Josephine Teo
Singapore
“The Government's risk-calibrated approach to data security in artificial intelligence (AI) systems was explained in a written reply, given on 9 January 2024, to related questions asked by Dr Tan Wu Meng and Mr Gerald Giam.”
“Access to frontier models is helpful for specific use cases, such as advanced research and cybersecurity. However, these form a small proportion of artificial intelligence (AI) demand. For most industry, Government and research uses, capable models are already available.”
“The Government tracks the development of technical standards for identifying artificial intelligence (AI)-generated content, including watermarking and digital provenance approaches, as part of broader efforts to manage AI-related risks.”
“Upon receiving a valid report of intimate image abuse, the Commissioner of Online Safety is empowered by law to direct Online Service Providers (OSPs) to disable access by Singapore users to the specified harmful online material. This direction may be extended to cover identical copies found on the platform.”
“The Government is committed to keeping children safe online. We have announced plans to extend age assurance requirements to designated social media services, including requiring platforms to keep users under 13 off their services.”
“Under the Online Safety (Relief and Accountability) Act 2025, the Commissioner of Online Safety is empowered to issue directions to platforms to remove specified harmful content, including intimate image abuse.”
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“Mr Speaker, foreigners working in Singapore must hold a valid Work Pass, and those who install consumer goods such as furniture and air-conditioning from overseas retailers are not exempted from this requirement. This helps to ensure that all businesses are operating on a level playing field. Under the Employment of Foreign Manpower Act, illegal workers can be fined a maximum of $20,000 or subjected to imprisonment of up to two years, or both. The Ministry of Manpower (MOM) has also taken action to bar such illegal workers from entering and working in Singapore for up to two years. Anyone with information on such illegal workers should report to MOM. Information can be found on our website.”
“Everyone can enjoy CPF LIFE. But there are certain members whose balances are not very high. They might find a lifelong payout at those levels not very meaningful. Again, we do not presume to decide on their behalf. We say that if your balances are below a certain amount, it is better for you to decide and let us know. Quite a number have decided that they will come on-board. They are part of the 92,500 that I shared. Members not on CPF LIFE can still come on board. We will not deny them the opportunity to do so. It is just that we do not decide on their behalf.”
“I would not want to speculate. The specific circumstances may differ. But in principle, the same rules apply to this individual. If by 70, there has been no instruction received, the CPF Board will also stream out the payments. The challenge, of course, is whether you have the right details, such as bank account details. If he does not have the LPA, it would be very hard to see how the CPF Board could be instructed to start the payouts even before 70. But we will have to look at the specific instance, so I think best not to speculate.”
“Absolutely. They are reminded year after year, through the Yearly Statement of Account.”
“The short answer is yes. We will have to take a look at the letters. I think it is best to message-test. It is probably best to gather some members and ask them which letter is intuitively easier for them to understand. We will do so.”
“The incentives are already very generous. For every year of payouts deferred, those on CPF LIFE stand to get higher payouts of up to 7% more. If they defer it for all five years, they get up to 35% more. However, not everyone has hoisted this on-board. I am aware that the former Minister for Manpower, Mr Lim Swee Say, for example, has conducted multiple engagement sessions in his constituency, helping his residents understand the benefits of deferring their payouts. I would very much like to encourage all Members to do likewise. CPF Board will be very happy to support you in this endeavour. The incentives are there, it is very much for the CPF members to take advantage of them.”
“To the Member's final question, on whether an individual, having started his payouts, can decide to stop and defer to 70. Here, I want to be very careful about not making a generalised statement. As I explained, the circumstance may differ for every individual. So, I would urge the member to come forward, we would look at his particular circumstances and if it serves his interest, it is helpful to him, we will see how to support him.”
“In general, the extra interest and the additional extra interest provided by the Government is used to extend the duration of the RSS payouts and reduce the risk of members outliving their savings. In some cases, the CPF Board allows flexibility for members to request for a shorter payout duration. For example, members may have topped up beyond the full Retirement Sum and would have their payout duration extended. They can come forward and discuss with the CPF Board how to get it shortened for higher payouts. RSS members can also consider joining CPF LIFE. Because of risk-pooling, not only will they enjoy lifelong payouts, but they may also enjoy higher payouts. In fact, I am happy to share with the Member that about 92,500 RSS members have taken up CPF LIFE voluntarily. They were not mandated to do so, but they probably either did their own sums or visited a Service Centre, were shown what the payouts will look like under CPF LIFE and then decided on their own accord to sign up. The question is, why keep the RSS, why not make everybody come onboard? This is one of the challenges for CPF LIFE and indeed many Government schemes. When we introduce changes or new schemes, we have to be very careful to whom it applies. The RSS members were told that they were on RSS. We do not just decide on their behalf that they will henceforth be on CPF LIFE. For newer cohorts, when CPF LIFE was introduced, it was made mandatory. That is because they have the benefit of advanced understanding and knowledge. But for those who were already on the prior scheme, we are very careful about changing things for them. The solution really is to reach out to them, show them how it works for them and let them decide.”
“Mr Speaker, Singapore has one of the highest life expectancies in the world. In 2017, more than half, one in two Singapore residents aged 65 was expected to live beyond 85. One in five of them was expected to live to about 95 or above. When designing the RSS payouts, initially, they were meant to last 20 years, taking into account the base interest rate on the Retirement Account, which is now 4%. So, consider the fact that they will earn 4%, consider the fact that RSS payouts should last 20 years, then you work out what the payout will be. A current RSS member reaching his PEA of 65 will get a base payout that will last till approximately 85. What this means, however, is that more than half of the members still alive at 85 will have no CPF payouts at all. This will be a major cause for concern. The better solution for the member to managing this longevity risk is CPF LIFE, which provides lifelong payouts. However, because CPF LIFE is mandatory only for those turning age 65 in 2023, with $60,000 in Retirement Account balance, most of our elderly will still not be on CPF LIFE but remain on the RSS. With this concern in mind, the Government introduced the CPF extra interest about 10 years ago and the additional extra interest in 2016. This bonus interest, provided by the Government, is used to extend the RSS payouts beyond 20 years. In this way, the members will enjoy payouts for longer and there is less risk that their savings will run out. But we also put in a cap, so that the payouts do not extend past 95 years old. This will already cover about four in five elderlies. About 80% of them will be covered by this duration extension. To the question of whether members can request for shorter payout duration under RSS.”
“It will be very hard to tease apart what part of that money can be attributed to CPF payouts or what part is attributed to children's allowances. But what people do with their withdrawals at age 55 is instructive. Our survey suggests that slightly over half of the members, after taking the withdrawals from their CPF accounts at the age of 55, just put it in a bank account, earning much poorer interest rates. That actually is a very useful reminder that people are not always so savvy about what is the best deal that they can get on their savings. There is some merit to the current practice of automatically deferring it for them, because they get to earn a much better interest rate. When they want to start their payouts, it is still available to them anytime.”
“Mr Speaker, I thank the Member for his supplementary questions. Let me deal with the first one on retirement age. In Singapore, together with Japan, besides the retirement age, there is actually the re-employment age. We are, to the best of our knowledge, the only two countries in the world that have the provision for re-employment. In the Singapore context, the re-employment age, when it was first implemented, was to age 65. This was in 2012. Then, in July 2017, we raised the re-employment age to 67. So, in fact, Singaporeans have the assurance of employment beyond the retirement age of 62, all the way up to 67. In any case, both the retirement age and the re-employment age are being reviewed. A tripartite workgroup was set up last year and is making good progress. I hope to be able to update Members during the Committee of Supply (COS) debate. Let me turn to the second question. I believe the Member had suggested, if you are concerned about starting the payouts at 65, why not start with a smaller payout? I think it can be looked into, but I suppose the question the members will also have is: how do you decide what is a "small" payout? If you are going to start with a small payout, why not just start with the whole payout? The third, I am very glad that the Member asked this question. What is the typical use of the payout? We do not have very clear indications about what happens to the payouts once they start being streamed out on a monthly basis. There is good reason to also not be too precise about the use of those monthly payouts because they will be co-mingled with contributions from other family members and perhaps, personal savings.”
“But, at the same time, members may want assurance, as other House Members have said, of knowing that their payouts will commence and that the mechanism for paying out is sound. Could we consider starting with, perhaps, a lower payout at first at the PEA and then scaling up to the full payout at 70 or on application of the member? The last question is, what is known right now about the use of payouts at the earlier PEAs, that is, are the payouts used for expenses or do they sit largely in zero percent or close to zero percent savings accounts? It seems that studying this and publicising it may allow the public to understand why we have this policy and how it helps them.”
“There are two parts to that question. Do we reach out to them? The answer is yes, because everyone gets the Yearly Statement of Account. CPF records will show whether the member has reached the PEA but has not activated payouts, in which case CPF Board will remind the individual that "You have reached the PEA. You are eligible to start your payouts. Here is the form, activate it any time you want". The second part of it is, do we ask them why they have not started or activated their payouts? Here is where, I think, we have to be a little bit careful. People have a right to their privacy. CPF Board must be quite mindful that not everyone wants to tell the Board the reasons for their actions. Therefore, if we want to establish, amongst those who have not started their payouts, who actually is aware and made a conscious decision not to start it, who is not aware and did not come forward to instruct the Board, this would be quite a major exercise. We think there is some value in doing so but we will have to find a way that the member does not feel very intruded upon. Assoc Prof Walter Theseira (Nominated Member): I thank the Minister for her comprehensive reply. I have three supplementary questions. First, I think some of the public unhappiness is, perhaps, due to the gap between the retirement age at 62 and the PEA at 65. Some are concerned that they have difficulty making ends meet between retirement and the start of the payouts. Would the Ministry consider aligning the retirement age with the PEA in the future, to allow for a seamless transition between work income and CPF income? Second, regarding the default "out" at the moment, I think it is a good move because it improves retirement adequacy.”
“Mr Speaker, I wholeheartedly support what Mr Liang has suggested. We definitely can improve the way we communicate with CPF members. Today, CPF Board engages with members through a variety of means. Letters are just one of them. CPF Board administers quite a wide range of Government schemes – MediShield Life, MediSave disbursements, Silver Support, and Workfare Income Supplement. If you put together all the letters that CPF Board sends out, there are about 220 types. Obviously, some of them have the risk of not being entirely clear. We will definitely put effort into improving them. There is also an avenue which we want to encourage CPF members to use. There are five CPF Service Centres islandwide. Each of these CPF Service Centres is staffed by officers who are conversant in all the major languages, especially, of course, our four official languages. Even if a member was unable to understand the letter that has been sent to them, we hope, by the very fact that they saw the CPF logo, that they will know that they can always approach the Service Centre. The staff will be happy to take them through in a language they are comfortable with. That is something we will make as a commitment. In fact, CPF Board has already started inviting members to come forward. At the age of 55, the invitation is extended to every member. From this year onwards, once they reach their PEA, which is 65, we will equally invite the member to come again, so that CPF Board can provide personalised guidance, face-to-face. Any question that is not clear, any doubts that members have on the spot, make the explanation available to them and reassure them.”
“Those kinds of changes actually risk confusing people even more. On balance, I suggest that we focus on improving the communications for the policy as it currently stands. With the benefit of knowledge, CPF members can still start their retirement payouts any time after 65. If we keep to this consistent line, there is less risk of further confusion.”
“Mr Speaker, the Member Mr Lim has asked a very important question. The points he has raised are not trivial at all. I must share with Members that I gave serious thought to the possibility of shifting the automatic start date to 65. But there are several concerns, and I should share them with you. There may be a group of members who are aware of the benefits of payout deferral. But they forget to come forward to instruct CPF Board to defer their payouts. There will be such individuals. Mr Lim may become one of them. Another group may not be aware but actually they do not need the payouts just yet, even after they have reached their PEA. It is entirely possible that this group will grow over time. After all, between the age of 65 and 69 today, our employment rate is about 40%. With good health, we can expect more people to want to work longer. If, indeed, they are still receiving incomes, they may find that the CPF payout is somewhat unnecessary at that point in time. Both groups may not be so happy that CPF Board made an assumption to start their payouts that deprived them of the benefits, if we were to have such a mechanical approach. Also, there is another concern that weighs heavily. I am quite wary of making yet another sudden change. We have, for years, told CPF members that their payouts start when they instruct CPF Board – this has been the long-standing instruction. Tomorrow, if we decide otherwise, how can we be sure everyone gets the message? That is the central lesson we have learnt. Every time there is a change, it actually takes a long while for people to get used to it. Each time we make another change – we say that people on the previous system get to keep that previous approach, and from then onwards, this group has a different treatment.”
“Thank you. Mr Speaker, for brevity, I have circulated the English version of this handout. But I want to assure Members that we are producing it in all four official languages, and they will be made available to you to disseminate to your residents, whoever may feel that this is useful. We will also be happy to collaborate with Members to share relevant information with their residents through talks and seminars. This offer will hold at any point in time that Members wish to activate it.”
“In fact, by the end of 2018, about 35,000 of such members had already started to receive their payouts upon reaching their PEA, which is what they expected. Members who joined CPF LIFE after July 2015 will be like members on the RSS. They can start their payouts any time between their PEA and 70, by instructing CPF Board. Mr Speaker, allow me to conclude. All members can start their payouts any time after PEA by issuing a simple instruction to CPF Board. This has not changed. However, the exact payout application process and letters sent to members may vary, depending on each member’s particular circumstances, such as whether they are on RSS or when they joined CPF LIFE. Hence, CPF members should not rely on letters sent to others. They should instead contact CPF Board if they are in doubt about any letter sent to them. With your permission, Mr Speaker, may I ask the Clerk to distribute handouts summarising the key points of my reply?”
“While CPF Board has stepped up outreach efforts, there is much room for improvement in the way it communicates key issues such as starting payouts. For example, we will review the letters sent to members who are approaching their PEA, so as to avoid misunderstandings which confuse members unnecessarily. The Board has also started to invite all members reaching PEA to attend and benefit from a CPF Retirement Planning Service from the start of this year. This is a face-to-face service in which a CPF Board officer provides personalised guidance. In addition, we will work with other agencies to reach out to CPF members. For example, where appropriate, staff at the Social Service Offices (SSOs) will ask members who approach the SSOs for financial help whether they have activated their CPF payouts and assist them to do so if they wish. We will also collaborate with the Silver Generation Office to communicate this issue to elderly members. Mr Speaker, I would also like to take this opportunity to clarify the position for CPF LIFE, which is a relatively new scheme. Members who joined CPF LIFE prior to July 2015 may have been confused whether they too have to come forward to activate their payouts when they reach PEA. Some pointed out that the Latest Payout Start Age of 70 was not mentioned in previous communications with them. Let me assure these members that nothing has changed for them. They joined CPF LIFE before July 2015. Back then, there was no flexibility to defer CPF LIFE payouts and the policy letter has already stated that the payouts would start from their PEA. For such members, CPF Board will indeed start payouts at PEA, unless otherwise instructed.”
“With every year that they defer their payouts, their CPF savings will earn risk-free interest of up to 6% a year, which is well above the interest rates they would get in the market. This 6% includes the extra interest of 1% for the first $60,000 and additional extra interest of 1% for the first $30,000. For members on CPF LIFE, for every year deferred, the payouts go up by up to 7%. For five years of deferral, that is up to 35% more. Members may therefore prefer to start their CPF retirement payouts later. This is especially so if they have other savings to draw on that are earning low interest or if they are still working. But if the payouts automatically start at 65, such members will also automatically not get the benefits of deferral. At the end of 2017, six in 10 members on the RSS who had reached their PEA that year did not start their payouts. Even by the time RSS members reach 70, about half have not come forward to start their retirement payouts. Some among them may have consciously decided to keep their savings in CPF because they had no need of the payouts and also because they wanted to earn the higher interest. Others may not have known they could have started their payouts earlier and thus did not instruct CPF Board. The right thing to do, therefore, is to reach out to those members who may not have a good understanding and give them clear and simple information to help them make their decisions. With the benefit of knowledge, those who wish to can still start their payouts any time after 65. The fifth question, which Ms Foo Mee Har, Miss Cheryl Chan and Mr Liang Eng Hwa have asked, is whether the CPF Board can improve its communications with members. The answer is yes.”
“Members only need to fill in basic information – their name, NRIC, contact details and bank account details. This gets sent back to the Board. Alternatively, members can apply online through the CPF website or come to a CPF Service Centre. Members who do not instruct CPF Board to start their payouts are reminded through their Yearly Statement of Account. The third question is why the payouts start automatically at age 70. In the past, some RSS members had their savings intact in their CPF accounts until they passed away. They never touched it at all. This is unsatisfactory. We therefore introduced a Latest Payout Start Age of 70 for members turning 70 from 2018. Even if such members have not applied to start payouts, CPF Board will start the payouts for them. But I must again emphasise, if a member wants to start his payout before 70, he can do so any time from his PEA; he does not need to wait till 70. In other words, the Latest Payout Start Age is not the same thing as the PEA. It is a way to ensure members get to enjoy the benefit of their CPF savings by 70 at the latest. Members of the House may therefore recall that in October 2016, Parliament agreed to amend the CPF Act to bring this into effect. Some Members who are still in the House today spoke in support of this amendment, including Mr Chong Kee Hiong, Er Dr Lee Bee Wah, Mr Louis Ng, Mr Png Eng Huat and Mr Saktiandi Supaat. Several Members have asked if CPF Board should automatically start payouts at age 65. Some are concerned about those experiencing financial hardship. I appreciate the reasons for Members’ questions and also share your concerns. There are in fact tangible benefits to members when they start their payouts later. Members earn more interest and enjoy enhanced payouts.”
“I thank the Members who have raised important questions. There are several key questions I hope to address in this reply. The first question is whether the Central Provident Fund (CPF) Payout Eligibility Age has been shifted from 65 to 70. The answer is no. As Members are aware, the Payout Eligibility Age (PEA) is the earliest age at which CPF members can start their monthly retirement payouts. From 1 January 2018, the PEA has been 65. It is still 65 today. We have not shifted the PEA from 65 to 70, as was alleged by a spurious online post. Members can start their retirement payouts any time from 65. The second question is whether the policy has been changed to now require CPF members to come forward to start their retirement payouts. The answer is again no. This is in fact a long-standing practice and there has been no change. Members can instruct the CPF Board when to start their retirement payouts at any time after they reach their PEA. Members are in the best position to decide based on their individual circumstances. It is also the same approach as in many other countries. There is no advantage for the CPF Board or the Government to want members to defer their payouts beyond 65. Those who defer their payouts in fact enjoy the higher interest paid on their CPF monies. Members who have reached their PEA can instruct the CPF Board at any time to start their retirement payouts. Let me explain how the process works for those on the Retirement Sum Scheme (RSS), which is the main retirement payout scheme for members born before 1958. The members are now aged 61 and above. About six months before their PEA, RSS members will receive a letter from the CPF Board informing them that they can start their payouts any time from PEA. The form to start payouts is attached.”
“Mr Speaker, may I take Question Nos 1 to 9 together, please.”
“The Government does not track the average household size by constituency on an ongoing basis. For planning purposes, the Government tracks the average household size by Planning Area. The average resident household size across Singapore has decreased from 3.53 in 2012 to 3.30 in 2017. Average resident household sizes by Planning Area are shown in Table 1. Agencies monitor population trends, such as the population size and age profile, to ensure adequate amenities and services in each Planning Area. For example, the Urban Redevelopment Authority's geospatial planning tools enable the Ministry of Health to plan the locations of Senior Care Centres, by prioritising areas with a higher number of seniors with disabilities. In addition, the Housing and Development Board continues to build new flats in older estates, to ensure that all estates remain vibrant with a healthy mix of residents of different generations. The Government continues to monitor the distribution of the population across Planning Areas and take steps in a timely way to meet the different needs of Singaporeans.”
“The amount of unpaid salaries ordered by the Employment Claims Tribunals (ECT) since its establishment on 1 April 2017 is shown in the table below. Taking into account that the 2017 figure is not based on the full year, the value of unpaid salaries ordered by ECT in 2018 is not significantly different from that in 2017.”
“We recognise that Central Provident Fund (CPF) members have varying needs in retirement. This is why we have provided members with a number of options to have flexibility in their CPF retirement payouts. At age 55, CPF members are required to set aside savings up to their cohort Full Retirement Sum in the Retirement Account (RA). Members with sufficient property charge or pledge can also choose to set aside the Basic Retirement Sum instead. Members will then receive a steady stream of monthly payouts in retirement, depending on the amount they have in their RAs. Members can consider the following options if they wish to receive higher payouts: (a) set aside a higher amount in their RA, up to the prevailing Enhanced Retirement Sum. This can be done by topping up their RA in cash, or transferring CPF savings from their own Ordinary or Special Accounts or from their family member's CPF accounts to their RA. (b) start payouts later. Deferring the start of payouts will increase their payout quantum, duration or both. Members can also choose the CPF LIFE Escalating Plan that provides lower payouts at first and subsequently higher payouts that increase at 2% every year. Beyond these options, members can also further adjust their payouts through CPF transfers and cash top-ups, even after they have started their payouts. Overall, we have to carefully balance providing members with flexibility to meet their diverse needs with the need to keep the CPF system adequate and simple. CPF members can approach CPF Board to better understand how the different payout options can meet their needs.”
“On number of Central Provident Fund (CPF) members who have reached their withdrawal limits, currently, about 740,000 property owners use their CPF savings to service their housing instalments. Of these, about 6,000 or 0.8% of property owners have reached their withdrawal limits for housing and are using other means to finance their mortgage. They include members who have reached the Valuation Limit (VL) but cannot use more of their CPF savings for housing as they do not have at least the Basic Retirement Sum (BRS), or members who took bank loans and have reached the Withdrawal Limit cap set at 120% VL. On the number of CPF members who appeal to use Special and/or Retirement Account savings, the Special Account and Retirement Account (RA) savings are safeguarded for members' retirement needs and, generally, cannot be used for housing purposes. That said, CPF Board exercised flexibility in some cases. For example, CPF Board has allowed CPF members to use their RA savings that originated from their Ordinary Account to pay for their housing on appeal, even if their RA savings are below the BRS. In 2018, CPF Board granted about 8,000 appeals to use their RA savings for housing. The Board took into account the member's retirement adequacy and outstanding loan amount in deciding whether an exception could be made.”
“Endowment policies with regular premium payments were available for sale under the Central Provident Fund (CPF) Investment Scheme before 2001. CPF members aged 55 and above who had purchased such policies can continue to pay for their premiums using their savings in the Ordinary Account after setting aside their cohort Full Retirement Sum, or Basic Retirement Sum, if they have a sufficient property charge or pledge. For members who have not set aside the required Retirement Sum, CPF Board will consider allowing them to use their CPF savings to pay the endowment policy premiums on a case-by-case basis.”
“Like their male counterparts, self-employed females may be subject to payment disputes and loss of income in the event of prolonged illness or injury. Since March last year, self-employed persons are able to seek help from the voluntary mediation services provided under the Tripartite Alliance for Dispute Management. This is part of the recent Tripartite Workgroup's recommendations which also encourage the adoption of the Tripartite Standard on Contracting with Self-employed Persons that can minimise such disputes. We have also made available prolonged medical leave insurance products for the self-employed to enhance their health protection. MOM is committed to helping our women return or stay in the workforce and will continue to work with our tripartite partners to achieve this aim.”
“Our female labour force participation rate for ages 15 and over has moved up in the last 10 years, from 56% in 2008 to 60% in 2018. In the past three years, it has remained steady at around 60%. When compared to the Organization for Economic Co-operation and Development countries, we rank well, having improved from 17th to 9th place in the decade. About 6% of our female residents in employment are self-employed1. Like most self-employed persons in Singapore, the majority or about 70% of the regularly self-employed women took on their jobs as their preferred choice and primary form of work. The challenges that women face in seeking employment are similar to what men also face, such as the lack of necessary work experience, qualifications and skills. To help more women join and stay in the workforce, the Adapt and Grow initiative offers services like job matching, training subsidies and salary support to address skills, wage or expectations mismatch. We encourage jobseekers to visit Workforce Singapore's Careers Connect or the National Trades Union Congress' Employment and Employability Institute’s career centres for assistance. They can also use MyCareersFuture portal to find jobs best suited to their skills. Compared to males, a larger proportion of women looking for jobs cited the lack of flexible work arrangements (FWAs) as a challenge. This is likely because women still tend to take on more caregiving roles. It is our key priority to support women in their family and career aspirations. The Ministry of Manpower (MOM) introduced the Tripartite Standard on FWAs to encourage more employers to offer FWAs. MOM also provides funding support, through the Work-Life Grant, of up to $105,000 per company for the sustained adoption of FWAs.”
“There are existing initiatives to support employers in getting their employees to adopt healthier and more active lifestyles. The Workplace Safety and Health Council (WSHC) works with the Health Promotion Board (HPB) to promote the Total Workplace Safety and Health approach. Under Total WSH, safety and health initiatives are integrated at the workplace. The WSHC and HPB provide incentives to employers to conduct health screenings, help workers to manage health conditions, promote ergonomic techniques for lifting loads, and institute workplace exercise programmes. Examples of programmes that support workplace exercise are HPB's small and medium enterprise (SME) Health+ and Workplace Alliance for Health schemes. They provide co-funding of up to 70% for SMEs and up to 50% for non-SMEs, for workplace exercise programmes conducted by HPB's pre-approved providers. HPB's National Steps Challenge, which encourages participants to accumulate at least 10,000 steps a day and 150 minutes of physical activity per week, also features a corporate component. We will continue to regularly review our initiatives to support employers in encouraging their employees to adopt healthier and more active lifestyles.”
“Both Singapore and the European Agency for Safety and Health at Work (EU-OSHA) require reporting of injuries that result in more than three days of medical leave. In addition, Singapore also requires reporting of injuries that result in at least 24 hours of hospitalisation. Singapore attained a workplace fatal injury rate of 1.2 per 100,000 employed persons in 2017. This was lower than the average fatal injury rate of 1.7 per 100,000 employed persons among the European Union (EU) countries that use EU-OSHA's reporting criteria. EU-OSHA does not publish minor or major injury data but does so for non-fatal injuries as a whole. Singapore had a non-fatal injury rate of 368 per 100,000 employed persons in 2017, compared to the EU-OSHA average of 1,586 per 100,000 employed persons. We should, however, be cautious in comparing our non-fatal injury rate with that of the EU. While Singapore and EU-OSHA apply the same threshold of medical leave duration for reporting purposes, differences in data collection systems may account for some variations. EU countries with higher non-fatal injury rates generally draw injury data from insurance claims, while those with lower rates generally rely on injury reporting by employers.”
“Employers cancel or do not renew the Employment Passes (EPs) of their staff for various reasons, such as changes in employers' manpower plans or their inability to meet the revised EP salary criteria. Employers are not required to disclose their reasons for not renewing an EP holder. Hence, we do not know how many EP holders were not renewed due to the employer not wishing to match the prevailing salary criteria. The same EP qualifying salary applies to both fresh applications and renewals. We regularly update the EP qualifying salary, taking into account local salary progression. This is to ensure that while businesses have access to skilled foreign manpower to stay competitive and grow, local jobseekers are not excluded from consideration by employers because they earn higher wages.”
“In 2018, about 148,000 elderly received Silver Support payouts and 65% of them were females. The median quarterly payout was $600 for both female and male recipients. This amount corresponds to the Silver Support payout quantum for eligible elderly living in a 3-room Housing and Development Board flat.”
“What has been said very clearly is that the workers want the opportunity to work longer. This is also consistent with the focus group discussions that we held with members of the public. They want to keep working and save more. I hear these workers and I understand them. I want to be able to help make it happen. At the same time, the employers have also expressed their concerns to me. They have worries about their increased obligations and their considerations. I think we must not also dismiss lightly. The main priority for now is to build a tripartite consensus on the way forward. And this tripartite consensus concerns the retirement age which is currently 62, the re-employment age up to 67 today. The new tripartite consensus is an important one and it is the topmost of my priority this year. In this process, we take reference from what we have always done in the past, which is that the workers express their views, the employers express their views, and we try to find a common ground for the best way forward. That is how we did it with the re-employment age of up to 65 and then, subsequently, to 67. If we can have a good new tripartite consensus on the retirement age and the re-employment age, it will point the way forward for all of us that is helpful. I ask for some time to get this done.”
“Mr Speaker, I think we can establish that the substance of the Member's suggestion is to reduce the payout eligibility age. Here, some international benchmarking could be helpful. By international standards, setting the payout eligibility age at 65 is not unusual at all. Among the 35 Organisation for Economic Co-operation and Development (OECD) countries, well over half have pension withdrawal age at 65 or above. In fact, the highest today, as far as I know, is 67. In light of increasing longevity, people living longer and the likelihood of them working longer, some countries have already set in motion the raising of the pension withdrawal age. In the case of the Netherlands, for example, the pension withdrawal age will go up from 66 to 67 in the year 2021. In the case of Denmark, it will go up, if I recall correctly, from 65 to 67 in 2022. In the case of Germany, it will go up to 67 by 2031. Against such a backdrop, we must really ask if it is wise to lower our own payout eligibility age for all. There will be no option, it will have to be for all, especially considering how we now have re-employment legislation that puts an obligation on the employers to offer work up to 67. My sense is also consistent with what the Member said earlier that most workers understand this. They understand we are living longer. In the last few months since we started the tripartite workgroup on older workers, I have met many union leaders. At the National Trades Union Congress' (NTUC's) suggestion, we did this in clusters – aerospace, logistics, healthcare, financial services and even the public sector – a very diverse group of workers. We talked about many things. The CPF payout eligibility age did not come up very much at all.”
“I see. I think we have explained it before. If you make early withdrawal an option for all, then, in effect, it is really a reduction of the payout eligibility age. Today, the payout age can already be voluntarily deferred to 70 but the payout eligibility age remains at 65. That is the earliest that the person can withdraw. So, the substance of the Member's request is really not an option but a reduction. I hope I have correctly understood the Member's suggestion. Er Dr Lee Bee Wah: Yes, it is true that, currently, for those who want to extend and withdraw their money later, it is available as an option. It is only for those who have money who can afford to opt to withdraw their CPF money at a later age. But there are some who do not have money and they would like to withdraw earlier. So, we can have: Option 1, withdraw at 62 years and at much lower sum; Option 2, the current one, where withdrawal of the money is at age 65; Option 3, withdrawal of the money at 70 years old.”
“Mr Speaker, I am glad to hear the Member's clarification on what she is asking. If I heard the Member correctly, it is to make the payout eligibility age lower for some people who want it, but maintain it at 65 for the rest. May I ask the Member whether she thinks that it is possible for us to do that – allow some people to have a lower age, and then require other people to stick to the payout eligibility age of 65? The option has to be made available to all? [(proc text) The hon Member Er Dr Lee Bee Wah nodded in agreement. (proc text)]”
“In 2017, the re-employment age was raised further from 65 to 67. In 2018, a Tripartite Workgroup on Older Workers was formed to review, among other things, the longer-term relevance of and the next moves on the retirement and re-employment ages. However, as the CPF Payout Eligibility Age was raised to 65 only in 2018, the Ministry of Manpower (MOM) does not have plans to lower it. The Medical Grounds Scheme will also continue to be available to eligible members who may need to withdraw or start their payouts earlier than age 65.”
“Mr Speaker, on reaching the age of 55, all CPF members are eligible to make Central Provident Fund (CPF) withdrawals of up to $5,000, subject to available balances in the Ordinary and Special Accounts. Those with savings above the applicable Full Retirement Sum can withdraw all the monies above that amount. Those who own a property may also withdraw their savings above the Basic Retirement Sum using property charge or pledge. Under the Medical Grounds Scheme, CPF members may apply to withdraw or start their payouts before the CPF Payout Eligibility Age of 65. The eligibility criteria include being permanently incapacitated, terminally ill, or having a severely impaired life expectancy due to illness. Such applications have to be accompanied by the relevant doctors’ certification. In the past three years, about 65% of applications under the Medical Grounds Scheme were successful. The remaining 35% were not successful because applicants did not meet the eligibility conditions. Unsuccessful applicants were referred to other avenues of help, such as Workforce Singapore (WSG) and the Social Service Offices. In the last decade, the employment rate for residents aged between 60 and 64 has risen from 47.2% in 2008 to 60.4% in 2018. The unemployment rate for the same age group has remained consistently below 3% in the past five years. A contributing factor is the introduction of re-employment legislation in 2012, which made it an obligation for employers to offer eligible employees continued employment after the age of 62, up to the age of 65. Re-employment has made it possible for many Singaporeans to work beyond the age of 62. Of those eligible for re-employment and who wished to continue working, over 98% were offered re-employment.”
“Mr Speaker, to the Member's question, as I had explained earlier, the conditions of dual-criminality must be met in order for the money laundering offence to be established. But they may have other activities, and it is not for us to speculate on what other activities they may be engaged in. We pay attention to them and, if they have done something that is against the law in Singapore, then, we will take the necessary actions.”
“Mr Speaker, what the Member said is not quite the case. Perhaps, I will take the opportunity to remind Members of the House on the set of legislative amendments that we made in November last year and how that has strengthened our position. As I have explained in my earlier reply, Singapore needs to observe the principle of dual-criminality when dealing with money laundering offences linked to overseas crime. But this has never been the only challenge that prosecutors face. Previously, even after satisfying dual-criminality, prosecutors needed to obtain a certificate from the foreign government or a testimony from an expert in that foreign law to fulfil the burden of proof. This can be a very time-consuming process. What we did with the recent legislative amendments is to reduce the burden on the prosecutors by allowing our Courts to decide on the basis of evidence presented by the prosecution that an offence has, indeed, been committed in the overseas jurisdiction. So, that requirement of dual-criminality must still be satisfied without having to rely on the foreign governments or experts. Sir, this has helped to address the delays that we have encountered in obtaining the certificate in cases in which the foreign government may not act on our request expeditiously or, in some cases, may not be willing to issue it. With the amendments, we are, therefore, able to prosecute the moneylending offences more effectively. But to the very specific question on what if you cannot establish dual criminality, as I had said in my earlier reply, if they have the intention to do money laundering and if they set foot in Singapore, we will pay special attention to these individuals and do what is necessary to bring them within the law.”
“The Progressive Wage Model (PWM) was implemented in the Cleaning, Security and Landscape sectors as a targeted intervention to address low and stagnant wages caused by market failure of cheap sourcing. It aims to raise the salaries of local workers in these sectors by providing a clear progression ladder for workers to earn higher and sustainable wages as they become more skilled, more productive and take on higher job responsibilities. The number of local workers employed in these three sectors depends on many factors beyond PWM itself, such as the state of the economy, adoption of labour saving technologies, improvements to company's business processes, and changes in foreign worker policies. It is difficult to attribute changes to local employment numbers to the PWM alone. What is clear, however, is that since PWM was implemented, workers in these three sectors have seen positive real wage growth. Between 2011 and 2016, the real median gross wages of full-time resident cleaners, security guards and landscape maintenance employees increased by 32%, 36% and 16% respectively. This was achieved while keeping local unemployment rate low at around 3% and maintaining employment rate1 at a healthy level of around 80%.”
“As of December 2018, about 58% of Central Provident Fund (CPF) members aged 16 and above do not have a valid nomination. Among older members aged 55 and above, 30% do not have a valid nomination. These include members who have never made a nomination, as well as members who made a nomination that was revoked by marriage and did not make a subsequent nomination. CPF Board will continue to work with its industry and community partners to encourage members to make a nomination through various touchpoints. For example, CPF Board provides information on CPF nomination to industry bodies, such as the Law Society and Life Insurance Association, so that their members, that is, lawyers and insurance agents, can educate their respective clients on the distribution of CPF savings upon death. The Board also encourages members to make a nomination through members' Yearly Statement of Accounts and when they attend the CPF Retirement Planning Service at age 54. These targeted measures are complemented by public education efforts through CPF Board's social media channels, talks, roadshows and website.”
“The Ministry of Manpower does not track the last held jobs of persons who have passed on.”
“Central Provident Fund (CPF) interest rates are pegged to returns on investments of comparable risk and duration in the market. The Ordinary Account (OA) is a liquid account as the savings can be withdrawn at any time for home purchases. This is why the OA interest rate is pegged to the higher of (a) the three-month average of major local banks' interest rates or (b) the legislated minimum interest of 2.5% per annum. As the computed rate based on the three-month average of major local banks' interest rates is 0.4% per annum, the current OA interest rate is 2.5% per annum for the first quarter of 2019. Bonus rates given by banks are not comparable with CPF interest rates. The bonus rates are typically contingent on customers fulfilling other criteria, such as minimum spending on credit cards, crediting of salary, or making bill payments through an account. The effective interest rate may be much lower because the bonus rates are usually capped to a certain amount. In other words, they are not uniformly applicable to all balances of all depositors. Members may consider transferring their OA savings to the Special Account (SA) to earn a higher interest rate. Balances in the SA currently earn 4% to 6% per annum. In 2017, over 20,000 members transferred nearly $470 million into their SA.”
“Formed in February 2018, the WSH2028 Tripartite Strategies Committee has been discussing how we can improve our WSH outcomes. It is expected to release its recommendations in February 2019.”
“Construction workplace fatalities have been on the decline, from an average of 29 between 2009 and 2013 to an average of 21 between 2014 and 2018. It increased marginally from 12 in 2017 to 14 in 2018, reflecting the challenge of sustaining the improvements over the last decade. Falls from height remain the main contributor in recent years. The accidents were caused by either the lack of barricades over open sides, or by not using properly attached safety lines. There was a higher proportion of foreign workers with less than two years' experience in Singapore among the fatalities. Our existing approach to raise awareness on safety lapses while carrying out targeted enforcement has helped to reduce construction fatalities. We will continue to work with the Workplace Safety and Health (WSH) Council to raise safety and health awareness through campaigns, roadshows and events at dormitories. In 2018, we have reached out to around 50,000 construction workers to educate them on safety risks, especially from falls. We also share the learning points from recent accidents with the construction industry, including partners like the Singapore Contractors Association Limited. Safety training, especially for less experienced foreign workers, is crucial. This is why we have mandatory safety orientation training for new workers, conducted in eight languages. Refresher courses are also required every two years, with frequency reduced after six years of experience. In addition, the Ministry of Manpower will sustain regular inspections. We conducted about 3,000 construction inspections last year, covering close to 70% of active construction sites. They resulted in 55 Stop-Work Orders and 1,100 composition fines.”
“Migrant workers may experience stress arising from being away from their families and having to adjust to a new culture and work environment. In addition, they may have left their home countries for the first time. In Singapore, the Ministry of Manpower (MOM) has put in place support measures to help foreign workers adjust to working in Singapore. These include educating them via the Settling-In Programme on matters, such as Singapore's social norms, their employment rights, and stress management. In addition, MOM works with stakeholders, including non-government organisations, to provide recreational facilities and stress management courses. The Migrant Workers' Centre and the Centre for Domestic Employees also partner mental health advocacy organisations, such as Silver Ribbon, to provide counselling services for foreign workers who need help. The Institute of Mental Health sees a small number of foreign workers annually, and the trend has been stable over the past three years. Existing data does not indicate that foreign workers of a particular nationality or working in a particular industry have a higher risk of suffering mental illness. Employers are responsible for the cost of medical treatment of their foreign workers, including expenses for mental health and mental illnesses. Medical insurance plans typically do not cover treatment for mental illness although some insurers allow employers to purchase an additional rider.”
“In the past five years, the Ministry of Manpower (MOM) handled four trade disputes relating to flexible wage implementation. These disputes, which were all collective in nature, were due to disagreements over how variable bonuses were determined. Through MOM's conciliation efforts, these cases were eventually resolved, with employers and unions mutually agreeing on the bonuses to be paid. MOM will continue to work with the tripartite partners to share best practices and industry norms so that flexible wages are implemented fairly and progressively.”