FORMER labour chief Lim Boon Heng has ruled out cuts to Central Provident Fund contribution rates for now, saying that a range of measures already in place can be used to trim wage and business costs here.

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The trouble is that Mr Lim Boon Heng is an ex-Minister in charge of labour affairs. What he says presently has no value of commitment as far as the government is concerned.

I rather they cut the CPF contribution from the employer than the variable wages. Most people need cash for daily expenses. Why is it a blunt instrument? I do not get it.

Whatever is cut, it is still your money.

if not then whose money? It hits you. Hits your total income.

Which cut is permanent? Which is easier to be restored, wages or CPF?

CPF is by law.

Wages? No law needed to get it restored.

Govt finds it best to leave it in the hands of the employers to cut cut cut. Cut wages.

Govt does not want to touch the CPF as it reqires the law to act, both to cut and to restore. It becomes political, a poltiical matter.

Cutting wages is not political as it is cut by employers not cut by the Govt. Out of Govt hands. Getting smarter this time.

despite robust and scorching economy last few years the original cut was not fully restored. it's shameful to even discuss about cpf cuts now.

That was precisely the point and I felt it was too blunt [a blunt isntrument] to bring it up in these tough times. All staring into darkness.

You did. You rubbed it in for good.

Why not cut GST back to 5%?
It benefits both businesses (in terms of lower business costs) and consumers (may spur local consumption)

Cut GST.

It is between the devil and the deep blue sea.

I think most of the high cost of living here is as a result of Government induced overcharges like the GST, land pricing, HDB housing, transportation, other exorbitant indirect taxes,etc. If the Government is sincere, these should be seriously looked into holistically at a time like this, than to be giving lectures on how free services can jack up GST BY 1.5%, when nobody is asking for free services actually.

naive Singaporeans still never realise that CPF is a financial mechanism introduced legally to monopolise the workers money , all within the 'legalized framework'. Time to abolish this dictatorial mechanism and let the people the free entrepreneur freedom to decide their own money. The present financial crisis national wide proved that the CPF is not able to help the contributors to maintain sound saving for older age or golden age(if you ever live that age).

happy Healthy Wealth New Year 2009 to all employess in Singapore, from
me http://theinnozablog.blogspot.com again