Press Release concerning changes to CPF Policy
20 August 2003, Wednesday
To: The Chief Editor, All local Mass Media
The National Solidarity Party (NSP) regrets that the Prime Minister's National Day Speech is largely a rehash of old ideas, despite its fine presentation. Whereas NSP agree to the need for fiscal measures to counter the current economic downtrend, we feel that such measures should be balanced across the board.
We deeply regret that the PAP Government likes to slice the livelihood of our workers at the first instance of economic trouble. Instead of looking within itself to trim its own fats and Government charges -- as a means to reduce business costs – its usual immediate response is to squeeze the earnings of the workers through CPF cuts. This is much regretted. The Government could do much to reduce overall business cost by lowering land cost and rentals, fees and charges, transport and car fees, GST, petrol taxes and utility charges. This is the time for the Government to go for a budget deficit by reducing its revenue, as a means of reducing overall business and living cost.
We believe that the people of Singapore expect more substantial policy initiated from our World Class Ministers than merely taking an easy way out by reducing of employerÂ’s CPF contribution. As CPF is only one of the components contributed to the total cost, CPF cuts should only be taken as a last resort when all other alternatives have been considered. How can the people be expected to consistently bear the main brunt of these cost cutting measures when Government leaders themselves continue to cling onto their exceptionally huge remunerations, and GLCs are expected to make profits from providing essential services like transport?
We believe that our current high cost of living stems from the Governments failure to rein in escalating property prices in the mid 90’s and it’s over-ambitious dream of making every Singaporean own property as an asset. This has led to declining equity values among many Singaporean homeowners – as property prices continue to drop – and inflexibility on wages and business cost. The Government should come clean and publicly admit that this past initiative is a ‘genuine and honest policy mistake.’ This will set the stage for Singaporeans to learn not to commit into the same mistake again in the future – when our economy has recovered.
The NSP like to appeal to the Government not to tamper with the minimum withdrawal sum from the CPF at age 55. Stop trying to micro-manage the lives of our Singaporeans and let them decide how best to live and take care of themselves. It is mystifying when the Government slowly removes the various safety nets around us, and yet wants to control how Singaporeans can take care of their own finances. This is in contrast to its declaration that the people should be more self-reliant, more creative, and less dependent on the Authorities. We, therefore reject the GovernmentÂ’s proposal of changing the CPF withdrawal limits.
The NSP like to take this opportunity to wish all Singaporeans a Happy National Day. The dark clouds will pass because modern day Singapore has two biggest resources that will see us through any major difficulty, namely our talented people and capital reserves.
Yours sincerely,
Yip Yew Weng
President
National Solidarity Party (NSP)