CPF Scheme under scrutiny
SINGAPORE : Should the CPF Investment Scheme be stopped so that
members will not risk losing their retirement nest egg?
Yes, thinks a resident who claimed that he had lost some
$350,000 in his CPF account after investing in shares under
CPFIS.
The Lengkong Tiga resident, who identified himself as Mr Goh,
said during the ministerial dialogue on Sunday that he only got
back $35,000 eventually but did not say if these were the gains
from the investments or the amount he could withdraw from his
Ordinary Account (OA) on top of the Minimum Sum.
He also did not say how he lost the sum and whether the
investments spanned a few years.
MediaCorp understands that members can only invest up to 35 per
cent of their money in their OA in shares.
Mr Goh said he had suggested to the CPF Board to stop allowing
members to invest in shares but staff had replied that it was his
personal choice to make the investments.
Second Minister for Finance Lim Hwee Hua said she agreed with
the CPF Board’s stance, adding that there had been "a lot of
demand" for the Government to allow members to invest their CPF
money before the CPFIS was introduced.
She quipped: "I’ll convey your feedback to the CPF Board but I’m
not quite sure the rest will agree that we should stop the
scheme."
The latest performance numbers of funds under the CPFIS released
earlier this month pointed to a solid year.
According to Lipper, the funds tracking company under the CPF
Board’s guidelines, the average return of CPFIS—included funds,
unit trusts and investment—linked insurance products (ILPs) rose
38.62 per cent last year compared with the same period a year ago.
— TODAY
CNA 29 March
