Survey from Sinkie - CPF rate hike not enough

[MarrickG]

WHILE most Singaporeans welcome the move to raise the employers' Central Provident Fund (CPF) contribution rate, more than half feel the 1 percentage point increase is not enough.

This is the finding of a poll of almost 200 people by government feedback unit Reach.

The desire for a bigger increase was echoed last night at a Reach webchat, where some said it would help people meet housing loans and retirement needs.

One of the 30 people at the online dialogue, to discuss Prime Minister Lee Hsien Loong's May Day Rally speech, asked why the increase was not going into the Ordinary Account, which would help workers cope better with rising home prices.

Mr Lee had said employers' CPF rate will be raised from 14.5 per cent to 15.5 per cent in two stages: half a point for the Medisave Account in September, and another half a point for the Special Account in March next year.

Reach chairman Amy Khor replied that in the 2007 CPF restoration, 1 percentage point of the 1.5 point increase went to the Ordinary Account. Now the aim is to build up health and retirement savings, she added.