| The Central Provident Fund has given Singaporeans a tangible stake in the security and future of our country for the last 42 years. As a compulsory social security savings scheme, we have provided our members financial protection to meet their needs in old age, housing and healthcare.
Our average CPF members who retire in the next five years will be better off than those who retired say, five years ago. For most members who retire now, they would have a higher monthly income derived from their minimum sums, paid off their housing loans, higher Medisave balances and better MediShield coverage.
CPF members enjoyed several privileges in the nineties. 1997 was no different. Over 580,000 members under the Home Protection Scheme received a rebate of $75 million. About 1.5 million members received top-ups in their Ordinary Accounts under the Share Ownership Top-Up Scheme in March 1997. Over 1.6 million members were given 146.8 million Singapore Telecoms loyalty shares in November 1997. Furthermore, a sum of over $283 million was also used to top up CPF members' Medisave Accounts.
These privileges were possible as Singapore was enjoying a period of strong growth and the region was booming prior to mid-1997. Times are more sober now as we enter a period of restructuring and consolidation. Our task, however, is not to look to the past but to keep working for the future. We must anticipate the changes in our social and economic environments and make the necessary adjustments.
We must not allow this downturn to affect our preparations for our retirement. The Board has emphasised the need to exercise prudence in spending, and this is more critical now than before. Members should plan how to deploy their CPF optimally whether in property, investments, insurance or cash savings so that it will last and provide them with a comfortable retirement later on.
Although we all wish for gainful employment and rising salaries, we should not deploy our CPF savings based on this assumption. Instead, members should consider buying properties within their means, staying in affordable wards when hospitalised, investing their CPF prudently and buy annuities with their minimum sums to enhance their old-age savings. They should balance the many uses of their CPF accounts well so as not to be caught off guard when the tide turns.
The Board streamlined several key operations to serve its customers better in 1997. The CPF Bishan Office, with the pleasant interiors and friendly service, was a welcomed replacement to the older and smaller Ang Mo Kio and Toa Payoh branch offices. At the CPF Tampines Office, opening hours are extended to 7 pm every Wednesday. If the demand from the public is high, this may be extended to other CPF Offices in later years.
Access to information on CPF schemes and services are constantly improved. The Board's website keeps overseas Singaporeans updated on changes in CPF benefits and services. Through PAL-Internet, members can also view and print their Accounts balances from their homes or offices without having to visit any CPF Offices. New features of PAL-Phone and PAL-Machines were also introduced to meet different customers' needs.
Such customer-oriented practices started in the Board more than 12 years ago. This tradition is well captured in the book published by Singapore Productivity and Standards Board titled Best Practice Cases: Customer Service where the Board was featured as the benchmark for counter service in Singapore.
Although Government top-up for CPF members will continue only for the elderly in 1998, all members will enjoy interest returns of 1.5% more in their Special and Retirement Accounts as compared to their Ordinary Accounts from July 1998.
The Board's focus on preparing early for retirement will be reinforced in its public education programmes. These include pre-retirement planning, making sound investments and national education programmes. An exhibition gallery will be set up at the CPF Bishan Office to show the development of CPF which has served as the backbone of Singapore's social security system through the years.
We are planning to set up a CPF Woodlands Office in 1999. Projects are also underway to promote more paperless transactions. For example, employers are encouraged to pay CPF contributions through GIRO and even more features will be introduced in our PAL services for members in the months ahead.
The Board is also in the midst of a major computer enhancement exercise to solve the problems caused by the Y2K bug. Although year 2000 is less than two years away, the Board is confident that its records and systems will not be affected.
Mr Low Puk Yeong, Mr Steven Goh Hock Li, Mr Victor Pang and Mr Tan Eng Beng completed their terms as Board members in 1997. I would like to thank them for their valuable contributions to the Board.
We also welcomed four new Board members - Mr Ho Cheok Sun, Mr Koh Juan Kiat, Mdm Ng Mie Ling and Mr Tong Kok Yeo.
It has been a memorable four years for me as Chairman of CPF Board. I would like to thank all Board members who have served with me, our dedicated CPF staff and service partners for their strong support and commitment to help Singaporeans save for their old age and enjoy all the CPF benefits. I wish the Board every success and I am confident it will continue to excel under the chairmanship of Mr Ngiam Tong Dow.
Dr Andrew G K Chew
Chairman
Central Provident Fund Board
July 1998 |