建屋发展局的任务是提供卫生的生活条件,以取代不卫生的贫民窟和拥挤的木棚区。建屋局的首要任务是尽可能地建造尽更多廉价屋,并因此提出了五年计划。最初的概念是,所建造的房屋应出租给低收入人群。不过,为了使低收入群体能够购买自己的屋子而不是租屋,继而推出“居者有其屋”计划。这为屋主提供了财务保障,同时也起到了抵御通胀的作用。后来人们被允许使用公积金付首期款项。然而,这些努力不足以说服居住在木棚区的人们搬进这些组屋。直到1961年河水山大火(Bukit Ho Swee Fire)之后,建屋局的效率和诚意才赢得了人民的好评。建屋局交出了功课,并在不到3年的时间内建成了21,000个组屋。在建屋局成立的十年内,已经建造了54,000套组屋。
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