1st Channel X video with explainations of some key terms and commentaryLaunch of Channel X
Here is some background explainations and commentary for those who are interested.
Gross Domestic Product (GDP) is the gross value of goods and services that a nation produces.
Central Provident Fund (CPF) is the compulsory saving scheme that the Spore govt imposed on us. Currently 33% of our income (13% from employers and 20% from employee) is channelled into it. There is 2 types of accounts in CPF , the ordinary account and the special account.
For the ordinary acc, the govt gave a derisory 2.5% interest rate for the $ we put there, regardless what the inflation rate inflation rate is. We can use the $ in the ordinary to buy HDB flats, pay for children educational fee and even invest in some investment schemes. The investment schemes has already been declared a flop by the govt.
For the special acc, the govt gave a pitiful 4% interest rate, again regardless of inflation rate, for the $ we put there. We cannot touch the $ in the special acc until we reach either 55 or 62 or when we migrate out of Singapore.
Can u imagine having a fix deposit acc that only pay you a max 4% interest rate for locking your $ up for over 30 yrs?
That is exactly what CPF is doing to us.
By forcing us to put so much of our $ into CPF while giving us derisory returns, they are indirectly taxing our income.
Don’t you think there is something wrong, if we cannot afford a decent flat and decent retirement after saving 33% of income lifetime income?
As if it isn’t enough, the govt is imposing a new minimum sum scheme and delaying CPF withdrawal age.
Sometimes I wonder if I will live to see my CPF $ given back to me.
Channel X said that although HK rank just 3 countries above us in term of standard of living, but we can only use 80% of our income to pay for our expenses. This means although our standard of living is high we have less $ to pay for it due to CPF.
I hope my explaination is of use.