MPs offer ideas to improve CPF

[tikam buddy]

Pls do not forget that if non-citizen are exempt from contributing to cpf, they will be "cheaper" than us by abt 20%. Who do you think the local companies will prefer to hire?

Assuming that all unit labors are equivalent and that you can interchange people and jobs with perfect matches, yes I agree that the non-payment of CPF by foreign talents will disadvantage Singapore citizen workers, and 20% is a significant number.

I am happy to pay higher cost for everything, if the government is willing to step up and put everyone into the same system (i.e. CPF). Does that solve the issue? How about the following questions:

1. Why are they having the same interest?
2. Why are they allowed to take out the money when leaving?
3. Why are they matched the same 16% as citizens?
4. Why are their contributions tax deductible for employers
5. Why are they allowed to invest in the same non-CPF instruments as citizens?

How about just taxing all companies 20% extra for all foreigner headcount? I think that's a great idea that will completely level all playing fields between Singaporeans and foreigners. Actually something like 40% would be good as well because that accounts for the tax differences between some foreign jurisdictions and here - after all they are all having a great time sheltering under Singapore's low tax system and sucking high salaries while being here.

Everybody will pay; maids, childcare teachers, bangalas, whatever - you name it the government will tax it.

Then distribute all the proceeds into the CPF accounts of Singaporeans (citizens only, PR not included) as extra interest. Kill two birds with one stone - great solution?

Perhaps theological but also applicable to looking after your finances:

http://www.mennonitechurch.ca/files/news..._v6n08.pdf

Moral of the story I would say is to always count the horse's teeth...