2,549,180 (10,823) (121,026) 243,888 978,542 7,033,643 (3,071,874) (1,406,752) (1,163) 69,690 3,261,920
(1,050,963) 1,015,705 (804) (1,812) (27,886) (65,760) 7,086,526 (3,271,530) (1,430,874) (3,797) 65,516 2,215,126
Loans repayment and interest received Loans granted Interest paid Income tax paid Deferred income received Net cash from operating activities
CONSOLIDATED CASH FLOW STATEMENT

Group Note Cash flows from investing activities Proceeds from disposal of property, plant and equipment, and investment properties Capital expenditure Purchase of property, plant and equipment, and investment properties Interest received Dividends received from other investments Proceeds from disposal of other investments Purchase of investments Proceeds from disposal of associate Disposal of subsidiary Net cash used in investing activities Cash flows from financing activities Proceeds from loans payable Repayment of loans payable Interest paid Net government grant received Dividends paid to minority shareholders Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The accompanying notes form part of the financial statements. 14 2007/2008 S$'000 2006/2007 S$'000
7 6
99,164 (354,394) (51,387) 2,264 1,772 19,749 (11,501) 21 (100) (294,412)
43,361 (150,858) (14,597) 3,700 2,382 24,340 (4,645) (96,317)
10,105,972 (13,487,256) (310,029) 748,419 (1,640) (2,944,534) 22,974 39,877 62,851
11,388,221 (13,826,517) (349,427) 673,992 (8,155) (2,121,886) (3,077) 42,954 39,877
NOTES TO THE FINANCIAL STATEMENTS

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 Preparation The 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 AccountantGeneral 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 HDBs 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 managements 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.
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 Groups financial statements. Group Accounting i) 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) Subsidiaries A 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) Associates An associate is a company in which the Group has significant influence over the companys financial and operating policy decisions, but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. The Groups investments in the associates are accounted for using the equity method. Under the equity method, the Groups investments in associates are carried in the Balance Sheet at cost, plus post-acquisition changes in the Groups share of net assets of the associates, less allowance for impairment, if any. The Groups share of the operating results of the associates is included in the Income and Expenditure Statement. Where the share of associates losses exceeds the Groups interest in the associates, such excess is not recognised in the Income and Expenditure Statement.
2.2
2.3
Capital Account The 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 Reserve Under 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. Asset Revaluation Reserve The 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.
2.5
2.6
Fair Value Reserve The 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. Property, Plant and Equipment i) 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
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 Expenditure Subsequent 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) Depreciation No 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 Buildings Leasehold property Plant and machinery Office equipment, furniture, fixtures and fittings Motor vehicles 99 years or the remaining lease period 60 years remaining lease period 3 - 10 years 3 - 12 years 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 Properties Investment 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 Governments housing and social policies, no review for impairment is carried out.
2.10
Properties under Development Properties 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 Sale Properties 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 Materials Inventories of building materials are stated at the lower of cost and net realisable value. Cost is determined by the weighted average basis. Loans Receivable, Debtors and Other Receivables Loans 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.
2.13
2.14
Investments in Financial Assets i) 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 investments If the Group has the positive intent and ability to hold debt securities to maturity, they are classified as heldto-maturity investments. These investments are measured at amortised cost using the effective interest method, less any impairment losses. Available-for-sale financial assets The Groups 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 Equivalents Cash and cash equivalents comprise fixed deposits and cash and bank balances. They are subject to an insignificant risk of change in value. Loans Payable The 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 HDBs 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.
2.16
2.17
Creditors and Other Payables Creditors and other payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.
2.18
Fair Value Estimation The 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
Provisions A 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. Property Leases i) 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.
2.20
2.21
Employee Benefits i) 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 Entitlement Employee 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 Benefits Termination 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 Recognition i) Sale Proceeds Proceeds from sale of properties and building materials are recognised as income when they are sold. ii) Interest Interest 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 Income Rental 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 Charges Season 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) Recoveries Recoveries 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 Fees Agency fees from agency projects and consultancy fees are recognised as income when services are rendered. vii) Investment Income Interest income is accrued based on the effective interest rate. Dividend income is recognised when the shareholders right to receive payment is established.
2.23
Financial Expenses i) Housing Development Loans, Bank Loans and Bonds The HDBs 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 Loans The 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
Taxation The 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 Grant The HDBs 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 HDBs 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 MOFs 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. Nonmonetary 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.
PROPERTY, PLANT AND EQUIPMENT

HDB Office Plant Equipment, and Furniture Machinery and Vehicles S$'000 S$'000
Freehold Land S$'000
Leasehold Land S$'000
Buildings S$'000
Leasehold Property S$'000
Total S$'000
Cost or valuation At 1 April 2007 78,905 11,418,651 6,352,146 Additions 25 88,608 150,514 Disposals/Write-off (3,235) (99,278) (24,445) Transfer to investment properties (16,106) (28,163) Transfer to properties for sale (89,396) (61,840) Reclassifications 115 (706) At 31 March 2008 75,695 11,302,594 6,387,506 Representing: Valuation 1 April 1985 31 March 1986 Cost
12,095 12,095
11,028 1,001 (853) 11,176
71,130 17,931,860 3,187 255,430 (9,036) (136,847) 591 65,872 (44,269) (151,236) 17,854,938
48,815 24,110 2,770 75,695
4,628,972 825,138 5,848,484 11,302,594
870,450 298,326 5,218,730 6,387,506
12,095 12,095
11,176 11,176
65,872 65,872
5,548,237 1,147,574 11,159,127 17,854,938
Accumulated depreciation and impairment losses At 1 April 2007 Depreciation Disposals/Write-off Transfer to investment properties Transfer to properties for sale Reclassifications Impairment losses Reversal of impairment losses At 31 March 2008 Carrying amounts At 31 March 2008
1,727,145 1,377,679 119,494 112,131 (33,341) (5,940) (2,542) (9,043) (14,654) (20,754) 24 (69) 728 339 (2,505) (1,217) 1,794,349 1,453,126
9,741 518 (767) 9,492
63,826 3,461 (8,997) 45 58,335
3,178,391 235,604 (49,045) (11,585) (35,408) 1,067 (3,722) 3,315,302
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.
PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

HDB Office Plant Equipment, and Furniture Machinery and Vehicles S$'000 S$'000
Freehold Land S$'000 Cost or valuation At 1 April 2006 Additions Disposals/Write-off Transfer from investment properties Transfer to properties under development Transfer to properties for sale Reclassifications At 31 March 2007 Representing: Valuation 1 April 1985 31 March 1986 Cost
Buildings S$'000
Total S$'000
49,361 11,561,683 47,349 (205) (117,964) 2,879 (8,361) (37,071) 29,749 (29,864) 78,905 11,418,651
6,308,947 92,093 (14,581) (34,428) 115 6,352,146
11,770 153 (895) 11,028
75,311 18,007,072 1,738 141,333 (5,919) (139,564) 2,879 (8,361) (71,499) 71,130 17,931,860
48,944 4,728,257 24,110 840,694 5,851 5,849,700 78,905 11,418,651
908,096 300,780 5,143,270 6,352,146
11,028 11,028
71,130 71,130
5,685,297 1,165,584 11,080,979 17,931,860
Accumulated depreciation and impairment losses At 1 April 2006 Depreciation Disposals/Write-off Transfer from investment properties Transfer to properties under development Transfer to properties for sale Reclassifications Impairment losses Reversal of impairment losses At 31 March 2007 Carrying amounts At 31 March 2007
1,666,415 116,035 (54,550) 527 (1,394) (5,386) (19) 6,513 (996) 1,727,145
1,278,318 111,715 (4,991) (10,616) 19 3,693 (459) 1,377,679
10,237 398 (894) 9,741
65,614 4,076 (5,864) 63,826
3,020,584 232,224 (66,299) 527 (1,394) (16,002) 10,206 (1,455) 3,178,391
78,905
9,691,506
4,974,467
1,287
7,304
14,753,469

Group Office Plant Equipment, and Furniture Machinery and Vehicles S$'000 S$'000
Freehold Land S$'000
Buildings S$'000
Leasehold Property S$'000
Total S$'000
Cost or valuation At 1 April 2007 78,905 11,418,651 6,357,715 Additions 25 88,608 150,514 Disposals/Write-off (3,235) (99,278) (24,445) Transfer to investment properties (16,106) (28,163) Transfer to properties for sale (89,396) (61,840) Reclassifications 115 (706) At 31 March 2008 75,695 11,302,594 6,393,075 Representing: Valuation 1 April 1985 31 March 1986 Cost
12,095 12,095
11,294 1,051 (856) 11,489
74,585 17,941,150 3,727 256,020 (10,194) (138,008) 591 68,709 (44,269) (151,236) 17,863,657
48,815 24,110 2,770 75,695
4,628,972 825,138 5,848,484 11,302,594
870,450 298,326 5,224,299 6,393,075
12,095 12,095
11,489 11,489
68,709 68,709
5,548,237 1,147,574 11,167,846 17,863,657
Accumulated depreciation and impairment losses At 1 April 2007 Depreciation Disposals/Write-off Transfer to investment properties Transfer to properties for sale Reclassifications Impairment losses Reversal of impairment losses At 31 March 2008 Carrying amounts At 31 March 2008
1,727,145 1,378,292 119,494 112,226 (33,341) (5,940) (2,542) (9,043) (14,654) (20,754) 24 (69) 728 339 (2,505) (1,217) 1,794,349 1,453,834
9,991 534 (770) 9,755
66,350 3,792 (10,131) 45 60,056
3,181,778 236,046 (50,182) (11,585) (35,408) 1,067 (3,722) 3,317,994
75,695
9,508,245
4,939,241
12,095
1,734
8,653
14,545,663

Group Office Plant Equipment, and Furniture Machinery and Vehicles S$'000 S$'000
Freehold Land S$'000 Cost or valuation At 1 April 2006 Additions Disposals/Write-off Transfer from investment properties Transfer to properties under development Transfer to properties for sale Reclassifications At 31 March 2007 Representing: Valuation 1 April 1985 31 March 1986 Cost
Buildings S$'000
Total S$'000
49,361 11,561,683 47,349 (205) (117,964) 2,879 (8,361) (37,071) 29,749 (29,864) 78,905 11,418,651
6,314,516 92,093 (14,581) (34,428) 115 6,357,715
12,040 159 (905) 11,294
79,120 18,016,720 2,177 141,778 (6,712) (140,367) 2,879 (8,361) (71,499) 74,585 17,941,150
48,944 4,728,257 24,110 840,694 5,851 5,849,700 78,905 11,418,651
908,096 300,780 5,148,839 6,357,715
11,294 11,294
74,585 74,585
5,685,297 1,165,584 11,090,269 17,941,150
Accumulated depreciation and impairment losses At 1 April 2006 Depreciation Disposals/Write-off Transfer from investment properties Transfer to properties under development Transfer to properties for sale Reclassifications Impairment losses Reversal of impairment losses At 31 March 2007 Carrying amounts At 31 March 2007
1,666,415 116,035 (54,550) 527 (1,394) (5,386) (19) 6,513 (996) 1,727,145
1,278,837 111,809 (4,991) (10,616) 19 3,693 (459) 1,378,292
10,477 418 (904) 9,991
68,617 4,384 (6,651) 66,350
3,024,346 232,646 (67,096) 527 (1,394) (16,002) 10,206 (1,455) 3,181,778
78,905
9,691,506
4,979,423
1,303
8,235
14,759,372
INVESTMENT PROPERTIES HDB S$'000 Cost At 1 April 2007 Additions Disposals/Write-off Transfer from properties, plant and equipment Transfer to properties under development At 31 March 2008 Accumulated depreciation and impairment losses At 1 April 2007 Depreciation Disposals/Write-off Transfer from properties, plant and equipment Transfer to properties under development Reversal of impairment losses At 31 March 2008 Carrying amounts At 31 March 2008 Fair value At 31 March 2008 Group S$'000
6,669,299 23,906 (584) 44,269 (34,676) 6,702,214
6,688,426 23,906 (584) 44,269 (34,676) 6,721,341
1,847,052 77,414 (248) 11,585 (15,553) (118,227) 1,802,023
1,848,022 79,516 (248) 11,585 (15,553) (118,227) 1,805,095
4,900,191
4,916,246
11,225,062
11,257,562
HDB S$'000 Cost At 1 April 2006 Additions Disposals/Write-off Transfer to properties, plant and equipment At 31 March 2007 Accumulated depreciation and impairment losses At 1 April 2006 Depreciation Disposals/Write-off Transfer to properties, plant and equipment Impairment losses Reversal of impairment losses At 31 March 2007 Carrying amounts At 31 March 2007 Fair value At 31 March 2007
Group S$'000
6,676,826 124 (4,772) (2,879) 6,669,299
6,695,953 124 (4,772) (2,879) 6,688,426
1,751,520 79,550 (1,455) (527) 19,818 (1,854) 1,847,052
1,755,422 79,550 (1,455) (527) 19,848 (4,816) 1,848,022
4,822,247
4,840,404
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 estimated recoverable amount based on the prevailing market conditions. The impairment losses of S$20 million in FY 2006/2007 in respect of leased lands at various sites were based on the revised gross plot ratio and tender of leases of similar usage then.
LOANS RECEIVABLE 2007/2008 S$000 Loans receivable Mortgage loans for flats Loans for shops sold Staff loans Less: Allowance for impairment losses on mortgage loans for flats Deferred receivable Upgrading costs due from lessees Balance as at 31 March Represented by amount receivable: Within 1 year Later than 1 year but not more than 2 years Later than 2 years but not more than 5 years Later than 5 years HDB 2006/2007 S$000 Group 2007/2008 2006/2007 S$000 S$000
49,640,231 77 49,640,308
52,185,442 44 52,185,486
49,640,231 77 199 49,640,507
52,185,442 44 395 52,185,881
(84,809) 49,555,499 124,505 49,680,004
(114,985) 52,070,501 124,458 52,194,959
(84,809) 49,555,698 124,505 49,680,203
(114,985) 52,070,896 124,458 52,195,354
2,853,471 2,404,962 7,328,836 37,092,735 46,826,533 49,680,004
2,743,609 2,439,223 7,451,256 39,560,871 49,451,350 52,194,959
2,853,552 2,405,015 7,328,901 37,092,735 46,826,651 49,680,203
2,743,745 2,439,332 7,451,400 39,560,877 49,451,609 52,195,354
The mortgage loans are granted to the buyers of flats under the public housing schemes, with the flats being taken as collateral. Under the Agreement for Loan Facility with the Government, mortgage and upgrading financing loans are obtained from the Government to finance loans granted to eligible purchasers of flats under the public housing schemes at concessionary or market interest rates, in accordance with prevailing mortgage financing policy and upgrading programme of the Government. The loans receivable and deferred receivable are denominated in Singapore Dollars. Loans receivable The movements of loans receivable during the year for the Group: Balance as at 1.4.2007 S$000 Mortgage loans for flats Loans for shops sold Staff loans 52,185,442 44 395 52,185,881 Balance as at 31.3.2008 S$000 49,640,231 77 199 49,640,507
Loans granted S$000 3,039,992 47 16 3,040,055
Repayment S$000 5,585,203 14 212 5,585,429
The movements in allowance for impairment losses on mortgage loans for flats for the Group: Reversal of allowance for impairment losses S$000 Bad debts written off against allowance S$000
Balance as at 1.4.2007 S$000 Allowance for impairment losses on mortgage loans for flats
Balance as at 31.3.2008 S$000
114,985
30,002
174
84,809
LOANS RECEIVABLE (CONTINUED) Interest rates and repayment terms on the loans are: Interest rate (per annum) Mortgage loans granted to lessees for purchase of flats under public housing schemes Loans granted to tenants for the purchase of shops Repayment term
2.60% to 3.82% Up to 30 years (FY 2006/2007: 2.60% to 3.72%) 5.25% (FY 2006/2007: 5.25%) 4.25% (FY 2006/2007: 4.25% to 5%) 4 years
Loans granted to staff
Up to 6 years
Deferred receivable Under the deferred payment scheme, lessees of upgraded flats can pay for their share of the upgrading costs through 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.
INVESTMENTS IN SUBSIDIARY HDB 2007/2008 2006/2007 S$000 S$000 Subsidiary EM Services Pte Ltd(a) (unquoted shares at cost)
1,500
1,500
Principal activities
Country of incorporation
Percentage of equity held by the Group 2007/2008 2006/2007 % %
Subsidiary of HDB EM Services Pte Ltd (a)
Property management Singapore and engineering services
75
75
Subsidiaries of EM Services Pte Ltd Property management EM (China) Pte Ltd (b) E M Property Management Pte Ltd (a) Yi An Property Agency Pte Ltd (a)
(a) (b)
Singapore Singapore
100
60 100
Property management
Real estate agency
Singapore
100
100
Audited by SP Tan & Co. 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.
INVESTMENTS IN ASSOCIATES Group 2007/2008 2006/2007 S$000 S$000 Associates Unquoted shares at cost Balance as at 1 April Share of losses Foreign currency translation differences Balance as at 31 March
525 497 (20) 477
725 581 (91) 7 497
Principal activities
Country of incorporation
Percentage of equity held by the Group 2007/2008 2006/2007 % %
Associates of EM Services Pte Ltd Pengda Investment & Development Pte Ltd (a) Yihe Holding Pte Ltd (b)
Investment and real estate Singapore developer Facilities and project Singapore management consultants
35
35
20
(a) (b)
Audited by SP Tan & Co. The investment in Yihe Holding Pte Ltd was disposed of in March 2008 for a cash consideration of S$21,000.
OTHER INVESTMENTS Group 2007/2008 2006/2007 S$000 S$000 Non-current investments: Held-to-maturity debt securities Available-for-sale equity securities
20,524 35,276 55,800
20,533 36,649 57,182
Current investments: Held-to-maturity debt securities Available-for-sale debt securities
4,000 4,000 8,000 24,914
8,338 8,000 16,338 29,102
Fair value of held-to-maturity debt securities
Available-for-sale debt securities have stated interest rates of 3.12% (FY 2006/2007: 3.32% to 4.99%) per annum and 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.
INCOME TAX a) Income tax expense Group 2007/2008 2006/2007 S$000 S$000 Current tax expense - Current year - (Over)/under provision in respect of prior years
2,470 (571) 1,899
1,174 1,642 2,816
Deferred tax expense - Origination and reversal of temporary differences - Reduction in tax rate - Under provision in respect of prior years
(66) (66) 1,833
709 319 68 1,096 3,912
Total income tax expense Reconciliation of effective tax rate:
Group 2007/2008 2006/2007 S$000 S$000 Net surplus/(deficit) before taxation Less : Net surplus/(deficit) of HDB excluding dividends from subsidiary (Note 18), not subject to taxation Net surplus subject to taxation Income tax at applicable tax rate of 18% Effect of reduction in tax rate Tax effect of partial tax exemption and tax relief Income tax at concessionary rate Income not subject to tax Expenses not deductible for tax purposes (Over)/under provision in respect of prior years 174,430 (4,993)
162,038 12,392 2,231 (71) (92) (316) 652 (571) 1,833
(18,496) 13,503 2,431 319 (67) (38) (669) 226 1,710 3,912
b) Movements in provision for income tax Group 2007/2008 2006/2007 S$000 S$000 Balance as at 1 April Charge for the year Payments made during the year (Over)/under provision in respect of prior years Balance as at 31 March 1,745 2,470 (1,163) (571) 2,481 2,726 1,174 (3,797) 1,642 1,745
INCOME TAX (CONTINUED) c) Deferred tax The movements in deferred tax assets and liabilities for the Group during the year are as follows: Recognised in Income and Expenditure Statement S$000 Recognised in Income and Expenditure Statement S$000
At 1 April 2006 S$000 Deferred tax liabilities Property, plant and equipment Other items Total Deferred tax assets Provisions Accrued interest receivable Total Net deferred tax assets
At 31 March 2007 S$000
At 31 March 2008 S$000
136 204 340
(9) (204) (213)
127 127
1 1
128 128
(2,896) (630) (3,526) (3,186)
679 630 1,309 1,096
(2,217) (2,217) (2,090)
(67) (67) (66)
(2,284) (2,284) (2,156)
10
PROPERTIES UNDER DEVELOPMENT HDB and Group 2007/2008 2006/2007 S$000 S$000 Land Buildings Upgrading works Improvement works Less: Provision for foreseeable loss (Note 2.10) Balance as at 31 March Represented by : Properties for sale under development Assets under construction Upgrading works 2,741,329 851,107 150,610 1,000 3,744,046 (1,300,552) 2,443,494 2,339,771 971,599 81,286 8,175 3,400,831 (765,242) 2,635,589
1,821,780 471,104 150,610 2,443,494 49,882
2,207,176 347,127 81,286 2,635,589 43,971
Interest capitalised during the year (Note 19)
During the financial year, interest capitalised as properties under development amounted to S$50 million (FY 2006/2007: S$44 million) at an average capitalisation rate of 3.47% (FY 2006/2007: 3.86%).
11
PROPERTIES FOR SALE HDB and Group 2007/2008 2006/2007 S$000 S$000 Cost of flats Less: Provision for unrealised loss (Note 2.11) Balance as at 31 March 983,705 (68,587) 915,118 1,870,713 (127,945) 1,742,768
12
GOVERNMENT GRANT RECEIVABLE HDB and Group 2007/2008 2006/2007 S$000 S$000 Balance as at 1 April Less: Amount received Transfer from Income and Expenditure Statement Balance as at 31 March 728,102 (748,419) (20,317) 1,247,991 1,227,674 656,270 (673,992) (17,722) 745,824 728,102
The amount transferred from Income and Expenditure Statement is the deficit to be financed by the Government under the existing financing arrangement (Note 2.25).
13
DEBTORS AND OTHER RECEIVABLES HDB 2006/2007 S$000 254,740 (22,801) 231,939 32,959 32,959 22,033 286,931 Group 2007/2008 2006/2007 S$000 S$000 360,131 (15,536) 344,595 44,746 (26) 44,720 19,747 409,062 259,250 (22,851) 236,399 33,921 33,921 22,191 292,511
2007/2008 S$000 Debtors Less: Allowance for impairment losses 354,706
(15,396) 339,310 43,806 (26) 43,780 19,443 402,533
Other receivables Less: Allowance for impairment losses Prepayments and deposits Balance as at 31 March
13
DEBTORS AND OTHER RECEIVABLES (CONTINUED) The movements in allowance for impairment on debtors and other receivables for the HDB and Group are as follows: HDB 2006/2007 S$000 23,305 6,032 (6,536) 22,801 Group 2007/2008 2006/2007 S$000 S$000 22,851 1,781 (9,070) 15,562 23,305 6,082 (6,536) 22,851
2007/2008 S$000 Balance as at 1 April Allowance for impairment losses Bad debts written off against allowance Balance as at 31 March
22,801 1,691 (9,070) 15,422
14
CASH AND CASH EQUIVALENTS HDB 2006/2007 S$000 20,321 20,321 Group 2007/2008 2006/2007 S$000 S$000 41,327 21,524 62,851 22,089 17,788 39,877
2007/2008 S$000 Bank balances and cash Fixed deposits 38,378 38,378
15
LOANS PAYABLE HDB and Group 2007/2008 2006/2007 S$000 S$000 Government loans Housing development loans (Note 2.16) Mortgage financing loans Upgrading financing loans Bonds Principal Unamortised premium/discount Bank loans (unsecured) Balance as at 31 March Represented by amount payable: Within 1 year Later than 1 year but not more than 2 years Later than 2 years but not more than 5 years Later than 5 years
49,669,338 116,127 49,785,465 5,200,000 1,388 5,201,388 2,841,500 57,828,353
2,018,057 52,472,895 115,797 54,606,749 4,900,000 2,279 4,902,279 1,701,500 61,210,528
6,572,605 4,835,748 12,595,383 33,824,617 51,255,748 57,828,353 5,350,027
5,621,921 3,784,604 13,906,987 37,897,016 55,588,607 61,210,528 4,975,106
Fair value of bonds The loans and bonds are denominated in Singapore Dollars.
15
LOANS PAYABLE (CONTINUED) The movements during the year for the Group: Balance as at 1.4.2007 S$000 Government loans Housing development loans Mortgage financing loans Upgrading financing loans Balance as at 31.3.2008 S$000
Borrowings S$000
Repayment S$000
2,018,057 52,472,895 115,797 54,606,749
2,358,623 23,349 2,381,972
2,018,057 5,162,180 23,019 7,203,256
49,669,338 116,127 49,785,465
Bonds Principal Premium/discount on bonds
4,900,000 2,279 4,902,279 1,701,500 61,210,528
800,000 800,000 6,924,000 10,105,972
500,000 891 500,891 5,784,000 13,488,147
5,200,000 1,388 5,201,388 2,841,500 57,828,353
Bank loans (unsecured)
Interest rates and repayment terms on the loans are: Interest rate (per annum) Housing development loans 4.50% (FY 2006/2007: 4.50%) 2.50% to 3.72% (FY 2006/2007: 2.50% to 3.62%) 2.50% (FY 2006/2007: 2.50%) 1.28% to 3.00% (FY 2006/2007: 3.11% to 3.70%) Repayment term 20 years
Mortgage financing loans
Up to 30 years
Upgrading financing loans
10 years
Bank loans (unsecured)
Up to 1 year
Bonds are issued to finance the HDBs development programme and working capital requirements. The bonds are as follows: Principal S$M 300 300 250 250 300 500 400 100 400
Series number 003 003 (Re-opened) 007 008 009 010 011 012 013
Coupon rate (per annum) 5.070% 5.070% (effective interest rate: 4.740%) 2.420% 3.560% 2.520% 3.375% 2.820% 3.200% 3.455%
Tenure 10 years Approximately 10 years 5 years 10 years 5 years 10 years 5 years 10 years 5 years
Maturity 21 September 2009 21 September 2009 23 February 2009 23 February 2014 3 November 2009 21 April 2015 6 October 2010 12 October 2015 1 March 2011
15
LOANS PAYABLE (CONTINUED) Principal S$M 100 400 100 250 250 250 250 150 150 200 300
Series number 014 015 016 017 018 019 020 021 022 023 024
Coupon rate (per annum) 3.730% 3.805% 3.995% 3.520% 3.622% 3.420% 3.550% 2.690% 3.350% 1.640% 3.630%
Tenure 10 years 5 years 10 years 5 years 10 years 5 years 10 years 2 years 12 years 2 years 15 years
Maturity 7 March 2016 14 July 2011 14 July 2016 31 October 2011 18 October 2016 14 February 2012 14 February 2017 11 June 2009 11 June 2019 1 March 2010 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 2006/2007 S$000 420,407 453,948 71,429 239,676 21,044 1,206,504 Group 2007/2008 2006/2007 S$000 S$000 625,737 509,009 75,008 187,551 23,255 1,420,560 434,922 453,948 72,370 239,676 23,481 1,224,397
2007/2008 S$000 Creditors Deposits and advances Deferred income (Note 17) Interest payable Provisions 605,850 509,009 74,287 187,551 21,044 1,397,741
Provisions were made for restoration works for the former quarry sites, pending firm development plans of the respective agencies taking over the sites. The movements in provisions for the HDB and Group are: HDB 2006/2007 S$000 21,044 21,044 Group 2007/2008 2006/2007 S$000 S$000 23,481 (226) 23,255 23,563 (82) 23,481
2007/2008 S$000 Balance as at 1 April Provisions utilised Balance as at 31 March 21,044 21,044
17
DEFERRED INCOME HDB 2006/2007 S$000 71,429 148,117 453,321 601,438 672,867 Group 2007/2008 2006/2007 S$000 S$000 75,008 147,174 447,476 594,650 669,658 72,370 148,117 453,321 601,438 673,808
2007/2008 S$000 Within 1 year (Note 16) After 1 year but within 5 years After 5 years 74,287 147,174 447,476 594,650 668,937
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 2006/2007 S$000 1,479,703 792,577 386,883 78,378 28,475 24,423 21,848 25,013 104,246 2,941,546 Group 2007/2008 2006/2007 S$000 S$000 1,416,616 857,497 415,646 69,978 41,184 114,002 60,907 3,931 111,220 3,090,981 1,479,723 800,652 386,374 78,378 28,475 98,405 21,851 5,704 104,582 3,004,144
2007/2008 S$000 Interest income Rental and related income Car park charges Recoveries for upgrading and others Levy on resale flats and sales premium Agency and consultancy fees Gain on disposal of assets Investment income Fees and other income 1,416,604 842,281 416,191 69,978 41,184 40,921 60,902 5,323 110,916 3,004,300
Investment income includes dividend income as follows: HDB 2006/2007 S$000 Group 2007/2008 2006/2007 S$000 S$000
2007/2008 S$000 Dividends from - Unquoted subsidiary - Others
4,920 -
24,465 -
1,751
2,339
19
FINANCIAL EXPENSES HDB and Group 2007/2008 2006/2007 S$000 S$000 Interest expense from - Government loans - Bank loans - Bonds Less: Interest capitalised in properties under development (Note 10) Bond amortisation
1,421,712 62,567 180,377 1,664,656 (49,882) (891) 1,613,883
1,562,257 54,986 153,035 1,770,278 (43,971) (787) 1,725,520
20
EXPENSES BY NATURE Expenses include the following: HDB 2006/2007 S$000 438,915 308,947 99,690 30,024 Group 2007/2008 2006/2007 S$000 S$000 623,033 313,946 108,539 1,067 436,656 309,369 99,755 30,054
2007/2008 S$000 Upgrading, improvements and demolition Depreciation Property tax Impairment losses on property, plant and equipment, and investment properties Reversal of impairment losses on property, plant and equipment, and investment properties Provision for loss for properties under development/for sale (Reversal of allowance)/Allowance for impairment losses on loans receivable and debtors Manpower costs CPF Housing grant Auditors remuneration Board members fees Directors fees and remuneration Manpower costs and overheads capitalised in: - properties under development - inventories of building materials 625,102 311,402 108,468 1,067
(121,840) 783,757
(3,309) 194,989
(121,840) 783,757
(6,271) 194,989
(25,732) 390,538 215,496 630 125 -
26,276 333,451 311,283 630 76 -
(25,642) 443,082 215,496 676 125 467
26,326 385,498 311,283 662 76 454
(7,901) (5,055)
(7,329) (5,757)
(7,901) (5,055)
(7,329) (5,757)
20.1
MANPOWER COSTS HDB 2006/2007 S$000 292,648 28,280 6,711 5,812 333,451 Group 2007/2008 2006/2007 S$000 S$000 388,129 39,476 7,909 7,568 443,082 338,417 33,693 7,420 5,968 385,498
2007/2008 S$000 Salaries and bonuses Contribution to CPF Staff benefits Training/development costs and others 341,834 34,590 6,862 7,252 390,538
Manpower costs include the key management personnels remuneration as follows: HDB 2006/2007 S$000 4,675 Group 2007/2008 2006/2007 S$000 S$000 6,437 5,129
2007/2008 S$000 Salaries and other short-term employee benefits 5,970
21
GOVERNMENT GRANT Cumulative grant from the Government since the establishment of the HDB in 1960 amounts to: HDB 2006/2007 S$000 15,246,807 745,824 15,992,631
2007/2008 S$000 Total grant as at 1 April Grant for the financial year Total grant as at 31 March 15,992,631 1,247,991 17,240,622
22
SIGNIFICANT RELATED PARTY TRANSACTIONS The HDB is a statutory body incorporated under the Housing and Development Act (Note 1). As a statutory board, 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 parties during the year: 2007/2008 S$000 HDBs transactions with: Subsidiaries - Property management - Telemonitoring management, mechanical and electrical services - Other services - Rental income - Sale of parking labels MND - Agency fee income Singapore Land Authority - Purchase of land - Proceeds from return of land, flats and other properties to Government - Agency fees and other income - Temporary occupation licence fees NEA - Agency fees and recoveries Other Ministries and Statutory Boards - Agency fees, recoveries and others - Rental income Town Councils - Operating fee for car park maintenance expenses Subsidiaries transactions with: Town Councils and Statutory Boards - Estate management agency fee income Amounts due to related parties as at 31 March Amounts due from related parties as at 31 March 2006/2007 S$000
(374) (2,677) (513) 7,162 545
(467) (2,910) (513) 3,298 509
31,551
10,601
(1,236,573) 96,400 2,020 (2,386)
(549,805) 41,617 2,137 (2,176)
17,838
25,543
676 1,349
1,612 1,458
(33,483)
(32,112)
73,029 33,467 4,672
72,797 33,318 4,347
The outstanding amounts are unsecured. There are no guarantees provided or received in respect of the related party balances. For FY 2007/2008, the Group had not made any allowance for impairment relating to amounts owed 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 HDBs 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 (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 a material impact on the results of the Group. Information relating to the Groups interest rate exposure is disclosed in Note 15 on the loans payable. The Group's loans receivable 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 (Note 5). The Group is of the view that there is no liquidity risk as the Group monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Groups operations. Funding is also made available through an adequate amount of committed credit facilities. The MOF will act as the lender of last resort to the HDB for its funding requirements.
24
SEGMENTAL INFORMATION BUSINESS SEGMENTS The Group operates predominantly in Singapore, and therefore the revenues are generated mainly from the operations in Singapore and the assets are located principally in Singapore. The Groups results are presented under seven business segments in respect of the Groups main activities and the government programmes implemented: Home Ownership Segment The Home Ownership segment focuses on providing home ownership flats to eligible purchasers of flats under the various home ownership schemes for public housing. Upgrading Segment The Upgrading segment focuses on the upgrading programmes to renew and rejuvenate the older HDB estates. Residential Ancillary Functions Segment The Residential Ancillary Functions segment focuses on implementing housing policies, managing ancillary facilities such as car parks in housing estates, and planning and building administration. Rental Flats Segment The Rental Flats segment focuses on providing rental flats to eligible tenants under the various rental housing schemes. Other Rental and Related Businesses Segment The Other Rental and Related Businesses segment focuses on the tenancy and management of investment properties and other properties owned by the HDB. Mortgage Financing Segment The Mortgage Financing segment focuses on providing housing loans to eligible purchasers of flats under the various public housing schemes. Agency and Others Segment The Agency and Others segment encompasses estate management services, architectural and engineering consultancy services, strategic building resource management and agency projects on behalf of the Government.
24
SEGMENTAL INFORMATION (CONTINUED)

FY 2007/2008 Other Rental and Related Businesses S$M 19 19 928 18 946 632
Home Residential OwnerAncillary ship Upgrading Functions S$M S$M S$M Sale proceeds Cost of sales Gross profit/(loss) Income - External - Inter-segment Total income Segment result Government grant Taxation Minority interests Net surplus 2,463 (2,389) 74 53 2 55 (1,006) 56 56 (516) 138 (149) (11) 456 28 484 (173)
Rental Flats S$M 22 22 (77)
Mortgage Financing S$M 1,432 1,432 37
Agency and Others S$M 2 2 144 8 152 35
Eliminations S$M 20 20 (56) (56) (5)
Group S$M 2,622 (2,518) 104 3,091 3,091 (1,073) 1,248 (2) (3) 170
Other segment items Upgrading, improvements and demolition Depreciation Impairment losses on property, plant and equipment, and investment properties Reversal of impairment losses on property, plant and equipment, and investment properties Provision for loss for properties under development/for sale Reversal of allowance/ (Allowance) for impairment losses on loans receivable and debtors CPF Housing grant Investment properties: - Rental and related income - Operating expenses Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital additions
(2)
(510) -
(65) (133)
(21) (38)
(29) (130)
(11)
2 -
(623) (314)
(1)
(1)
122
122
(784)
(784)
(215)
(1) -
(3) -
30 -
26 (215)
4,132
284
9,101
2,398
432 (125) 7,907
49,626
885
432 (125) 74,333 111 74,444 59,689 269 59,958 280
2,472
267
3,419
14
3,369
49,794
354
46
153
12
65
24
SEGMENTAL INFORMATION (CONTINUED)

FY 2006/2007 Other Rental and Related Businesses S$M 852 16 868 381
Home Residential OwnerAncillary ship Upgrading Functions S$M S$M S$M Sale proceeds Cost of sales Gross profit Income - External - Inter-segment Total income Segment result Government grant Taxation Minority interests Net deficit Other segment items Upgrading, improvements and demolition Depreciation Impairment losses on property, plant and equipment, and investment properties Reversal of impairment losses on property, plant and equipment, and investment properties Provision for loss for properties under development/for sale Allowance for impairment losses on loans receivable and debtors CPF Housing grant Investment properties: - Rental and related income - Operating expenses Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital additions 1,117 (1,081) 36 38 1 39 (576) 57 57 (353) 88 (82) 6 423 6 429 (159)
Rental Flats S$M 21 21 (65)
Mortgage Financing S$M 1,494 1,494 1
Agency and Others S$M 7 (2) 5 119 28 147 45
Eliminations S$M 4 4 (51) (51) (25)
Group S$M 1,212 (1,161) 51 3,004 3,004 (751) 746 (4) (2) (11)
(2)
(352) -
(39) (131)
(15) (39)
(33) (128)
(9)
2 -
(437) (309)
(30)
(30)
(195)
(195)
(311)
(1) -
(6) -
(19) -
(26) (311)
4,329
231
9,160
2,503
414 (252) 8,109
52,284
773
414 (252) 77,389 73 77,462 62,923 213 63,136 142
2,448
194
3,645
10
3,593
52,629
404
67
67
25
COMMITMENTS a) Capital commitments The following commitments for capital expenditure are not recognised in the financial statements: HDB 2007/2008 2006/2007 S$000 S$000 Authorised and contracted for Authorised but not contracted for 1,814,763 1,304,066 3,118,829 1,139,961 942,154 2,082,115 Group 2007/2008 2006/2007 S$000 S$000 1,816,480 1,304,066 3,120,546 1,139,961 942,154 2,082,115
b) Operating lease commitments where the Group is a lessor The Group leases out its properties to non-related parties. The future minimum lease receivables under noncancellable operating leases contracted for at the balance sheet date but not recognised as receivables, are as follows: HDB 2007/2008 2006/2007 S$000 S$000 Within 1 year After 1 year but within 5 years After 5 years 114,670 267,387 291,654 673,711 104,936 246,015 317,329 668,280 Group 2007/2008 2006/2007 S$000 S$000 122,022 264,041 291,654 677,717 108,036 245,965 317,329 671,330
c) Operating lease commitments where the Group is a lessee The future minimum lease payments under non-cancellable operating leases contracted for at the balance sheet date but not recognised as liabilities, are as follows: Group 2007/2008 2006/2007 S$000 S$000 Within 1 year After 1 year but within 5 years 1,379 421 1,800 1,317 289 1,606
26
CONTINGENT LIABILITIES MODIFICATION WORK A claim involving rebar works for structural columns for S$2.4 million had been made by a contractor in FY2005/2006. The matter had proceeded to arbitration. Based on the legal advice and information presently available, the HDB believes that the claim will not succeed and accordingly, no provision had been made in respect of the claim.
27
COMPARATIVE FIGURES Comparative figures have been reclassified to conform to the current years presentation.
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Housing & Development Board HDB Hub, 480 Lorong 6 Toa Payoh Singapore 310480 HDB InfoWEB www.hdb.gov.sg

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FULFILLING ASPIRATIONS

HDB annual report 2007/2008

Affordable Homes of Quality and Value

Vibrant and Sustainable Towns

Active and Cohesive Communities

Staff Giving Their Best

HDB Annual Report 2007/2008 [10]

HDB Annual Report 2007/2008 [11]

HDB Annual Report 2007/2008 [12]

Mr James Koh Cher Siang Chairman

HDB Annual Report 2007/2008 [13]

HDB Annual Report 2007/2008 [15]

HDB Annual Report 2007/2008 [17]

Business and Ethical Conduct

Internal Audit Function Internal Control Framework

Dissemination of Public Information

Annual Financial Audit

HDB Annual Report 2007/2008 [18]

BCA Best Buildable Design Awards 2007

National Day Awards 2007

Excellent Service Awards (EXSA) 2007

PS21 Star Service Award 2007

PS21 ExCEL IQ Convention 2007

National Innovation & Quality Circle Convention 2007/2008

IES Prestigious Engineering Achievement Award 2007

NTUC May Day Model Workers Awards 2007

HDB Annual Report 2007/2008 [19]

Events Service Improvements

HDB Annual Report 2007/2008 [20]

MEMBERS OF THE BOARD

HDB Annual Report 2007/2008 [22]

HDB Annual Report 2007/2008 [23]

HDB Annual Report 2007/2008 [24]

HDB Annual Report 2007/2008 [25]

CHAIRMAN JAMES KOH CHER SIANG

CHIEF EXECUTIVE OFFICER TAY KIM POH

DEPUTY CHIEF EXECUTIVE OFFICER (BUILDING) ER. LAU JOO MING

HDB Annual Report 2007/2008 [26]

HDB Annual Report 2007/2008 [27]

A PLACE CALLED HOME

HDB Annual Report 2007/2008 [28]

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

HDB Annual Report 2007/2008 [29]

HDB Annual Report 2007/2008 [30]

Bedok North Road

Current AHG $30,000 $25,000 $20,000 $15,000 $10,000 $ 5,000

HDB Annual Report 2007/2008 [31]

Integrating a community at Edgedale Greens Welcome Party

HDB Annual Report 2007/2008 [32]

HDB Annual Report 2007/2008 [33]

HDB Annual Report 2007/2008 [34]

18,824 28,061 16,389

1,622 14,759 8 5,970 2,735 8,475 33,724 18,735 15,963 27

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

HDB Annual Report 2007/2008 [35]

MAKING THE LINK

HDB Annual Report 2007/2008 [36]

Obtaining feedback from the community on Remaking Our Heartland plans

HDB Annual Report 2007/2008 [37]

Engaging residents in shaping the living environment

Toa Payoh Central

HDB Annual Report 2007/2008 [39]