Yesterday our PM delivered his 2007 NDP rally on all Singapore’s channels.
So I guess this is the compulsory blog entry to it.
I just wonder what is the logic of showing them on Channel News Asia, Channel 5, Channel 8, Channel U, Arts Central, Suria and TV mobile.
The only reason I can come up with was to forced you to watch it or forcing you to subscribe to Cable TV.
I didn’t really manage to sit through the whole thingy but I did managed to read through his speech.
I like to touch on the issue of Ageing Population which result to Working Longer which result to Delaying Withdrawal of you CPF.
Singapore just like any other developed countries are facing this problem. People are living longer and are just not having enough babies.
Lets face it, when you are old; you are a burden to the government. You are not contributing to the GDP and the government hope you will died before your CPF money run out or they could export you to Batam.
The government had been trying to encourage people to give birth to more babies but I still think they had failed to tackle the root cause and that’s the main reason they failed. In my opinion, I think the root cause of people not having babies are the rising cost of living and the un-proportional increment of Salaries. I guess they know this but since there is not quick fix to it they just try to brush it off.
Salaries are being kept low down (unless you work for certain political party) to makes Singapore attractive to foreign investor. As living standard are high, increasing bus fares, GST.....etc etc. Therefore dual income families are necessary. Childcare system are also not very established. Working hours are not flexible at all and there are no compulsory paternal leaves.
So you see, Singapore is just not a very family orientated country.
Therefore the quickest solution to this is to import “Foreign Talents”.
Currently it is still under control but I sense dormant Social Problems will surfaced in a few years time.
More workers = Good GDP = Good taxes for the Government. Yes we are a Rich country.
We need to maintain the number of workers working and pay their taxes!!
Easy solutin?Raise the retirement age.
How to keep the cost down?
Easy, offer you a lousier job at a cheaper price.
Say today you are a Manager drawing $8000.
At 62, by law the company has to offer you a job. So they offer you a Clerical position at $1200 a month. You have to take the job as you still can’t draw money from you CPF remember?
See where the cheap labors come from?
Personally I don’t mind the raise the retirement age, but I think you should still keep the same pay and benefits if you can’t still perform. I believe this how American Companies (and our cabinets) are doing it.
Today at 62, you retired and draw from you CPF say $700 monthly. You look for a cleaner job which pay you $700 monthly, so you take home $1400 a month.
In the not so far future, at 62 your company offer you a clerical position which pay you $1200 monthly. You have on choice but to take it as you are not drawing any money from your CPF. Total you get $1200 a month.
Are you better off?
The only benefit is the government, they are delaying the payout of your CPF and hope you will die before your CPF runs out.
I foresee the retirement age will be raised to 70 so let say your CPF can last 20 years. You can draw monthly payment till you are 90.
Remember life expectancy is 81. So the government had immediately bought 9 years buffer for themselves and I guess not many people can live up to 90 compare to 81.
The odds had turn favorable for CPF board just like that.