Government to weigh economic conditions before each hike in CPF rates: Chan Chun Sing

Singapore

THE government will be very mindful of economic conditions and cost pressures before it makes the next move to increase the Central Provident Fund (CPF) contributions as well as to raise the retirement and re-employment ages, Trade and Industry Minister Chan Chun Sing said on Tuesday.

To allay concerns of companies, especially small and medium enterprises (SMEs), that the changes announced on Sunday by Prime Minister Lee Hsien Loong in his National Day Rally speech would push up business costs, Mr Chan said a very balanced approach would be taken in implementing them, with the increases paced over 10 years so that "every step of the way, we take into account the economic conditions".