Governance in Singapore: Ageing population

I don't ever want to hear my name being associated with the "ageing population" is that clear?

Here are two short articles about policies taken by the Singapore government to tackle the ageing population here. If this is not related to your exam, then what is? =P

Both articles are taken from the Straits Times September 19 2007.


S'pore has 'unique software' for successful ageing
by Sue-Ann Chia

Singapore has developed unique software for successful ageing - the Central Provident Fund (CPF) scheme and proposed re-employment law, among others, labour chief Lim Swee Say said yesterday.

But in the same way that software can be hit by viruses, good policies can be stymied (Ms Teo: stymied means foiled, stopped, destroyed) if people do not believe in them, he told the House.

Citing examples of how this could happen, he said there could, for instance, be ageist employers who believe they will be better off with younger workers - and so not hire older workers.

There could also be older folk who do not believe they will live longer, and so opt for early retirement instead of staying on in the job.

But Mr Lim, who is Minister in the Prime Minister's Office, is confident Singapore has what it takes to successfully help people build up their retirement savings.

"We're setting the pace of breaking new ground. We've every reason to believe that if there's one country in this world that's going to be able to succeed in this active ageing and successful ageing, then I think Singapore stands a very good chance," he said on the second day of the debate on reforming the CPF to boost retirement income.

Mr Lim recited a Chinese saying, "You hao de kai duan, yi jing cheng gong le yi ban". It means a good beginning is already halfway to being successful. (Ms Teo: or like I like to say, a good background knowledge is already halfway to scoring in your exams. Ain't that so true?!)

The labour movement supported changes outlined on Monday by Manpower Minister Ng Eng Hen as these were necessary and would benefit workers, he said.

Among the changes are enhancing CPF interest rates, a new national longevity insurance, and re-employment legislation.

But Mr Lim also reflected concerns from the ground, recounting conversations he had with union leaders.

What people did not appear to accept was that one in two workers today who reaches the age of 62 will go on to live beyond the age of 85.

And because of this belief, some do not see the need to work longer, or to buy longevity insurance that will provide monthly payouts after age 85.

Mr Lim also noted that many people did not realise the impact that working longer would have on their retirement savings.

For every year they work after age 62 - and so delay drawing down on their CPF Minimum Sum - they will be adding two more years' worth to what is in their retirement savings, he said.

Noting that workers were worried about having enough savings to tide them through their golden years, he reminded them that the Government, labour movement and employer groups have already started the process of helping workers.

"Over the next two years, we are going to move very fast because we have thought of the solution, now we must focus on implementation," he said.

"And we hope that the next two years, we'll be able to move so fast that, in fact, more and more workers will be able to look forward to living longer, having good jobs and, at the same time, have sufficient savings for their retirement."


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Right, you can let go of your breath now. Go look at some other website before reading on to the next article, I know it can be taxing on your eyes, especially when the topic isn't all that interesting....


Ok ready? Let's go!

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Govt cares for the elderly - here's the proof
by Li Xueying

The Government does help provide for the elderly - and the evidence is in the extra one percentage point in interest on the first $60,000 in their Central Provident Fund (CPF) accounts.

So said Minister of State for Health Heng Chee How, who yesterday put up a defence of the CPF changes, countering those who argued that the Government should do more, particularly in underwriting the annuities scheme.

Noting that the extra interest costs $700 million a year, Mr Heng said: "The way some are arguing is as if it was not a cent in there."

He suggested that the extra payout be placed in a separate sub-account. CPF members can then use that when they turn 55 for the annuities.

This will help Singaporeans be "more aware" of the extra help rendered by the Government, said Mr Heng.

The NTUC deputy secretary-general also raised three concerns on the re-employment law.

First, that the companies may substitute ageing workers with, say, foreign workers way before they reach 62 so that they do not have to offer re-employment.

Second, that offers of re-employment will be for just a few months or up to a year.

Third, that "structural adjustments" will need to be monitored because, when there is a cyclical economic downturn, "the stickiness of the employment may be weak".

Mr Heng called for a public database of companies' re-employment arrangements. Companies that actively pursue re-employment should be rewarded.

"To spur companies to move faster, there must be a difference in outcomes for those who move fast versus those that do not," he said.

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Girls, what do you notice about these 2 articles? Can compare and contrast? Try it out! =)
No prizes for correct answers, BUT how can you risk not scoring well for your SBQs if you don't try? Give it your best shot ok?


Comment away...............