By Lim Yan Liang, The Straits Times, 8 Sep 2014
The topic dominated yesterday's two-hour session. The concern stems in part from recently announced policy changes to the Lease Buyback and CPF schemes that pave the way for lump-sum payouts to seniors to help meet their retirement needs.
The 60 leaders of Malay-Muslim organisations who took part in the dialogue expressed concern that these changes would also leave seniors more vulnerable to scams, as well as pressure from family members for loans and to find other uses for their savings.
The participants noted investment plans and get-rich-quick schemes targeted at seniors who had received a cash boost from downsizing or selling their flats, but who lacked financial savvy.
Both Madam Halimah and Dr Faishal agreed there were grounds for concern. They cited cases they had come across.
One involved an old man who had sold his flat at his daughter's suggestion and used some of the money to help her buy a car, but who was forced out of her house and into an old folks' home after they fell out.
Madam Halimah said: "What the Prime Minister said (in his National Day Rally speech) is very true: If it is possible, don't sell your house... Look at the other options - renting out or lease buyback - those are better options."
The participants also lamented that attendance at financial literacy talks was poor, even when the sessions were heavily subsidised or free.
Mr Suhaimi Salleh, president of the Prophet Muhammad's Birthday Memorial Scholarship Fund Board, said Malays make up only 5 per cent of attendees at many such courses, even those held at community clubs in estates with a high proportion of them.
The situation is similar with the Indian-Muslim community, said Mr Raja Mohamad, president of the Singapore Kadayanallur Muslim League, adding that those who do not turn up are often the most vulnerable.
Madam Halimah said the Pioneer Generation Joint Committee, which she chairs, is prepared to organise such financial literacy courses two or three times a year. She would also pass the feedback received from the community leaders to the Ministry of Finance.
She said the suggestion to enhance financial literacy education for seniors was "very useful" and "obviously comes from the deep concern that there is a need to encourage prudence in the management of their money".
Another issue that came up was health care. Dr Faishal, who is with the Health Ministry, said people must play their part in keeping healthy.
He said he was glad that at a recent Malay wedding he went to, there was salad and plain water offered alongside nasi briyani for more health-conscious guests.
"We should encourage more of that," he said.
Call to do more to equip Malays with money skills
Others in online discussion suggest help for parents to set up education trust funds
By Nur Asyiqin Mohamad Salleh, The Straits Times, 5 Sep 2014
Others in online discussion suggest help for parents to set up education trust funds
By Nur Asyiqin Mohamad Salleh, The Straits Times, 5 Sep 2014
THE importance of financial literacy and the need for more to be done to equip the Malay/Muslim community with these skills were raised in a lively post-National Day Rally online discussion on Wednesday night.
It was sparked when netizen Suhaimi Salleh asked whether more money could be withdrawn from the Central Provident Fund (CPF) account at age 55.
Currently, CPF members who turn 55 can withdraw their CPF savings after setting aside the Minimum Sum - which is now $155,000, but will go up to $161,000 for those who turn 55 in July next year. Those who cannot meet the Minimum Sum can withdraw only $5,000.
Minister in-charge of Muslim Affairs Yaacob Ibrahim, who was at the online discussion, explained the withdrawal options to Mr Suhaimi who, in turn, replied that a sum of $5,000 would not be enough to perform the haj. Responding, Dr Yaacob said: "But CPF is meant for retirement. For the haj, (it's) useful to start planning early."
Speaking to reporters after the session, which attracted about 100 participants, he added that even with the CPF scheme in place, personal responsibility is crucial when it comes to managing finances.
Netizens who took part in the dialogue, organised by self-help group Mendaki and government feedback unit Reach, had suggested that there could be more courses or campaigns to reach out and teach those in the community how to manage their finances.
Parliamentary Secretary for Health and Transport Muhammad Faishal Ibrahim and Mendaki chief executive officer Tuminah Sapawi also took part.
Madam Tuminah, who agreed that financial literacy is a critical issue, said that the self-help group does run such courses.
And there are national programmes, too, such as financial education programme MoneySense, the national financial literacy programme launched in 2003.
Other participants suggested that parents be informed and taught how to set up education trust funds to help their children graduate without then having to carry the burden of paying back hefty loans.
The discussion also found general agreement among participants that the Malay/Muslim community has progressed over the years, even though there were some who wondered if it was "lagging behind" other communities in Singapore.
Dr Yaacob said that there were schemes by the Government, Mendaki and other Malay/Muslim organisations to help people get ahead in life. And outreach programmes to get information about these schemes to people in the community who need them most need to be continued.
"The broad statistics for educational achievement are clear - the trend is upwards. The question is the gradient. I still believe we can do better," Dr Yaacob said.
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