HDB Prime Location Public Housing (PLH) Model: Keeping public housing in prime locations affordable, accessible and inclusive for Singaporeans

Subsidy clawback, 10-year MOP for new prime location HDB flats to keep them affordable, inclusive

By Michelle Ng, The Straits Times, 27 Oct 2021

Future Housing Board (HDB) flats built in prime, central locations will be subjected to a 10-year minimum occupation period (MOP) and additional subsidies will be clawed back by the Government upon their resale.

These are among the key measures under a new prime location public housing (PLH) model, aimed at keeping prime HDB flats affordable and inclusive, announced by National Development Minister Desmond Lee on Tuesday (Oct 26).

The first Build-to-Order (BTO) project under this model will be located in Rochor and launched next month.

The pool of resale buyers of these prime HDB flats will also be limited to households who earn not more than $14,000 a month and at least one applicant must be a Singapore citizen.

Under the PLH model, fewer flats may be set aside under HDB's Married Child Priority Scheme, which gives priority to applicants whose parents or children live in the same area.

Currently, up to 30 per cent of new flats are set aside under this scheme for families buying a flat for the first time.

At a media briefing on Tuesday, Mr Lee said the new model is to keep public housing in prime locations affordable, accessible and inclusive for Singaporeans, both at the initial purchase and at subsequent resales on the open market.

The PLH model will apply only to future public housing in prime locations and not to existing flat owners.

There will be at least one prime location public housing project launched each year, but the exact proportions will differ year on year, as it depends on site availability and the overall supply of flats across all towns, said Mr Lee.

In order for HDB to launch these prime flats at affordable prices at the BTO stage, it has to provide additional subsidies on top of the those provided for all BTO flats, said Mr Lee.

All subsidies are factored into flat prices when they are launched as BTO flats.

"But the concern is whether this would lead to the lottery effect, excessive windfall gains and whether it would be fair to BTO buyers in other parts of Singapore, who would not get these additional subsidies," he said.

A record number of HDB flats have changed hands for at least $1 million this year.

In the first nine months of this year, there were 174 million-dollar HDB flats, compared with 82 for the whole of last year, which raised eyebrows and set off concerns about home affordability.

They came on the back of a buoyant HDB resale market, in which resale flat prices also hit a record high in the third quarter of this year.

To address these concerns, the Government will claw back additional subsidies provided to PLH flats.

Flat owners will pay a percentage of the resale price to HDB when they resell their home on the open market for the first time, he said.

This will apply only to those who bought the flat from HDB and not to subsequent resale transactions.

The exact percentage will be announced at the launch of the Rochor BTO project next month, which is the first site under the PLH model, and may be adjusted for other projects in the future, he said.

Other prime locations for public housing include the future Greater Southern Waterfront.

However, buyers who want one of these flats on the resale market will have to meet the prevailing eligibility conditions for buying a flat directly from the HDB.

These include having at least one applicant who is a Singapore citizen, meeting the household income ceiling of $14,000 and not holding a private property or sold any in the last 30 months.

Singles above 35 years old will not be allowed to buy these PLH flats. This is in contrast to current rules that do not place limitations on singles above the age of 35 buying resale flats.

"Without such restrictions, the resale prices of these homes in prime locations may rise beyond the reach of many Singaporeans over time," said Mr Lee.

These conditions on the resale pool will also act as safeguards to prevent sellers from adding the subsidy recovery to their asking price in the hopes of trying to maximise gains, he added.

“Buyers will be a circumscribed group of people who meet BTO eligibility requirements, so that means not anyone can buy. And buyers will also have to bear in mind the impositions on subsequent resale on him or her,” he said.

“So that will ensure that the moderated market for the prime location public housing flats is functional.”

To ensure buyers are genuinely buying the flat to live in, instead of hoping to flip it for a windfall, the MOP for prime location HDB flats will be extended to 10 years, up from the current five.

Owners will also not be allowed to rent out their whole flat at any point in time, even after the MOP is over.

These conditions will apply to all flat owners who purchase BTO and resale flats under the PLH model.

PM Lee Hsien Loong receives World Statesman Award recognising Singapore's religious harmony

Singapore works hard to maintain religious harmony: PM Lee
He cites the creation of structures that curb chauvinism and nudge social behaviour in positive ways
By Charissa Yong, US Correspondent In New York, The Straits Times, 25 Sep 2019

Singapore is ranked the most religiously diverse country in the world, but its harmonious society did not come about by chance, Prime Minister Lee Hsien Loong said in New York on Monday.

Rather, it worked hard to lay the foundation for religious harmony and maintain it over the years, he said in a speech on Singapore and the Government's approach to race and religion.

"We did not become so because Singaporeans are a uniquely virtuous people," he added when accepting the World Statesman Award from the Appeal of Conscience Foundation, a New York-based interfaith group promoting mutual acceptance and respect. "We created structures - constitutional, political, social - that discouraged intolerance, curbed chauvinism and nudged social behaviour in positive ways."

As examples, he cited the country's "strictly secular, but not anti-religious" constitutional approach that treats all faiths impartially, as well as electoral rules to boost multiracial politics, and policies to encourage people of different races to live and study together.

"I went to a Catholic school - there is a church in the school grounds and across the road, there is a synagogue," said PM Lee, referring to Catholic High School when it was in Queen Street, and Maghain Aboth Synagogue in Waterloo Street.



He also noted the compromises religious groups make. For example, mosques tone down their loudspeakers that carry the prayer call, and to make up for it, the call is broadcast on national radio.

On their part, Christians exercise restraint in proselytising to people of other faiths, he added. "Because to you, it is the gospel - the good news - but to people of other faiths, if it is not done sensitively, it can be taken amiss and can cause offence."

PM Lee said he accepted the award on behalf of all who contributed towards building a harmonious society in Singapore.

The World Statesman Award honours leaders who support peaceful coexistence and mutual acceptance in multi-ethnic societies. World leaders given the award in the past included German Chancellor Angela Merkel and former Indonesian president Susilo Bambang Yudhoyono.



Reading the citation was former US secretary of state Henry Kissinger, 96, whom PM Lee called a long-time friend of Singapore and a close friend of his father, the late founding prime minister Lee Kuan Yew.

Dr Kissinger traced Singapore's success as an extraordinarily modern country despite it being a small island surrounded by large countries, describing its population as one that has faith in itself.

"I have had the good fortune of knowing the (Lee) family for most of my public life, and I have always believed in their contributions to peace and stability in Asia," he said.

PM Lee said Singapore's harmonious society, however, is facing a world that is changing, and Singaporeans need to adapt to new forces.

He listed four: Growing religiosity among all faiths, external influences, provocative views that proliferate on social media, and violence in the name of race and religion.

First, people of all faiths are practising their faiths more fervently, which in itself is not a bad thing, he said. "But as convinced as one might be of one's own faith, we cannot... show disrespect to other people's faiths or other people's gods."

This is why Singapore opposes practices that discourage people from befriending those of other faiths or exchanging greetings during their religious festivals.



Second, racial and religious groups in Singapore have extensive links with their larger counterparts abroad, which can result in the import of disputes from other lands. This can undermine social cohesion.

Singapore therefore bans or expels foreign preachers who bring their foreign quarrels into the country, or who want to persuade Singaporeans to practise their religions in ways inappropriate for local society, said PM Lee. "At the same time, we explain to Singaporeans that different societies often practise the same religion in different ways."

Third, social media means a single offensive or thoughtless post can go viral and be seen by millions.

"It has become dangerously easy for people to cause offence and to take umbrage. We must not allow those who spread toxic views and poison on the Internet to get away with what may literally be murder."

But policing the Internet was a Sisyphean task that still needed to be done, he said, referencing the new Protection from Online Falsehoods and Manipulation Act.

It allows the Government and the courts to compel the correction of misinformation and falsehoods online and take action against those who deliberately spread untruths.

Fourth is the continuing threat of terrorists who pervert and misuse religion to justify violence.

PM Lee cited how Singapore thwarted a planned terror attack just after the Sept 11 attacks in 2001, and strove swiftly to reinforce trust and confidence between religions.

Muslim leaders condemned the terrorists, while non-Muslims expressed continued confidence in their Muslim brethren, he said.



But government actions alone cannot bring about religious harmony, he said, calling on "responsible voices" to spread the message of tolerance and respect.

"I hope future generations of Singaporeans will cherish this harmony... and strengthen it further. We must never allow religion to be weaponised, or used as a front for other conflicts," he added.

Sentosa-Brani Master Plan: $90 million project to link Sentosa's north, south shores

Sentosa Merlion to make way for themed linkway project
By Tiffany Fumiko Tay, The Straits Times, 21 Sep 2019

One of Sentosa's famous structures will be making way for a themed thoroughfare that will link its north and south shores.

The demolition of the Merlion statue is part of long-term plans to reshape the resort island and the adjacent Pulau Brani into a premier leisure and tourism destination.

The last day of operations for the Merlion will be on Oct 20.

Work to demolish the towering 37m statue, located in the heart of Sentosa, will begin by the year end, when construction on the $90 million Sentosa Sensoryscape project will commence.

The new double-level thoroughfare, which will occupy about 30,000 sq m, will connect the mainland-facing Resorts World Sentosa with the beaches in the south, and replace the existing walkway.

Lookout points, water features and other architectural elements will create a multi-sensory experience for visitors strolling across the island, Sentosa Development Corporation (SDC) said yesterday.

Its completion by 2022 will mark the first milestone of the blueprint for the two islands, to be rolled out in phases over the next two to three decades.

Details of the Sentosa-Brani masterplan, announced by Prime Minister Lee Hsien Loong during the National Day Rally last month, were revealed at a media briefing on Sentosa yesterday.



The two islands will be divided into five zones. The Vibrant Cluster zone, which spans the two islands, will have large-scale attractions. Island Heart will feature hotels, conference spaces, dining and shops, while the Waterfront zone on Pulau Brani will house a Discovery Park.

The Ridgeline zone will connect green spaces from Mount Faber to Mount Imbiah and feature nature and heritage attractions, while Sentosa's beaches will be rejuvenated with a water show, fairgrounds and other attractions in the Beachfront zone.

Transport connectivity will also be enhanced, and a "Downtown South" resort modelled after the labour movement-run Downtown East in Pasir Ris will likely be built on Pulau Brani.

The 1.22 sq km Pulau Brani, about a quarter the size of Sentosa, now houses a port terminal, which will move to Tuas by 2027, along with the terminals in Keppel and Tanjong Pagar.



SDC chief executive Quek Swee Kuan said that rather than having distinct identities, the islands will be linked and integrated in their development, leveraging their island charm and proximity to the city.

When the Merlion statue was constructed in 1995, visitorship to Sentosa was between four million and six million, compared with more than 19 million last year, said Mr Quek. There is thus a need for a wider thoroughfare, and the Sensoryscape will double the current pedestrian capacity, he said.

"We won't relocate the Merlion because of its size, but we are considering how to commemorate it," said Mr Quek.

A new icon for Sentosa is also being considered, he added.



He confirmed that the Police Coast Guard headquarters on Pulau Brani will remain, but said that other plans for the island are still being developed.

Senior Minister of State for Trade and Industry Chee Hong Tat, who revealed plans to reshape the two islands in line with plans for the mainland last year, said that the blueprint aims to position Singapore as a leading tourist destination over the coming decades.

"There are also plans to see how we can, in the short and medium term, enhance the value of... the Southern Islands for eco-tourism, for families to visit and learn about a part of Singapore," he said.

Enhanced CPF Housing Grant: Higher grants, more choice for first-time HDB flat buyers from 11 September 2019

More incentives to buy resale flats; income ceiling raised to widen the pool of buyers
By Rachel Au-Yong, Housing Correspondent, The Straits Times, 11 Sep 2019

From today, first-time buyers will get higher grants and more flexibility to choose the size of their flat and where it is located.

The income ceiling for Housing Board flats has also been raised for the first time since 2015, widening the pool of eligible buyers.

Minister for National Development Lawrence Wong said yesterday that the new Enhanced CPF Housing Grant (EHG), which streamlines two older grants, gives couples more flexibility in affording a flat that suits their needs.

It also helps the authorities meet the growing demand for homes without building new flats, which is limited by a lack of land, especially in mature estates, he said.

Instead, the incentive structure has been changed to make it attractive to buy resale flats.

Mr Wong said past incentives, with subsidies and grants, encouraged first-timers to choose new flats, adding: "This is one reason why first-timers often prefer new over resale flats. So, we ought to adjust our grant structure to achieve a better balance."

The changes were hinted at by Prime Minister Lee Hsien Loong at the National Day Rally last month, when he said his younger colleagues had ideas to keep flats affordable.

Before this, there were three types of grants: The CPF Housing Grant of $50,000 for resale flats, the Additional CPF Housing Grant (AHG) of up to $40,000 for those earning $5,000 and below, and the Special CPF Housing Grant (SHG) of up to $40,000 for those earning $8,500 and below and were looking to buy four-room or smaller flats in non-mature estates.

Those buying Build-To-Order (BTO) flats may have been eligible for the AHG and SHG, while those buying resale homes could get only the CPF Housing Grant and AHG.

From today (11 Sep), the AHG and SHG will be combined into the EHG of up to $80,000 and available to eligible buyers - including resale flat buyers who did not get the SHG before.

There are also no more restrictions on buyers' choice of flat type and location. "This (dropping of restrictions) means first-timers can get up to $40,000 more when they purchase a new flat," Mr Wong said.

The income ceiling for the EHG is $9,000, higher than the AHG's cap of $5,000 or the SHG's $8,500.

The caveat for the EHG is that the flat's lease must cover buyers until they are aged 95, in line with the authorities' push to get people to buy homes that can last them for life. Those who do not meet this condition will get a pro-rated amount depending on the lease.

With this change, an eligible first-timer family earning $4,800 a month and buying a new four-room flat in a mature estate from the HDB can get $45,000 in grants, compared with $5,000 previously.

As for resale flat buyers, they may get up to $160,000 in grants - a third more than before. This figure takes in the $50,000 CPF Housing Grant and $30,000 Proximity Housing Grant.

The income ceiling for Singaporean households to buy new flats and executive condominium units will be raised by $2,000 - to $14,000 and $16,000, respectively, to allow more to qualify.

Mr Wong said the HDB will likely increase the BTO supply in 2020 to meet the extra demand for public housing expected to arise from these changes. The board is on track to launch 15,000 flats this year.

Its third BTO launch of the year, initially scheduled for last month, has also been pushed to later this month to allow more home buyers to take advantage of the changes.

Property analysts, buyers and sellers said the new system not only benefits first-time buyers, but also sellers looking to upgrade.

PM Lee Hsien Loong at the Singapore University of Social Sciences Ministerial Forum 2019

Fees and bursaries for part-time tertiary students to be reviewed
Education system's biggest challenge is to be effective for continual learning, says PM Lee
By Adrian Lim, Political Correspondent, The Straits Times, 5 Sep 2019

Fees and bursaries for part-time students will be reviewed, Prime Minister Lee Hsien Loong said yesterday, adding to his announcement at last month's National Day Rally that tertiary education will be more affordable.

And if necessary, these fees and bursaries will be adjusted, he said in a speech at the Singapore University of Social Sciences' (SUSS) inaugural ministerial dialogue.

He noted the Government has not yet revised the fees and bursaries for part-time students, although it had done so for full-time students through higher bursaries for lower-and middle-income university students, and lower fees for general degree programmes at SUSS and the Singapore Institute of Technology.

"We looked at them, but we think that these fees and bursaries should be affordable for working adults," he said, adding that the Government will review the situation and make changes where needed.



The value of lifelong learning and a university education as well as the future of work amid technological disruption were among the issues covered during a lively one-hour dialogue between PM Lee and about 500 SUSS students.

SUSS, which became Singapore's sixth autonomous university in 2017, offers full-time and part-time graduate and under-graduate courses.

PM Lee said the biggest challenge for Singapore's education system is to make it effective for continual learning.

He explained that it is not just a matter of money or about running courses, but having educational programmes that are suited to meet the learning needs and styles of adults - whether they are from Generation X or in their 70s.



Courses offered in polytechnics and universities have to be structured in a modular fashion, and lecturers have to adapt their teaching styles to help older people learn at their own pace, PM Lee noted.

A whole support system must also be in place so employers understand and make adjustments when their workers go for courses, and employees can focus on their jobs and studies and maintain a balance, he added.

"We will do it, we have got SkillsFuture SG. But we are still early on in the journey," he noted.

During the dialogue, PM Lee was asked how Singapore graduates fared against those from around the region, who may be more hungry and willing to work for lower pay.

"I think that we have to be hungry, too. Because if we are not hungry, somebody will steal our lunch," he said.



"It is a competition which we manage in Singapore because the inflow of talent, the inflow of people from other countries to Singapore, we manage, we track carefully their numbers, their standards, their proportions, to make sure they don't crowd Singaporeans out and Singaporeans have opportunities for the jobs."

But if Singaporeans are not up to scratch, companies will go around the region to look for talent, he noted.

Still, he believes Singapore has a workforce which is good, collective and productive - factors which have attracted firms like Finnish oil company Neste to invest here.

But there are not enough Singaporeans, due to the low fertility rate, and fewer are entering the workforce.

"And so, if we don't top ourselves up with talent from overseas... I don't think we will be able to take up all the opportunities which are available to us," he said.

"We open the door, they come, they complement us, we have to work hard. Yes. But we work hard, we hold our own."

One participant at the dialogue asked for advice on his employability as he felt there was a perception that the other universities were better than SUSS.



Responding, PM Lee said that to level the playing field, SUSS must maintain high standards and its graduates must fly the university flag high.

Each time Singapore added a new university, a niche was found for the institution, he said.

SUSS, which focuses on social sciences, gives students skills - conceptually and practically - to tackle important social issues, he added.

"If you can excel in that area, whether you graduate as a lawyer or (from) business, or in social work, or in sociology, or in communications, I think you establish yourself as a (graduate of a) first-class institution," said PM Lee.

Lower pre-school fees and more help with fertility treatments to encourage marriage and parenthood from 2020

Full-day childcare may cost only $3 a month for needy; more help too with fertility treatments
By Amelia Teng, Education Correspondent, The Straits Times, 29 Aug 2019

Pre-school expenses will be cut for many and more help will be offered with fertility treatments - even for older couples - as part of the latest moves to encourage more Singaporeans to start families.

From next year, lower-income families may only need to pay as little as $3 a month for full-day childcare. The monthly household income ceiling for additional childcare and kindergarten subsidies is also being raised to $12,000.



Meanwhile, there will be no more age limit for women undergoing assisted reproductive technology (ART) treatments from January. It currently stands at 45 years old.

Manpower Minister Josephine Teo, who oversees population matters, Minister for Social and Family Development Desmond Lee and Senior Minister of State for Health Amy Khor announced the measures at a My First Skool pre-school in Punggol yesterday.

With the higher subsidies from next year, more families could find themselves paying between $3 and $390 a month for full-day childcare at pre-schools run by anchor operators that charge monthly fees of $770.

With the measures, eight in 10 young children should have a place in more affordable government-supported pre-schools by around 2025.

This is similar to the proportion that receives government help in the housing and healthcare sectors.

Mr Lee said fee caps will also be lowered at government-supported pre-schools as their share of the sector expands. In time, this would allow working families with a child in full-day childcare to pay about $300 per month, even without additional subsidy.

In 2021, the partner operator scheme will also be expanded to more childcare operators beyond the existing 23. For the first time, it will also include a small number of kindergartens which offer quality programmes.

Subsidy amounts for families at different income tiers will go up. From next year, the monthly household income ceiling for additional kindergarten subsidies and childcare subsidies will be raised from $6,000 and $7,500 respectively to $12,000 so that it benefits 30,000 more households.

Currently, 41,000 families receive these means-tested subsidies.

Low-income families will pay even less, with those earning $3,000 or less per month paying just $3 per month for full-day childcare at anchor operators, or $1 per month for kindergartens run by anchor operators and the Education Ministry.

Mrs Teo noted that there is strong interest among Singaporeans to marry and have children. "But it is also a fact that our people are marrying later. And they're also starting families and they're having children later," she said.

She encouraged couples to marry earlier and start trying to conceive earlier, so that they would be more successful in having children.

Nonetheless, older couples trying for babies will also get more support from January next year, amid fewer marriages last year and an eight-year low in the number of babies born here last year.



The Health Ministry will remove the age limit for women undergoing ART treatments.

There will also be no cap on the number of cycles they can go for.

In addition, couples undergoing intra-uterine insemination procedures - a less invasive fertility treatment than ART - will benefit from government co-funding of up to 75 per cent, capped at $1,000 per treatment cycle, for three such cycles.

Higher tuition fee bursaries for students from needy families from Academic Year 2020

Needy students to get more help for tertiary education
Increase in bursaries next year will slash tuition fees for students from lower-income households
By Sandra Davie, Senior Education Correspondent, The Straits Times, 23 Aug 2019

A series of measures announced yesterday will make tertiary education more accessible and affordable for needy students and give an added push to social mobility.

Most students from lower-income households in universities and polytechnics will see a big portion of their tuition fees slashed, with bursary amounts set to go up next year.

This is to ensure that as more Singaporeans from less well-off households make it to the polytechnics and universities, tuition costs do not hinder them from furthering their education or constrain their choice of courses.

Once the higher bursaries kick in, polytechnic students who come from the lowest 20 per cent of household income groups will pay no more than $150 of the $2,900 annual fees - $400 less than what they now pay each year. All in, 33,000 polytechnic students are expected to benefit from the bursary hikes.

At the university level, the most needy students will pay only $2,000 a year, compared with the $4,200 they pay now. The full fee for a general degree is $8,200.

Government bursaries for new and existing medical and dentistry undergraduates will also be increased, with students from families in the bottom 20 per cent income group having to pay only $5,000 a year - compared with the full fees of $28,900 at the National University of Singapore and $34,700 at the Nanyang Technological University (NTU).

Announcing the measures, Education Minister Ong Ye Kung said: "We want to make sure that... we do not deter students from lower-income backgrounds from studying medicine and dentistry."

A total of 21,000 undergraduates, including those doing medicine, are expected to benefit. The government spending on bursaries for undergraduates and diploma students will increase by $44 million in total - from $123 million to $167 million.

Mr Ong also announced increased opportunities for the 30 per cent of Institute of Technical Education graduates who currently do not progress beyond their Nitec qualification. To support them, the Ministry of Education will provide more places in a range of programmes such as ITE's SkillsFuture Work-Study diplomas and full-time Higher Nitec courses. There will also be more places provided in the polytechnics for applicants with work experience.

The plan: All Nitec graduates from ITE will have the chance to attain a higher qualification by 2030.

Sharing the thinking behind the moves, Mr Ong revealed that 15 years ago, only 38 per cent of students from the bottom 30 per cent of households by way of socio-economic status progressed to the polytechnics. Now, 52 per cent from the group make it to the polytechnics.



For the universities, the proportion has gone up from 13 per cent to 21 per cent.

He said universities have an important role to play in social integration and in enabling social mobility.

Education is an upgrading force, he said, with each generation doing better than the previous one.

"It is fundamental to our social mobility," Mr Ong stressed, adding that bursaries had to be increased to help lower-income groups gain from education. "Cost cannot be an impediment for families with hard work and talent and aptitude to upgrade their lives and get a better future for themselves," said Mr Ong.



Grab driver V. Perumal, 54, whose youngest son will study engineering at Nanyang Technological University next year, said he is heartened by the bursary increase.

"Both my wife and I were so happy when our son told us he got into NTU to study engineering, but at the same time we have been having sleepless nights worrying about the fees.

"I have been looking at how we can borrow some money. But now, we are very relieved."

Tripartite Workgroup on Older Workers: A look at the changes to help older workers

Older workers will soon be able to work longer if they wish. The retirement age will gradually go up from 62 to 65, and re-employment age from 67 to 70, between 2022 and 2030. Central Provident Fund (CPF) contribution rates will also rise over the next decade for workers aged 55 to 70. Manpower Correspondent Joanna Seow explains the changes.
By Joanna Seow, Assistant Business Editor, The Straits Times, 22 Aug 2019

Q HOW DID THE CHANGES COME ABOUT?

A The Tripartite Workgroup on Older Workers was formed in May last year to look at issues concerning older workers. It has representatives from the Government, employers and unions, which is important as employers and workers have different concerns.

For instance, older workers may want the option to work as long as they want, but companies may be worried about ensuring they can contribute productively and also about footing their insurance bills.

The group heard from more than 1,500 people, and the proposals were what was eventually agreed on by both the employer and union sides. It released its report on Monday.


Q WHY THE NEED FOR THESE CHANGES?

A Singapore's population is greying very fast. By the end of the next decade, 2030, the number of Singaporeans aged 65 and above will almost double to reach 900,000.

The Government wants to get people and companies prepared, both mentally and financially.

A higher retirement age does not mean people must work until that age. They can retire any time they want, but companies cannot dismiss them because of age before the retirement age. So, raising the retirement age extends the protection for older workers.

Businesses will eventually have no choice but to employ more older workers because of demographics. Having this push should encourage them to start looking at how to better allocate resources so their older workers can continue contributing meaningfully to them.

Q WHY THE HIGHER CPF CONTRIBUTIONS, AND WILL THEY COST BUSINESSES?

A Higher CPF contributions are meant to help workers save more for their retirement and CPF Life payouts as they can earn up to 6 per cent interest. The additional contributions will go into the Special Account, which accrues the highest possible interest.

For the first increase in CPF rates in 2021, employers and workers will each increase their contribution by either 0.5 percentage point or 1 percentage point for workers aged 55 to 70, based on the worker's age.

For someone who was 55 in January this year and earns $3,000 monthly, both he and his employer contribute 13 per cent, or $390 a month, to his CPF savings. In January 2021, the contribution rates for each party would go up to 14 per cent, or $420 a month. That is $360 more in contributions each year.

To help businesses cope, the Government will announce a support package next year.





Q HOW CAN COMPANIES HELP OLDER WORKERS WORK LONGER?

A They can redesign more manual jobs so that technology does the tough part and older workers can do higher value-add work. There are also firms which have implemented wellness programmes like health screenings and nutrition advice to help their workers stay healthy.

Some progressive companies have already gone ahead to raise or remove their retirement age. Also, insurance firm Prudential recently announced it will contribute more to older workers' CPF accounts if the workers also contribute more. Workers can choose whether to prioritise having cash for immediate spending or building up more retirement savings in their CPF accounts.

National Day Rally 2019

PM Lee Hsien Loong unveils plans to secure Singapore's future
The Straits Times, 19 Aug 2019

* More support for pre-school, tertiary fees

* Moves to raise retirement age, CPF rates

* Steps to defend against climate change



 



PRE-SCHOOL, TERTIARY EDUCATION TO BE MORE AFFORDABLE

Eight in 10 pre-school places will be government-supported in five to six years' time, bringing it to the same ratio as public housing.

The monthly income ceiling to qualify for additional subsidies for pre-school education will be raised from $7,500 to $12,000 next year. The quantum of subsidies will also be increased.

Prime Minister Lee Hsien Loong said yesterday that these are part of the Government's plan to make quality early-years education more affordable and accessible.

He said that in the future, 80 per cent of pre-school places will be government-supported, up from the 50 per cent currently.

With 30,000 more households qualifying for additional subsidies, pre-school expenses should come down to the costs of primary school education.



Touching on tertiary education fees, PM Lee said the Singapore Institute of Technology and the Singapore University of Social Sciences will lower their yearly tuition fees next year - from $8,000 to $7,500 for general degree courses.

Government bursaries for university, polytechnic, Institute of Technical Education, Nanyang Academy of Fine Arts, Lasalle College of the Arts students will also be enhanced.

"Anyone who works hard will have a chance to succeed, regardless of starting point or family background," PM Lee said.







RETIREMENT AGE AND CPF RATES FOR OLDER WORKERS TO GO UP

As Singaporeans are living longer and many want to work longer, the retirement age will be raised gradually from 62 to 65, and the re-employment age will go up from 67 to 70.

The process will start in 2022, and be completed by 2030, said Prime Minister Lee Hsien Loong yesterday.

Central Provident Fund (CPF) contribution rates will also go up for workers aged 55 to 70, so that the full rate of 37 per cent is extended to those aged up to 60 before it tapers off.

This process will start in 2021 and take place gradually over 10 years or so, depending on economic conditions, said PM Lee at the National Day Rally.

He added that these recommendations had been made by a tripartite workgroup, and the Government accepted them, in full.

The Government will take the lead as a major employer to raise retirement and re-employment ages in the public service in 2021, a year ahead of schedule, he said.



Deputy Prime Minister Heng Swee Keat will announce a support package to help businesses adjust to these new arrangements in next year's Budget, PM Lee added.

He also stressed that there are no changes to CPF withdrawal policies or withdrawal ages - CPF members can still withdraw some money at age 55 and start their monthly payouts from age 65.


LONG-TERM BATTLE TO SAFEGUARD SINGAPORE FROM RISING SEA LEVELS

It may cost $100 billion or more over the long term to protect low-lying Singapore against rising sea levels, said Prime Minister Lee Hsien Loong yesterday.

There are good engineering solutions to the problem which could include reclaiming offshore islands and connecting them with barrages. But they come at a cost.

"How much will it cost to protect ourselves against rising sea levels? My guess is probably $100 billion over 100 years, quite possibly more.



"If we only have 10 years to solve the problem, we won't have the time or resources to do it," PM Lee said in his National Day Rally speech. "But because this is a 50-to 100-year problem, we can implement a 50-to 100-year solution.

Climate change defences should be treated like the Singapore Armed Forces (SAF) - with utmost seriousness, he added.

"Both the SAF and climate change defences are existential for Singapore. These are life and death matters. Everything else must bend at the knee to safeguard the existence of our island nation."

National Day Message 2019: Singapore must prepare for a very different future, says PM Lee Hsien Loong

PM Lee says world is entering troubled period, but past proves nation can overcome challenges
By Linette Lai, Political Correspondent, The Straits Times, 9 Aug 2019

Singaporeans need to prepare for a "very different future", said Prime Minister Lee Hsien Loong, pointing to the grave challenges that global upheavals had thrown up.

Speaking on the eve of National Day, he said he was confident that the country would overcome the challenges. But he pointed to the task at hand.

The world is fundamentally entering a more troubled period, he noted. Trade and globalisation are under pressure and friction between the major powers is growing, while global warming and rising sea levels pose existential threats.

"Singapore will not be immune to these global problems... They will disrupt supply chains, alter trade patterns and shift investment flows. We must get ourselves ready for a very different future," he said.

Singapore has taken steps to renew and reinvent itself, he added in his annual National Day message delivered from Changi Airport's Jewel, which he held up as symbolic of the country's spirit to dare to do the new - and do it first.

Singaporeans have gone through many ups and downs over the years, he noted. Today, economic uncertainties and the threat of climate change are grave challenges, PM Lee said.

"But our past gives us confidence. Throughout our history, when trials and tribulations have beset us, we picked ourselves up and worked together to overcome them. Each time, we reinvented and renewed our economy, our people and our city, and we thrived again. And this is what we must keep on doing."



Giving an indication of what he will focus on at this year's National Day Rally on Aug 18, PM Lee said pre-school and tertiary education will be made more affordable, especially for lower-and middle-income families. The retirement and re-employment ages will be raised to help older Singaporeans who wish to work longer, he added.

While he did not give any forecast of growth figures for the year, he noted that the economy has slowed. Global demand and international trade have weakened, affecting Singapore's manufacturing sector and trade-related services.

"We have experienced such slowdowns before, and we will take this one in our stride," said PM Lee. "Should it become necessary to stimulate the economy, we will do so."

Singapore is making good progress in transforming its industries, and in its efforts to reskill and upgrade the workforce, he noted.

The technology and start-up scenes are flourishing, with agencies helping entrepreneurs and companies scale up and expand into the global market.

Meanwhile, the SkillsFuture scheme is helping Singaporeans to be more productive and prepared for new jobs that are being created. "All these structural measures will not only address our longer-term challenges, but also help see us through a more immediate downturn."



PM Lee pledged that the Government will keep on investing heavily in Singaporeans and help everyone achieve their potential and give their best to Singapore.

But he also stressed that this is a joint endeavour. "Each one of us must strive to improve ourselves, do our best and chase our dreams."

PM Lee compared Singapore to Jewel, saying the gleaming new complex shows how Singaporeans have the creativity and daring to reinvent themselves, as well as the passion and competence to turn dreams into reality. "As you might expect, other cities and airports are already planning to emulate Jewel, and perhaps do it bigger and better," he said. "But we dared to attempt the new, and we did it first."

Other projects to remake the city include Changi Terminal 5, Tuas Megaport and the Jurong Lake District, as well as the redevelopment of Paya Lebar Airbase and the Greater Southern Waterfront.

These will keep Singapore busy and create new opportunities for Singaporeans for decades to come, he said. But he added: "To stay in front of the pack, we must constantly come up with fresh ideas, always be ready to break new ground.

"What limits our possibilities is not the physical size of our island, but the ingenuity of our people and the boldness of our spirit."



In a spirited call to Singaporeans, he urged them to be as intrepid as the first settlers who arrived here from distant lands, and as tough as the earlier generations who endured war and occupation, rebuilding their lives afterwards.

"Let us be as resolute as the Pioneer Generation who fought for independence and founded our nation, and be as united as the Merdeka Generation, who took up the baton and brought Singapore from Third World to First.

"Let us continue to work together as one united people to thrive in an uncertain world, challenge ourselves to explore new horizons, and commit our hearts and souls to Singapore and its future," PM Lee said, wishing Singaporeans a happy National Day.