Truth Exposed: The Dirty CPF-HDB Scheme To Trick Singaporeans

(Please note that this is a two-page article.)

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This Is Why You Will Never Have Enough In Your CPF And Will Never Be Able To Retire

Here is what’s next. Yes, there’s still more.

As mentioned at the start of this article, if you had left your CPF untouched and not take any of the money out to mortgage your flat, you would have nearly $700,000 left inside for use.

So, what does it look like if you have taken this money out from your CPF?

Remember, if you had bought a $300,000 flat, the monthly mortgage would be $961. So, assuming that you and your partner would split the mortgage equally, to be paid by both your CPF, each of you would pay $481 out of your CPF.

By the end of the mortgage after 30 years, you would have paid $202,980 into the mortgage and $110,397 in CPF accrued “interest”. In total, you would have paid $313,377 from your CPF to the flat (Chart 25).


Chart 25

What this means is that when you want to take your CPF out at 55 (in 2035, assuming you started working in 2001), you would actually be able to take out only about $370,000, after paying off $313,377 (Chart 26).


Chart 26

Now compare this with what you would have gotten if you hadn’t used your CPF to buy the flat. You would lose more than $300,000 in retirement savings, or half of the CPF that you have used your money to safe (Chart 27)! 50%, mind you! Gone! Poof! Magic! Disappear!


Chart 27

But wait a minute – not so fast.

You didn’t think it would be that easy, did you? You didn’t think they would let you take this $370,000 so easily, would you? Want to retire? Fat hope, not under the PAP.

Of course not. After all that contraption above, surely there would be someway to prevent you from even taking this $370,000.

The PAP Spiked Up The CPF Minimum Sum

Here comes the CPF Minimum Sum. No, the CPF Minimum Sum wasn’t created just for fun. It was created for a valid reason – as part of this entrapment plan.

According to the CPF, they want you to set aside a minimum sum in your CPF to “meet (your) basic needs in old age”.

Since 1997, the CPF Minimum Sum has grown from $30,000 then to $148,000 today (Chart 28).


Chart 28

In other words, it has grown by 400% (Chart 29).


Chart 29

In fact, the CPF Minimum Sum has grown by an average of 6.4% every year from 1987 until today but do you know how much inflation has actually grown? Inflation grew by an average of only 2% (Chart 30). So, can someone explain to us again why the CPF Minimum Sum was growing by 3 times faster than inflation?


Chart 30

Now, if the CPF Minimum Sum continues to grow by the average of 6.4% every year, this would mean that when you want to take out your CPF at 55 in 2035, the CPF Minimum Sum would have grown to $579,399 (Chart 31).


Chart 31

And how much did you have left inside your CPF again? After paying for the mortgage, you would have about $370,000 left. Wait, what? You would have only $370,000 but at the rate the CPF Minimum Sum has been growing like crazy, by the time you want to take your CPF out at 55, not only would you not be able to meet the CPF Minimum Sum of $579,399 and not be able to take your money out, you would actually have a shortfall of more than $200,000 (Chart 32)!


Chart 32

Where are you going to get that kind of money from? Now, you can imagine why there are so many Singaporeans who are forced to continue to work today – because they simply cannot meet the CPF Minimum Sum even today. Thus as Leong Sze Hian has estimated, nearly 90% of Singaporeans won’t be able to meet the CPF Minimum Sum, won’t be able to take their money out and won’t be able to retire.

Now, even if the CPF Minimum Sum grows at, say 4% (the midpoint between the average CPF Minimum Sum growth rate and average inflation growth rate), the CPF Minimum Sum would still have grown to $350,748 (Chart 33).


Chart 33

This means that at 55, you would be able to withdraw only about $19,000 (Chart 34). In 2035, this would barely last half a year.


Chart 34

What is going on???

Maybe if I give you more insight below, it would give you a better idea as to what is actually happening in Singapore.

It was explained by Dr. Linda Low that, “In 1984 the government tried to increase the CPF withdrawal age from fifty-five to sixty. The attempt was very poorly received, as people viewed the government as having broken a promise.” She further explained that, “One way of getting around this problem has been to institute a scheme minimum sum, which softens the impact. Under this scheme, one can still take out a lump sum when one reaches the age of fifty-five, but one must keep a certain minimum amount in the fund, which can only be withdrawn as an annuity when one reaches the age of sixty.”

She concluded that, “The government is beginning to get people to accept the idea that the withdrawal age might have to be increased. When it will be politically expedient to increase it is another issue. (Chart 35)”


Chart 35

Now, the CPF Minimum Sum wasn’t always used in such sinister and deceptive ways. In the earlier years of the CPF Minimum Sum, from 1987 to 1995, the CPF Minimum Sum was increasing at an average of 2.3%, which is on par with the average increase of inflation of 2.3% (Chart 36).



Chart 36

But from 1996, everything started going haywire. In 1996, the CPF Minimum Sum was increased by 12.5%. Then it was increased by 11.1% in 1997 and 10% in 1998. Since 1996, the CPF Minimum Sum kept increasing way and above inflation. Inflation grew by an average of only 1.8% from 1996 to 2013 but the CPF Minimum Sum grew by a massive 7.6%, or 4 times more (Chart 37)!


Chart 37

Now, what is going on?? Why were they driving up the CPF Minimum Sum? For what purpose?

The PAP Pushed Down The CPF Interest Rates

At the same time, when the insane increase of the CPF Minimum Sum was instituted in 1996, the government also suddenly decided to give separate interest rates for the CPF Ordinary Account (OA) and the Special and Medisave Accounts (SMA).

Quite clearly, all these did not happen by accident. In fact, in 1994 and a few years later, the CPF interest rates were depressed to their lowest ever and never climbed back up anymore. In 1999, the CPF interest rates were depressed to 2.5% for the OA and 4% for the SMA (Chart 38).


Chart 38

Now, you really have to think carefully about why the PAP did what they did – why did they suddenly spike up the increase in the CPF Minimum Sum? Why did they split the interest rates for the OA and SMA, and then depressed the OA interest rates to its lowest level since 1963 (Chart 39)?


Chart 39

In other words, why did the government want to undercut Singaporeans?

In the first place, why does the PAP get to unilaterally decide how much interest Singaporeans should earn from our CPF? What is the benchmark that is used to determine the interest rates? In other countries, the interest rates would have been pegged to the returns of our investment.

What the PAP did was very deceptively smart. They invested our CPF in government bonds and maintained the interest rates on those bonds at a consistent low rate, so that it would seem that our CPF would have to earn a low rate as well. But the real interest that our CPF is earning is via Temasek Holdings and GIC and if so, our CPF should be pegged to the 6.5% to 16% that they are earning, and not an artificial interest rate determined by the PAP’s untransparent manipulation of the interest rates (Chart 40).


Chart 40

The Dirty PAP CPF-HDB Entrapment Scheme

By now, if you are not yet shock and horrified, or completely floored, I am not sure what will.

This all weren’t accidental. The PAP had planned it all the way. What made the PAP do what they did? What made them want to shortchange Singaporeans and cut us down?

To sum it up for you, what is this CPF-HDB insidious scheme all about? (which is also explained in Chart 41 below)

  1. Make Singaporeans pay the highest CPF contribution rates in the world
  2. Split the CPF OA and SMA interest rates so that they can give differential rates and create the illusion that a small part of your money is earning a higher interest rate, so that it’s easier to give you a lower rate on the other.
  3. Give Singaporeans the lowest CPF interest rates ever – the 2.5% interest rate that we receive now is what the CPF was earning in 1955 and is possibly the lowest rates anywhere in this world.
  4. Calculate how much they would have forced Singaporeans to accumulate into the CPF, then…
  5. Give people the illusion that the HDB flat is something that we should own so that we would want to buy a flat. Then increase the prices of the flats (since they own public housing anyway and can decide price increases at their whims and fancies) by precisely calculating how much Singaporeans should pay to almost wipe out their CPF (Leong Sze Hian and Han Hui Hui has shown how since 1980, the salary of an operator has only gone up roughly 2 times ($500 to $1,100) while a 3 room flat in Queenstown has gone up 17 times ($20,000 to $335,000). 
  6. Once that’s done, keep drilling in that we can use their CPF to buy their flat, and charge a high interest rate on borrowing from the CPF to repay the flat.
  7. Create another trick by making us pay a 2.5% “accrued” interest rate on money that we do not have inside the CPF (and which we should not have to pay but who cares, since they think that we won’t understand anyway)?
  8. Puts in a CPF Minimum Sum then spike it up so that after making Singaporeans wipe out almost all their CPF, lock in whatever is left in the CPF Minimum Sum to prevent Singaporeans from taking out our money.


Chart 41

Smart right? Some people would call this a Ponzi scheme. Some people would call this the CPF-HDB sham-deal. I don’t think they are wrong either way.

What the hell are they doing with YOUR RETIREMENT FUNDS? This is your money, for goodness sake! Not their banks!

But you know what, it’s precisely it. The PAP is treating the CPF and HDB like their banks.

Here’s a final shot for you.

Your CPF is not your money.

They have already created this scheme and entrapment plan to turn the CPF around into their money.

If it’s not clear enough for you. Last year, there is $253 billion in the CPF. Singaporeans only took out $15 billion, or just about 5.9% (Chart 42).


Chart 42

But where did the rest of the 94% of the money go? Shouldn’t it be your retirement money? Why is it not going back into your pockets?

First, as you have seen above, they have devised many methods to make you put almost half (37%) of your salary into their CPF bank and then also created many ways to prevent you from taking your money out, by locking you in and by devising many different schemes to siphon the money off you, using the housing mortgage, CPF accrued interest and the CPF Minimum Sum (Chart 43).


Chart 43

And what happens? Singaporeans have the lowest purchasing power among the high-income countries and we also have the least adequate pension fund. It’s not a coincidence at all. It was all planned. Give people low wages, take the wages back via the so-called CPF pension fund, then lockdown the money inside the CPF and siphon it off and leave Singaporeans with almost nothing.

Now, throw them a bone and let them struggle. Bark, now, bark. And have a good show.

This, my friend, is how they have trained you. You are not a citizen. They’ve never treated you like one.

And how is it a bank (which is also explained in Chart 44 below)

  1. Create the CPF bank. Force you to deposit 37% of your wage into CPF.
  2. Then create the HDB bank. Make you transfer the CPF money (mortgage loans) from the CPF into the HDB bank.
  3. Put a high deposit level (high flat prices) in the HDB bank then make you transfer even more money from CPF into the HDB.
  4. Pay you the lowest interest rates for the CPF bank and keep the rest of the interest earned for themselves.
  5. Tell you they have to earn interest on non-existent money in your CPF, even though you would have taken the money out and rightfully shouldn’t have to pay interest on it. (Or “loan” you “your” CPF money and make your pay additional interest on it)
  6. Put in a minimum deposit level (CPF Minimum Sum) and tell you that you cannot take your money without having this minimum sum inside the CPF.
  7. Effectively, our CPF is locked-in by this entrapment plan. Meanwhile, the CPF bank has grown to $253 billion.
  8. The HDB bank should have grown to more than $300 billion by now?
  9. Meanwhile, you have to scrimp and save because they are only throwing bits at you – low interest rates and low withdrawals.


Chart 44

Who is earning, my friends? Where is your money going? Is CPF still your money?

It’s all planned, my friends. A long time coming, indeed. But they’ve planned for it for a while now.

How do you entrap Singaporeans using the two largest bank vaults they have and which they can easily modify to earn from you?

But wait a minute – where can you see a bank which operates in such a tyrannical way? Where can you see a bank which unilaterally sets the rules and tell you, you either give in or you get out.

Oh, wait. You can’t even get out because guess what, it is already mandated that your CPF has to be extracted for them. Why do you think they try so hard to want to make the self-employed pay CPF and would increase the fines for companies which do not pay the employees’ CPF?

Which bank is so undemocratic that it makes all the decisions and forces you to abide by them?

Well, the PAP Bank. You voted for them, you gave them your vote and they ran amok with it. They knew no one was going to stop them. And they told you it’s for you own good, found a way to make you believe them and give your money to them anyway. They gave you a bone and told you it’s gold and they’ve made you pray to them and thank them for it.

And so they took over the companies, they monopolised basic services and they took over your CPF, your homes and monopolised them. Now, your home has no value when the lease ends, your retirement fund is only a pigment of your imagination and they can do whatever they want with it – whatever rules, whatever games and however they want to torture you.

You gave it to them. You voted for them. You chose to give up your right to find out what’s going on in Singapore. So now they will make use of you and squeeze you dry because guess what, they can.

It’s about time we have some balls and stand for our own rights now. It’s about time you get angry enough and you get out and you get back at them. They have trampled on you long enough. They have treated you like fools and made you do their hard work for them, while they take your money and they pay themselves millions, while they enjoy the high life and you pick up the pieces.

Today, our society is breaking apart. Singaporeans are suffering because of the PAP’s greed and their selfish wanton desires. You gave them your vote election after election and they’ve walked all over you for the past elections. So, they’ve treated themselves like kings because no one, no one dares smack them in the face and tell them to get back in their place. So they ran amok and they ran you down, and you sit there wondering how it all happened.

They had 50 years, god damn it. They had 50 years to tear you apart, limb by limb. And there you are, thinking and hoping that one day they will turn around. It’s too late for them to turn around now. 50 years of entrapment, you think they will let it all go so easily?

It’s time you get some balls and stand up. It’s time you behave like a Singaporeans and fight for your rights. It’s time you live up to your pride and you make it count. By now, you better be aroused enough. They took your money, they took your life. It’s no joke. And if you are still sitting down and if you still think you can choose to turn a blind eye, then my friend, you have lost it.

Fight, my friends. Fight. Fight to get back the Singapore that is yours, that is ours, that is ours to live for and to fight for.

They cannot take our homes and our land from us. They cannot rob us and get away with it. Fight, my friends. Fight.

On 3 May 2014, at 4pm, we will be holding a protest to protest for our rights to have fair wages and rightful employment. And we will fight and show them our might. Now, they won’t listen but it doesn’t matter, does it? Because it’s no longer about asking them to listen. It’s about us coming together and making our voice and our power heard. Let’s come together and show our unity. Let’s come together and let them know Singaporeans are never going to take it lying down anymore. We will fight them and we will beat them.

If you’ve decided to attend the event, do pledge a $1 commitment to attend this event. Each pledge will be used for the event. We hope that more Singaporeans would take a stand and come together in a show of unity to let others know that it is time we will no longer allow our rights to be abused right in front of our eyes. We need to take our country back. You can transfer your $1 by ATM, Internet banking, or cheque, etc, to POSB Savings Account No. 279-12328-0.

The  more people who come, the more they will realise they cannot have their way. The future of our country can only be decided by the collective will of the people in Singapore and not by their wanton greed.

Join the Facebook event page here.

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Protest Poster 4


  1. Pingback: Thoughts on CPF and Update Thirteen of Defamation Funds | The Heart Truths
  2. Matthias Er

    You can always earn more and use cash to pay if you want to avoid this which you deem is corrupted. Go find ways to make more money. Improve your skillset and aim to live independent of the cpf if you find that it is a thorn in your flesh. There is always some compromise, so stop whining.

    • JL

      It’s a waste of time explaining things to these people who will only atatck you and call you childish names. Theses whiners will never see it from your empowered point of view (of a winner) and will only complain and complain (like the losers they are). They believe the nonsensical rubbish that Roy sprouts and enjoy putting the blame all of their woes on the government when the very reason they are a failure is themselves (yes pls look in the mirror).

      They fantasize that if they put the opposition or idiots like Roy into power, suddenly their economic situation will be better. Thank goodness common sense reins with the 60% to 70% and we keep good and responsible government (they will ever ever admit it) where they should be, in power.

    • IAN KOH

      @Matthias Er. You are missing the point of the article. It is simply analyzing and breaking down the technicalities behind the CPF scheme to allow the people to understand the truth behind the scheme, and how it runs. Try to have a more open mind, and not limit yourself to judge others so vividly. I think Singapore would be a much better place if everyone can learn to embrace varying opinions, and allow the differences in views to add zest and vibrance to our culture instead of creating dissent.

  3. SG Hunter

    Although not totally apparent, its a systemic problem that flows in one direction into PAP pockets. This is the tax that Singaporeans are willing to pay knowingly or unknowingly. Capital controls, eligibility controls & rules etc… is a socialism that applies to average Singaporeans. One needs to make more $$$ than the this tax. Its swim or die.

  4. The Objectivist Singapore

    If one possessed the moral and legal right to his own property, he would be free to reinvest in another field, lest he decides that his current investment should not be yielding such abysmal returns. The problem here is that the state claims both moral and legal right over the individual’s property, citing the oft repeated phrase of “for your own good” and forcing it upon you whether you like it or not. When the fundamental constant is force, it makes no difference whether the opposing party is the state or a robber: would a robber be more justified in robbery if the legislature made it legal? It is in that regard that all taxation, all manner of laying claim to a sovereign individual’s property (be it to “invest” or to “bank”) is theft, albeit legalized theft.

    One must first reclaim moral righteousness back from the hands of the statists.

  5. Daniel

    Roy, you are an absolute frog in the well.
    Why are you still living in singapore when the green is much greener over at the other fences?

    Accept the system and structure and earn your stay here.

    Singapore is unique. Singapore is a land without natural resources and have progressed so far because the leadership has been capable and thr people who believed in the system worked hard and smart towards better finances.

    There is room to improve no matter how well we have done.

    Shape up or ship out – you socially disruptive m*r*n.

  6. L

    Let’s tear this piece of misinformation down shall we?

    Chart 1, source please. Giving unsourced calculations a chart does not make it any more credible.

    Chart 2, replacement rate means your pre-retirement income vs. your post-retirement income. Singapore has a cap to retirement pension as it is meant for meeting minimum standard of living and not for you to live a luxury life (which you should be saving up yourself for). And Singapore has a pretty high top 1%. That means their pre-retirement income (10k+) would be translated to a less than 2k cap. It doesn’t matter for them as they should have plenty of savings. But it makes the replacement rate graph you made meaningless. Besides, the replacement rate only takes account for the minimum pension which would become higher if you did not spend all that you can for housing and healthcare.

    Chart 3, Singapore is rated as the top few pension plans in the world in your source. And you cheery picked the lowest metric out of adequacy (mostly replacement rate again), sustainability (long time ability to keep the system going) and integrity (the cost of the pension system and how much you put in vs. how much you put out). Singapore scored lower on adequacy, and really high for the other two. Overall Singapore system is rated one of the top of the world.

    Chart 4, what is this graph’s horizontal axis again? There is no such graph in your source. I suspect it is replacement rate, again as the position of Indonesia and Malaysia seems eerily similar to where they are in this graph.

    Chart 5-6, we pay the most because we have the most complex and comprehensive coverage as shown in sources of chart 3-4 which are actually singing praises of Singapore’s system. Besides, in countries like Germany, you have insanely high income tax and it goes into pension fund as well, however, they are called income tax.

    Chart 7, more cheery picking! Mmmm… I am hungry. Hongkong’s 7.5% is from 2010-04-01 to 2010-12-31. I think even the writer dare not pick a location so closed to us and give a percentage like 30.1% from 2009-04-01 to 2010-03-31. Average of 10 years is 5.5% from his source. Still significantly higher than Singapore’s 2.5% right?! Oh wait, that is for the first $20,000 of your ordinary account (which is raised to 3.5% in 2015), And after that we have 5% interest until $60,000 and 6% from then on (

    Our system is not perfect, far from it. We can make suggestions to improve it. But man, your cherry picking is disgusting.

    Oh by the way, you completely lied about CPF accrued interest. Let me put it simply.
    2 people, A & B, having the same amount in CPF:
    Both has 10,000 to begin with.
    A did not withdraw, B withdrew 5000 for his HDB.
    A year later, A enjoyed 3.5% and now has 10,350 in his account.
    B now has 5175 with that same 3.5%.
    Now, B needs to pay back into his CPF (not the government, his own CPF) so he can enjoy the same pension.
    5000 is his initial account, 175 his CPF accrued interest. After that, he reaches 10,350 just like A.
    Now both live happily ever after.
    See how CPF accrued interest work now?

    The rest are basically blind rage about this CPF accrued interest he so sadly misunderstood.

  7. Observant Critic 33

    Quite a pretty bit of misinformation here. Here a couple obvious ones right off the bat:
    #1 SG’s low interest rates compared to other countries are simply due to the low interest rates for SGD. More details at the end of the post.

    #2 In the cost of mortgage, are double counting the 100k price increase due to interest and then in the extra 2.5% you have to pay back to yourself.

    #3 Temasek and GIC do not manage CPF funds. They are funded through taxes and government borrowing (government bonds) and other forms of government revenue. CPF as an entity, manages its own funds. CPF is a capital guaranteed fund, therefore it is invested in the lowest risk investments which provide very low rates of return. If you want to invest your CPF you are free to do so (with certain restrictions). However, we as a people have had a poor track record of investing. The average CPF money investor has made returns below 2.5%.

    My thoughts:
    Yes, the Singapore government is kind of like a helicopter parent. Imposing and unyielding, and does not let us make our own mistakes and harm ourselves. It is a trade off, restricting our own freedom to make our own decisions for our own finances to protect us from financial ruin. This, in theory, helps to achieve better social stability. I personally believe it would be an improvement if CPF were to be able to grant more avenues for conditional withdrawal of funds, which they are beginning to approach which is a good thing.

    Do approach your local MP, or write in to CPF, if you want to affect change in the way CPF is being operated. Or, you may join the public service as well. That is the correct way to affect change. It is inappropriate to post misleading and inaccurate information to sway others to your motive. It also weakens your argument when people do begin to take you seriously and start poking holes in your arguments like I am doing now.

    Continuation from #1:
    As you might have known with a little bit of basic finance knowledge, high interest rate currencies depreciate more compared to low interest rate currencies. The reason SGD is low because Singapore adopts a foreign currency policy instead of an interest rate policy unlike some other countries, and for the past few years in particular, a gradual appreciation of the SGD, which caused low interest rates for the SGD. If you prefer the Malaysian Ringgit go ahead and convert your SGD and put in RM deposits, their interest rates are high, and depreciation rates are sky high as well.

    • Jerry

      In your paragraph “MY THOUGHTS” you mentioned HELICOPTOR PARENTS” I’m sure your also have a family with kids. If your kids wanted to borrow money from you to buy a house would you charged them interest? I’m sure as a parent you would go all out to finance them and won’t charge them interest right? As a Singaporean, (Born Singaporean. Not adopted) served National Service for a token sum set by the government (supposed to be our father) which is about one third of what we’re supposed to earn in the private sector, why can’t the government (our father) charge us one third of the commercial interest rate for loan. Only know how to take and don’t know how to give.

      • Barry

        Charge them monetary interest of course not! What kind of shitty parent does that. However, at the end of the day, payment for a house for your kid is taking money away from your own retirement fund. You are investing in your child with the “interest” or “return on investment” being they will take care of you when you are older.

        If you are part of the lucky few where your parent’s retirement fund is substantial enough that an endowment sufficient to buy a new house means nothing to them, then great, your logic is sound jerry. But for majority of people, whose parents are sacrificing a sizeable portion of their retirement fund to reduce your monthly expenditure on rent increasing your own personal expendable income, the parents are doing so on the implicit expectation that you the child will support them during their retirement financially or otherwise on the basis of filial piety ingrained in our social fabric.

        Same thing here, if you’re taking the money out of the CPF, as poorly executed as one might argue, a mechanism designed with the intended purpose of supporting you in your retirement, you are borrowing money from your own retirement fund and you are paying yourself back this 2.5% interest to support future you.

        The situation is the same, the principles are the same, the only difference is the lender (parents v cpf) and the mode of repayment (supporting your parents v your own cpf). At the end of the day, if you perform an accurate audit, taking into account as best you can intangible value you have to return to your parents, the total value expensed either way is comparable.

  8. piggy

    This guy must had failed his maths during sch time….
    1. Do you live in same HDB for 40 or 50 yrs? If yes, then you must be damn poor and stupid as dumbass in Singapore.
    2. Accured interest is not calculated as total sum of withdrawal lah… Troll

  9. Allan

    Yes I Agee to this but so call the “Government” will used the 5 Singapore National Law against the person and which cannot over come the act of laws … the worse of Singaporean are the person who refuses to face reality or confront a problem.

  10. Ahmad

    The guy who uses tons of statistics to slowly confuse stupid readers and then write up bullshit to completely drown the PAP in shit. Only people who fail classes are overwhelmed by graphs and charts believing everything you wrote blindly without actual knowledge.

  11. John Ong

    L’s explanation is spot on. The whole point of accrued interest is to make sure that, after you buy and sell your flat, you have the same amount of money in your CPF as someone who didn’t.

    The way you framed the issue is very misleading. In your post, you continually refer to the accrued interest as a sum that is “paid” to the government. That did not seem so bad until you added (1) the interest rate paid on the housing loan to (2) the rate at which interest on the funds are accrued, and then used that to calculate the “total interest paid”.

    (1) involves money that you will never get back – it is to compensate the government for letting you spend money that you don’t already have. This is standard practice in the private sector, except with higher interest rates.

    (2) involves money that you’re returning from the proceeds of the sale of your flat back into YOUR CPF. This is in no way similar to (1), where the money is no longer yours. There is a distinction between you paying someone, as in (1), and you being made to top up your savings at a certain rate, and have that cash held in someone else’s custody, as in (2). The misconception that (2) equates to (1) is what everything after Chart 13 is built on, and it is not a strong foundation.

    The framing of the issue lends very little credibility to what you’re saying. If there was an issue you could have addressed to be constructive, it would have been the guidance the government provides. Not everyone can time the sale of their flat optimally, which means the government could improve by advising people whether the sale of their flat would severely and adversely affect their CPF savings. Simply saying “don’t sell now” can signal people to wait until the housing prices are higher before selling, and seek any required funding from other sources. This can make sure they make enough from the sale of their flat to return the principal and accrued interest to CPF. Would this not be more constructive than calculating large sums using an incorrect frame of accrued interest, and then using emotive language to stir negative sentiment?

    Our government doesn’t get things right all the time, but I don’t see how posts like this help. Right now, as long as no one can prove that the government policies are bad, we can only choose between the alternatives out there. So, either tell the government where they’re wrong and offer a better alternative with proper justifications (unlike this post), or just help people make the best decisions they possibly can.

  12. AJ

    CPF Board or the PAP Government has to stop this accrued interest imposed. This are clearly daylight robbery!

  13. Curiosity

    If a $300k flat makes actual cost is around $1mil. The hdb sale market would be all trading above a million dude. Market is efficient. If your calculation is right, then sweep all the hdb that are on sale below a million. Ure making money! Undervalue!

  14. PC

    Have I miss out athg? Cash $15k and $45k via CPF. The balance $240k on mortgage loan. Where does $240k come from? Isn’t it from the spool of cpf contributors? Becos of the loan, investment revenue was affected right? How much investment loss affected? Have this been considered? So the pay back of 2.5% on the interest against the investment loss had it been not withdrawn for mortgage loan – isn’t it fair? 🤔🤔🤔

  15. Jeremy cheng

    Roy, what a load of crap you have written, firstly despite my limited knowledge on the CPF system Versus other countries systems, a face value search using Google will reveal that the information you have used to justify your argument is misleading. Simply put you used only a portion of the information and not the full context of what it actually is to back your claims. That itself makes you post questionable, the very fact you’re trying so hard to prove our system wrong reveals your misconceived bias towards the system without a fair evaluation.

    Secondly, since you’re so unhappy with the system Singapore has, please just get the hell out of our country and perhaps, go to Malaysia instead. Instead of trying so hard to effect change with your impractical bs.

  16. Nick

    And then there are multiple layering of taxes on top of taxes from the moment an HDB project is being built. Construction workers all got worker levies right? And it’s raising all the time. Now it’s like $700 per head? So who takes all these levy? Poor foreigner blue collar workers! What they take home is slightly more than their levy. And with transportation cost / logistical cost one of the highest in the world due to taxes over taxes ie: rental cost for companies/vehicle operation cost, what else can one expect? This trend of tax structure is never gonna come down…. In the long term, you’ll only see one graph pattern, a raising pattern. No wonder so many local construction firm have closed down for good. So many citizens sucked dry and high.

  17. Chong guat ngoh, alice

    My house was on fire on oct last year. I did see my PM Ms. TING PEI but l was only given my initial of $5000. My house was renovation cost me around 25k. I begged and even ask for eithet another 5k or 10k. But was totally rejected. I even gone to borrow from the cpf n they refered to 1 dept to another but due to l am staying in a massionate l am not qualify for. So my cousin use his credit cards to borrow the loan to settle my agonies. But his saving was lock up because his loan was over his income. It this our government? What is call democracy? Our govt say we r unity? The is our national pledge? People like me, l have no friend/s n my children left me because l was undergoing a lot of operation n even now my eye had problem and my pitituary gland has a tumor, my youngest son is a doctor n now singspore govt can afford to sent him for upgrading but having a good job and his family. I did whatsapp abt my problem. He had now aviod me totally. Our govt only wanted young people and lack of filial piety. What l have invested and my care with love to him is just only a mother to do.
    When my husband and chilren had taken all my money when they were afriad of my death in2005. When l was in hospitalise in 2006, l was so desperated n upset but my youngest son, Dr. Kelvin dare not to face me. At last l had to another person to be my husband and l only get partial of the money wanted to pay my hospital bill. But l cannot overcome my conscioudness l call police. But all doctors , staff and my cousin tried to reach my son, he instead ask the police to sent me to mental hospital and l was put in the prison. My lawyer n my cousin kept getting this youngest son to pay at least a visit but he never. The only time he visit me in the mental hospital was required by doctor. He look down on me as a ex- convict. He brought his family with two grand kids and buy me a dinner. His motives but maybe he know l was familar states. He want me to take care of his kids. Without wanting to pay a air ticket for me. I have study very hard in UC Berkeley, University of Auckland and well as in University of Melborne.
    I had a good job with UN and Greater New York. During my married to this husband, CHUA MENG KEE at the age of 18 yrd old lwas always being abused atmost violenty at all times. Actually when married me is a plot, after his divoced with 2 kids. Chua chi ming and Chua Jenny ( who is a teacher) but she had tried all ways and means to muliputing and instigating my 2 kid. Chua chi hoong and chua chi ming. I was too kind heart to let the former wife to come visit her children. At first she just only help but after sometime she beg to lend her 30k for buying a flat in Geylang East Ave 1 #04-81. Her name is madam Koh Siow Huay. This kind of lady kept poisoning my children while l was gone for upgrading at my youngest son was at primary 6. But every year l did come to take my kids for tour and spent my summer holidays with my kids. After my gradation, l stsrted an Employment agency, Multilink Expediting Pte Ltd with a very good reputation. Far before govt had set the rules of teaching maids n counselling of 2yrs services. My husband used this at an excuse and kept flirt around and even take my house as a brothel for over 6 yrs while l was do my studies.
    After l came back wanted my kids but she refused because l have given her $2000 per month just to take care the house chores. Other expeditures are paid by my alternate with my husband. Last but not least, while l was having colon cancer n under treatment, he had engaged a formor maid that my step daughty, Chua Jenny. ( she send this maid off because she had found out the maid is have affair with my husband) but lwas not aware. So before l came back, this maid already in my house. I had at utmost time saw my husband sleeping with my maid but l dare not to say a word. But 1 day, because of the maid is in my house and only accompanied my husband without doing any job. I only just say in Indonesian that she is becoming more daring. While l was sleeping in the middle of the night, out of sudden l was beaten by my husband and the maid and even kick me down from my massionstte. Our neighbour reported to police and l took a PPO again him. Yet he still kept harrassing and threathening me. A Transport company l started for him since 1977. He quickly changed to he and his ex-wife name.
    His ex-wife is his accomplice kept calling me on mental suffering. So my cousin had to act as my boyfriend and move to stay with me on double decker bed. As l know my husband is very strict and authentic traditional man who know my weakness that wanted me to be his salve so my cousin discussed with his wife and stay at my house as well as accompanied where l go.
    All my above- mentioned grivencess is not asking for anyone to empathize me.
    But why the govt still wanted me to paid him 20% of my last asset. Which my cousin had to sold off his house and paid for me. He had not contributed any thing to the family. All money come from l have earn by working 3 jobs a day to kept 8 people in family with good life. But why Singapore govt had not take into consideration on woman chapter and putted me in jail which l was all the time suppoting PAP. Because of getting into the prison and made a prospective with potential person to become stagnamt and rejected by Singaporean society because of ex-convict. I was so desperated so just 2 days before l tried to commit another stealing case. As my husband had threathen me cannot appear at my son wedding. Because during my son gradation, he forced my son not to let me attend his gradation as will disgace my son.
    It is singspore govt never bother to hear n trying to ask me on buy back scheme n lock my cpf and l get peanut bt the govt will had a greater piece.
    Now it seem that everyone is so worry about our CPF. But l sincere know Singapore govt also very paraniod and is under agonies too but at least if the govt are sincere n caring to we citizens. Give us partially of our cpf instead of lock for our kids if they dun deserve to have it.
    I hope those who had read this txt will understand l am opposing the govt but rather a lot of department PM are still stuck in their own opinions. Nothing about politics.
    With regards

  18. Taya Smith

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  19. Victorique

    Reblogged this on Dreamingmtthoughts and commented:
    And this just makes me even more likely to decide to emigrate by getting a chance to study abroad. Costs are nothing, when compared to having to put up with this.

  20. Agnes

    Dear Roy
    I love your video on the detailed dirty corrupted cpf hdb scheme
    Can you create a video on the devious corrupted medishield life & the retirement payout too?
    I have been going to cpf and sending them nasty email on their explanation on how they calculated their retirement payout, and as of now cpf could not produce the spreadsheet on how their calculation based on their formula works out.
    I’ve question them time & time again for the detailed spreadsheet, which they could not produce
    I’ve read in Wikipedia that you are based in Taiwan, have you given up your citizenship?
    Sorry I do not have a facebook account.

  21. Ash

    Hi roy,
    A piece of advise don’t need to waste your life fighting for Singaporeans who still think we have the best system in the world. Let it go and enjoy your life. Rather then be a political prisoner. Just let it go bro. The smart ones will leave SG.

  22. xbao

    Very good but what is the bloody point when everyone still keep voting pap? People the problem, people know the problem but people don’t want do fk to remove the problem. That is what you need to solve. Everyone alr know how they eat our money just that no one wanna change things.

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