The recent public housing resale statistics is hallowing: 12% price decline over the past 6 years and continuing. Falling housing value has been a sobering “fake news” for PAP-supporting Singaporeans who bought in the propaganda lie that HDB apartments would rise indefinitely.
The greater implication on HDB prices is the passing down of inheritance wealth to younger Singaporeans. Singaporeans would not be inheriting their family home where they and their descendants can continue living – no thanks to the 99 year HDB lease.
Without inheritance, Singaporeans in the middle and low income class will be further disadvantaged against and the inequality in Singapore worsened. Unlike their richer peers who would be inheriting stock options, businesses and other non-property assets, most Singaporeans depend on the HDB value for inheritance.
So with HDB value diminished, the next biggest common inheritance is the CPF money.
Unfortunately for Singaporeans, CPF funds have been grossly corrupted by Prime Minister Lee Hsien Loong, albeit legally. Through his double-hatting as the Chairman of GIC and the Prime Minister controlling the various financial regulators, Lee Hsien Loong indirectly manages the CPF funds.
Since Independence, CPF funds have been growing at its slowing rate at 2.5%. According to official figures, the earlier 1970s and 1980s, under Lee Kuan Yew, saw interest rates averaging 6.5%. His son, Lee Hsien Loong, however depressed the interest rates at 2.5% since he inherited the premiership in 2004.
CPF also returns the lowest interest rate when compared to other long-term fixed deposits and retirement funds. This is legally done through a fake formula conceived by Lee Hsien Loong, which requires him only to pay the minimum 2.5%. According to his “formula” in Sep 2018, Singaporeans should be getting 0.32% instead of 2.5%. You have to thank him for legally stealing your retirement fund is what Lee Hsien Loong is saying.
The national retirement fund is a failure, and it is now heavily dependent on elderly Singaporeans being forced back into the workforce. It is common to see an 80-year-old wiping tables in the coffeeshops and doing other manual labour like cleaning public toilets. The bigger shame is that these working retirees would still have to pay CPF from their pittance pay, unprotected by a poverty wage.
Elderly Singaporeans do not have enough CPF funds for themselves, how much do you think they will have left for their children as inheritance?
Inheritance aside, the retirement scene in Singapore is shameful and the way how the country treat their retirees is deplorable. Anyone calling Singapore “first-world” deserves a slap on their face.