A STUDY ON THE CPF ANNUAL REPORTS

Abstract

The Central Provident Fund from the humble origins as a simple old age savings scheme has evolved over the years to its present day sophistication. Its present day sophistication can be seen in the widening of the role that it plays in the lives of the Singaporeans such as in the area of housing and investment. Being the national social security system with the majority of working Singaporeans contributing towards this Fund, its importance cannot be denied. Each CPF policy implemented therefore has an impact on the Singaporeans whether it is in the short or long term. This study thus makes an evaluation of the various policies that have been mentioned in the CPF Annual Reports over the years. With the Singaporeans' rising expectations, more avenues were opened up in the use of CPF savings. However, each policy carries with it the objective that the CPF members well being is improved and the national aim of enabling Singapore to progress further. The level of success that the Fund achieved in these two objectives will be evaluated. In the midst of the CPF's liberalisation process, whether the Fund's primary objective as a nest-egg for retirement needs is compromised will be examined. Finally the study seeks to show that in fulfilling Singaporeans rising expectations, some of the CPF policies may have led to adverse consequences to the individual or to the country as a whole. The reasons leading to such a situation will also be probed into.