AN ANALYSIS OF THE CHANGING ROLE OF THE CENTRAL PROVIDENT FUND

Abstract

The Central Provident Fund (CPF) was introduced in 1955 to provide for old age security to the population. Since its inception, there has been rapid growth of the CPF in terms of membership, annual contributions and withdrawals as well as other various new schemes. This has enabled its economic and social roles to expand considerably. With the implementation of various withdrawal schemes, its social objectives are no longer confined to that of old age provision but have encompassed other aspects. It has been used to enhance each individual's social security without resorting to state provision. Although this is a feasible policy and is working well, some of the schemes introduced have brought about some unintended consequences like political and social costs. After more than three decades of existence, it is now time to re-examine its stipulated objectives and analyse the impact of CPF on the government and its people. Undeniably, the CPF is a flexible tool of the government but care must be taken to ensure that it is not over exploited and its basic objectives should always be championed above others.