CPF Cannot Be Used for Training

CPF Cannot Be Used for Training
- Berita Harian, 19 November 2008

Please refer to the forum letter “Allow citizens to use CPF Funds to pay for course fees” (BH, 12 Nov 2008) by Mr Mohd Shaheedu Pakri Mohd.

2.   The CPF is meant to meet the retirement, healthcare and home ownership needs of Singaporeans. With our rapidly ageing population and corresponding increase in retirement and healthcare needs, the priority should be to help Singaporeans build up enough CPF savings for their old age. CPF should not be used for training.

3.   The Government has implemented many initiatives to help Singaporeans to upgrade their skills. Continuing Education and Training (CET) courses supported by WDA are heavily subsidised. For example, workers attending courses under the Singapore Workforce Skills Qualifications (WSQ) framework typically only pay 10-20% of the course fees. As such there should be no need for workers to borrow from their CPF accounts and to make repayments after the training, as suggested by Mr Mohd.

4.   Individuals who are interested in attending skills training programmes but face difficulties can also approach the Career Centres at the Community Development Councils (CDCs) and NTUC's Employment and Employability Institute (e2i) where trained career consultants would provide career counselling, training support and job placements.

Allow citizens to use CPF Funds to pay for course fees
- Berita Harian, 12 November 2008

Mr Mohd Shaheedu Pakri Mohd. commented that the government has always reminded citizens to work hard and continue upgrading their skills so that they can remain relevant and competitive in the changing economic conditions, as compared to labour markets in other countries.

He noted that there are now many courses available for industries such as security and services. However, he said that not many Singaporeans can afford to pay for the fees and this is a challenge. He therefore proposed that CPF funds be allowed to be used to pay for course fees. He felt that by paying for the course fees using CPF funds, this will eliminate that challenge and will enable more workers to upgrade their skills.

He also agreed that the funds should only be paid for recognised courses such as those under WDA so that embezzlement issues do not occur. He also proposed that repayment should be made back to CPF within a period of a few months to a year so that workers' CPF savings will not deplete.