To justify our higher wage costs, Singaporeans must be well trained, better organised and more productive. By accepting a wage freeze and cutbacks in the variable bonuses, Singaporeans are adjusting to the new competition. This will help us retain jobs and prevent retrenchment. Third, property value adjustment. In Hong Kong, property prices go up much faster and also drop much faster.
Private housing is now more affordable.
The government has stopped land sales until the end of 1999 so that the supply can adjust to the demand. In the HDB resale market, we are seeing a record 28,000 transactions in the first 6 months of this year. This strong demand for HDB resale flats will help to stabilise the HDB resale prices, and in turn stabilise the private property prices. The property adjustments also extend to the office, shop and industrial sector. The rents are now more affordable and will help us to be more competitive.