Committee of Supply 2024 debate, Day 4: Louis Chua on CPF Ordinary Account reform
The “long-outdated and archaic formula” by which CPF Ordinary Account interest is computed needs to be reformed, said MP Louis Chua in Parliament on Monday (Mar 4). He said the last change was in 1999 and despite much higher market rates currently for fixed deposit and savings accounts, CPF “deems the level of deposit interest rates to be an unbelievable 0.66 per cent for the period from August 2023 to October 2023”. Mr Chua said “the least we can do” is to reflect prevailing market rates. He called on the Government to proactively review CPF interest rates to ensure their relevance in the prevailing environment.
The “long-outdated and archaic formula” by which CPF Ordinary Account interest is computed needs to be reformed, said MP Louis Chua in Parliament on Monday (Mar 4). He said the last change was in 1999 and despite much higher market rates currently for fixed deposit and savings accounts, CPF “deems the level of deposit interest rates to be an unbelievable 0.66 per cent for the period from August 2023 to October 2023”. Mr Chua said “the least we can do” is to reflect prevailing market rates. He called on the Government to proactively review CPF interest rates to ensure their relevance in the prevailing environment.
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