Social welfare — Topics

22 Feb 2023

Percentage of CPF Members Who Defer Monthly Retirement Payouts beyond Age 65

Over the past five years, 66% of CPF members who reached their Payout Eligibility Age (PEA) deferred their monthly retirement payouts beyond age 65.
Among those who deferred their payouts, about 46% were still working when they reached PEA.
Among those who did not defer their payouts, about 58% were still working when they reached PEA.
The data covers CPF members who reached their PEA since 2018.

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22 Feb 2023

Raising CPF Ordinary Wage Ceilings

Leong Mun Wai asked whether the CPF Ordinary Wage (OW) ceiling would be raised from $6,000 and suggested pegging it to the 80th percentile of income, noting it had not been updated for seven years.
The Minister for Manpower announced that the CPF OW ceiling will be increased to $8,000 by 2026, implemented in four phases to allow adjustment by employers and employees.
The government stated that CPF salary ceilings will continue to be reviewed and adjusted as needed to cover the broad majority of resident workers.

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22 Feb 2023

Factors beyond Annual Value of Home in Assessing Medical Subsidies for Retirees

Christopher de Souza proposed that medical subsidies for retirees should consider more than just the annual value of their home, especially for those with landed property but little savings.
Ong Ye Kung explained that subsidies are means-tested using per capita household income and annual value, which together are the best available proxies for financial need, despite not being perfect.
He noted that disregarding annual value could lead to inequitable outcomes, such as wealthy retirees in high-value homes receiving higher subsidies than low-income families.
The government already provides additional non-means-tested support for seniors, such as higher subsidies at polyclinics and benefits for Pioneer and Merdeka Generation seniors.
Retirees who still struggle after subsidies can apply for discretionary assistance like MediFund, which considers a broader range of factors.

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22 Feb 2023

Proposal for Basic Child Care Subsidy to be Tiered with Increased Subsidies for Second and Third Children

Christopher de Souza proposed that the Basic Child Care Subsidy be tiered to offer higher subsidies for second and third children.
Masagos Zulkifli explained that current measures include means-tested Additional Subsidies for families with working mothers and incomes up to $12,000, with income assessed per capita for larger families to qualify for higher subsidies.
He also noted that Child Development Account funds can be used for preschool fees, with government co-matching capped higher for second and third children.
The current Basic Subsidy remains constant regardless of birth order, but existing policies already provide additional support for families with multiple children.
The debate highlights existing financial mechanisms to assist larger families rather than implementing a tiered Basic Subsidy.

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22 Feb 2023

Review of Basic Child Care Subsidy in Light of Increased Cost of Living

Christopher de Souza asked the Minister for Social and Family Development whether the Basic Child Care Subsidy will be reviewed due to the increased cost of living.
The Minister highlighted that the government has already enhanced preschool affordability by raising the income ceiling for means-tested Additional Subsidies and increasing subsidy amounts in 2020.
The government also keeps fees affordable by imposing fee caps on Anchor and Partner Operators, with recent reductions of up to $40 in monthly childcare fees, which the Minister argued is more effective than increasing the Basic Subsidy.

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22 Feb 2023

Flexibility to Spend Community Development Council Vouchers at Small Businesses

Leong Mun Wai questioned why Singaporeans are not allowed to spend CDC vouchers at small businesses instead of only at supermarkets, arguing small businesses would benefit more.
Lawrence Wong explained that the first two tranches were restricted to heartland merchants and hawkers to support them during the pandemic, but the third tranche was split between supermarkets and heartland businesses due to public requests.
Data shows higher usage of supermarket vouchers, and some members of the public have asked to extend unused heartland vouchers to supermarkets.
The government will maintain the current scheme parameters and review the experience for the fourth tranche of vouchers in January next year.

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22 Feb 2023

Debate on Annual Budget Statement

Nadia Ahmad Samdin supported the Budget while highlighting concerns about middle-class squeeze, social mobility, and mental health, proposing initiatives like a mental well-being credit scheme and better support for seniors, families, and youths.
Wan Rizal endorsed the Budget and suggested improvements for workers' well-being, including work-life balance for healthcare and education staff, expanding preschool education, and enhancing support for families with special needs.
Louis Ng focused on the challenges faced by nurses, recommending protected rest time between and during shifts, and increased ancillary support to reduce burnout and improve patient care.
Darryl David supported the Budget but raised concerns about wealth inequality, suggesting enhanced housing support for families and better encouragement for fathers' roles in parenting.
Joan Pereira emphasized community unity and crisis preparedness, advocating for more training in life-saving skills and stronger local networks to respond to future emergencies.

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22 Feb 2023

Debate on Annual Budget Statement

The debate highlighted Singapore's need to strengthen its social compact and address inequality, with concerns over a potential "two Singapores" split and calls for progressive policies to support lower- and middle-income groups, while ensuring economic growth remains robust.
Specific budget measures, such as raising the CPF income ceiling, increasing HDB grants, and introducing Jobs-Skills Integrators, were discussed, with questions raised about their impact on retirement adequacy, housing affordability, and job matching effectiveness.
Members emphasized the importance of fiscal prudence, sustainable growth, and resilience against global uncertainties, including proposals to enhance tripartism, support businesses, and manage long-term challenges like aging population and climate transition.

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14 Feb 2023

Annual Budget Statement

The Finance Minister outlined Singapore's economic recovery post-COVID, acknowledging ongoing inflation pressures and global uncertainties, and projected modest GDP growth of 0.5% to 2.5% for 2023.
The Budget introduces enhanced cost-of-living support, including a $9.6 billion Assurance Package, permanent GST Voucher increases, and one-off payments to cushion inflation and GST impacts for lower- and middle-income households.
Major investments are planned to grow the economy and support businesses and workers, such as a $4 billion top-up to the National Productivity Fund, new innovation tax incentives, and extended support for senior employment and lower-wage workers.
Significant measures are aimed at strengthening families, including increased housing grants, enhanced Baby Bonus benefits, doubled paternity leave, and expanded childcare support to address demographic and social challenges.
The government will bolster national resilience through fiscal prudence, without drawing on past reserves for 2023, and implement progressive tax adjustments on properties, vehicles, and tobacco to ensure sustainable funding while maintaining a fair and inclusive system.

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14 Feb 2023

Extension of Inclusive Business Programme to Industrial Properties Operated by JTC

Mr Murali Pillai suggested extending the Inclusive Business Programme (IBP) from HDB to JTC-operated industrial properties, especially those near HDB estates, to help persons with disabilities (PwDs) find employment.
The Ministry for Social and Family Development (MSF) will work with the Ministry of Trade and Industry (MTI) and JTC to explore this extension as part of efforts to raise PwD employment rates.
Mr Pillai further proposed considering rental rebates for small- and medium-sized enterprises (SMEs) that employ PwDs, and the Senior Parliamentary Secretary confirmed this suggestion would be considered in the review.

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7 Feb 2023

Monthly Household Income as Consideration for HDB Rental Levels for Those on Parenthood Provisional Housing Scheme

Murali Pillai asked if the monthly household income of families is considered when setting rental rates for HDB flats under the Parenthood Provisional Housing Scheme (PPHS).
Desmond Lee confirmed that rental rates for PPHS flats are set based on household income, with highly subsidized rents such as $600–$900 for 3-room flats, which are 65% to 80% below market rates.
He added that applicants can view flat types and rental rates on HDB’s website and choose affordable options, with the option to co-share flats to reduce costs.
Lower-income households with no other housing options may be offered Interim Rental Housing with lower rents on a case-by-case basis.

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6 Feb 2023

Adequacy of CPF Basic Retirement Sum in View of Prolonged Period of High Inflation Rate

The Basic Retirement Sum is designed to provide lifelong payouts that cover a basic level of retirement expenses, factoring in long-term inflation and lifestyle increases, with projected payouts rising to about $1,000 per month for the cohort turning 55 in 2027.
Most CPF members are expected to meet the Basic Retirement Sum, and those who set aside higher sums can receive larger payouts, with options like the CPF LIFE Escalating Plan to help counter inflation.
Beyond CPF, seniors can rely on other sources such as private savings, family support, and government schemes like the Silver Support scheme, which provides additional cash aid.
The government has rolled out multiple measures, including cash payments and CDC vouchers, to help Singaporeans cope with high inflation and cost of living, with support targeted at lower-income and retiree households.
The Basic Retirement Sum is regularly reviewed to ensure it meets long-term retirement needs, with ongoing efforts under the Forward Singapore Exercise to explore further support measures.

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6 Feb 2023

Appeals by CPF Members above 55 to Make Partial Withdrawals from Retirement Account to Purchase 2-room HDB Flexi Flats

Sylvia Lim asked the CPF Board what factors it considers when deciding if CPF members over 55 can partially withdraw from their Retirement Account to buy a 2-room HDB Flexi Flat on short lease.
The Minister explained that CPF members can use their Ordinary Account savings for housing before turning 55, and after 55, they may use excess Retirement Account savings beyond the Basic Retirement Sum for housing if committed to a purchase.
The CPF Board may allow exceptions for financial hardship, such as using Retirement Account savings from the Ordinary Account for housing even if it falls below the Basic Retirement Sum, while considering retirement adequacy and loan amounts.
The Board collaborates with agencies like HDB to tailor assistance and balances the need to support housing needs with safeguarding retirement savings.
The overarching goal is to balance members' housing requirements with ensuring sufficient retirement savings for long-term adequacy.

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6 Feb 2023

Affordable and Accessible Public Housing, and Public Housing Policies

The PSP argues that current housing policies fail to balance affordability and accessibility, as BTO flats face long waiting times while resale flats are unaffordable, and proposes building more flats based on projected demand and a deferred land cost model to lower upfront prices.
MP Cheryl Chan acknowledges housing challenges but emphasizes the complexity of demand patterns and lifestyles, suggesting that addressing supply shortages requires societal adjustments like accepting less profit from flat sales and living farther from parents, rather than relying solely on subsidies.
The debate highlights concerns about retirement adequacy, as using CPF to pay for flats leaves many with insufficient savings, and questions the impact of government grants on resale price spirals and reserve growth.
Proposals include lowering the eligibility age for singles to buy HDB flats and allowing them to purchase smaller units, to support earlier family formation and address the low total fertility rate.
Overall, speakers call for a review of housing policies to ensure they meet the needs of young Singaporeans while maintaining the high home ownership rate and social fabric of the country.

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6 Feb 2023

Public Housing Policies

The Progress Singapore Party (PSP) moved a motion to review public housing policies, arguing that current policies have made HDB flats less affordable and accessible, with rising prices depleting CPF savings and threatening retirement adequacy for Singaporeans.
PSP highlighted concerns such as long BTO waiting times, high resale prices, lease decay for older flats, and the impact on fertility rates, criticizing the government's reliance on advertisements to assert affordability rather than proactive policy reviews.
The party proposed two main schemes: an Affordable Homes Scheme to defer land costs for owner-occupiers, aiming to reduce purchase prices and preserve CPF for retirement, and a Millennial Apartments Scheme to provide more rental options in prime locations for younger Singaporeans.
PSP argued these policies would strengthen owner-occupation, protect retirement savings, and offer more housing choices without raiding national reserves, contrasting with the government's current approach.

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10 Jan 2023

Increasing Low-income Families' Take-up of Internet Access Scheme

The Home Access 3.0 programme provides eligible low-income households with subsidised two-year fibre broadband, with most beneficiaries on the 500 Mbps plan that does not require a security deposit.
MyRepublic’s 1 Gbps plan requires a refundable $250 security deposit from about 2% of beneficiaries, assessed on individual customer profiles, while M1’s 500 Mbps plan has no such deposit.
The Infocomm Media Development Authority works with telcos to review the scheme and ensure needy households can obtain digital access, with the deposit refundable if no arrears or premature contract termination occur.

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10 Jan 2023

Applications to Inclusive Business Programme In Support of Employment of Persons with Disabilities

Two businesses successfully applied for and were approved under the Inclusive Business Programme since its launch in 2019, receiving HDB shop spaces and a 20% rental discount for the first three years.
The government provides employment support through the Open Door Programme, which includes job placement, job support services, grants, and wage support via the Enabling Employment Credit.
Enabling Business Hubs are being developed to offer employment training, employer engagement, and on/offsite employment opportunities closer to where persons with disabilities live.

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10 Jan 2023

Time-limited Rental Subsidy for Applicants who Qualify for Parenthood Provisional Housing Scheme and Public Rental Scheme

The government will not provide a time-limited rental subsidy for applicants under the Parenthood Provisional Housing Scheme and Public Rental Scheme, citing concerns that such subsidies could increase demand and drive up market rents.
HDB already expedites flat allocation for applicants with urgent needs, such as medical grounds or exceptional circumstances, and offers Interim Rental Housing on a case-by-case basis for low-income households with no other options.
Supply for the Parenthood Provisional Housing Scheme is being increased but remains limited, and families are currently directed to the open rental market for temporary housing.

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9 Jan 2023

Reason behind Approach to Monthly Computation of CPF Interest Payments Using Lowest Amount Balance

Assoc Prof Jamus Jerome Lim asked the Minister for Manpower about the justification for computing CPF interest payments monthly using the lowest balance and whether there have been considerations to change the compounding frequency.
Tan See Leng explained that the CPF system is designed to meet members' retirement, healthcare, and housing needs, with interest rates determined holistically considering technical computation methods and floor rates.
The Government provides generous interest rates even in low-interest environments, including extra interest on the first $60,000 of combined balances and additional interest for post-55 members.
While changing the computation method could marginally increase interest payments, the existing measures already provide higher interest and a greater boost to CPF savings.
The Government acknowledges evolving industry practices and will review CPF interest rates periodically to ensure they remain relevant to members' needs and the operating environment.

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9 Jan 2023

Data on Housing Grants Awarded to First-time Buyers of BTO and Resale Flat

The Minister confirmed significant housing grants are available, with up to $80,000 for BTO flats and $160,000 for resale flats for first-time buyers, last enhanced in 2019 and reviewed regularly for affordability.
Specific percentile data on grant amounts for first-time BTO and resale flat buyers from 2018 to 2022 were provided in Tables 1 and 2, as requested by the MP.
The grants are structured to provide more assistance to lower-income buyers, ensuring broad affordability across different income segments.

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