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Why contribute beyond Medisave limit? The CPF Scam Revealed.

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  • Ronald.Ng@singnet.com.sg
    Comments: Mellanie Hewlitt 5 December 2004 Singapore Review Below is a recent article from Ronald Ng concerning the Medisave Scam. Ronald s questions echo the
    Message 1 of 1 , Dec 4, 2004
      Comments: Mellanie Hewlitt
      5 December 2004
      Singapore Review

      Below is a recent article from Ronald Ng concerning the Medisave Scam. Ronald's
      questions echo the thoughts of a growing silent majority of Singaporeans who
      are increasingly aware of the scam behind the scheme. Many have been able to
      see beyond the masquerade painted by Singapore Policy Makers and the local
      government owned media.

      What is left unsaid by the local government owned media is the fact that the
      Medisave policies actually create a monopoly market for Singapore Health Care

      This is done by restricting the use of Medisave funds to only medical
      and health care insitutions within Singapore. A patient will not be
      able to seek a cheaper and more effective form of treatment overseas
      if he wishes to use his Medisave reserves.

      The picture becomes even more bleak if a patient has a terminal illness which
      has no known treatment within Singapore. What happens if there is a safe and
      effective treatment available elsewhere/overseas? What happens if the
      patient needs his medisave reserves for this treatment overseas? Under the
      current Medisave policies, such a patient is faced with a virtual death
      warrant. These are questions which Singapore's policy makers and million dollar
      ministers usually avoid and remain willfully blind to. Afterall, ignorance is

      But such bliss do not extend to the average Singaporean. It is no secret that
      the end losers are average Singaporeans who are held ransom to the services and
      escalating costs of the local health care providers.

      The direct beneficiaries are the GLCs and Singapore's government owned
      hospitals and local health care providers as the policy creates a virtual
      monopoly by setting up barriers of entry and artificially inflating
      the cost of health care in Singapore.

      This also works in a vicious circle as the Singapore Government then
      uses the excuse of escalating health care costs to further increase
      the mandatory contributions limits under the Medisave scheme.

      Many Singaporeans have resigned themselves to such a fate and there is
      much truth in the local saying: "In Singapore you can afford to die but you
      cannot afford to fall ill."

      Read-on and find out more on the Medisave and CPF Scam.

      This message was forwarded to you from Straits Times Interactive (http://straitstimes.asia1.com.sg) by Ronald.Ng@...

      Comments from sender:
      From: Ronald Ng
      To: Singapore Review

      Dear Ms Hewlitt

      Below is an article I wrote concerning Medisafe Reseverves which I hope you can also publish in your newsgroup.

      I am an avid reader of your newsgroup and would like to see more of your frank commentary on management of public funds in Singapore.

      Ronald Ng

      Dec 3, 2004
      ST Forums
      Why contribute beyond Medisave limit?

      THE self-employed are required to contribute to their Medisave Account annually - depending on their income for the year - up to a maximum of $30,500. Thereafter, any excess amount will be credited to the member's Ordinary Account.

      I am over 56 years old and can withdraw any CPF money from the Ordinary Account in excess of the Minimum Sum of $80,000 required to be retained by the CPF Board till I am 62 years old. I have not done so as I have no need for the funds.

      I do not understand the logic of forcing self-employed people like me to contribute more money to my Medisave Account when the maximum amount has been reached and contributions are then channelled to my Ordinary Account.

      Ronald Ng


      This message was forwarded to you from Straits Times Interactive
      (http://straitstimes.asia1.com.sg) by MellanieHewlitt@...

      Comments By Mellanie Hewlitt
      Singapore Review
      1 Oct 2004

      With an obscene amout of surplus in Medisave Reserves, huge hidden fiscal
      surpluses enrich the Singapore government and state enterprises but impoverish
      the private sector and tax payers.

      Lack of Transparency is a common issue with the CPF Board and State Owned
      Enterprises. The ST article (in 1 Oct 2004 issue) below is vaguely
      reminiscient of similiar revelations of the huge hidden reserves which the
      National Kidney Foundation had stashed away, even as it sort more charitable
      funding from the general public. Indeed the common theme in both CPF and NKF
      exercises is that they have the central objective of siphoning even more funds
      from tax-payers into the already fat coffers of many state owned vehicles. All
      this is cleverly done under the guise of schemes and policies which are
      supposedly designed to look after the welfare of Singapore Citizens.

      But the abuse is quite glaring since money only flows one way:- into the
      pockets of the state administrators. There is no outflow from the state to the
      public. What happens to the billions of dollars in reserves is also a total

      The high-surplus strategy lowers Singapore's standard of living. Deprived of
      disposable income by numerous taxes, Singaporeans consistently consume a share
      of GDP 10-20 percentage points below Hong Kong levels, while Hong Kong
      maintains a higher per-capita income. It was only recently that the CPF Board
      has also stepped up measures to sue "Medisave Laggards" who fail to top-up on
      their own Medisave accounts.

      These Big structural surpluses most benefit the ruling party, to the detriment
      of the private sector. Unconstrained by tight finances, the government pays
      cabinet members and civil servants some of the world's highest public-sector
      packages. See:

      A variety of analytical shields obscures the embarrassing size of government
      surpluses. Accounting principles differ from global standards. A bewildering
      array of statutory boards, government-linked companies, investment corporations
      and holding companies transact among themselves at undisclosed prices. Key data
      such as the government's share of national savings and the profits of holding
      companies and investment corporations are kept secret. One analyst calls the
      national accounts a "masterpiece of obfuscation." See:

      The other troubling issue which is tactfully avoided by the government is the
      fact that CPF investments (and returns/profitability of State Owned Companies
      as wells as GLCs and TLCs) are under performers and laggards well behind
      private sector standards. Is this is an intended result of figures manupulated
      to obscure huge returns, or are State Owned Entities really so appalingly bad
      at earning decent returns on investments? No one will ever know the answers.

      It is indeed cruel irony that State Organisations and Government Linked
      Companies are ripping-off the very individuals which they are established to
      protect. So blatant is the abuse of public funds that such occurences have now
      been institutionalised and formalised, with the Constitution re-written to
      allow the state and State Owned Enterprises direct access to state/public
      reserves. All this has happened with the blessing of the Auditors General
      office and Finance Ministry. See:

      Legitimisation of Corruption and Nepotism has been tansformed into a art-form
      by Singapore's Ruling Bureucracy, all at the expense of the man on the street.
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