HDB Annual Report 2020/2021

FINANCIAL RESULTS HDB provides Singaporeans with a ordable and quality homes, amidst a quality living environment where communities thrive, through its role as the master planner and developer of Singapore’s public housing towns and estates. To help Singaporeans become home owners, the Government subsidises HDB flats with price discounts for new flats and by o ering a variety of housing grants. HDB also o ers housing loans at concessionary interest rates to help eligible Singaporeans own their homes. For the needy, low income Singaporeans, HDB provides heavily subsidised rental flats. To ensure that HDB towns continue to be renewed and cater to the changing needs of residents, HDB rejuvenates its towns and flats through programmes such as the Remaking Our Heartland (ROH) programme, Neighbourhood Renewal Programme (NRP), Home Improvement Programme (HIP), and various lift upgrading programmes. In addition, HDB develops and manages commercial properties like neighbourhood centres to provide a range of amenities in HDB towns. To reflect the full spectrum of HDB’s operations, the financial results are presented under ‘Housing’ and ‘Other Activities’ in the audited financial statements. ‘Housing’ consolidates the results of housing programmes implemented. It comprises the Home Ownership, Upgrading, Residential Ancillary Functions, Rental Flats, and Mortgage Financing segments. ‘Other Activities’ comprises the Other Rental and Related Businesses segment, and Agency and Others segment, which are commercial in nature. In the Financial Year (FY) 2020, HDB incurred a net deficit of $2,346 million, before the government grant, as compared with $2,665 million in FY2019. The net deficit comprised the deficit from the ‘Housing’ activities of $2,649 million, o set by the surplus from the ‘Other Activities’ of $303 million in FY2020. HDB received a grant of $2,346 million in FY2020 from the Government to finance its deficit, and to protect the reserves of the past governments in accordance with the Constitution of the Republic of Singapore. The retained earnings of HDB as at 31 March 2021 remained at zero after the transfers to the capital gains reserve to protect the past reserves. 53 HDB ANNUAL REPORT 2020/21 FINANCIAL REVIEW