Current Affairs
A "cosmetic change” to “pander to popular demands": NUS economist
A “cosmetic change” to “pander to popular demands.”
That was how economist and associate professor, Hui Weng Tat, described the change in the Central Provident Fund (CPF) scheme to allow partial, lump-sum withdrawal from the CPF Minimum Sum.
Prime Minister Lee Hsien Loong had announced in his National Day Rally speech on Sunday that the government will allow CPF members to withdraw “a part of” their CPF Minimum Sum at age 65.
This would be a departure from the current rules which do not allow such withdrawals.
The Minimum Sum itself can only be drawn out, in instalments, at the draw-down age of 63, which will be increased further to 64 next year, and 65 thereafter.
Now, members will be allowed to withdraw part of it in a lump sum – Mr Lee threw up a possible figure of 20 per cent of savings – on top of the monthly instalments.
However, Mr Lee also cautioned that withdrawing the lump sum would also mean less monthly withdrawals.
Mr Hui, writing for the Straits Times, slammed the change and said “allowing this may not be in the best interest of most CPF contributors.”
This, he said was because “any lump sum withdrawn means correspondingly lower amounts of retirement income for the individual.”
“It does not address the fundamental issue of the retiree not having enough in CPF savings,” he said.
Mr Hui said the focus should be on the critical question of why Singaporeans do not have enough CPF savings for retirement in the first place, instead of what he called “piecemeal” measures to address the issue of retirement income.
“Attention has to be put on the savings accumulation stage, not just the withdrawal stage,” Mr Hui said.
The associate professor at the Lee Kuan Yew School of Public Policy also questioned the other measures announced, and said these “do not address the fundamental source of concerns about retirement adequacy.”
For example, on the extension of the Lease Buyback Scheme to owners of 4-room HDB flats, Mr Hui said “it is not clear if this will make any significant difference to the popularity of the scheme.”
The scheme allows flat owners to sell part of their remaining leases to the Government in return for a lump sum and a monthly payment.
They can continue to live in the flat in the meantime – but they cannot bequeath the flat to their children.
“The low take-up of the current Enhanced Lease Buyback Scheme already provides strong hints that the typical Singapore family would prefer to have the option of bequeathing their property to the next generation,” Mr Hui said.
He added that the motivation of families of larger sizes which live in 4-room flats to pass on their flats to their children “would be even stronger”.
“The continuing high property price, which reduces the affordability of housing purchase of the next generation would only further strengthen such bequest motives.”
Indeed, experts say that the extended scheme “will likely appeal to only a small segment” of flat owners.
“PM Lee also seemed to adopt an overly-optimistic view of current retirement adequacy,” Mr Hui said.
He then questioned the example of a “Mr Tan” which Mr Lee had offered in his speech to show how Singaporeans can provide for themselves in retirement through various government schemes.
“Take the example of Mr Tan he cited whose monthly pay is S$4,500,” Mr Hui said.
He said Mr Tan’s income would place him in the 25th to 30th percentile of the Singapore household income ladder.
“The S$2,000 retirement income projected for Mr Tan, if paid out today, would therefore put him in this group of households with an income considered to be enough for basic or subsistence living,” Mr Hui explained.
“The prospect of such retired households being forced down to the lowest decile on retirement certainly does not paint a very optimistic view of adequate retirement living in Singapore,” Mr Hui said. “And with inflation, the real value of the $2,000 Mr Tan is due to get in 10 years’ time would be even more paltry.”
Turning to the CPF Life scheme, Mr Hui pointed out that members who meet the Minimum Sum in cash would receive a monthly payout of S$1,200 from age 65, for life.
However, Mr Hui said, the “average household expenditure of the lowest 20 per cent of households in 2007/08 is around $2,130 in current dollars.”
“This will certainly be much higher 10 years from now, at between $2,600 and $2,850 (if inflation rate is between 2 per cent and 3 per cent),” he said.
“A monthly payment of $1,200 would be barely enough to offer households even subsistence level retirement living.”
He said it is thus urgent that CPF Life income be inflation-adjusted so that real purchasing power is maintained.
Mr Hui then wrote:
“More fundamentally, the critical issue of Mr Tan not having enough retirement savings was also not addressed. In the case cited, Mr Tan did not have the Minimum Sum of $155,000 in his CPF account. Pledging his property in lieu of half the Minimum Sum would give Mr Tan a CPF Life income of $600 per month when he reaches 65 years of age.
“The Lease Buyback arrangement would add an additional $900 a month, giving a total of $1,500 a month which will be below current subsistence living level.
“The critical question really is: Why did Mr Tan not even have $155,000 in his account? Has he used up too much of his CPF savings for housing?
“If the withdrawals for housing are too high, is it not prudent and necessary to institute policy measures to tackle the problem of insufficient savings comprehensively at its source? That makes more sense than dealing piecemeal with post- haste measures of trying to augment retirement income through unlocking the value of property.”
Read also: “CPF partial withdrawal at age 65 – a populist compromise“.
Current Affairs
Reforming Singapore’s defamation laws: Preventing legal weapons against free speech
Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.
by Alexandar Chia
This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.
Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.
Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.
Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.
As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.
Sadly, that is the case with regard to precedence in defamation suits.
Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.
If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?
In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.
Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.
And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.
This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.
These are how I suggest it is to be done –
- The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
- Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
- A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
- A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
- Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
- All defendants of defamation suit should be allowed full access to legal aid schemes.
Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.
Current Affairs
Man arrested for alleged housebreaking and theft of mobile phones in Yishun
A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.
SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.
The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.
The authorities reported that they received a call for assistance at around 5 a.m. on that day.
Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.
The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.
The suspect was charged in court on Monday with housebreaking with the intent to commit theft.
If convicted, he could face a jail term of up to 10 years and a fine.
In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.
They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.
The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.
The investigation is ongoing.
Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.
Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.
The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.
Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.
However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.
The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.
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