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RES exam question on HDB Policies: his salesperson say

HardHDB Transactions: Sale & Rental · Paper 2

Mr Toh, a Singapore Citizen who has served his Minimum Occupation Period, wants to let his whole 4-room flat to four Employment Pass holders from Myanmar. A neighbour says the block has reached its Ethnic Integration Policy limit for Mr Toh's ethnic group, so the letting cannot proceed. What should his salesperson say?

  1. AThe neighbour has the wrong quota; the Non-Citizen Quota, not the Ethnic Integration Policy, governs this letting
  2. BThe neighbour is right, as the Ethnic Integration Policy applies to letting as well as to buying
  3. CThe flat may be let, but to tenants of an ethnic group still under its block limit
  4. DNo quota applies to the letting, the choice of tenants being a private matter for Mr Toh
Show answer & explanation

Answer

A. The neighbour has the wrong quota; the Non-Citizen Quota, not the Ethnic Integration Policy, governs this letting

Explanation

Answer: The neighbour has the wrong quota: the Non-Citizen Quota, not the Ethnic Integration Policy, governs a whole-flat letting to non-Malaysian non-citizens.Watch out: Check the block and neighbourhood still have room under that quota. The letting also needs HDB's approval, must respect the 8-tenant cap for a 4-room flat, and cannot exceed 2 years because the tenants are non-Malaysian non-citizens.Rule: The Ethnic Integration Policy and the Singapore Permanent Resident quota control who may buy in a block or neighbourhood, not renting out. A whole-flat letting to non-Malaysian non-citizens is capped by the Non-Citizen Quota, 8% of the neighbourhood and 11% of the block, which excludes Malaysians and bedroom rental.Source: hdb.gov.sg, Eligibility for Renting Out a Flat, read 1 Oct 2026

Why the other options are wrong

  • Ethnic Integration Policy applies to letting too: The Ethnic Integration Policy controls who may buy a flat, not who may rent one.
  • Let only to an ethnic group under its limit: The block's ethnic position has no bearing on the tenancy; the tenants' ethnic group is not tested.
  • No quota applies; tenants are a private choice: The Non-Citizen Quota applies to a whole-flat letting to non-Malaysian non-citizens such as these tenants.

Study the concept behind this question: Renting Out an HDB Flat or Room: Approval, Quota, Tenants

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Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.