Is there Something Wrong with CPF?
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The following is an excerpt written by Mr Lai CF, he has 55 years old and has very interesting to says about our CPF and HDB system. However he is rather wordy.
Singapore Dream Shattered
Therefore, on Aug 17, 2003, when PM Goh Chok Tong announced that the Singapore Dream is no more and the Iron Ricebowl is no more, it is an acknowledgement of the failure of the 80Â’s Restructuring of Singapore Economy.
Dr. Goh Keng Swee Doctrine:
a) Restructure Singapore Economy from low-tech labor-intensive to hi-tech capital-intensive industries.
b) Increase wages by 20% per annum to force companies to invest in automation to improve productivity.
c) Drive out low-tech labor intensive industries like textile and electronic manufacturing assembly line operators.
d) ""Maintain Singaporeans work ethics by increasing HDB housing price to ensure Singaporeans will work for at least 30 years instead of opting for early retirements.""
e) That is, that 20% NWC annual increment should not benefit Japanese appliance manufacturers.
And because of this Doctrine, today, we are suffering from 20-30 years HDB mortgage loans for even a basic 3-room or 4-room HDB flats.
As I posted at FBU on a 30-year old mother who seek my advice but still proceed to abort her SECOND CHILD in February 2005 as she said she simply couldnÂ’t afford a second one.
Own 4-room HDB Flat, still servicing 20-year mortgage loan.
35-year old husband, an NTU graduate, earning S$3,000 pm.
She is a poly graduate, earning S$1,100 pm.
They have one 6-year old child, attending kindergarten.
This couple had suffered TWO retrenchments within the last 5 years; and at one time, it was so bad that they had their electricity and water supply cut-off due to non-payment.
Comparatively, I am extremely lucky and has a comfortably life, as compared to this Gen-X couple who can afford only a HDB 4-room flat.
As they had been educated to tertiary level, shouldnÂ’t this couple be classified as the top 25% Elite of Singapore?
When Gen-X couples decided to abort their Second Child due to economic reason, what ails Singapore?
Everything went wrong when Singapore became too dependence on MNC to grow jobs; and worse of all, the failures of all those GLC or TLC to grow regional and globally before Singapore
Economy got hit by the Triple Whammy:
- 1997 Asia Financial Crisis
- 9/11 and Bali Bombing
- SARS and Bird Flu
We did not recovered at all and limped along till today.
Therefore, Government reverted to the time-honor practice of how to be competitive by:
- cost-cutting
- down-sizing to reduce overheads, i.e. retrenchment.
Well, in 2003, during FBU Public Forum hosted by Dr. Amy Khor, I told her that PM Goh speech “was a betrayal of my Singapore Dream”.
Well, I was given a 10-seconds flash on CAN and so nervous that I merely mumbled my speech. Friends, it is no fun to appear live on TV, you became extremely nervous and tongue-tied all of a sudden. Time seems to move in slow motion with your mind blankety-blank.
Guessed Amy got a walloping from PM Goh for using the word “Betrayal” in Parliament. But then, isn’t it her job as a MP to feedback honestly to Parliament on what Common People like me felt about PM Goh’s NDP Rally speech, “A Betrayal of Our Singapore Dream”.
Boy, isn’t it hypocritical of our Leaders when they claimed thyme were in favor of “open consultations”; and when you tell them the unvarnished truths, warts and all, they turned around and bit your heads off.
My Financial Health
During Feedback Unit (FBU) Public Forum on the high-cost of medical-care in Singapore, The Straits Times gave my quotation as “one man said he will rather die than pay to stay alive” and of course in April 2004, The New Paper did an article on me and my family as the “$7,500 Man”, where I detailed all my family expenses to demonstrate the problem faced by the “Sandwich” Class in Singapore.
Basically my problems are:
- Married in my 40Â’s and have 3 children.
- That is, Government said I am stupid and should remain a DINKIE (Double Income No Kid).
- As I am middle-class, I can afford it.
Well, friends, I started work on 04-April-1966 as a 15-years old, I am 55-years old now, and here is the latest financial statement after almost 40 years of working in Singapore:
ASSETS
a) 154 sq.m. 4+1 Springbloom 99-year leasehold condoÂ… S$836,000.00
b) CPF Ordinary AccountsÂ…Â…S$ 75,000.00
c) CPF Special AccountsÂ…Â…...S$ 62,000.00
d) CPF Medisave AccountsÂ….S$ 32,000.00
e) SGX Shares and Unit Trusts (using CPF Funds)Â….S$286,000.00
f) Life Insurances and Endowments Â…Â…S$120,000.00 (maturing in 7 years time)
g) Children education insurances @S$20,000Â….S$ 60,000.00
h) Cash in POSB and other bank accountsÂ…S$ 35,000.00
LIABILITIES
a) Outstanding mortgage loan: S$234,000 at S$2,660.00 pm for next 8 years.
b) Outstanding Nissan Sunny loan: S$50,000 at S$852.00 pm for next 5 years.
FUTURE INCOME
a) Praying to earn S$100,000 per annum for the next 10 years until 2015.
b) IR will help me to gain employment in the construction industry.
c) Pray that my share portfolio (properties & GLC) will quadruple in 10 years time.
d) That is, by 2015, I should be grossing S$2 million from salaries and share portfolio.
FUTURE EXPENDITURE TILL 2015
Household expenses are still at S$3,000 per month.
That is, by 2015,
my gross household expenses totaled up to S$720,000.00.
Plus S$100,000 per child for education, books, cloth, etcÂ…Â…..S$300,000.00.
Then, really, after 2015, my retirement funds depend very much on my share portfolio to double, triple or quadruple to enable me to have funds of S$250,000 (worst case) to S$1 million (most optimistic) for both ME AND MY WIFE to retire.
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d) ""Maintain Singaporeans work ethics by increasing HDB housing price to ensure Singaporeans will work for at least 30 years instead of opting for early retirements.""
Please ponder over this for those of you who have read it... -
Will or does the following article, live up to its statements?
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Time is GMT + 8 hours
Posted: 05 November 2005 2121 hrs
Ensure PAP remains the party of choice to be in Government: Lim Boon Heng
By May Wong, Channel NewsAsia
SINGAPORE : The Chairman of the People's Action Party, Mr Lim Boon Heng, has called on its members to ensure that PAP remains the party of choice to be in Government.
He said the PAP would soon be called again to win the mandate of the people, and all members must be ready to enter into the contest.
Mr Lim was speaking at the Presentation of Party Awards at Kallang Theatre on Saturday.
The next general election has to be held by June 2007.
At the award ceremony, Mr Lim also commended several staunch PAP members.
One of them was former Political Secretary for Home Affairs Ministry and MP for Hong Kah GRC, the late Harun Ghani, who had worked tirelessly to tackle drug problems in Singapore.
Mr Lim said: "Our Party has had dedicated Members of Parliament who have worked hard on the ground, keeping in touch with the concerns of the people, reflecting their views both in Parliament and outside Parliament, and solving their problems.
"Our MPs are a crucial link between the people and the Ministers. Their feedback ensures that Government correctly feels the pulse of the nation and devise the right policies."
Mr Lim also cited two other factors that have kept the PAP in government for 45 years.
He said the Party was founded by able people who have built a system of leadership succession.
And Party members have supported the MPs and worked with grassroots organisations to identify and solve issues of concern to Singaporeans. - CNA/de -
Shd we thank them for that?Originally posted by orwell76:d) ""Maintain Singaporeans work ethics by increasing HDB housing price to ensure Singaporeans will work for at least 30 years instead of opting for early retirements.""
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they did keep their promise.Originally posted by SnowFlag:Shd we thank them for that?
many lost their jobs on the 31st year of employment.
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d) ""Maintain Singaporeans work ethics by increasing HDB housing price to ensure Singaporeans will work for at least 30 years instead of opting for early retirements.";"
Which motherfarker thought this one up?
I've been thinking, IF there is a hell, I'm sure most of our ministers and mps are going to end up burning in it for all eternity, probably at the deepest level.
The couple mentioned in the same article did the right thing to abort their child. Heck they should have aborted the first one as well. Don't bring to into this country another life for the government to exploit. -
i assume you are not getting married, let alone have children.Originally posted by av98m:d) ""Maintain Singaporeans work ethics by increasing HDB housing price to ensure Singaporeans will work for at least 30 years instead of opting for early retirements.";"
Which motherfarker thought this one up?
I've been thinking, IF there is a hell, I'm sure most of our ministers and mps are going to end up burning in it for all eternity, probably at the deepest level.
The couple mentioned in the same article did the right thing to abort their child. Heck they should have aborted the first one as well. Don't bring to into this country another life for the government to exploit. -
Marry yes, children no. DINK is the way.Originally posted by dragg:i assume you are not getting married, let alone have children.
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They or their children can always emigrate mah .Originally posted by av98m:The couple mentioned in the same article did the right thing to abort their child. Heck they should have aborted the first one as well. Don't bring to into this country another life for the government to exploit. -
i duno y my family members all have DPS automatically but I dun.
have to make a trip down someday ba.. haiz. -
you think emigration is so easy?Originally posted by SnowFlag:They or their children can always emigrate mah . -
Shouldn't be much problem for the couple who has tertiary educationOriginally posted by dragg:you think emigration is so easy? -
not true.Originally posted by SnowFlag:Shouldn't be much problem for the couple who has tertiary education
must check with our emigration consultant, cindyfeh. -
The problems regarding CPF are closely linked with other national problems and not just CPF per se.Originally posted by ShutterBug:I ask again:
Does CPF really work?
Members of Parliament told The New Paper they are seeing more of their elderly constituents hoping to rent one-room flats without the waiting period.
Mr Charles Chong (Pasir Ris-Punggol GRC) felt that while the HDB is flexible and did see each case on its merits, the current policy may have to be reviewed.
He said: 'Years ago, we had people coming to us because they wanted help in hastening their applications to get their bigger flats.'
Now, because of financial problems, they want to sell these flats to rent smaller ones.
'We are seeing more and more of such cases in the last few years and they are not just the elderly,' he added.
PREVENT PROFITEERING
He said the policy of the 2 1/2-year waiting period was to prevent people from making a windfall from selling their bigger flats to rent the much cheaper and heavily-subsidised one-room flats.
But Mr Chong added that many want to sell their flats to settle debts or because they can no longer maintain their larger flats.
He said: 'I see one to two cases every week. They ask for help in asking HDB to allow them to be exempted from the debarment period.'
Dr Lily Neo (Jalan Besar GRC) had brought up the issue in Parliament last June of whether the 2 1/2-year debarment period to obtain rental flats could be waived for elderly people facing financial difficulties.
Dr Neo told The New Paper that she has seen a 50 per cent increase in the number of elderly approaching her with requests to help them sell their flats so they could rent one-room flats.
She sees several cases every month.
Most, she said, wanted the money to cover their daily expenses as they were too old to work.
And some went away happy.
Speaking from her own experience, Dr Neo said HDB has made exceptions based on medical grounds.
Madam Halimah Yacob (Jurong GRC) said the increasing number of potential downgraders she was seeing were not confined to just the elderly.
They were mainly low-income earners who downgrade to use the cash for their daily needs and to settle debts.
She noted that some were living beyond their means, buying products on hire-purchase schemes and when their other bills accumulate, they see downgrading as their way out.
Madam Ho Geok Choo (West Coast GRC) said she was seeing more elderly coming to her for help.
NEED CASH FAST
While some downgrade to smaller flats for practical reasons after their children move out, others are desperate for cash and could not wait 2 1/2 years to rent a one-room flat.
She said: 'They need to downgrade so they can get the money to help them settle their debts like their housing loans.
'For those without debts, the proceeds from the sale of the flat will provide them with a source of income.'
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INSIDE MPS' FILES OF DESPERATE CASES
MADAM HALIMAH YACOB
(Jurong GRC):
NO MONEY for HDB loan
A WIDOW in her 60s approached Madam Halimah for help.
The woman could no longer service the loans for her four-room flat, which she had bought.
Her son, who is in his 20s, has refused to work and isn't helping to pay the loan.
So the woman is trying to sell the flat, get some cash and rent a one-room flat instead.
MADAM HO GEOK CHOO
(West Coast GRC):
NO MONEY to live on
AN elderly couple approached her for help. They were broke and wanted to sell their three-room flat.
Their children had their own families to care for and all were not well-off. Madam Ho said: 'The old man was sick and couldn't work.'
Their first two appeals to get a one-room flat quickly were rejected. But Madam Ho appealed again on their behalf and was successful.
DR LILY NEO
(Jalan Besar GRC):
NO MONEY for medical bills
A 70-year-old man's wife had heart problems.
The childless couple needed money urgently to pay for the woman's monthly medical treatment.
He was too old to work and they had no savings left.
He approached Dr Neo for help and HDB allowed them to rent a one-room flat immediately after they sold their two-room flat.
1) the over-confidence of the govt and citizen over our long term growth. I believe many people here would remember not so long ago, in the late 80s and early 90s, where the HDB property price increased by the month.
The whole economy with the mentality of the govt and its people were solely geared towards growth, growth and growth. Property agent shouted: "hot, hot, hot. Today don't buy, tomorrow hotter".
This, despite, one Minister, YCT (if I remember correctly) warned along this line- Singaporean cannot always expects the govt to buy back HDB flat at a higher price than the price it sold to citizen. He used this anology: "if the govt sells a T-shirt to the citizen and the citizen wears it. He can't expects to sell back to the govt at a higher price". And this, despite, the projected falling birth rate and aging population.
In short, we blindly followed the golden calf of easy money, thinking tomorrow will always be bright or that the govt will somehow step in and set everything right again. The worst thing is, we blindly followed govt policies without questioning or doubting. In some cases, rushed to participate in a govt scheme when a policy is announced. Kiasu mah, must be first mah.
2) the govt wrong policy of asset enhancement. It led to the feel good factor, that thing is good now but it will get better still. Then, I remember some old retiree lectured young turk, like me, on the ABC of Singapore politic: "Singapore govt- whatever they promise they always deliver. Tell you, no govt in this world comes any closer".
The policy of asset enhancement came about after GCT became PM and the subsequent election where the PAP govt had a slide in vote. The govt attributed one of the reasons to the get-even attitude of the lower income Singaporean.
So how? sweeten the ground (or muffle the ground, if you wish). An indirect bribe on the lower income group. It is like "here here you poor fellow. Some 'ang pows' for you to shut your whinning". If the govt really care for the lower income group, it would have done the right things. Upgrade hospital facilities/schemes for the lower income, upgrade facilities/schemes for the disabled, review the policies concerning the lower income group etc.
Like someone correctly pointed out in SG forum. Why include land price in HDB flat if it is on leasehold? And here is the tricky part. The govt actually argued that we actually "own" the HDB flat. A logic I find hard to follow. How to be owner if you are on leasehold? It is like, I rent you my room on paper but you own it (by words)? Also, why is HDB flat's land price not pro-rated? If there are 20 storey, why is land price not divided by 20 residents?
3) CPF has been overburden with too many dependent schemes and policies. From insurance, to housing, to saving for old age, to hospitalization, to annualty, to investment, to child's education etc. The list just get longer over the years. CPF should return to its basic, namely a saving for old age and nothing more. -
Well said Pat, but nothing will change unless we as a people rally for these changes to materialize?!?
Only One person making noise will likely end up behind bars... -
Well argued, Pat. Basically the increase in HDB price was mapped to the CPF balance in the people's account. Along the line , it was realised that too many people were reaching the age of 55 with huge amounts to withdraw and a decent home as well. So we had a 900% increase in a few years. If I remember correctly the promise of CPF and the refusal to allow it to be used for more prudent use (like buying annuities or life insurane - suggested by non paps) was that it was a retirement nestegg for the citizens. 40 years later, we are asset rich, cash poor, can't afford medical treatment at old age, no money at old age.....all because.....not anything else but stupid us never plan for retirement...hahaha...stupid me..
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1 million Singaporeans - asset rich, cash poor.
1 Sg Landlord Kingpin - asset poor, cash rich.
Guess who is stuck with zeros and who is
to the bank with zeros?
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If one has passed 55, have not been able to find employment because of age discrimination, have a medical condition that requires monthly medical treatments, but the medical condition/s is not quite TERMINAL, what in heck can that person do between 55 and 62, which is the allowed age to be able to tap into Retirement Funds??? Let his or her ailments get worst by the time he or she reaches 62???
Does this make any sense???
CPF's policies are senseless, and lack any human touch. -
Time again and again the govt has said that its policies are geared toward a no handout society.Originally posted by ShutterBug:If one has passed 55, have not been able to find employment because of age discrimination, have a medical condition that requires monthly medical treatments, but the medical condition/s is not quite TERMINAL, what in heck can that person do between 55 and 62, which is the allowed age to be able to tap into Retirement Funds??? Let his or her ailments get worst by the time he or she reaches 62???
Does this make any sense???
CPF's policies are senseless, and lack any human touch.
No handout - fine but more helping hands in times of long economic downturn. Especially the kind that you pointed out above. More flexibility in govt policies for the lower income group.
The govt should realise this - we are still an asian society. If we can help it, we don't want to lap up on welfare like the western society. There is still certain pride in most of us in earning our living.
If lower income group has to be cleaner to survie - fine. But they fall sick with their meagre salary of $400-$800 and they cannot afford medical? -
Maybe we should all go CPF and request to count our money.