Tan Chuan-Jin
Singapore
“A step-parent who wishes to leave any part of his or her estate to a stepchild is encouraged to make a will. Intestacy law would apply in cases where a person passes on without a will.”
“Last year, we reviewed and extended the Child Development Account, or CDA benefits to children of unwed parents. The Government granted CDA benefits, to children of unwed parents born, or with an estimated date of delivery, from 1 September 2016. It is generally good practice to implement our policies prospectively.”
“The Ministry of Social and Family Development (MSF) does not track the number of persons who choose to remain homeless instead of being admitted into shelters. When MSF receives information on persons who may be homeless, we initiate contact with these persons on the ground to offer assistance.”
“Our law places the child's welfare and interests at the heart of an adoption decision. We must not forget that such an adoption is a life-changing event because when an unwed mother adopts her child, the duties, obligations and liabilities of the biological father are terminated.”
“The Early Childhood Development Agency (ECDA) works closely with the Housing and Development Board (HDB) to plan for preschools in upcoming Build-To-Order (BTO) developments, including Bidadari new town. To better meet the needs of young parents, new preschools will have larger capacities and also be completed earlier where possible.”
“The Silver Support Scheme under the Manpower Ministry provides an income supplement to seniors who had low incomes through life and who now have little or no family support. Beyond ComCare, we are also expanding upstream intervention to strengthen the resilience of vulnerable families and their children to set a good foundation.”
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“The family is often in the best position to detect signs of problem gambling in their loved ones, encourage them to seek help and also support them during treatment. Studies have shown that treatment works best if the problem gambler is accompanied by family members. The community also plays an important part in helping affected families access relevant information, resources and services. For example, more Family Service Centres have stepped up efforts to train their counsellors and social workers to provide the first line of counselling and assistance when families present problem gambling issues.”
“Mdm Speaker, problem gamblers and families who face such issues can seek help at two key service points – primarily the Thye Hua Kwan Problem Gambling Recovery Centre and the National Page: 26 Addictions Management Service (NAMS) which is located at the Institute of Mental Health (IMH). The former treats the less serious cases, while NAMS also treats the more severe pathological gamblers. In addition, there are other private and non-funded community and religious organisations that offer similar services as well. Between 2012 and 2014, Thye Hua Kwan and NAMS saw a combined 2,700 cases. This is about 60% more, in absolute numbers, 1,000 cases more than that between 2009 and 2011. We have looked at the increase and it is, primarily, due to greater public education efforts, which we have stepped up significantly which have raised awareness on problem gambling and encouraged help-seeking behaviour. It is important for people to step forward both as individuals and for their families and loved ones to step forward to highlight those issues. We are encouraged that people are coming forward. The treatment plan for each problem gambler varies; it really depends on the severity of addiction. It usually involves a combination of counselling and different types of therapy, conducted on an individual or group basis. Psychiatric services may be extended for the more severe pathological gamblers. Financial and legal counselling services, where necessary, are also extended to help the problem gambler and his family cope. Recovering patients are encouraged to join support groups for longer term support. Tackling the complex issue of problem gambling requires the combined efforts of personal responsibility, family involvement, community involvement and, certainly, Government support.”
“Mdm Speaker, I would be quite happy to provide an update if the Member could submit a separate Parliamentary Question. We can follow up on that.”
“Mdm Speaker, I would like to thank the Member for her points raised. I would not use the term "marginalised" to describe them. I would say that they are Page: 25 Singaporeans with different abilities and I think it is important for us to include them. I would suggest that many of them are involved in the consultation process, in terms of designing, certainly, in my time in MND, and looking at how MND works with different stakeholders, in terms of shaping our respective spaces. We would very much appreciate the various feedback. Feedback has always been provided, where there are inadequacies or where it was less than ideal. But the Member would agree with me that things have moved on in significant ways. I would not deny that there will always be teething issues along the way, whether in terms of the physical infrastructure or the way perhaps technology is applied. It cannot be applied for its own sake. So, the point the Member is making is an important one which is, ultimately, the outcome must be something that is useful for those who are involved. And so, upstream involvement, that is something that is on-going, but I think we can look at whether they could be extended or to what degree and to make sure that at least the key stakeholders are there, whether in consultation or as part of the team to shape some of these respective spaces. So, that is a fair point and we will make sure that that is something that is done.”
“Mdm Speaker, Ms Denise Phua likes to ask for specific timelines. This is something that I would follow up on and I will get back to her.”
“Mdm Speaker, there are discrete efforts in terms of focusing on specific areas of needs. But you will realise that in the effort, for example, in transforming the way we lay out our city, it also incorporates how technology is being brought on board to help persons with disabilities. I would suggest that some of these areas also would straddle our other areas of concern, for example, with the way our demographics are evolving, a lot more elderly in our society. In terms of mobility, for example, that is something that we are looking at in terms of how do you provide for better tracking of needs. These technology applications would also apply for persons with disabilities. If you are asking for whether there is a specific dedicated road map for persons with disabilities, that is something that we can take up, if that provides a level of assurance. I would say that that is an area that we are looking at, if it helps to pull it all together and present it as one whole, that is something that we can do so that it will give the stakeholders in the sector better clarity of how it pulls together and also whether, as a result of pulling it together, we could further enhance it. Rest assured that we are committed to making sure that Singapore is an inclusive society and that includes Singaporeans of varying abilities. The way in which we want to apply technology to the way we evolve as a city – not just physically, but also in terms of the soft aspect – technology has a very big part to play. Really, it is about applying it in ways in which as many, if not all, Singaporeans can benefit, including persons with disabilities. Page: 24”
“Page: 23 This is an on-going effort and I do encourage all the different stakeholders to play a part to help shape that space. The way in which technology is transforming is quite significant. So, we need to make sure that we harness it, not just at the individual level but at the systemic level as well. Let us explore how best we could apply.”
“Mdm Speaker, as we embark on the Smart Nation effort, we find that there are many applications across society. It is important for all the different stakeholders to participate in whatever capacities that they can and to offer ideas and initiatives and also to push the Government to explore those new areas. At the same time, it is also about the partnership between the Government and the commercial sectors. There are also companies who are also innovative and thinking about ways to apply this. Some of the things that we are doing, for example, the SPD Assistive Technology Centre provides consultation, assessment, loan, training and the use of AT devices. In addition, the InfoComm Accessibility Centre (IAC) was set up at SPD's premises through a people-public-private partnership supported by IDA, MSF, NCSS, Tote Board and Microsoft Singapore. The IAC encourages the use of technology through IT training to bridge the digital divide for persons with disabilities. SG Enable will play a very important part in working with partners. That is really quite key, to bring on board the private sector, many of whom have technologies which are being used for commercial applications, but you could see how they could also be adapted to help persons with disabilities as well. They are working with partners to improve the provision and adoption of infocomm and assistive technology among persons with disabilities. So, as we look to integrate technology into our daily lives under this push, new ideas and innovations will continue and I think we need to bring them on board. That is where we will be keen to listen to new ideas, possible technological innovations and collaborations that can lead to improvement in the lives of all Singaporeans and also for Singaporeans with disabilities.”
“The grant scheme supports new ideas and innovative pilots that address cross-cutting issues on disability, including more effective use of data and technology. A grant call was made early this year to seek out ideas and solutions on using technology to improve the lives of persons with disabilities from both the private and VWO sectors. The results should be known in Page: 22 about a month's time.”
“Mdm Speaker, technology can be a very important enabler for persons with disabilities. As Singapore strives to become a Smart Nation, persons with disabilities would be able to benefit from a broad range of initiatives. In addition, the Government will have specific initiatives on infocomm and assistive technology to help persons with disabilities make use of suitable technology devices and solutions in their daily living, education, employment and interactions with others and in whatever areas that we think that we could apply those technologies in. Some of these are already in the works. For example, from August this year, MSF will increase the lifetime cap and subsidy coverage of its Assistive Technology Fund. The changes will help more persons with disabilities and provide them greater support to defray the cost of purchasing or repairing their assistive devices. In education, for example, MOE already supports students with special needs in both mainstream and Special Education (SPED) schools through funding assistive technology devices and support services. Students studying in Institutes of Higher Learning can now tap on the Special Education Needs Fund to purchase devices to support their learning. Besides individuals, we are also reaching out to VWOs that serve persons with disabilities. VWOs can tap on grants to use infocomm and assistive technology in their programmes, for example, to improve communication and socialisation skills of their clients. SPED schools can also tap on a fund to upgrade their IT infrastructure and develop innovative projects. To generate new solutions for persons with disabilities, a $30 million Tote Board-Enabling Lives Initiative Grant was launched in 2014 and administered by SG Enable.”
“I am reviewing some of these and will make adjustments, where possible.”
“There are three objectives that guide our approach towards providing benefits and incentives to children and parents. We seek a balance among these objectives. First, we are committed to providing all children with equal opportunities to fulfil their potential. For this reason, we extend education and healthcare benefits to all Singaporean children, regardless of the marital status of their parents. Second, we want to continue to promote parenthood within marriage. This is the desired and prevailing societal norm in Singapore. We have some benefits to incentivise births within marriages and these are available only to married parents. Third, we recognise that some families, including some single parents and their children, face greater challenges. We have support programmes to help these vulnerable families. However, I fully understand that some single unwed working mothers require greater social support. This help encompasses education, healthcare, work and financial support. The support provided and needed clearly goes beyond maternity leave and some of these differences in benefits. Help is provided on many fronts in order to support the mother and child. Single mothers may approach any Family Service Centre or Social Service Office and we will follow up. Single expectant mothers are also supported through programmes in the community that provide hotlines, counselling and residential services. The Government will continue to work with the community to support single unwed parents and their children. I recognise that there are some areas of difference in terms of what single unwed mothers receive as compared to married mothers. This is not cast in stone. I am sympathetic to the challenges faced by single unwed parents.”
“Students in our mainstream schools can also be referred for assessment and diagnosis conducted by MOE psychologists. Such referrals are prioritised jointly between the school and the MOE psychologist based on the urgency and severity of the child’s needs. Waiting time for diagnosis, therefore, vary. Students with disabilities who are of school-going age can receive assistance for their education through their Special Education (SPED) schools or at their mainstream schools.”
“Under the Child Development Programme, paediatricians at KK Women's and Children's Hospital (KKH) and National University Hospital (NUH) provide diagnosis and assessment for children aged six years and below who are referred for developmental problems. The median wait time in 2014 for an initial assessment by a doctor for subsidised patients was 18 days at KKH and 40 days at NUH. Children identified with developmental delays will be referred to the MSF-funded programmes for therapy and learning services, depending on the severity of their conditions. Those with milder developmental delays are assisted through a programme called the Development Support Programme offered in 300 mainstream preschools. These children typically receive intervention services within three to four weeks of being identified. Those at risk of moderate to severe disabilities can receive early intervention services at 17 MSF-funded centres operated by Voluntary Welfare Organisations (VWOs). In 2014, the average time taken for referral, assessment for placement and eventual enrolment was about five months. With greater awareness and earlier diagnosis, there is growing demand for early intervention services for young children. MSF will continue to develop a continuum of early intervention services and expand their capacity to meet the different needs of these children in a timely manner. Page: 141 For children above the age of six, KKH and NUH provide diagnostic services for a range of developmental disabilities such as Autism and speech and language delays, while Institute of Mental Health (IMH) provides assessment for Autism and Attention Deficit Hyperactivity Disorder (ADHD). In 2014, the average waiting time for subsidised patients was between one week to two months.”
“The Ministry recognises that there are persons who have lost their mental capacity and who do not have family members to serve as their proxy decisionmakers. To address this need, MSF started a pilot programme in late 2014, where we put in place a panel of volunteers who could apply to the Court to be appointed as deputies who could make decisions on behalf of these individuals. To-date, 16 public-spirited professionals have stepped forward to be part of this panel. They come from a range of professions – healthcare, legal, financial and social work. MSF will assess the efficacy of the pilot programme before refining it for wider implementation.”
“Government agencies, including the Ministry of Social and Family Development, Singapore Prisons Service and Institute of Mental Health (IMH), work closely to support the rehabilitation of youth offenders with mental health issues. The key considerations in deciding on the appropriate support include the youth’s background and circumstances, risk of re-offending and mental state and well-being. Youths on probation or in juvenile rehabilitation centres have access to support, including specialised treatment by psychiatrists and psychologists, therapeutic programmes and offence-specific programmes. To improve their socio-emotional well-being, the youths Page: 145 are usually also encouraged to participate in school, work or vocational training and other enrichment activities, such as sports or arts. Likewise, youths in prison with mental health issues are seen regularly by a team of doctors, including prison psychologists and psychiatrists. Where necessary, they are referred to IMH for further specialised treatment. The Government agencies also work with the youth's family and larger community support network in his or her rehabilitation. For example, schools or voluntary welfare organisations, such as the Singapore Association of Mental Health, may be roped in to help monitor their progress and strengthen social support to them to prevent relapses. Page: 146”
“CPF members with serious medical conditions can apply for an early withdrawal of CPF savings under the CPF Medical Grounds Scheme. The current scheme was introduced in July 2006 and there are four grounds for qualifying under the scheme. Members who wish to make withdrawals on any of these grounds will need to have their medical conditions certified by a doctor either from a public medical institution or the CPF Board’s panel. Members who are terminally ill will be able to withdraw their retirement savings in full. Members who are permanently incapacitated from ever continuing in any employment, suffer from an unsound mind or have a severely reduced lifespan will be able to withdraw their retirement savings after setting aside a reduced Retirement Sum at the point the application is granted. The number of CPF members who have successfully applied for CPF withdrawals under the Medical Grounds Scheme since 2007 is as shown in the table below. Page: 105 About two-thirds of applications between 2007 and 2014 under the Medical Grounds Scheme were successful. The remaining applications were rejected as the applicants were unable to provide the required certification from the approved doctors. Page: 106”
“The WSH Council National Crane Safety Taskforce, Singapore Contractors Association Ltd (SCAL) and Singapore Crane Association (SCA), have jointly taken the lead to encourage their members to participate in a "Safety Time Out" (STO) which was held from 9 to 15 March 2015. During this STO, contractors and users of lifting equipment, especially tower and mobile cranes, took time off from their routine operations to take stock and review the measures in place to ensure safety.”
“On 24 February 2015, a crawler crane toppled and fell into a house compound along Pheng Geck Avenue. Investigation on the incident is currently on-going to establish the cause of the incident. Following the incident, the Ministry of Manpower (MOM) had issued a stop work order for the work site. A full site inspection was conducted to identify and correct any unsafe work practices and to review all lifting plans and procedures to ensure that they are adequate. The stop work order was subsequently lifted on 2 March 2015 when all the safety requirements imposed were fully complied. MOM had also required the contractor to engage an Authorised Examiner, who is a Professional Engineer, to conduct a thorough inspection on all cranes on-site to ensure that they are in good working condition. The Authorised Examiner had inspected and certified that the tower crane on-site was safe for use. As for mobile and crawler cranes, MOM has disallowed their use on-site until the contractor formulates a robust risk management plan and affirms that these cranes can be positioned such that any failure will be contained within the boundaries of the site and not affect residents in the surrounding areas. MOM is concerned with the recent spate of crane-related incidents. Since the start of 2015, there were seven5 crane-related incidents, compared to one in the same period last year. Page: 104 To emphasise the importance of crane safety, MOM will be stepping up enforcement efforts. An enforcement operation targeting mobile and tower crane operations was conducted nationwide from 16 March to 2 April 2015 to arrest unsafe work practices involving cranes. The industry has also indicated its commitment to keep our employees and general public safe.”
“The new withdrawal rules do not apply to older cohorts because the withdrawal rules for older cohorts were already more generous. CPF members turning 55 in 2008 and earlier would already have been allowed to withdraw 50% of their retirement savings in a lump sum from the age of 551. It would be excessive to now allow these cohorts to withdraw an additional 20% of their retirement savings in a lump sum at 65. Doing so would mean there would be too little left behind in the Retirement Accounts to provide a meaningful payout in retirement. We tightened the withdrawal rules from 2009 to 2013 to ensure members had sufficient savings set aside for retirement. The withdrawable amount was gradually reduced such that from 2013, CPF members who turned 55 with less than the Minimum Sum, and who did not have property to pledge, could only withdraw the first $5,000 in their CPF accounts. Most of the CPF changes announced at the Budget/Committee of Supply this year will apply to new cohorts turning 55 from 2016. In the case of the withdrawal rules, we have allowed cohorts who turned 55 from 2013 to benefit because these cohorts were affected by the tightening of the withdrawal rules. For the cohort who turned 55 in 2012, in other words, those aged 58 this year, we will allow a withdrawal of 10% of their Retirement Account savings at 65, since they were only allowed to withdraw 10% of their savings from 55. All older members aged 59 and older this year would already have been allowed to withdraw 20% or more of their CPF savings in a lump sum from the age of 55. Page: 92”
“Mdm Speaker, I would like to thank the Member for the supplementary question. I am sure all of us will, generally, if given a choice, prefer much higher interest rates. As I have mentioned, we will review it regularly. It is important for us to do that. What is important is to make sure that the CPF system as a whole benefits. For example, the additional plus 1% that is provided under the SMRA account and, especially, recently, with the announcement that the first $30,000 at the age of 55 or 65 would attract another additional 1%. All this is a sum total package. It is meant to keep the CPF system viable and to continue to make sure that it is adequate in terms of supporting our retirement adequacy. We look at it holistically. Reviewing the interest rates will be part of that whole process. That is something that we will continue to do. Page: 22”
“Mdm Speaker, the CPF interest rates are pegged to returns on investments of comparable risk and duration in the market. Hence, changes in the yields on market instruments, such as Singapore Government Bonds and fixed deposits, will automatically have an impact on CPF interest rates through the interest rate pegs. The interest rates on the Ordinary Account, Special Account and MediSave Account are reviewed quarterly, while the interest rate on the Retirement Account is reviewed on an annual basis. This ensures that the CPF interest rates remain sensitive to market conditions. However – and it is important to highlight this – to shield members from the risk of low market interest rates, the Government has maintained a floor interest rate of 2.5%, or 3.5% for balances of up to $20,000, for the Ordinary Account and a floor interest rate of 4%, or 5% for balances of up to $60,000, for the Special, Medisave and Retirement Accounts (SMRA). These floor rates are considerably higher than the computed interest rates currently of about 0.2% for the OA and about 3.4% for the SMRA, based on the interest rate peg formula. Page: 21 So, if market interest rates rise sufficiently, such that the interest rate pegs are above the floor interest rates, then the interest paid to members for the respective CPF accounts will be adjusted upwards accordingly.”
“That has benefited not only them, but ultimately benefit us, because when they return, they bring with them the wealth of experience that is of tremendous value to our society as well.”
“Mdm Chair, the idea for SkillsFuture is to make it accessible for as many Singaporeans as possible. We recognise that there will be some requirements for some of these courses. But I do take on board the Member's concern that some individuals may not meet the criteria for some existing courses. We will be quite happy to review this and to explore how best to address it. So, the idea is to make it as accessible as possible. And if I may take the opportunity to amplify on what Senior Minister of State Amy Khor mentioned: ICT is something we take very seriously. It is important to understand that Singapore has become very globalised. Many of our businesses, many Singaporeans, have a lot of opportunities to be deployed overseas. It is through some of these arrangements that have allowed Singaporeans to work and hold fairly important positions in other countries. But there are very strict rules in place with regard to who qualifies for ICT. Some have said this is an easy backdoor. It is not, because there are specific criteria, such as the time period, the seniority. These effectively rule out a lot of rank and file, normal kind of jobs that we are looking at. Companies that want to try their luck on those fronts would not qualify, because those are not ICTs. There are existing internationally recognised rules on how ICT should be regarded and that is how we implement. It is important to realise that it does benefit Singaporeans as well. Many of these agreements that we have signed have benefited our people and allowed them to spread their wings. Although I had mentioned that there are those who are reluctant to be posted abroad, there are also many established Singaporeans who have that opportunity.”
“If you want to ensure that there is zero abuse of the system, you may end up with a system that is very laborious and difficult to administer. That becomes less flexible. But if a system is too lax, you will have people taking advantage of it, and somewhere in between, we will have to strike a balance. I think that is probably true of most of our policies as well. We are always mindful that there will be people who want to take advantage of it, and that is where the audit trail is important, and individuals providing feedback. The important thing is to have sufficiently punitive series of measures that will deter individuals from taking those steps. And if they do, then we will have to whack them, to make sure that they pay for that.”
“Mdm Chair, with regard to the courses and abuse by the vendors, we are fully aware of this. It is not just with regard to SkillsFuture, going forward. Even today, one of the things that I am preoccupied with and constantly working with WDA is to make sure that while we are providing funding – with good intent to support Singaporeans in their upgrading of their skills, as we are looking at re-skilling and upgrading themselves – we are mindful that vendors need to be responsible and do the right thing. But we are also under no illusion that there are vendors that seek to cut corners. Recently, there was one company that we found out – they were giving answers to the students. But a lot of this would depend on a couple of things. One, the audit effort put in by the various agencies. The other is also by feedback from the employees themselves who participate in these courses. If they find that actually they are just wasting their time and they are really not delivering quality modules, the feedback needs to be provided and we will investigate. Or it can be from the employers themselves. So, through a series of these different measures, we want to weed out those companies which take advantage of this and do not carry out their responsibilities properly. And we will blacklist some of these individuals. Recently, I have also asked my staff to name the individuals concerned so that there is that aspect of making public those who are responsible Page: 135 for this. Going forward, SkillsFuture is a major effort, a lot of monies are being put in. I am fully mindful that there will be those who are eyeing this opportunity. But, as I mentioned earlier, it is always a balance.”
“Mdm Chair, SkillsFuture is a very important part of our way going forward, to make sure that opportunities are available for Singaporeans. We are open to working with various stakeholders, in terms of developing the specific courses that are available. And we will be quite happy to take up the Member's suggestions to explore what else we could do. Some of these things have been done before. I think there are many different approaches to do this, but we are not constraining ourselves. Where there are courses and modules that we think are practical and useful from the perspectives of both individual workers and the industry, we will be quite happy to explore them, and to work Page: 134 them into the whole SkillsFuture set-up.”
“Some of them, for example, are looking at employing Singaporeans at an earlier age, perhaps before they have families, so that the reluctance to be posted abroad is perhaps slightly lower. So, these are the various measures that have been put in place to make sure that the pipeline is robust. But at the end of it, as the Member has mentioned as well. We all recognise that Singaporeans need to stand on their own feet and earn it on their own merit. But I also agree there needs to be a level playing field and there should not be glass ceilings. So, the whole system – with the Jobs Bank, the FCF – is put in place to manage that, to send the right signals. What we will do is we work very closely with MOE as well MTI and the respective agencies to make sure that the needs that are identified by the industry and the various sectors are being catered for, not only just in formal schooling but also as part of SkillsFuture, and all the various modules that have been put in place are meant to develop all Singaporeans with the potential, so that they can continue to move along that path.”
“We have seen even in the banking and financial sectors, a number of prominent Singaporeans holding leadership positions, not just senior positions within the banks here in Singapore, with some of them also managing regional businesses for the financial sector as well. What we do want to do is to make sure that the pipeline is there. We have seen good examples, pharmaceuticals is one that started off very early in the 1960s and 1970s in Singapore. We see many of their senior management positions being held by Singaporeans. This is something we intend to do. We recognise – and this is from feedback from the industry, and this is not just from foreign bosses, but also Singaporean managers – in certain sectors, we need to build up the skillset. This is where we work very closely with MOE to make sure that, in terms of the pipeline, we are equipping our people with skills, and that the schemes, scholarships and funding are available to help support companies to groom local individuals. One of the factors that I had raised previously in Parliament is the need for our local Singaporeans to have more international exposure. One of the curious observations that we Page: 133 have made is that, not just in financial sector but across various sectors, many Singaporeans are rather reluctant to be posted abroad for various reasons. The push factors need to be very significant. Singapore is comfortable. So, it takes a lot to want to go out. But it does actually affect their exposure to the region. Some of these companies are regional set-ups, or international set-ups, they do need managers and senior people with the relevant exposure. Companies are looking at that as well to see how best to make sure that Singaporeans can take that step forward.”
“Mdm Chair, with regard to the first question, for those who have exercised the choices from CPF plans earlier, the change that we are putting in place is for going forward. Individuals do not need to make the choice earlier. It is only from when they decide to activate CPF payout – so, at 65 or beyond. For the interest rate regime that we are introducing, this does not prevent existing members from enjoying the additional interest rates should they qualify. 6.00 pm With regard to SkillsFuture, as mentioned, there are many stakeholders involved, employers being one of them. How do we encourage employers? As we have mentioned, there are various schemes available that should provide a level of subsidies for training for the workers concerned. I think it is in the company's best interests to do that. Actually, the biggest driver in this whole effort is the tightened labour market. Companies do sometimes find challenges looking for employees. SMEs, for example, lament that people tend to look to joining the bigger companies as opposed to SMEs. So, schemes that we are putting in place to support the SMEs is meant to help some of these companies to proactively get involved in the process so that these students, whether they are in the ITEs or polytechnics, can come on board with the companies and work with them earlier, for example, via their internships, and so on. Through these various measures, we do see the companies coming forward. In fact, some companies have already begun coming forward and we will continue to work on that. With regard to the development of leadership, this is an ongoing process.”
“And the Government is committed because when the funds are transferred and it is topped up to a person's CPF account, the Government will be paying fairly attractive rates, especially for those above 55, their savings can draw interest of up to 6%, and that is quite significant, especially when you include the compounding effect and that will go a very long way to supporting these individuals. At this stage, I would be very hesitant to come in and for the Government to play a more intrusive role in making that happen.”
“Mdm Chair, with regard to the first query, I think where properties are involved, when they are co-owned, the consent of the spouse would be required when Page: 131 they want to pledge it. With regard to the second one, which is a broader issue of whether we should mandate this auto transfer of funds. As I mentioned earlier, we believe that this is a very personal decision to be made on a family basis. Whether we should make it automatic and then for couples to opt out, I suppose that is one possibility. But I would be very hesitant to go down that path because there are many variables involved in the relationship of couples. I am not sure whether it is our place to ensure that couples do actively look out for each other in their provision for their retirement requirements. What we have done and what we are trying to encourage people to do is to top up for their loved ones. For example, whether not just spouses – children, siblings – you can use your cash to top up the accounts for those who may have lower accounts for various reasons, and the Government is committed to paying a higher level of interest rates for those accounts being topped up. Similarly, for the transfer for CPF funds, once they have met their Full Retirement Sum, especially for non-spouse, they are free to top up from the CPF. But for spouses, above the Basic Retirement Sum, we also encourage them to do that. As highlighted earlier, this is one way to maximise the CPF system in order to provide for your loved ones. So, I would look at it beyond just the relationship between spouses, to within the family, from children to parents and also with siblings.”
“Page: 84 In between these pillars, our social safety nets, they are there to help catch hold of Singaporeans who may falter and who may be disadvantaged. These are the pillars upon which our society has to be built. They are not just physical edifices; it is not just a building. These are structures put in place by Singaporeans, for Singaporeans. Ultimately, this is what we are trying to build here in Singapore. It is work in progress, but I think it is really good work. Against all odds, we have done well in last 50 years. The next 50 years, I am confident we can do better. Fair Consideration Framework (FCF) and Jobs Bank Enhancements”
“This is on top of the various healthcare subsidies that Singaporeans now enjoy. And we are not forgetting the Pioneer Generation Package that we introduced. This will go a long way to help a very special group of Singaporeans with their healthcare needs for life. At the same time, it is important to remember that this also helps to alleviate the financial burden on the children. Fourthly, the Government will do its part to supplement the retirement savings of those who are more vulnerable in our society through various CPF top-ups and cash subsidies including the Workfare Income Supplement scheme, GST vouchers and the Seniors' Bonus. The Silver Support scheme will be another major plank in our retirement support framework for Singaporeans. Mdm Chair, there are many details involved in trying to translate our vision into reality. It is easy to get lost in the details. But details matter, because as I have mentioned, we are a democracy of deeds, not just words. What are we trying to build? It is important to remember that we are trying to build a better society – one where we have good jobs and opportunities for all Singaporeans. Therefore, we need to nurture an environment, economy that can provide that. We need to provide good opportunities with higher incomes, we also need to provide for secure retirement adequacy for all Singaporeans. This is anchored on the four pillars I have just shared: CPF system, housing, healthcare, and the fourth pillar being to provide for lower-income Singaporeans via Workfare during their working life and then providing for lower-income Singaporeans in their latter years via the Silver Support scheme.”
“Let me reiterate some of the key points raised by Deputy Prime Minister Tharman during the Budget Statement on our overall retirement support framework. Firstly, the CPF will continue to play a core role in helping us meet our retirement needs. It is a social security savings scheme that embodies a tripartite approach to retirement adequacy, with individuals taking some responsibility to set aside savings for their old age, employers playing their part through the employer share of CPF contributions and Government playing a part through various top-ups and supplements to the CPF. It is an important pillar in the overall retirement support framework for the majority of Page: 83 Singaporeans who work and contribute to their CPF accounts. Secondly, the CPF is not the only pillar of retirement adequacy. In our context in Singapore, housing is a key pillar as well. Ninety percent of elderly households are home owners. This is a remarkable statistic. Because of our high home ownership rates, the large majority of Singaporeans do not have to worry about paying rent in retirement. Our homes remain our homes, is a place of emotional refuge but, at the same time, it can also be, if needed, a valuable asset that can supplement our retirement. We know many elderly folks may find that their 4-room flat, 5-room flat is a lot larger now that their children have moved on, and they might want to downsize to something more manageable. Some will choose to rent out a room, some will right-size to a smaller flat or join HDB's monetisation schemes and get some additional income for retirement. Third, healthcare especially via MediShield Life. MediShield Life will provide better healthcare protection and coverage for all, keeping the premiums affordable.”
“I am glad to note that Labour Force Participation Rates (LFPR) for women have risen over the years and the difference in average CPF balances between men and women have started to narrow. In fact, from 2003 to 2013, we have seen a higher growth rate in the net CPF balances of females as compared to males. We also introduced WorkPro in 2013 to support the employment of our local workers, especially the economically inactive and older workers. WorkPro will help employers put in place work-life measures such as flexible work arrangements so that more economically inactive Singaporeans can return to work and many have done so. We will also support job redesign and training costs in an effort to improve job fit and retention. There is also generous funding of up to 90% for economically inactive Singaporeans, for example, women who wish to step back into the workforce to help them acquire the requisite skills to find a job more easily. Second, family remains an important pillar of support for women. As mentioned earlier, we have enhanced the rules to make it easier for CPF members to transfer their CPF savings to their spouse's CPF. We will pay out attractive interests for these accounts so topped up. I urge all Singaporeans to consider how to maximise the CPF system to boost your family's retirement adequacy needs, especially to look after your loved ones, who perhaps have lower CPF accounts because they have taken time off from work to look after the family. Our social safety nets should remain and be strengthened for the vulnerable groups. The Government and the CPF system alone will not be able to solve all problems. This is a role in collective responsibility. Individuals, families, employers, social groups – we all need to step up to provide the assistance and support.”
“And the point I am also making is how do we maximise and use the CPF system to our advantage. Mr Pritam Singh suggested that we step up awareness on employers' responsibility for CPF contributions for part-time workers and to encourage employees to step forward if they do not receive their right contributions. That is absolutely essential, because as you can see the compounding effect that you have in your CPF account matters, especially for lower income and less educated members, it matters even more. Which is why the WorkRight campaign was started in 2012 to improve compliance with employment laws. And we have stepped up our public education efforts to increase awareness. We have increased our abilities 10-fold. My assurance is that we will keep up this effort and we do not plan to ease off. We recognise that there will be a number of Singaporeans, particularly low-income elderly and non-working women especially, who will have low balances because their wages, especially for those who have grown up in a third world Singapore, where their wages have been lower, or they may have been unable to work for medical reasons or because for many of them, they had to be caregivers at home. There have been calls for more targeted help Page: 82 for the latter group to improve their retirement adequacy. I agree with the ST Opinion piece on Saturday that the social pension systems in Japan and some of the western countries providing targeted retirement welfare for women might not be the best solution, especially given issues with long-term sustainability. Our support for non-working women is two-fold. First, we encourage non-working women to get back into the workforce. We support the effort.”
“He and his employer will contribute about Page: 81 $130 per month into his CPF Special Account alone. This contribution will grow up to about $250 per month as more gets allocated to his Special Account as he gets older. Let us assume that he works similar to Ben, only 32 out of 40 years, and we are not including any wage increases that he is likely to enjoy in the course of his lifetime. If all these contributions were to be set aside in a Khong Guan biscuit tin under his bed, what would the amount be by the time he reaches 65? About $55,000 – that is what he will get when he consistently saves that $130 to $250. But, here, we are not talking about a Khong Guan biscuit tin; it is in the CPF Special Account. It is "special" because his monthly contribution earns interest of up to 5% before age 55 and up to 6% thereafter. Adding the interest earned, what do you think would be the amount in his CPF Special Amount at age 65? About $165,000 – three times what he would have put in. If he worked for example 36 out of 40 years, he would have accumulated about $60,000 which would grow to about $180,000. This is solely looking at what he has put in to his Special Account. This is not magic; it is just basic mathematics. This is a very conservative estimate, because again, it does not even account for wage growth and whatever savings he has accumulated in his OA after paying off his flat. If you add those, clearly he would have even more. My point in sharing this example is to highlight that the retirement picture for younger Singaporeans is relatively healthy. Most Singaporeans who work regularly and make prudent housing choices should have no worries building up comfortable retirement needs within the CPF system.”
“The median starting salary for Polytechnic graduates today is about S$2,400, but let us be more conservative, let us take the rates which were applicable a few years – $2,200. He has a job and he is earning an income, and Ben is thinking of proposing to his fiancé and is looking around the market to purchase a home. I hope he decides to purchase a home within his means and, frankly, there is no better deal than a HDB BTO flat if he qualifies for one. Let us say Ben decides to buy a 4-room BTO in Punggol with his wife-to-be and that is a good choice. Both of them use their CPF savings to pay for their home. As this is their first flat, they will enjoy a substantial housing grant. For all intents and purposes, it is very likely they are able to fund their housing needs largely from their CPF contributions without needing to draw on cash. Ben works regularly and his salary grows over time. He and his employer contribute on a consistent basis to his CPF account – let us assume he works only between the ages of 25 and 65, so about 40 years. Let us assume that he works only 32 out of 40 years. So, eight years here and there, takes time off, changing jobs, and perhaps choosing his jobs, so let us take eight years off – 32 out of 40 years. By age 50, it is estimated that Ben would have fully paid off his home loan. By age 65, he would have accumulated sufficient CPF savings to purchase a CPF LIFE policy that will give him a monthly payout that is roughly 60% - 70% of what he used to earn before retiring. How are we able to do this? Many people will wonder. A lot of it has to do with the effect of compounding on our CPF savings. Allow me to illustrate with a very simple example. Let us assume someone has a salary of $2,200.”
“The CPF Board will be including this information in its letters to members turning 55 this year, so that they can consider if they want to exercise these options. 3.00 pm While these flexibilities will help CPF members meet their housing needs, it is important to emphasise this – members must bear in mind that further expenditure and use of these monies will deplete their CPF cash savings for retirement. I do urge CPF members to be prudent with their housing purchases, especially when buying or upgrading a property at an older age. MND and HDB have already taken steps in the previous years to manage housing Page: 80 loans, this means to help individuals not over-extend their housing consumption. It is important to pay attention to this, because older members may have to take on loans with shorter tenures and higher monthly instalments, and they should also factor in any decline in CPF contributions as they age, which may mean that they may need to service their monthly housing instalments with cash on top of CPF. These are decisions that individuals need to bear in mind. While the CPF Panel's recommendations will offer Singaporeans more flexibility and options to better plan for their retirement, some are worried that their fellow Singaporeans might not be able to save up enough in their CPF accounts to meet the Basic Retirement Sum. The numbers at a larger level can be quite mind-boggling for young Singaporeans just entering the workforce. Let me try to reassure younger Singaporeans by using the example of Ben. He is a 25-year-old Polytechnic graduate who has just started work, with a starting salary of $2,200.”
“But the transfer of CPF members' Special Account (SA) and Ordinary Account (OA) savings to the Retirement Account (RA) at the age of 55 is necessary to help them earn a higher rate of return overall so that they will have more savings and higher payouts in retirement. Remember the example we cited earlier of that 10 years from 55 to 65 and the impact it had on both Mrs Tan and Mr Tan's accounts. That is exactly what it means. But let me take this opportunity to explain to members what flexibilities continue to exist for the use of CPF for housing after the age of 55. First, the Ordinary Account continues to exist even after the RA is created. Any new contributions to the OA after the age of 55 can continue to be used for housing because many people continue to work after 55. In addition, any money in the RA in excess of the Basic Retirement Sum can also be used for housing. Second, we have, on appeal, allowed CPF members to use savings in their RA that originated from their OA to meet their housing needs even if their RA savings are below their Basic Retirement Sum, meaning that for the amount of money that originated from the OA, on appeal, we can look at how they can use some of it to meet the housing needs. Third, CPF members turning 55 can also opt to use their OA savings to fully or partially redeem their outstanding housing loans if they have concerns with their ability to continue servicing their housing obligations after the transfer of savings to their RA at age 55. Members can request to leave in the OA the monies that they may require for their housing obligations, and not transfer these monies to the RA at age 55. But it is important that they need to understand that these savings in the OA will not enjoy the RA rates of up to 6%.”
“Let me assure the House that my Ministry and the CPF Board are committed to guiding members through these critical junctures as they transit from their working life into retirement. We will scale up and intensify our efforts to first raise awareness and understanding of the CPF system and the new changes. We are also working on making available guided one-to-one retirement planning service to CPF members to help them better understand the various CPF options and decide on the option best suited for their individual needs and circumstances. We have completed a three-month trial project and will pilot a retirement planning service in the second half of this year. We plan to ramp up the service gradually from 2016. Our priority will be members who are approaching 55 and may need the service most, such as those with outstanding housing loans and may be affected by the transfer of their Ordinary Account savings to the Retirement Account at 55. We hope such services will help members navigate the CPF Page: 79 system better and make better use of their CPF savings. Ms Foo Mee Har and Ms Lee Li Lian also asked whether more flexibility can be provided for the use of Retirement Account savings for housing. This is an issue that has been raised several times in Parliament by various Members in this House. Although the number of people affected by this is quite limited, the fact is it is challenging for those affected. Last July, I explained that we already exercise some flexibility in the use of CPF for housing after 55.”
“So, if he carries on working and starts drawing on his CPF savings only at age 70, he can get a payout that is as much as 30% more. He decides that this is a prudent thing to do, so long as he is still able to work. But he knows if he were to stop working for whatever reason, he can start his CPF LIFE payouts at any time between the ages of 65 and 70. Finally, the third issue that Mr Tan will have to decide on is which CPF LIFE plan he wants. As we know, there are two CPF LIFE plans to choose from – one that gives you a higher payout and slightly lower bequest, and another that gives you a lower payout but a slightly higher bequest. Today, members are asked to choose their CPF LIFE plan at age 55, even though their payouts will start some 10 years later. From January 2016, members will only need to choose their CPF LIFE plans from age 65 or at the point when they wish to start payouts from CPF LIFE. In the case of Mr Tan, he decides to start his payouts later, at age 70 and he will only need to make his choice of CPF LIFE plan then. His savings will only be committed to CPF LIFE when he makes his plan choice. These are all important decisions that Mr Tan has to make at age 55 and 65, and the choices he makes will have consequences on the type of retirement that he will enjoy. Mr Zaqy Mohamed and Mr Seng Han Thong asked about how we are communicating the CPF changes to members to help them make better decisions. I share the concern that with more options, with more decisions to make, it does become more complex. That is inevitable. You want something simple to understand, then you will have very few choices, very few options. We cannot run away from that. But we believe this flexibility that is being woven in is important.”
“The savings that Mr Tan set aside in his Retirement Account at age 55 will have now grown with interest and working contributions. He now needs to decide on three things. First, he needs to decide whether to withdraw up to 20% of his Retirement Account savings in a lump sum. This is one of the new flexibilities recommended by the CPF Panel. How should he choose? Some people may need that lump sum immediately for various reasons. Others will not want to make a withdrawal because it means lower CPF LIFE payouts or because they have already set aside some other funds for emergencies. In the case of Mr Tan, he does not think he needs the money straight away but he likes the fact that there is flexibility of having a lump sum that he can withdraw as a safety buffer in case of unforeseen family circumstances and emergencies that may arise in the next few years. What can he do? Well, we will allow, indeed encourage, him to leave that 20% in his CPF. He can withdraw it later when he needs it. The second decision that Mr Tan has to make is whether to start his CPF LIFE payouts straight away at age 65 or whether he can afford to wait to a bit later, perhaps up to age 70. He is a healthy man and is keen to carry on working. Forty percent of Singapore residents aged 65 to 69 continue to work. And I believe with the extension of the Retirement and Re-employment Act, and with more Singaporeans being in good health, many would opt to Page: 78 continue working as part of active ageing. Mr Tan does not need his payouts to start as he continues to earn an income from work. He also knows that by deferring his payout start age, he can get a permanently higher monthly CPF LIFE payout. Every year that he defers his payout start age, his monthly payouts go up by 6% to 7% permanently.”
“Mrs Tan also turns 55 next year and she will have $35,000, comprising $10,000 which Mr Tan had transferred earlier from his CPF account and the $25,000 from his private savings, so, totalling $35,000. By the time Mrs Tan is 65, in these 10 years, how much has the $35,000 grown based on interest? Well, it will have grown to about $60,000 by the time she reaches age 65. She will now have her own CPF LIFE plan and will receive monthly payouts of about Page: 77 $340 for life. While Mr Tan has decided that he needs only the payout from the Basic Retirement Sum for himself, there are others who may desire a higher monthly payout in retirement. They can choose to top up their Retirement Account up to three times the Basic Retirement Sum, also known as the Enhanced Retirement Sum, after they turn 55. Some have said that only the wealthy top few percent will be able to benefit from the Enhanced Retirement Sum. Not so. Thirty-five percent of active members at the age of 55 in 2013 had CPF savings above the Full Retirement Sum. Come 2020, the proportion is estimated to rise to about half of all active members. So, they can also top up, up to beyond the Full Retirement Sum and enjoy the higher interest rates. Furthermore, 90% of elderly households are home owners, and if they decide to downsize during their retirement, something smaller which is easier to manage or to participate in the various monetisation schemes, the new flexibility of an Enhanced Retirement Sum will provide them with a useful option for placing their cash proceeds in their CPF account. Let us fast forward 10 years and walk Mr Tan through the decisions that he has to make at age 65, as he enters the retirement phase of his life.”
“From next year, we will allow savings above the Basic Retirement Sum to be transferred to the spouse's account. I hope more Singaporeans will take the opportunity to make such a transfer. Ms Foo suggested making the transfer automatic, or to require spouses' joint consent before withdrawals of Retirement Account savings can be made. These are personal decisions. We believe that at this stage, it is best left to the couples to decide. It would, I think, be intrusive for the Government to intervene. In Mr Tan's case, he decides to transfer his CPF savings above the Basic Retirement Sum, a sum of about $10,000, to his wife. It is a win-win situation for him and his wife because if he had left the money in his own CPF account, he would be the only one earning the higher interest rates on the first $60,000 of up to 6%. By making the transfer, both Mr and Mrs Tan can enjoy the benefits of these higher rates. If Mr Tan had kept that $10,000 in his own account, he would be drawing 4%. But with the transfer, this same $10,000 will be earning up to 6% interest for Mrs Tan, that is a very significant extra 2% interest on top of the already attractive 4% interest rate provided for her. Mr Tan has also some private savings. Frankly, he is not very pleased every time he opens his bank book, as the interest is earning less than 1%. He thought of investing in the stock market but is unsure of what might be a good investment and in his older years, he really does not want to risk his savings. He decides to use $25,000 of his personal savings to top up his wife's CPF account to further boost her CPF savings. This will earn up to 6% in Mrs Tan's CPF account, which is much higher than the interest in the bank of less than 1%.”
“In the case of Mr Tan, like most Singaporeans, he owns an HDB flat and, in most instances, at the age of about 55, it is fully paid up, so he need not worry about rental expenses in his old age. He also has some savings in his bank account that he has set aside over the years for emergencies. And he has two children who love him and his wife, and he is quite confident they will share the responsibility of looking after him for his old age. But for the purposes of this example, let us ignore the two children and assume that they are not looking after them. Let us say that Mr Tan has about $90,000 in his Retirement Account when he turns 55. This is the median amount that someone aged 55 will accumulate. Having considered the matter, Mr Tan thinks he can get by for himself and decides that perhaps the basic payout Page: 76 after retirement of about $700 will suffice. This means that he will need to set aside $80,500 in his Retirement Account and can withdraw the rest. Mr Tan's one important concern is the well-being of his wife who is of the same age. She does not have much CPF because she stopped working quite some time ago. She became a full-time home-maker after their children were born. It is important to help family members build up their CPF savings so that they too can have their own CPF LIFE plan and payouts in retirement. Ms Foo Mee Har has asked how we can help stay-at-home mothers to meet their retirement needs. I fully share her concerns. One way we will address this issue is by making it easier for CPF members to transfer their CPF savings to their spouse's CPF and the Government will provide good interest rates on that for them. Currently, CPF members can only transfer their CPF savings above the Full Retirement Sum to their spouse's CPF.”
“I think this is a reflection of a realisation of how important it is for us to balance the need for flexibility and the need to continue to provide for their retirement adequacy for the long term. Last month, the CPF Advisory Panel announced Part One of its recommendations. These were made following a period of consultation and engagement with Singaporeans from all walks of life. The Panel's recommendations are part of that journey to introduce more flexibility to cater to the needs of members today, while bearing in mind that retirement adequacy remains our primary objective and especially as longevity is upon us. More Singaporeans are going to live longer. So, how do you ensure that retirement adequacy continues for many years to come? It is not easy to find the right balance between adequacy, flexibility and simplicity. I think the Panel has done a good job in trying to steer this path. The Government has accepted the Panel's recommendations. Let me walk you through how the Panel's recommendations will affect the key decisions that Singaporeans will need to make as they approach their retirement. 2.45 pm Let us take, for example, Mr Tan who is 54 this year and he will be turning 55 in 2016. Mr Tan works as a sales manager in a department store. He earns about $3,500 a month. He is married with two children. What are the important decisions that he needs to make at age 55 to provide for a secure retirement? Well, first, he needs to think about what is the monthly income he needs for a secure retirement. How should he go about thinking about this? Does he own a property? Does he have a non-working spouse he will need to support? Does he also have private savings outside of the CPF and how much can he expect to receive in family support?”
“It is important to understand that CPF contribution rates for older workers were lowered in the past primarily to reduce their hiring costs and, ultimately, to improve the employability of older Singaporeans. That is really the key focus. We are more ready to remove this disparity in rates for the 50-55 age band because the employment rate for this group has improved considerably and is almost on par with younger workers. However, it would not be prudent at this stage to raise the contribution rates for those above the age of 55 too quickly as the employment rate in this group is still considerably lower than that for those who are younger. Ms Lee Li Lian spoke about the need to provide greater flexibility within the CPF system. The truth is, the CPF system has evolved over the years to cater to the differing needs of Singaporeans and this meant introducing various forms of flexibilities that members enjoy today. In fact, some would criticise that there is too much flexibility, as it is. For example, we have the flexibility to draw on our CPF funds for training, or for the education of our children, or to invest in a variety of financial instruments under the CPF Investment Scheme. The CPF's core purpose, however, must continue to be about providing for the retirement needs of Singaporeans. That is why I was so glad to hear Mr Gerald Giam affirming the Workers' Party's position on the need for enforced savings, without which, he and many others "would have saved much less for retirement", and that "the Workers' Party is not asking for CPF members to be Page: 75 allowed to withdraw all their CPF money in a lump sum".”
“The Pioneer Generation Package will also help the current elderly better meet their healthcare needs and also help to alleviate the Page: 74 cost burden on their families as well. Our home ownership rates across income levels are among the highest in the world. In recent years, we have further increased housing grants to help middle- and lower-income households own their homes. In addition, the GSTV cash payouts and Service & Conservancy Charges (S&CC) rebates serve to help lower-income households with costs of living. Eligible older Singaporeans will also receive an extra Seniors' Bonus to help with daily expenses. We have been systematically taking steps to help boost Singaporeans' retirement savings and income. We top up the CPF accounts of low-wage workers via Workfare and introduced Extra Interest for smaller CPF balances. As announced by Deputy Prime Minister Tharman in his Budget Statement, we will raise the CPF salary ceiling, increase CPF contribution rates for older workers and provide an additional tier of Extra Interest for older CPF members. We will also introduce the Silver Support scheme, which will be a permanent scheme, to provide a regular income supplement for the less well-off elderly. These changes will take effect in 2016. Mr David Ong has supported the move to increase CPF contribution rates for older workers and some have also asked if rates can be increased further for those over the age of 55. In this round of adjustments, we will be restoring the CPF contribution rates for workers aged 50-55 to the same level as younger workers and making smaller increases to the rates for those aged 55-65.”