REACH 513 - What are your views on the new ComLink+ scheme? How else can we assist to empower and uplift low-income families?

(SK)

22 Nov 2023 (10am - 7pm)

REACH

22/11/23, 9:45 am - +REACH: *Dear Contributors,*

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22/11/23, 9:46 am - ~ REACH Singapore changed the group description

22/11/23, 10:00 am - +REACH: *📢 Topic 📢*

Low-income families with children will be empowered over the longer haul to improve their lives, as the Government shifts its approach to helping these families from providing social assistance to social empowerment.

Minister for Social and Family Development Masagos Zulkifli announced details of the new ComLink+ scheme on Nov 20. ComLink+ is a key plank of the national drive to reduce income inequality and boost social mobility under the Forward Singapore report, which was launched on Oct 27.

*💬 What are your views on the new ComLink+ scheme? How else can we assist to empower and uplift low-income families?*

It consists of four support packages in areas like pre-school education, employment and home ownership.

📌 _*Pre-school education*_

Each child enrolled in pre-school will get a one-time $500 top-up to the Child Development Account (CDA), which is a special savings account for the child that can be used to pay pre-school and healthcare fees, when they turn three. 

Those between the ages of three and six will get a $200 top-up to their CDA every three months if they attend pre-school regularly. Regular attendance is defined as when the child is in pre-school at least 75 per cent of the time.

📌 _*Stable employment*_

Beneficiaries will be given financial incentives if they find a job that pays CPF contributions with a gross salary of at least $1,400 a month. Each adult with a job that meets these criteria will get financial top-ups of between $450 and $550 in a combination of cash and CPF payouts for every quarter that he or she is employed. If two adults in the same household qualify, they will each get an extra $50 every three months. 

A maximum of two adults per family can benefit from this employment package geared towards encouraging families to find a stable job.

_📌 *Debt clearance*_

To help families clear their debt, this package will match dollar for dollar, up to $2,500, the amount the family repays for what the MSF calls verifiable debt. This refers to debt owed to licensed companies, such as utilities and housing arrears, that can be verified and for which repayments can be tracked. Debts to unlicensed moneylenders and sums owed to family and friends are not covered.

Families can benefit from this debt clearance package only once. To qualify, they must not be receiving financial aid from the Government’s ComCare scheme.

_📌 *Saving for home ownership*_

To help families save up to buy their own flats, for every dollar that the family voluntarily contributes to the CPF Ordinary Account, the Government will top up $2. A family can receive only up to $30,000 in total payouts across this package and the employment package. 

About 14,000 families on the Community Link (ComLink) scheme are eligible for these new areas of support, which will be rolled out from the second half of 2024.

👉🏻 https://www.straitstimes.com/singapore/new-financial-incentives-to-spur-low-income-families-to-work-towards-improving-their-lives

👉🏻 https://www.straitstimes.com/singapore/family-of-5-hopes-to-one-day-move-out-of-rental-flat-and-buy-their-own-home

👉🏻 https://www.straitstimes.com/singapore/low-income-families-will-be-empowered-to-uplift-their-lives-forward-sg-report

22/11/23, 10:00 am - ~ REACH Singapore changed this group's settings to allow all participants to send messages to this group

22/11/23, 10:01 am - +REACH: <Media omitted>

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22/11/23, 10:05 am - +~L: I feel immensely proud of our government right now. Every where else in the world I see government creating division in their own countries in order to maintain power.

22/11/23, 10:06 am - +Frankie Wee: Singapore many families broken down few years ago and became heavy debt

22/11/23, 10:06 am - +~L: One area that requires continual attention is training and upskilling. While we have schemes for this, they don't seem very focused and often more recreational based, for people who can afford them without needing a subsidy.

22/11/23, 10:07 am - +Frankie Wee: Couple had to leave kids no choice

22/11/23, 10:07 am - +Frankie Wee: Thanks to govt support and helping low income families

22/11/23, 10:07 am - +~L: These announced measures are very tangible and provide practical support for those who need it most.

22/11/23, 10:07 am - +Frankie Wee: Also kids will have go to school support fund

22/11/23, 10:08 am - +Frankie Wee: I think because of the scam Singapore lose total $1.3B

22/11/23, 10:08 am - +~EH: As mentioned before the government can start by mandating for government contractors that are bidding for tenders, to employ a certain % of low income Singaporeans as a start as this is something that can be controlled and initiated by the government themselves.

For Home ownership, 

Benefits for citizenship at its core should be looked at. If you see things around us, we tend to put Citizens and PRs in the same category in terms of priority or subsidy. Yes there are examples like school fees, but we should apply it uniformly to differentiate between Citizens and PRs

Offering scheme for voluntary unemployment insurance should also be made available for folks who would like to subscribe to it using their CPF funds for up to a certain number of months. Of course this should be a last resort, but the government should offer a scheme where citizens contribute to for unemployment insurance instead of giving handouts, this way folks can be assured that there is some money to tide over in the event of retrenchment or extreme unemployment

22/11/23, 10:08 am - +~L: Clearing debts -  very important to break the vicious cycle of financial hardship.

Requirement for school - needed to get kids on the right track from early age.

22/11/23, 10:09 am - +~L: This is an interesting idea: Offering scheme for voluntary unemployment insurance should also be made available for folks who would like to subscribe to it using their CPF funds for up to a certain number of months.

22/11/23, 10:10 am - +~L: Do people need 'encouragement' for this, or help getting it? 

"A maximum of two adults per family can benefit from this employment package geared towards encouraging families to find a stable job."

22/11/23, 10:31 am - +Jimmy Chew: This message was deleted

22/11/23, 10:35 am - +Kelvin Ang: Will those who could do with such assistances/schemes but residing in HDB purchased flats also benefit?

22/11/23, 10:36 am - +Jimmy Chew: I think the danger is borderline cases. Seems like the poor has more hand outs than the not so poor 😕

22/11/23, 10:38 am - +Jimmy Chew: Haha the smart poor will tap the system doe their benefits and remain poor 😜

22/11/23, 10:38 am - +Jimmy Chew: It's a complex issue

22/11/23, 10:39 am - +Kelvin Ang: Agreed! One too many r under the cat "fallen thru the gaps" n such schemes could give their children a better future....

22/11/23, 10:40 am - +Frankie Wee: Social worker documented proof think how they apply

22/11/23, 10:40 am - +Kelvin Ang: Social workers r not miracle workers...😂

22/11/23, 10:41 am - +Frankie Wee: 😳

22/11/23, 10:41 am - +Jimmy Chew: It's a wonderful start.

22/11/23, 10:42 am - +KL: Total is 35,000 SGD right ?

22/11/23, 10:43 am - +Frankie Wee: Annual income

22/11/23, 10:44 am - +KL: if I read the articles carefull I see total max payout should be 35,000 GSD

22/11/23, 10:44 am - +Jimmy Chew: I worked in debt collections in a bank. Based on anecdotal evidence, no amount of loans by family members will help one who owes money to stop borrowings... only ah long beatings and bankruptcy will stop them

22/11/23, 10:45 am - +Jimmy Chew: Tough Love will do it <This message was edited>

22/11/23, 10:46 am - +Frankie Wee: Bankrupt and loan in personal different way. If loan mean repayment 

If bankrupt mean unable to pay bank huge amount

22/11/23, 10:47 am - +Frankie Wee: Moneylenders license will alway chase them debt collectors every monthly

22/11/23, 10:48 am - +Frankie Wee: Moneylenders license anyhow no requirement income they can allow borrow min.

22/11/23, 10:49 am - +KL: <Media omitted>

22/11/23, 10:49 am - +KL: :))

22/11/23, 10:50 am - +KL: noted

22/11/23, 10:53 am - +Jimmy Chew: Legal has. illegal only nric

22/11/23, 10:55 am - +Frankie Wee: Breadwinner low income they need money but bank loan requirements income mins they can’t approval.

22/11/23, 10:59 am - +Jimmy Chew: Agree. Cross referencing us helping them with their debt. Giving anecdotal evidence because their family members who can afford tried to bail them out from ah long and other banks. It's hard to stop their borrowing habits

22/11/23, 11:00 am - +Jimmy Chew: There are exceptions like my niece who borrowed and owed 30k. That's before the credit bureau. <This message was edited>

22/11/23, 11:01 am - +Jimmy Chew: We paid it off for her and she learnt her lesson

22/11/23, 1:33 pm - +Jimmy Chew: https://theindependent.sg/nearly-50-singaporeans-in-the-past-two-years-unable-to-repay-debts/

22/11/23, 1:33 pm - +Jimmy Chew: If you're not poor. You have debt problems too

22/11/23, 1:35 pm - +Rama: Yes

22/11/23, 1:37 pm - +Rama: Being discipline while clearing your debts with the help of credit bureau is very important to overcome your financial mistakes.

22/11/23, 1:41 pm - +Frankie Wee: Stressful

22/11/23, 1:42 pm - +Frankie Wee: Capped minimum debt make sure do not over loan 💵 when need use it for.

22/11/23, 1:43 pm - +Rama: Maximum credit should not be more than two months salary for main card holder and one month for supplement card holder.

22/11/23, 1:44 pm - +Frankie Wee: Omg $80,000 can’t pay back moneylenders license but charge interest rate too high than bank personal loan

22/11/23, 1:45 pm - +Frankie Wee: That’s why any company no required income mins they are taking too risky

22/11/23, 1:54 pm - ☸️  Danny 心: 

1. I am impress and awe by the Minister and MOS MSF foresight to transform "social assistance" to "social empowerment" in the social welfare policies - to uplift themselves and pull themselves out of poverty and sufferings and break the vicious cycle of permanent underclass.

2. "Social assistance" is a reactive approach to help the underclass - a "band-aid" approach - that only can temporarily relieve the underclass by paying debt and living expenses but not able to emerge and break from the vicious cycle of poverty.

3. "Social empowerment" is a proactive approach to ensure the underclass get permanent job, put their children into schools (get education and graduate with an employable certification), pay off debt (in a sustainable way instead of snowballing) as well as home ownership (a roof over their heads) instead of paying rents on a house that don't belong to them.

In a long run, this will be able to help the underclass emerge from their poverty vicious cycle, and become sustainable and even do well in their living.

4. A kudos to the Minister, MOS and MSF civil service folks!

22/11/23, 1:59 pm - +Jimmy Chew: Yes. High risk,  high returns. No risk, no  return hahahaha

22/11/23, 2:08 pm - +Frankie Wee: Strike it if high risk investment in return repayment debt clears

22/11/23, 2:09 pm - +Frankie Wee: What if lose investment and nothing return then burden debt repayment

22/11/23, 2:10 pm - +Frankie Wee: Bitcoins or crypto currency are at risk real time index 48/7 buy and sell

22/11/23, 2:12 pm - +Frankie Wee: Best is pls save deposit bank safe than zero risk and long term or insurance. Stay humble don’t ever dream rich when money not easy income.

22/11/23, 2:26 pm - ☸️  Danny 心: 

1. Another thing, the Government has the foresight not to allow people to tap and withdraw from their CPF before 55 years old - to fund, finance or to be used in their cost of living expenses or whatever other purposes other than the stated CPF objectives :-

a. Ordinary Account - to finance housing

b. Special Account / Retirement account - to finance retirement

c. Medisave Account - to finance healthcare

2. The reasons being :-

a. Low income people earn very little, $1,000 plus, $2,000 ---- how much will go into their CPF?

Negligible - even by releasing their CPF will not be of much help - and their CPF will be wipe out in no time.

b. Even higher income who earn more have more CPF to tap on - but it will become addictive and with the slightest difficulty or failure to plan their expenses properly (eg. spend lavishly - will always fall into financial difficulty) - higher income group will always give the excuse to tap on the CPF to finance their lifestyle.

c. When people are younger, they are more energetic, more versatile and more drive to find jobs and earn income even they may temporarily encounter difficulty due to job loss. With help from Government to help them retrain &/or find jobs they can easily bounce back and stand back on their own feet.

Hence, tapping on their CPF the moment job crisis arise - is an easy way out and will condemn people in the long run - by impacting their abilities to fund their retirement when they get old (and more difficult to find jobs, health problem) - by kicking the can (problem down the road).

d. Let us see what happen to our neighbor country for tapping allowing people to tap their retirement fund the moment covid strike --- and now turn the whole nation into a retirement crisis - that the Government has a very difficult time to pull the nation out of the retirement crisis.

We must learn from this lesson by not following their footstep and make such a fatal financial mistake.

https://www.channelnewsasia.com/cna-insider/malaysia-afford-retirement-crisis-epf-pension-drawdowns-covid-pandemic-3877331

_Worst policy ever’: Retirement time bomb after Malaysia’s pension drawdowns amid pandemic?

Malaysians took RM145 billion out of their pension fund to cushion the impact of the pandemic. 

More than half aged below 55 ended up with less than RM10,000 in their accounts. 

Is Malaysia facing a retirement crisis, the programme Insight asks.

Anyhow use CPF the moment COVID hit - now retirement savings left with nothing for retirement._

e. I have come across a few older people who live from one paycheck to another paycheck -- by spending all their salaries and income with very little or no savings in their bank account -- even though they earn high salaries.

When they get old, fortunately, their CPF are locked and can't be used - for their lavish lifestyle.

When they retired at 55 years old, their CPF life is their only fund source to provide them a monthly gratuity of about $2,000 to enable them to finance and tie them through their basic essential day-to-day living expenses.

Without the CPF retirement account via CPF life - these people will really have to beg in the street if they can't get a job at their old age - leading an old miserable life.

f. Moreover, our CPF is meant for our retirement, finance housing and healthcare - and we must not be distracted from these objectives - and trigger a financial crisis to our people come our retirement.

22/11/23, 2:27 pm - ☸️  Danny 心: 

https://www.channelnewsasia.com/cna-insider/malaysia-afford-retirement-crisis-epf-pension-drawdowns-covid-pandemic-3877331

Worst policy ever’: Retirement time bomb after Malaysia’s pension drawdowns amid pandemic?

Malaysians took RM145 billion out of their pension fund to cushion the impact of the pandemic. 

More than half aged below 55 ended up with less than RM10,000 in their accounts. 

Is Malaysia facing a retirement crisis, the programme Insight asks.

Anyhow use CPF the moment COVID hit - now retirement savings left with nothing for retirement.

22/11/23, 2:27 pm - ☸️  Danny 心: <Media omitted>

22/11/23, 2:27 pm - ☸️  Danny 心: <Media omitted>

22/11/23, 2:32 pm - +Frankie Wee: Govt allow them withdrawal RM$200 monthly but they poor healthy

22/11/23, 2:36 pm - ☸️  Danny 心: 

Tapping on retirement account the moment a difficulty arise without looking at other better means - is a sure way to snowball into a financial crisis not only at personal level,   but also national level and future descendants taxpayers will be very stress - when government need to solve the financial crisis by taxing them.

Never fall into such honey trap.

Our neighbor is a good lesson and we should learn from it and not copy them blindly.

22/11/23, 2:38 pm - ☸️  Danny 心: 

If not done properly, government can fall as social unrest will follow when people beg on the street at old age without CPF for their retirement.

22/11/23, 2:39 pm - +Frankie Wee: I think Malaysia govt use scheme to help them support allowance monthly in lifetime till they death

22/11/23, 2:40 pm - ☸️  Danny 心: 

An innocent but fatal policy - can kill us overnight.

Nationalisation is one.

Using CPF to finance living expenses during young age instead of retirement is another one.

22/11/23, 2:40 pm - +Frankie Wee: We may live 100 years old

22/11/23, 2:41 pm - ☸️  Danny 心: 

The problem is their money is not unlimited, and the government reserves are almost depleted.

It is not sustainable.

22/11/23, 2:54 pm - ☸️  Danny 心: https://www.channelnewsasia.com/singapore/cpf-daily-withdrawal-limit-default-online-2000-protect-scams-3933291

Default daily limit of S$2,000 for CPF withdrawals among new measures to protect against scams.

The default daily withdrawal limit can be adjusted to any amount up to S$200,000, but any increase to the daily limit requires Singpass face verification and a 12-hour cooling period.

For members who wish to disable online withdrawals, they can do so by activating the CPF withdrawal lock, which instantly sets the daily withdrawal limit to S$0.

Once the lock is activated, withdrawals can only be made in person at CPF service centres.

My close friend comments :- 

This is good. We can lock up our CPF until we need it.

My comments:-

Actually CPF also adopted the government "2 stage money lockout" + my recommendation - OOB authentication - propose for bank money transfer and withdrawal.

That's :-

1. Digital in, Physical out.

2. OOB authentication.

Hmm...

But I also noticed one loophole.

Withdrawal limit can reduce or open up online via singpass.

If scammer download malware, it can capture the singpass credentials, open withdrawal limit from $0 to $200,000 online and then transfer out the CPF money.

I feel that to open up higher withdrawal limit, should visit CPF branch to do it to be foolproof rather than doing it online.

Reduce withdrawal limit can be done online via singpass.

My comments:-

I relook the news article, it say increase withdrawal limit need singpass face verification.

So biometric authentication is used.

Just be careful our facial biometric data don't get stolen.

Safer than just rely on singpass digital token.

But need to protect our facial biometric features and not it get stolen by scammers.

My close friend comments :- 

Have you weigh and balance conveniences and security. 

This is a much improved safegaurd.

My comments :- 

Yes.

It is a better balance between convenience and security.

Also more secured - because harder to steal facial biometric than digital token.

That's why I didn't object vigorously.

But important not to let scammers steal our facial biometric.

Because once stolen, forever gone.

Anyway, I already has been force by CPF system to scan my facial biometric.

If I don't scan, I can't access my CPF.

Bo bian , 😂.

22/11/23, 2:57 pm - +Frankie Wee: Safeguard cooldown 12 hours

22/11/23, 2:59 pm - ☸️  Danny 心: 

Help, but not foolproof - because people may not have look at the sms notification or email notifications - when withdrawal limit is raise to $200,000.

Or people may not react to it even after seeing the notification.

Appearing at CPF branch - will ensure the person know what is going on when CPF officer check physically with them.

22/11/23, 3:01 pm - +Frankie Wee: System will inform them purpose for reason withdrawal mins $200,000

22/11/23, 3:02 pm - +Frankie Wee: And also beware about scam

22/11/23, 3:02 pm - +Frankie Wee: Any no reason May rejected them for safeguard

22/11/23, 4:00 pm - +REACH: *📢 Topic 📢*

22/11/23, 4:02 pm - +Uncle Law: maybe can look at social support for these families with young children, whom may not be very good with their studies. these children might just give up on their studies and may turn to bad influences

22/11/23, 4:21 pm - +Frankie Wee: Agreed

22/11/23, 4:21 pm - +Jimmy Chew: fantastic effort to meaningfully lift children of families who are really struggling and wanting to be better

22/11/23, 4:21 pm - +Jimmy Chew: An innovative approach, hopes it works

22/11/23, 4:21 pm - +Frankie Wee: Child need a cope attitude

22/11/23, 4:38 pm - +Kenneth Lee WM: For the parents, I think not much more can be done to help them keep their heads above water.  

The only way out of the poverty cycle is for their children to help them get out of it.  Besides the excellent education system and scholarships, children need to have good supervision after school.  In poor families, 2 parents need to work and their kids don't have proper supervision. Nobody motivates / encourages children to read books, spur their curiosity, or do useful things with them.  Most kids are left in front of TV or roam about with friends.  Good after school childcare is very difficult and costly to find.  

Once the kids excel in school, they can get the scholarship and boost themselves further; get good internships etc.

22/11/23, 5:49 pm - +Frankie Wee: https://www.channelnewsasia.com/singapore/secondary-school-subject-based-banding-posting-groups-form-classes-3311176

22/11/23, 5:49 pm - +Frankie Wee: It’s good mix share student

22/11/23, 5:59 pm - +Frankie Wee: If I am not wrong the future system education change better much improvement.

N/O level replace

G1-3

Pri6 result point enter ITE

Their age start NS at 16 

SG young 21 start working

22/11/23, 6:02 pm - +REACH: *📢 Topic 📢*

22/11/23, 6:45 pm - +REACH: REACH wishes everyone good health and a Happy Deepavali! 😃*Dear Contributors,*

⏰ We will be closing the chat in *15 minutes* ⏰

Thank you very much for being part of our WhatsApp chat and participating actively.

Goodnight!

Megan 😊

22/11/23, 7:00 pm - +REACH: *Dear Contributors,*

We will be closing the chat for today.

Thank you very much for being part of our WhatsApp chat and participating actively.

Goodnight!

Megan 😊

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