Recently, PAP state media has launched some propaganda on TV
regarding the history of CPF, it's interesting to note that CPF
scheme, according to Goh Keng Swee was never aimed at creating a
welfare state in Singapore but for capital accumulation for
government projects.
In retrospect it can be seen
that the March 1962 debate marked the death of the proposal to
replace the CPF with a social insurance scheme. The matter was
simply not raised again.
The next indication that the CPF would continue was the
announcement of an increase in the interest rates paid to CPF
members on 5 May 1964.
Even the announcement on 25 August 1964, that the Malaysian
Government was introducing a disability insurance scheme did not
prompt a revival of the social insurance issue from either the
opposition or the government.
New light has been cast on
these events by Goh Keng Swee. In a recent interview with the
author, Goh
claimed that he had always intended to retain the CPF to use it as
a tool of capital accumulation, and that he and Lee Kuan Yew never
had any intention of introducing any kind of social insurance
scheme:
MDB: When did you decide to
keep the CPF as a permanent institution?
Gob: All along. I thought it
was a very useful institution of
savings, started by the British. And then
I intended to raise
contributions when
the time came.
MDB: The whole question of
the CPF and social insurance, was it
tied up with the debate over whether to build a welfare
state?
Goh: I don't think there was
much of a debate on that. We
never believed in the welfare
state.
MDB: And that includes Mr
Lee?
Gob: That
includes Mr Lee. MDB: From his earliest days
that you know of?
Goh: Yes.
MDB: So he was never really
a conventional British Labour Party type socialist, was
he?
Goh: (Guffaws of
laughter.)Well, Singapore is a very small place. And a small
country does not respondto what you expect a bigger country to
react to. In a bigger country you have industries to protect it.
But in a small country you can't.(39)
http://findarticles.com/p/articles/mi_go1877/is_1_46/ai_n28766099/pg_4/?tag=content;col1