A panel set up to suggest changes in Singapore's social, cultural and political policies urged the Government to allow residents the use of retirement funds to tide over spells of unemployment - Singapore - Brief Article

Business Asia, July, 2003

A panel set up to suggest changes in Singapore's social, cultural and political policies urged the Government to allow residents the use of retirement funds to tide over spells of unemployment. Singapore allows the use of Central Provident Fund money for investment in housing and shares but does not allow its use as an emergency fund.

The Beyond Credit Card sub-committee, headed by acting Minister for Manpower Ng Eng Hen, says the Government should allow unemployed Singaporeans to tap a portion of their pension funds during prolonged joblessness amid falling growth.

The panel's report says this would promote self-reliance by allowing Singaporeans to use their own resources first before turning to other sources for help. Workers currently contribute 20 per cent of their wages to the pension fund, and can withdraw some monies only at the age of 55. The funds are also used to pay for health care.