How to help people after the govt’s fiscal help runs out

The government has spend $100 billion on several budgets to help businesses and people to cope with the economic downturn caused by the pandemic.

This has been a temporary measure. Many of the businesses are not able to survive. Going forward, many people will face loss of jobs.

What is the next step forward?

I suggest that the government should now allow the ordinary people to withdraw savings from the Central Provident Fund to meet their living expenses. Each member can withdraw up to 50% of the average monthly salary (based on CPF contribution during 2019), subject to a cap of $2,000.

As they are withdrawing from their own savings, there is no need to impose strict rules. Most of the withdrawals will be legitimate.

After the CPF savings have been depleted, the government can allow further monthly withdrawal to be made up to a period of 12 months. These members are allowed to run a negative balance. The total amount will be up to 6 months of salary. If the average monthly income is $3,000, the total amount owed by them can run up to $18,000.

Most of these members have a property that is already pledged to the CPF. If they do not repay the negative balance during their working years, the negative balance (with interest at 2.5%) can be charged against the property when it is eventually sold.

For members without any income in 2019, the government can set the income at $1,500 for the purpose of making the withdrawal.

This scheme may not solve the problem for every person. But it should be helpful to a large number of people. For those that need special financial assistance that is beyond this scheme, they can be considered separately.

The goal is to have a scheme that can help the majority of the people to cope for the next 12 months.

Someone asked me – what happens if the member does not have sufficient savings for retirement? I replied that that is a problem that will occur in the future – many years down the road.

We need to solve the financial crisis now. We can worry about the future financial crisis later. We can find a way out when the time comes.

Those without sufficient savings to retire can continue to work. A good and capable government will ensure that there will be suitable jobs for older people that pay an adequate income for them to get by.

They are many work that older people can do, that is productive and useful. The government needs to take the responsibility and be creative.

Do you agree?

 

Tan Kin Lian

 

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7 Responses to “How to help people after the govt’s fiscal help runs out”

  • PAP CLOSE DOWN:

    Agree. The govt should let everyone withdraw THEIR OWN MONEY IN FULL.

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  • xoxo:

    What is FISCAL HELP?
    INJECTION OF SUBSIDIES.
    BUT TO *WHOM*?
    Many old sg uncles like me got only $600, much less than even MANY NON-sgs living here?

    Yet, i have to pay MORE MEDISHIT LIE premium$?

    Is that an INJECTION or GOVT WITHDRAWING fromsgs like me?
    HELP?
    ..NO [email protected]*€£¥₩$$$$?

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  • Do more:

    Should do more for those are suffering during this period.
    Many are without adequate support since Jan 2020,especially those that fall out of the various support scheme.Some even have no pay and job support.
    To help them and family at least to survive ,let them withdraw up to a limit of $2k pm from their CPF if the Government cannot help them.
    Don’t let them walk alone.

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  • Harder Truths:

    If they are our 39% then try the best to look after them

    If they are 61% don’t care what happens to them.

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  • tan kin lian is pea brained:

    tan kin lian is not exactly correct.

    in a land of many jobless, the first thing to do is to ask all the 3.9m aliens comprising all manner of pass holders and the PRs to leave Singapore immediately.

    with 3.9m aliens gone, Singapore is now back to comfortable 3m local born original humans, that is, without the 3.9m fake humans.

    1, everywhere becomes less crowded, meaning, a better quality of life for all local born.

    2, immediately, there will be a FULL employment of all local born, with a tight labour market to boot.

    3, there will be less litter everywhere, so the filling up of island with rubbish is extended to many more years before it happens.

    4, electricity and water prices all go down, due to lower usage which comes from less mouths on the island.

    5, for once in their sheep life, 61% sheep gets to buy 2nd hand condos from aliens departing the island. what a joy.

    Best of all, COE prices stop going up even if virus pandemic ceases.

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  • Tremendous:

    Still want to ask for the fund withdrawal ? Some idiot chiefs already squandered a lot of money through sovereign village investments. If you ask for withdrawals like this, no matter how much the withdrawals are, it will affect how much funds show up in the village’s books. Obviously, the fund investment is poised for more squandering with all the jiak liao bees still inside. You make those idiots look bad with your suggestion.

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  • opposition dude:

    You want to genuinely help then don’t increase the utility bill for starters. Your chicken rice is still at $3 or more and your kopi $1.10 or more. The cost of makan outside won’t be coming down so no help for us there. Not to mention transport fares didn’t come down too.

    It all starts with PAP. Are they willing to lower the cost of living in the first place?

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