Leong Sze Hian
I refer to the article “Singapore envies Kiwi lifestyle” (New Zealand Herald, Feb 9).
It states that
“The bait was better working hours, cheaper cars and housing – and in three weeks thousands from Singapore have registered their interest in living in New Zealand.
An Immigration New Zealand pilot project aimed at attracting Singaporean migrants has resulted in over 1000 registrations each week since it was launched last month, with 3565 potential immigrants having registered their interest in just three weeks”.
According to another article “Survey finds that workers in Singapore put in longest hours” (The China Post, Jan 12),
“Singapore’s workers continue to lead the pack when it comes to the number of hours they put in at work, according to a report by the International Labor Organization (ILO). The report puts them at the top of 13 economies in the group’s Global Wages Report for 2008-09, surpassing even the notoriously hardworking Japanese and Taiwanese”.
Singaporeans are among the hardest workers in the world, but do not have enough, upon retirement, to live in comfort in their home country. Is there any wonder why they should choose to migrate to other places that are much more affordable?
Cars for example, are so expensive in Singapore that a car owner may end up with $2 million less in retirement. This is calculated from an estimated cost of $1,000 monthly compounded at 6 per cent over 40 years.
To explain the poverty of retired Singaporeans, we’d have to explore the possible link between the 2 largest entities that effectively ‘lock up’ the wages of Singaporeans – HDB and CPF.
Increasing flat prices decrease the amount of CPF upon retirement
In line with the government’s policy of letting Singaporeans use their flats for asset enhancement, many Singaporeans have bought their flat, using the bulk of their CPF in a typical 30-year mortgage, in hope that the continued increase in property prices would serve as a boon during retirement.
By pricing flats under ‘market subsidy’ pricing, asset ‘enhancement’ schemes such as upgrading inevitably become a burden to Singaporeans who have no choice but to use even more of the CPF for their upgraded HDB flat. In addition to that, HDB has never disclosed the cost of building flats. Thus, flat pricing, and the amount of CPF ‘locked’ in it, is really at the whim of property speculation.
With 80 per cent of the population living in public housing, and with a bulk of a typical homeowner’s CPF savings ‘locked’ by the flat, social security for the average Singaporean is contingent on HDB policies. When you can’t pay your mortgage, you may lose your home and maybe your life CPF savings too.
Consequently, with the bulk of their CPF ‘locked’ in unliquidated assets, many Singaporeans end up with very little CPF when they retire.
CPF gets transferred out of Singaporeans’ hands, into HDB’s pockets
When the HDB sends a notice of Compulsory Acquisition to flat owners, 90 per cent of the flat’s valuation is used to offset the loan arrears; HDB makes a profit of 10 per cent of the valuation. While it is understandable that HDB as a statutory board has to run on a sustainable business model, it seems counterintuitive that a public housing board should profit from the destitution of its citizens.
For example, flat owners in addition to losing 10 per cent of their flat valuation to HDB, are only given one month to vacate their flats. Why does the HDB not give them a bit more time to find alternative accommodation?
As a public housing authority with the mission to provide affordable housing for Singaporeans, is the HDB not in a sense, in breach of its fiduciary duty, in this arbitrary practice of ‘pinching’ 10 per cent of the valuation?
Are there any public housing authorities in the world that takes an additional 10 per cent profit on foreclosure?
Parliamentarians may like to raise this issue with a view to refunding the ‘pinched’ valuation to all past foreclosed flat owners.
Why it’s almost impossible to get enough cash upon retirement
Effective last year, if you sell your HDB flat after age 55 to downgrade to a smaller flat and to monetise your flat for retirement, any CPF utilised plus accrued interest has to be returned to the CPF account if the CPF Minimum Sum (MS) has not been met.
With the current MS at $117,000, what this policy change means is that this sum cannot be used to purchase the smaller flat downgrade.
Why are we making it harder for Singaporeans to downgrade to monetise their flat for retirement?
Many Singaporeans subscribed to the call for asset enhancement by purchasing HDB flats – only to be hit by the policy change now, which in effect, may result in their inability to cash out of their “enhanced” HDB asset.
The CPF Minimun Sum (MS) was raised from July 1, 2009, for those aged 55 years, to $117,000, up from $106,000. This is an increase of 10.4 per cent, much more than the inflation rate for the previous year, which was 6.5 per cent. How can the increase in MS be “an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement?”
Similarly, the MS was increased by 6.4 per cent in July 2008, from $99,600 to $106,000, when inflation was only 2.1 per cent in 2007.
With the current recession, some of those reaching age 55, may have lost their jobs or failed in their businesses, and thus a large increase in the MS, may cause some financial stress to them. As last year’s increase is the highest in the history of the MS scheme, at its current quantum of increase, does it mean that by 2013, the MS may be about $161,000 ($117,000 now plus $11,000 increase for 4 years)?
Can anyone afford to retire in Singapore in future?
The Longevity Insurance Committee’s (LIC) CPF Life report last year only projected a MS of $134,000 in 2013 (chapter 4). Adding the projected Medisave Required Amount (MRA) of $36,000 in 2013, does it mean that those reaching age 55 may only be able to withdraw $5,000, if they have less than $197,000 (MS $161,000 plus MRA $36,000) in their CPF? How many Singaporeans will have more than $197,000 in their CPF in 2013?
The answer can be found in the LIC report: only 60 per cent are projected to have at least $67,000 in their CPF in 2013.
At the current rate of increase of $15,500 per year ($11,000 MS + $4,500 MRA), will the combined MS and MRA be $352,000 and $507,000 in 2023 and 2033 respectively?
In conclusion, is it any wonder why so many Singaporeans may be thinking about migrating to New Zealand?
Photos courtesy of Wilfed Wong
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look at the moaning of a people ..nationalistic moaning…”Singapore” was a created state by the British. Nothing more. In reality you are Chinese, Tamils or whatsoever..you can change the name of the city state created by raffles.
Britishers really drove the slave mentality into you didn’t you? The region is part of Malaysia geographically and rightfully perhaps to the Malays or Indonesians.
You are just a tiny artificial island there.
Stop this “Singapore that this” crap.
Hi Ralph,
Not sure of the message you are conveying. Can you be more specific and direct? Who is moaning – all contributors to this forum? Some of us are just happy we have an option – we are not moaning! Maybe some did to rubbish Singapore, it is their perogative I guess. Is this a problem to you? And not sure what ‘slave mentality’ you are referring to. Good for you if you think you are one … never crossed my mine I am one.
@ SG-Kiwi, Amran and all… your advices and references are really encouraging. I will continue to work hard in convincing my hubby. Hopefully, its not too late. With our age of 36 & 38. Havent had much time to follow the tread you guys wrote to me. Do feel free to drop more into my mailbox at judywong74@yahoo.com.
A big THANK YOU! to all of you.
I’m glad I’m not the only one thinking of migrating to New Zealand.
Consider Australia as well. More work available at this stage compared to NZL. We have lotsa NZLders coming over.
Oh and that is another good thing with the relations between Aus and Nzl. Citizen of both countries are treated as automatic PRs of the other country, making job hunting easier.
Aus immigration policy is amending as of July 2011 and will consider a wider spread of talent. Age allowable to be considered(with degree and related field manager level experience of more than 2 years) for application of Aus PR will be increased to 49 years of age. Think about the CPF you can get your hands on.
Singapore alot millionaires u all know? ALL LIVE HDB!!! the 3-room flat which is so smallcan easily reach 300,000 to 400,000 if i want to live in a decent 4-room or 5-room HDB? 500- 600k at least
We only have one life, we should treasure it. Live it the way u want to !!
i agrees ,i am just a kid but looking how hard my parent work and still not having enough spend …….. tells mi how much living cost in Singapore is ….. therefore my conclusion is Singapore is a hard place to live in i worry about my future
as singaporean , singapore no longer a lovely city to me anymore. With both our qualification and as an enterpurner in singapore, I have start to plan in 5years time relocate my family and my business to elsewhere.
Disappointed is the only word i can say.
@ blue boy,
i can understand how u feel blue boy.
it is sad to see parent struggling every month and end the end of it not much left :(
the only advice i can give u is study hard and smart if u can go uni go oversea uni like Australia or new zealand.
there u can see and experiance how is life.
all i can say is at least there a chance u can be sucessful and a happy person :)
like me i i work as a despatch man in singapore but i take the risk to move and am very happy ever since :)
cheers!
@change my mind if you can,
i belive i will make the right choice for the family.
hope all the best and dont give up your dream :)
cheers!
@ outside looking in,
i be getting my cpf money at the age of 40 years old heheheeee
now counting down the date. 2 more years to go :) :)
cheers!
Being at work for long hours donesn’t mean working hard. Probably just wokring stupid
me (SPR)& my hubby (spore citizen) is thinking to migrate to australia for a better living, but there are some questions in mind, i hope u can help :
we live at HDB flat, n now under SERS program, most probably we r moving to our new house early next year (2012). After our own calculation, this new house will make us owe to HDB around $60K and zero amount at CPF account.
in case that we r migrate to australia soon let say in the next 2 year from now – 2013, what is goin to happen to our house ? since it is not matured enough to rent out or to sell. if we sell the house (back to HDB ofcourse) we are in loss position coz HDB will buy our flat not in market price but i guess it will based on our buying price. what i understand is that ur new house will double up in price if it is matured (5years time).
secondly, for my PR status, if my hubby migrate and get PR in the new country, what abt my SPR ? should i surrender my PR ? what if my name is as second owner ? should i delete my name as owner of the house ?
do you think it is best for our condition to migrate but not buying any property in australia, until our flat matured ? just to avoid lost in selling the flat, because our flat is the only asset we have, or is it possible if we but property in australia using my name as PR but my hubby will pay for the mortgage ? is it possible form banking side ?
I need help from anybody who have the same experience or maybe have the knowledge about this matter.
THx a lot
Cheers !
i am a singaporean living in new zealand. if you are thinking of moving here, email me! wenjie_182@yahoo.com.sg
Dear Cheer up,
i am no expert on this matter but all i can tell u is how desperate for u to migrate to Australia u must ask yourself on this.
like me and my wife we were so desperate to migrate to Australia we sold our house and moved there without getting a job there! lucky after 7 day my wife got a job heheheee but it was a big RISK dont follow our footstep very dengerous!
make sure u got a job first!!
and secondly how long u intent to lived in Australia? short term or forever?
well the house here in Australia here also expensive but landed property :)
me and my wife is a PR in Australia and no problem of buying a house there :)
hope i answer your question :)
@Amran
Its looks like a wonderful life you have in Melbourne. I have some questions, Can I ask what job you are working in?
In Oz you get free medical, but do you need to buy health insurance?
In Oz you get free school, but do you need to buy books and uniforms?
In Oz you get pension, but how much is it?
I heard of racial discriminations, have you encounter it?
@route97,
yes Melbourne is 1 of the BEST place to live. here if abit hard to get a job due i dont have good cert only have primary 8M.
so now working as a hospital attendance in the hospital.
well once u get the PR and appy for the medicare card if u go to the clinice u can claim back some of the the total bill. well i never been sick here so never go to the clinic yet :)
and for insurance it better to buy because u can go to private hospital for it
here the school is free but the uniform is expensive
as for pension u have to work here a period of time before u can be elgible for it. how much we get i not sure yet because i am new and havent reach that age yet hehehe.
in Australia and any other countries there are sure to have racial discriminations. well in Melbourne is not so bad like other part of Australia because here there alot i mean alot of immigrant and i belive the Australian here somehow get used to us already.
i have not encounter it before and hopefully never but all i can say is Australian are very friendly people once u get to know them really :)
u thinking to migrate too?
Lots of Singaporeans are unemployed now…and from there they will go 4 loans and wil be trapped in debts…thats 1 of the main caused of y local citizens wish to migrates…
@Azai,
there alots of factor why sgrean migrated.
for me is i lost trust and faith in the garment.
i getting old and they dont look after us and we work like cow!
and i dont want my future children to suffer like me so i take the risk to migrate by the look of it i made the right choice :)
cheers!
@Amransan
Thanks for the reply, all the best to you in OZ.
Just leave with it, bros.. Singapore is still one of the best places to live and work in the world. Compare with other neighbouring countries, Singapore is still a lot better. Just go to Johor Bahru or Batam and try to stay there for sometime, then you will know the difference. Dont just complaint, just do it!!!
Hi All,
My husband and I have decided to migrate when we got married. We have been here for 5 years and my children love it. I am currently living in Sydney.
There is a big change for us as we both find that the life here is so much relaxing and thus we have more quality time with our children.
Any Singaporean living in Sydney or intend to come to Sydney can email me : Missy_eve@yahoo.com.
hi Eve,
i am happy for u and your family making the big move migrating to Sydney :)
i made my move 2 years ago and loving every single day here! now in melbourne :)
cheers!
I am a film producing student in Singapore I am currently doing a cross cultural documentary module with 2 other American filmmakers.
Our documentary is exploring the reasons why some Singaporeans want to migrate to other countries and why some foreigners coming from well to do backgrounds come to Singapore and make it their home to the point that they do not mind considering themselves Singaporeans.
We like to find out from some of your community about Singaporeans who would want to migrate and what are their opinions on this subject and if they do not mind sharing their opinions with some American student filmmakers. Would it be possible to let us interview you as well?
Thank you,
We look forward to your reply,
Base on psychoanalysis,
Is all structural faults ! No values in moral for those people who is up there receiving our taxes $ as your salary.
Change functional and input humanlity in Singapore context !
Why more Singaporean people leaves Singapore ?
We all know the reasons !
And stops those rasing prices and give more back to the folks !
Dont wait till voting come then starts promising etc.
As long one puts humanity there will be changes for sure !
people migrate for the quality of life … in SG, what quality you want?
I have been in Canada now for 4 years. Loving every day of it. Can't wait to renounce my SG citizenship and collect my CPF.
Why did I leave SG, you ask? Let me be as honest as I can. 1) I was discriminated for jobs because I am Malay , even when I have 3 degrees. 2) I worked hard leaving work 2 hours after my shift and still doing work on Saturdays and Sundays, 4 hours each day, but not recognized. 3) Singaporeans are rude and uncourteous after 30 years of the Courtesy Campaign. 4) The hot and humid weather of Singapore. 5) The SG govt's daylight robbery of Singaporeans.6) The SG govt washing their hands from healthcare for Singaporeans. 7) The SG govt sanctioning of racial discrimination in the armed forces…and this is copied by the Chinese Singaporeans. 8) The crowdedness in Singapore. 9) The high cost of living in SG. 10) The high stress of life in SG.
Is this enough for you? Are you still in denial?
hi mr M.Amin,
how are u i am amran here and i am glad that u made the right choice to migrate to Canada i belive the life there is much better and less stress and more time for family :)
i myself just migrate to Australia 2years already and i loving it every single day.
it is good to have fellow malay men doing well abroad.
do u have facebook? if u do it would be nice to add u in my facebook.
can i have your email address so that i can add u in my facebook.
u can email me at this address amransan@yahoo.com.sg
cheers!
@Amin, "The SG govt sanctioning of racial discrimination in the armed forces…and this is copied by the Chinese Singaporeans."
How is this copied by the Chinese Singaporeans? Do they racially discriminate? Have you experienced it?
Uh Hi,
I'm currently a student but i thought i was the only few singaporean who thought of migrating! I'm trying very hard to study and fight a place so when i graduate i could Migrate to Canada :D
@Gideon,
that is a very good thought Gideon.
Canada i heard its a very nice place to live in .so dont give up study hard and go to a greener place and your next generation will grateful to u :)
like some of us here who already made the move are very happy :) :)
all the best Gideon :)
I've read the above thread of migrating out of sg, and it gave me a boost to my thought!! Thanks for the sharing…. Me and my wife (no kids) have been thinking of migrating out of sg for quality life, but procrastinate for several years.. we actually consider several place, not sure where we should go…. mmm
hi amran,
i love the way you bite the bullet, and just go, i have the same spirit as you but my husband is different , i am not going to convince him anymore, i am going to go oz,myself for me and my kids future, we are still a couple but independent thinking, is it going to happen for us, pls email me cos i think sg is getting oversaturated.he gives me his blessings and say to get a job there first, and he will join me later please help cos i have the same spirit as you cos i am stuck in sg no matter which way i look, please advise, thanks