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Why Your CPF Savings Are Safe

Employment practices
  • The New Paper (07 March 2008) : Why Your CPF Savings Are Safe
  • The New Paper (01 March 2008) : What Safeguards are there for Central Provident Fund (CPF) savings?

Why Your CPF Savings Are Safe
- The New Paper, 07 March 2008

We refer to the letter “What safeguards are there for Central Provident Fund (CPF) savings?” (The New Paper, 1 Mar) by Chua Choon Huat, who said that the “discrepancy” in government estimates of the FY2007 Budget raised concerns about whether CPF funds could be manipulated or misappropriated.

2. There is no basis for such alarm. The Government's revised estimates for the FY2007 Budget have nothing to with accounting errors or omissions. The revision reflected the exceptional GDP growth and boom in the property market in 2007, both of which exceeded forecasts that were made a year ago. The result was stronger than expected Government revenues, especially from income taxes and stamp duties.

3. There is hence no basis to suggest that CPF savings are insufficiently protected.

4. CPF savings are invested in Special Singapore Government Securities (SSGS), hence the interest rates and principal amounts placed in all CPF accounts are guaranteed by the Singapore Government. CPF savings can only be withdrawn by members or on their demise, for their beneficiaries. To ensure that the trustee duties of the CPF Board are properly carried out, its financial statements are reported to its Board of Directors quarterly, and audited by the Auditor-General's Office and presented to Parliament yearly.


What Safeguards are there for Central Provident Fund (CPF) savings?
- The New Paper, 01 March 2008

Discrepancies in govt estimates

I refer to the reports on the full bonus for Central Provident Fund (CPF) members and the article, “Why so far off target?” (The New Paper, 27 Feb) on the Budget surplus.

How can the public feel secure in the knowing that their savings will be sufficiently protected when government estimates can show such a huge discrepancy?

What safeguards are there for the Singaporean and the investing public to ensure that no single person can just run away with our life savings, for example – that with just one signature, the CPF money of all Singaporeans could be reduced to zero?

Does a political or government leader have the power to do that? This question needs to be answered to ensure transparency.

How many big international banks have been brought to their knees lately by insider “geniuses”, and who knows how these investment gurus are tied to those responsible for the the US sub-prime crisis and other financial fiascos from the 1980s, 1990s and 2000s?

There must be better corporate governance against young punks manipulating funds under tutelage of those who have honed their skills in the financial fiascos.