The current CPF contribution rate is 16% from employer and 20% from the employee making a total of 36% of the monthly income. Using an average salary of $3,000 and 2 million employees (for simplicity in calculation) contributing to the CPF, just ball park, the monthly contributions work out to be (36% x 3000 x 2m) $2.16b or $25.92b a year. Now that is an awfully big sum of money going into the CPF.
To those who are prudent and responsible, this is not simply a lot of money to play with but a lot to money to return with interest. They will be very careful not to touch this money but to manage it with extreme care while under their safe keeping. It is other people’s money, the CPF members’ money that must be returned.
But if you have a bunch of crooks, like in a rogue govt, they will be easily tempted to spend it, to act clever, to think of getting bigger returns without knowing that the bigger the returns the higher the risk of losing it. Some will capriciously be thinking of behaving like rich men and go flashing the money to everyone and even wanting to flaunt the wealth by throwing some around. It is such a nice feeling to have so much money to play with. And if not enough, no worry, the tap is flowing and every month there will be another $2b flowing in, unlimited supply of money.
It is so easy to go shopping or to act like philanthropists and give whenever someone comes asking. It is really a very nice feeling, spending Other People's Money. Spend first, don’t worry about tomorrow and how to pay back. This is the risk of this country when there is so much money freely available and the high living low thinking will just do that, help themselves to live well. Who cares what comes tomorrow. Tomorrow is someone else’s problem. It is Other People's Money!
Any govt in power has to be very careful to guard against rogues who think of nothing about spending such easy money. It is so easy to spend, so easy to give away. But don’t forget, the time to pay back will come and will come sooner than they think. Singapore really has a very happy problem with money. No wonder everyone is feeling so rich, pay and pay, give and give. Who needs money, come, come to Sin City. Just ask and will be given.
Ultimately where does the money come from? Ultimately whose money ended up given away? The CPF is the people’s money and must be returned. Not returning is not an option, not under any pretence or any funny schemes. You can’t cheat an honest man.
PS. Actually you can cheat an honest man in Sin City when an honest man is a daft Sinkie.
Chua Chin Leng AKA RedBean
*The writer blogs at http://mysingaporenews.blogspot.com/