Strangling the CPF golden goose
The CPF was the best thing that could happen to Sinkie workers. The high contribution rate was a bit painful for the start, but on hindsight it is actually planning for the ugly future that Sinkies would have to face. Sinkies must by now realize that their income is an income to last 3 or 4 life times.
They need the income to keep them alive during their productive years. Count this as one life time. They need an equal amount or more with inflation added, to keep them alive for another life time when they are unproductive or retired. They also need an income of an equivalent amount to bring up children. Now there are two big expense items equivalent to their life time expenses, housing and private transport if they want that comfort. And if they are unlucky, they need a much bigger sum, more than they need in a life time to pay for the days they need to be hospitalized.
A Sinkie needs to earn 5 or 6 times an income during his working years. Sinkie must divide whatever income he is getting today by 5 or 6 times. He can only afford to spend 1/5 or 1/6 of his income if he is to survive the journey. For a Sinkie earning $3000 per month, he can only spend a max of $600 if he is to survive to his retirement age. Actually the CPF was very well positioned to do the job until….
What the Sinkies did not prepare for, beyond their control, is that some wise guys got an enlightenment. They saw the huge sums of money in the Sinkies’ CPF and started to plan to use this for all kinds of things. Make public housing affordable according to how much the Sinkies can afford to pay from their CPF. They forgot that the Sinkies needed the money for a life time for many other needs. Now the CPF is practically empty or just enough for housing alone.
The CPF was the golden goose that lays the golden eggs. Now the eggs are gone or going. The goose is being made to lay more eggs but cannot keep up with losing the eggs. And when the goose is old and dry, when no more eggs can be laid, and no more eggs are left for winter, it is like a futile exercise. The golden goose is expected to lay a life time of eggs for the golden years. But the eggs have all been harvested, gone long before anyone knows what is happening.