Key points in Minimum Sum debate

Key points in Minimum Sum debate

The Government has much to learn about communicating with the people.

The raising of the Central Provident Fund (CPF) Minimum Sum is in the headlines because of certain allegations by blogger Roy Ngerng. Manpower Minister Tan Chuan-Jin corrected some of the misconceptions in his blog ("CPF money is your money, says Chuan-Jin"; Monday). However, he failed to address two key points.

First, he did not state categorically that property bought with CPF savings can be pledged for up to half of the Minimum Sum, for those unable to set aside the full amount in cash. Many people are unaware of this.

Perhaps the Government would prefer the full amount to be in cash, but people should be allowed to decide for themselves what they prefer.

Second, it is puzzling that the Government raised the Minimum Sum by 4.7 per cent to cushion inflation, yet often states that the high inflation rate is due to private road transport and accommodation costs, which do not affect most Singaporeans.

Was this taken into account when it raised the Minimum Sum, not only for this year but also for past years?

Tan Say Yin (Ms)

This article was first published on May 29, 2014.
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