Major CPF policy shift on the way

[cfa]

Here's my take on my earlier post:

1) If we rely solely on the yes-men (Do you think you are one?), then CPF returns will almost certainly not be improved. That's why I thanked Roy for speaking out.

2) Most of Roy's posts were never debunked. They were intentionally ignored. He was sued for only a very small part of his writings. He was not sued for a myriad of errors in his posts. Again, most people choose to ignore what they don't like.

3) Some are okay with town councils run by managing companies that are led by fellow party members, but they are not okay with non-party managing agents being friends of another town council. Some are also not okay with conflict of interest within the town council, but seem okay with the possible conflict of interests in other town councils and management of sovereign funds. If that is their stand, then we are on clearly different levels of moral values. So, nothing more to discuss. You right, everyone else wrong. Happy?

4) With regards to low CPF returns vs EPF returns, take note that our CPF returns are tied directly to CPF's mortgage loan rates. If you want better CPF returns, it means that tens of thousands of homeowners have to pay higher mortgage. Hence, this means CPF interest rates have to be perpetually kept low, very low in fact, or else the number of people defaulting on their housing loan will shoot up.

Bank interest rates also are closely linked. If CPF pays so little, banks have little reason to raise their bank savings rate. And if bank savings interest rate is forever near 0%, CPF also has little reason to offer you better returns than their 2.5 to 3% return since you are unlikely to get better returns anywhere else.

Perhaps we should consider delinking CPF returns from CPF mortgage loan rates. That could be a start to ensure that CPF returns can move up without affecting mortgage interest.

Spot on !