Tan Kin Lian - Perspectives Build infrastructure and housing in advance
The government has to build infrastructure and housing in advance, in anticipation of future needs. 

When young people need to start a family, they can apply for an available HDB flat without having to wait several years for the flat to be ready. 

When the housing is built in advance, it is possible to carry out the development on a large scale, and reduce the cost of construction. 

If the construction is carried out during a recession, it is possible to enjoy the lower wages and material costs that are available during an economic slowdown. It will also provide employment when the economy is slack. 

The government can reduce the risk of oversupply by using forward planning and survey to determine the expected demand for the housing and to carry out the development in phases, with each phase being in anticipation of future demand. 

When the housing is build in anticipation of demand, it may be necessary for the housing to be kept vacant for a few years, before the demand  is ready to absorb the available supply. As housing is always in demand for a growing population, any oversupply can be taken up with time.

This process is similar to the planning that is carried out by businesses. The business has to anticipate the potential demand from customers and  ​​​​produce the goods to be ready to meet the customer needs. If they wait for the customer needs to be finalized, they may not be able to get the products ready on time.

​It is better for the government to build infrastructure and housing in advance, and adopt the appropriate measures to minimize the risk of over-supply. 

Tan Kin Lian

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