LOWER CPF INTEREST rate FOR FOREIGNERS
To pay for the above proposals, I suggest that we acknowledge that the CPF scheme must primarily be about Singaporeans, for Singaporeans. Foreigners should continue to contribute CPF, so as to level the employment field, but they should receive a lower rate of interest.
Is this unfair? I submit that generally, non-Singaporeans are shorter-term CPF account holders. Therefore, their interest rates should be lower; more in line with fixed deposit rates or short-term government bonds, rather than the higher rates of 4 per cent and 2.5 per cent given now for the Special and Ordinary accounts (benchmarked to 30-year government bond rates).
For foreigners who commit to taking up citizenship, CPF can recalculate the higher interest due to them for, say, the previous 10 years. Those who casually take up citizenship and give it up later should be penalised. Full story
