The CPF System is neither a collective pension scheme or an individual retirement account.
It is both individual and collective. It comprises the individual’s savings and significant injections of Government support.
And through CPF LIFE, members are pooling risks to support one another
in the face of life’s uncertainties throughout retirement.
There is therefore a collective responsibility built into the system
through Government support as well as through members' risk pooling
through CPF LIFE.
Examples of Government Support:
1. Medisave Grant of $3000 for every Singaporean baby.
2. NS HOME where an NSman receives a total of $15,000 injected into his CPF accounts at 3 different stages of his NS journey.
See: http://on.fb.me/1Gi9UAo
3. Housing Grants
(CPF housing grant, additional CPF housing grant, special CPF housing grant, step-up CPF housing grant)
These housing grants are not merely discounts on the price of the flat.
They are money credited into your CPF account should you decide to sell
your flat.
4. Medisave top-ups
5. Workfare Income Supplement credited into a member's Special and Medisave accounts.
6. Edusave
In
the late 1990s, Singapore’s economy was affected by the Asian Financial
Crisis. The global economy then looked like it was in danger of
coalescing into regional trading blocs; and the WTO Doha Round of
negotiations was floundering.
40. We decided to pursue bilateral and plurilateral FTAs even
as global trade negotiations were taking place in parallel. Some
fifteen FTAs were eventually signed or conceptualised during my tenure.
The US-Singapore FTA was one of the most important but concluding it
was a drama.
41. We had our eyes on an FTA with the
US for some time, but some quarters in President Clinton’s
Administration were less enthusiastic.
42. You may
recall that in 1994, Singapore sentenced Michael Fay, an American
teenager, to jail and caning, for vandalism and theft. President
Clinton requested that we grant Fay clemency from caning. We were put
in a dilemma. On the one hand, we need to stand firm on the rule of law.
Otherwise, we lose credibility in the eyes of Singaporeans and in
particular President Soeharto, amongst other foreign leaders. Again you
might recall that we had proceeded with the hanging of the two commandos
from Indonesia who bombed MacDonald House and killed some innocent
Singaporeans, despite Soeharto’s appeal. On the other hand, had we
granted clemency, we would not have done our relationship with the US a
favour, because we would be seen to be a client state of the US. So, we
deliberated with this issue carefully and we decided that we should
show that we had given President Clinton’s appeal serious consideration
and yet, stood by our principle of the rule of law. We decided to cane
Michael Fay but reduced the number of strokes from six to four.
43. Clinton’s White House staff kept Singapore at arm’s
length after this to show the US’ displeasure. My request to visit the
White House was turned down – we could not get through the White House
gatekeepers. But as luck would have it, I had become friends with an
American whom I played golf with in the Augusta National Golf Club.
When this friend visited Singapore a little later and learnt that I had
not been able to get access into the White House, he said that he would
try and do something about it. He was a friend of Bill. He was from
Little Rock, Arkansas, same place as Bill Clinton, so I left it at that.
44. And it was only two years ago when I met this friend
again at Augusta for a golf game, that he told me he had actually spoken
to President Clinton about my inability to visit him because of the
block by his gatekeepers. So that explained a mystery which I suspected
but which I could not quite confirm, as to why at the APEC Leaders
meeting in Vancouver in 1997, out of the blue, Clinton invited me to
play golf. So that’s Clinton’s clever way of by passing the gatekeepers.
So I had my first golf game with him in Vancouver because of this
mutual friend that we had.
45. The following year, I was welcomed at the White House.
46. As a postscript, Michael Fay had several brushes with
the law after his return to the US. When I hosted Clinton to dinner in
Singapore in 2002, he mentioned Michael Fay in a light-hearted moment.
He quipped, “You should have caned him more” and added that Fay’s father
should also have caned him earlier.
47. Well, I
recount this story to show how we stood by our principles to the world’s
most powerful country, to the world’s most powerful man, when knowing
that there would be a cost to pay. So standing by principles is very
important, even though there will be costs to pay. But it is also to
provide the background to the conception of this idea of USSFTA,
US-Singapore Free Trade Agreement – conception on a golf course again.
48. The APEC Leaders meeting in Brunei in November 2000 was
the backdrop. I knew Clinton was a night owl. I’ve done my homework.
So before the state banquet started, I approached him. I said, “what
would you be doing after the banquet?” I told him I’m looking for a
partner to play golf. He said yes, he’s also looking for a partner. So I
said, “okay, let’s go and play golf.” I anticipated that. I had my golf
bag and my golfing attire all packed in my car, ready to go!
49. Then, horrors, before we departed, while we were still
waiting for the car, a sudden rain storm erupted. It was one of the
heaviest thunderstorms I had come across. And a Clinton aide told me,
“Looks like the game is off.” So I put on a bold front and told him no, I
know my weather, this is a tropical thunderstorm, it will blow over in
half-an-hour’s time. And I added, the golf course is 30 minutes away.
So knowing a little bit about psychology, I told him I am going anyway. I
leave it to the President but I’m going.
50. So I
went, and when President Clinton arrived at the course after me, the
rain had become a light drizzle. Then he changed into his attire, his
golfing attire. By the time he finished that, the rain had stopped
completely. You might not know this but this is about midnight. You
know, night golf, where they have these lights on the golf course which
you could play in Brunei.
51. We played 18 holes.
After we had finished at about 2.00 am, I made a pitch for a USSFTA. My
argument was a simple one. The FTA would signal strongly the US’
strategic interest in Asia and anchor the US in Asia. He said that it
was worth doing so we agreed to launch the FTA, all in under 20 minutes.
52. Our agreement, and the occasion, place, time, manner and
speed in which it was reached amazed the American and Singapore
officials! The next day of course, the officials started to work to
draft the press statement on this agreement to have the FTA.
53. My good personal relations with Clinton also helped to
restore normalcy to our bilateral relationship following the Michael Fay
episode. But the crucial factor was having a strategic and decisive
counterpart. Bill Clinton was such a leader. Our two countries’
strategic interests in having a bilateral FTA were aligned. Ultimately,
trade is strategy. The FTA was for geopolitical reasons, not just
about lowering tariffs and more trade.
Ref:
http://bit.ly/1ybV3BS
http://on.fb.me/1cL802k
A
story was told of a frustrating moment when Mr Chiam See Tong, then an
MP in Potong Pasir, wanted to plant an exotic tree in his ward. But the
HDB would not let him! He protested and found unlikely support from
none other than the then Deputy Prime Minister Mr Goh Chok Tong.
Mr Goh said that HDB should not interfere with Mr Chiam's desire to plant the Sterculia Nobilis or even to rear chickens if he liked!
No, the Town Council Act did not arise because of this frustrating moment.
But Mr Goh was making the case for HDB to cede some power to MPs and
residents to run their own estates and create the type of environment
they would like to live in.
Before there were town councils,
housing estates were managed by the Housing and Development Board (HDB).
The standardised rules for all housing estates meant that HDB towns
were monotonous. By managing housing estates centrally, the HDB was also
slow in reaching decisions to fix problems faced by residents and
addressing their complaints. It was against this backdrop that the town
council concept was introduced.
With local autonomy, each town
would be better able to develop its own distinctive character and
identity, reflecting the aspirations and commitment of its residents and
Town councillors.
The first pilot town councils were Ang Mo Kio West, East and South, each comprising three constituencies.
The pilot town councils were responsible for the upkeep and management
of the constituencies. Among the works carried out by the three town
councils during the trial period were installing ceiling fans at hawker
centres, replacing footpaths and creating more parking spaces in the
housing estates. The councils also initiated landscaping projects such
as paintings at void decks and shrub plantings to liven up the
surroundings, and to give distinctive features to the neighbourhoods.
The town councils were also involved in organising community-related
activities such as exhibitions and campaigns to promote social
responsibility and neighbourliness among residents.
Following
their success, the government passed the Town Council Act in 1988 to
pave the way for the full implementation of the town council concept
throughout Singapore.
Why
the concern with GDP? Why is the government always talking about
economic growth? Why is the government so concerned with $$$? Why can't
we slow down a bit and relax?
Sounds familiar?
In a speech in parliament in 2011, Chairman of WP, Ms Sylvia Lim made
reference to Bhutan and their Gross National Happiness (GNH) where the
prosperity of their citizens is gauged by their level of happiness and
suggested that Singapore should follow Bhutan's example and focus on
happiness as a national goal.
Well, Bhutan's gross national happiness is now history.
Jigme Thinley, the Prime Minister of Bhutan from April 2008 to July
2013 who had travelled the world over to promote 'national happiness'
making himself a popular figure abroad did not find the same popularity
at home. He was soundly defeated by Tshering Tobgay whose list of
promises did not include happiness.
Tshering Tobgay said, "The bottom line is that we have to work harder. We need to grow our own food, build our own homes.”
Before you can be happy, you must have a job.
And economic growth means jobs, and GDP, simply put, is an indicator of the health of an economy.
Economic growth is needed to create jobs for every fresh batch of
graduates. We also need to accumulate wealth because it is our only
resource in times of crisis.
Then there is yet another
compelling reason for pursuing growth and accumulating wealth. And THAT
is our RAPIDLY AGEING POPULATION.
In many parts of Asia where
the population is ageing rapidly, there is genuine concern that the
country is growing old before they can grow rich.
Vice Premier
of China Hui Liangyu, for example, has publicly said that China is
ageing at a speed and scale that exceed their expectations and China is
not adequately prepared to respond to an ageing population.
IMF Working Paper ((http://bit.ly/1zwX4ML)
on how well positioned Asian countries are in meeting the challenges of
an ageing population describes the macro and microeconomic aspects of
preparing for an ageing population.
On the macroeconomic
aspect, countries are to PURSUE A POLICY OF RAPID ECONOMIC GROWTH before
the demography of the country shifts.
Why?
Because a
rise in saving and investment rates early in the demographic transition
will enable a country to meet the needs of the elderly in the population
while still satisfying the standard-of-living aspirations of those of
working age when the demographic shift comes.
In other words,
rapid economic growth enables a country to save in advance to meet the
future challenges of a greying population.
Revenue for
government spending comes from income taxes, consumption taxes, assets
taxes etc, all of which are related to economic growth.
A
growing proportion of elderly in the population means increased national
healthcare and long-term care expenditure for the elderly.
The $8 billion Pioneer Generation Package that the Singapore Government
introduced last year was possible because there was economic growth to
generate surpluses to fund it.
Next to come is the anticipated
Silver Support Scheme that aims to provide an annual bonus to
low-income elderly Singaporeans from age 65 to help them cope with
living expenses.
If there is no economic growth, where will the
money come from that is now highly subsidising the EASE programme to
enhance the mobility of the elderly living in HDB flats? And this is
just one example. (http://bit.ly/1lVjaAb)
The Singapore Government's approach to spending - setting aside now,
from their surpluses, money for future spending - means that future
generations of Singaporeans will not be burdened by debts (as is the
case in many other countries) which in turn means that they would be
able to enjoy a standard of living that is higher that it otherwise
would be.
However, that window of opportunity to make good
before the demographic shift takes over will soon be closed. In 2012,
the population of Singapore reached a turning point when the first
cohort of baby boomers turned 65.
Growing rich before growing old.
That is true for an individual. It is also true for a country.
If a country is old and poor, how will it take care of the needs of the old?
"You can be young without money, but you cannot be old without it." (Tennessee Williams)
Ref:
http://bit.ly/1AmSi7m
http://on.fb.me/1Agjk15
Japan could lose its 'developed nation' status and become an insignificant nation by 2050 according to a report in 2012 by Tokyo-based 21st Century Public Policy Institute, a think tank established in 1997 by the powerful Keidanren (Japan Business Federation).
And the reasons? Chronic low birth rate and a greying population. The Japanese population will drop from 128 million in 2010 to 97 million in 2050 with a large proportion of old people.
A shrinking and greying population coupled with a dwindling workforce caused by chronic low birth rate will combine with lower savings and shrivelling investment to drag the once mighty economy down.
It will no longer be rich.
It will lose its global significance.
It will revert to being 'just a small Far Eastern country', according to the report.
At current birth rates and without immigration, Singapore's population will start to shrink from 2025 onwards. We will be in the same boat as Japan - facing a shrinking and greying population with low birth rate.
Will Singapore go the way of Japan and become poor and insignificant?
If Japan with its large land mass risks reverting to being 'just a small Far Eastern country', will Singapore risks reverting to being 'just a small fishing village in the East'?
What can Singapore do to avoid that?
Ref:
http://www.21ppi.org/english/pdf/120827.pdf
http://www.economywatch.com/in-the-news/japan-could-lose-developed-nation-status-by-2050.20-04.html
