By Leong Sze Hian
I refer to the recent Parliamentary proceedings reported in Hansard.
Replies not reported in media?
I found some interesting replies to questions that I so not remember reading in the media.
17 February, 2014 : MEDIUM-TERM TO SHORT-TERM COMCARE SCHEME APPLICANTS AND RECIPIENTS
29 Mr Chen Show Mao asked the Minister for Social and Family Development with regard to the medium-term to short-term ComCare schemes for each year from 2009-2013 (a) how many recipients are there on these schemes at year end; (b) how many applicants are assessed for these schemes; (c) how many have been successful; and (d) how many applicants in each of the above categories from (a) to (c) are aged 55 years and above.
What is interesting from the Minister’s reply below is that -
Successful application rate only 65%?
… The successful application rate for ComCare medium and short-term assistance (excluding the long-term Public Assistance) in 2013 was only about 65%
Active beneficiaries only 57%?
… The most startling (I believe never revealed before) statistics that the ratio of the number of active beneficiaries as at end December 2013, at 12,535, to the number of successful applicants (families) for the whole year, at 21,955, was only about 57%.
Does this mean that most of those assisted were for short periods as the total number of families receiving assistance at end December was only about 6 in 10 families?
This may be a far cry from media reports of previous disclosures – which may have given the impression that about twice the number of needy families were being helped in a (whole) year.
More elderly applicants?
… The ratio of over age 54 successful applicants to all successful applicants has increased from about 21 to 31%, from 2009 to 2013.
Does this mean that more Singaporeans who have worked the greater part of their working lives, may still be struggling in their elderly years?
In this regard, the ratio of active over age 54 beneficiaries to active beneficiaries at end December 2013, was even worse – increasing from 23 to 34% from 2009 to 2013.
How much assistance?
What is perhaps even more interesting statistics on ComCare, may be the breakdown of the amount of assistance that families actually received monthly, and for what duration.
Mr Chan Chun Sing: The relevant data for ComCare short- to medium- Term assistance are shown in the following tables.
ELDER SINGAPOREANS NOT ON CPF LIFE SCHEME
Ms Lee Li Lian asked the Acting Minister for Manpower (a) what is the number and percentage of Singapore citizens born in 1950 and before who are not currently on the CPF LIFEscheme; and (b) how many of these citizens are not in the scheme because they cannot afford to join the scheme.
Mr Tan Chuan-Jin: CPF LIFE was introduced in 2009. It was made mandatory for cohorts turning 55 in 2013. For cohorts who turned 55 before 2013, i.e. born before 1958, participation in CPF LIFE is voluntary. Amongst this group, about 10%, or close to 86,000 members, have opted to join CPF LIFE. 35,000 of these members were born in 1950 or earlier.
Members who do not join CPF LIFE will still be on the Minimum Sum Scheme which means their CPF balances will be drawn down gradually over time but, unlike CPF LIFE, there is no guarantee of an income for life. Affordability is not a barrier to participation in CPF LIFE. CPF members are free to join CPF LIFE prior to age 80 regardless of the size of their CPF balances.
Only 10% opted in?
- Since only about 10% have voluntarily opted to join CPF LIFE – what does that tell you?
That Singaporeans’ confidence level in the CPF LIFE scheme (despite the bonuses for opting in) may be rather low?
That many have so little in their CPF that opting to join CPF LIFE, may give them such a low fixed monthly life annuity from age 65 – that it may not be feasible for them?
For example, how many who reached 55 were not able to meet the Minimum Sum?
Did not answer the question?
In my view, the Minister did not answer the question – as surely the data as to how many of those who turned 55 last year (first year that CPF LIFE is mandatory) is available.
In this regard – how many were able to meet the current Minimum Sum of $148,000?
1 in 8 met Minimum Sum?
In this connection, I estimate that the percentage of Singaporeans who were able to meet the Minimum Sum entirely in cash (from their CPF account balance) when they reached 55, excluding the property pledge, and including inactive CPF members, may be only about 1 in 8 Singaporeans.
If my estimate is correct – what does it tell you about our CPF scheme?
- That it has arguably, failed miserably to meet Singaporeans’ retirement needs?
In the interest of maintaining the high level of trust, I would like to suggest that replies in Parliament be checked thoroughly, to ensure the they answer the questions asked substantively – especially if the questions come from PAP MPs.
Allow me to cite another example.
NUMBER OF SECOND-TIME HDB APPLICANTS WHO HAVE YET TO SECURE THEIR FLATS
Mr Gan Thiam Poh asked the Minister for National Development what is the current estimated number of second-time HDB applicants who have yet to secure their flats and what is the average waiting time for their requests to be fulfilled.
Mr Khaw Boon Wan: Between October 2012 and September 2013, there were 3,700 second-timer applicants who applied for Build-To-Order (BTO) flats in the non-mature estates but did not have a chance to select a flat. We do not have the average waiting time for second-timer applicants, as this depends on various factors such as the applicants’ preferences and the popularity of their preferred project. In general, applicants should have a better chance of securing a flat if they apply for a project with lower application rates.
Over the last three years, we have ramped up the supply of BTO flats to meet the housing needs of Singaporeans. In March 2012, HDB tripled the allocation quota for BTO flats in the non-mature estates for second-timers from 5% to 15%. In May 2013, the allocation quota for two-room and three-room flats was further increased from 15% to 30%. Second-timer application rates have fallen from 14.9 times the supply in January 2013 to 2.7 times in November 2013. As we clear the backlog of first-timers, second-timers will have better chances of getting a flat.
Answer excludes so many applicants?
In my view, I don’t think MP Gan Thiam Poh’s question has been answered. The answer was 3,700 second-timer applicants between October 2012 to September 2013 in the non-mature estates, but did not have a chance to select a flat.
So, does it mean that those in the mature estates, those who were given a chance to select a flat but did not accept it and those who applied before or after October 2012 to September 2013, are not counted?
Let’s say you have the least desirable flat in a BTO that is offered to say a few hundred applicants – and they all do not accept it. Then, does it mean that these few hundred applicants will not be counted in the subject Parliamentary reply?
How many in total in the queue?
Why can’t the reply be a straight forward – how many second-timers who have ever applied have yet to be allotted a flat?
By the way, what is the figure for first-timer applicants, so that we know the total number in the queue, instead of piecemeal application subscription rates per BTO exercise?
It may also be good to breakdown the numbers in the queue for the different types of flats.
How many get $60,000 housing grant?
On a related matter – “2-room flat going for $10,000 with grants thrown in” (My Paper, Mar 27) – Can we have the statistics as to how many and what percentage of 2-room flat buyers were actually given the $60,000 housing grant?
Leong Sze Hian
*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, columnist for Malaysiakini, executive producer of the movie Ilo Ilo (24 international awards). He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors and 13 professional qualifications.