Singapore
New retirement savings package announced by PM Lee for older Singaporeans
Prime Minister Lee Hsien Loong announces the Majulah Package, aiming to bolster retirement savings for Singaporeans aged 50 and above. Targeting 1.4 million citizens, this S$7 billion initiative will offer yearly bonuses and one-time top-ups, focusing on those with lower incomes. Eligibility details to be released in 2024.
SINGAPORE: Prime Minister Lee Hsien Loong unveiled the Majulah Package on Sunday during his National Day Rally (20 Aug), a new initiative aimed at bolstering retirement savings for lower and middle income Singaporeans aged 50 and above.
The package includes:
- Yearly CPF Bonus: Those who remain employed will receive an annual CPF bonus of up to S$1,000.
- One-time CPF Bonus: A sum of S$1,500 will be granted to those who have yet to meet the CPF Basic Retirement Sum (BRS).
- One-time MediSave Bonus: Individuals who are 50 and above this year will benefit from a $1,000 bonus.
This initiative is primarily designed for Singaporeans born in 1973 or earlier. With an estimated cost of S$7 billion to the government, it is expected to especially benefit those with lower incomes and fewer assets.
Approximately 1.4 million older Singaporeans, translating to over eight in every ten Singapore citizens aged 50 and above in 2023, are projected to gain from this package.
A means test that factors in income, residential annual value, number of properties owned, and CPF savings will be applied. Specific eligibility details are set to be disclosed in 2024.
This package is also tailored to support the Pioneer and Merdeka Generations, resonating with the broader objective of urging older Singaporeans to extend their working years.
Addressing the segment termed as “young seniors”, which includes those born between 1950 and 1959 and in 1949 or earlier, PM Lee noted that while this group generally fared better than the Pioneer and Merdeka Generations due to Singapore’s growth, they earned less than the younger workforce. This demographic also has less time to capitalize on the CPF system enhancements and accumulate adequate retirement savings.
The Majulah Package, according to PM Lee, aims to ease concerns surrounding retirement, especially as this age group juggles the dual responsibilities of looking after younger and older family members.
The package’s primary component, the Earn and Save Bonus, offers a yearly CPF bonus ranging between $400 and $1,000 to lower- and middle-income workers, contingent on their continued employment. This bonus, in addition to the regular contributions from both the employer and employee, will be credited to the recipient’s CPF account.
Underlining the importance of continued employment for “young seniors,” PM Lee cited an example of a 55-year-old with lower income. If this individual chooses to retire at 65, the Earn and Save Bonus would result in an additional CPF savings of S$12,000 over a decade, inclusive of interest.
To further fortify retirement preparations, the Retirement Savings Bonus (RSB) will be introduced for those who have not reached the CPF BRS, offering a one-time bonus of between S$1,000 and S$1,500.
The RSB also extends its reach to non-working individuals, including housewives with low CPF balances.
Amidst rising healthcare expenses, the MediSave Bonus, which involves a one-time top-up ranging from S$500 to S$1,000, was introduced as part of the Majulah Package to provide relief for medical bills and insurance premiums.
PM Lee also mentioned that improvements to existing schemes, like Silver Support, Workfare, and the Matched Retirement Savings Scheme, are in the pipeline. Comprehensive details of these enhancements are anticipated in 2024.
Ensuring a sustainable financial approach, a new fund will be established by the Ministry of Finance, using resources from the current term of government, to cater to the Majulah Package’s lifetime costs. PM Lee emphasized that this strategy is designed to prevent imposing financial strains on upcoming generations.
Crime
Singaporean fugitive deported from Thailand, to be charged with drug trafficking
A Singaporean fugitive arrested in Thailand, was deported to Singapore on 19 September 2024 and faces drug trafficking charges. Authorities expect him to face the death penalty under Singapore’s tough drug laws for running a smuggling operation between Thailand, Australia, and Singapore.
A 31-year-old Singaporean man, wanted for drug trafficking offences, was arrested in Thailand and deported to Singapore on 19 September 2024.
The fugitive, identified as Benny Kee Soon Chuan, was apprehended by Thai police at his residence near Bangkok’s Suvarnabhumi Airport and will face charges in court on 20 September.
Kee, described as a high-level trafficker, ran a smuggling operation that trafficked crystal methamphetamine, ketamine, and Ecstasy to Australia and Singapore using Thailand as a transit hub, according to Pol Lt Gen Panurat Lakboon, secretary-general of Thailand’s Office of the Narcotics Control Board (ONCB).
Cross-Border Investigation and Arrest
The Central Narcotics Bureau (CNB) of Singapore had issued an arrest warrant for Kee following investigations into two drug trafficking cases in December 2020 and November 2022.
He had been on the run since 11 April 2016, prompting CNB to collaborate with its international counterparts, including the ONCB. Thai authorities were tipped off by CNB on 12 August 2024, and after weeks of investigation, Kee was apprehended on 17 September.
Thai immigration officials revealed that Kee had entered Thailand earlier in 2024 using a Vanuatu passport.
Following his arrest, Kee’s Thai visa was cancelled, and assets worth 15 million baht (S$585,000), including luxury watches, gold pieces, and a luxury car, were seized during a raid on his residence in Samut Prakan.
Lt Gen Panurat confirmed that the fugitive had been living an affluent lifestyle in Thailand despite lacking legitimate employment.
Links to Broader Drug Network
Kee is believed to be linked to other Singaporean traffickers involved in the smuggling of drugs from Thailand.
In March 2021, Thailand’s Anti-Trafficking in Persons Task Force (AITF) intercepted packages containing Ecstasy and ketamine destined for Singapore, as well as crystal methamphetamine bound for Australia.
Two other Singaporean men, aged 21 and 29 at the time of their arrests, were later sentenced to imprisonment and caning in Singapore for their involvement in these operations, which were connected to Kee’s trafficking network.
Death Penalty Under Singaporean Law
Kee’s deportation to Singapore brings him under the jurisdiction of Singapore’s severe drug laws, which prescribe the death penalty for those convicted of trafficking substantial amounts of controlled substances.
Singaporean authorities have indicated that he could face the death penalty under the country’s strict drug trafficking laws. Pol Lt Gen Panurat indicated that Singaporean authorities are expected to seek the maximum penalty for Kee’s alleged offences.
Arts & Culture
Epigram Books to close SAM bookshop amid low sales and footfall
Epigram Books will shut down its bookshop at the Singapore Art Museum on 26 January 2025, citing low sales and foot traffic. The independent bookstore, known for supporting local authors, will continue to operate its online store, but its future in brick-and-mortar retail is uncertain.
Epigram Books, a major supporter of Singaporean literature, will close its Epigram Coffee Bookshop at the Singapore Art Museum (SAM) on 26 January 2025.
The decision comes after years of struggling with low sales and foot traffic at the Tanjong Pagar Distripark location, marking the end of the bookstore’s three-year lease.
The announcement on 19 September follows Times Bookstores’ closure of its final outlet in Holland Road, highlighting the growing challenges faced by brick-and-mortar bookstores in Singapore.
Edmund Wee, publisher at Epigram Books, expressed disappointment, stating: “We tried everything to make this work. Over the past three years, we’ve often asked ourselves, how many people even knew our bookstore existed here, let alone visited?”
Despite efforts to boost traffic, including operating shuttles to increase accessibility, the bookstore struggled to attract visitors consistently.
Epigram Coffee Bookshop, previously located at the Urban Redevelopment Authority Centre on Maxwell Road and later in a pop-up at Beach Road, relocated to SAM in May 2022 in partnership with Balestier Market Collective.
The 20-seater store featured towering shelves showcasing local and Southeast Asian titles, including books from other independent publishers like Ethos Books and Math Paper Press.
However, the location’s industrial setting, which only saw spikes in visitors during major exhibitions like Olafur Eliasson’s, limited consistent footfall.
The closure coincides with the end of Eliasson’s exhibit on 22 September 2024. Although the exhibition provided a temporary boost to the bookshop’s sales, Epigram noted that the increased traffic was short-lived.
Epigram’s future in physical retail remains uncertain. Mr Wee indicated that high rental costs make reopening a physical store unlikely: “Unless rent prices relent, it’s unlikely we’ll move into another space.”
Epigram Books has been a significant presence in Singapore’s independent book scene, promoting local authors and holding literary events.
The bookshop was also a community hub for the literary arts, hosting numerous book launches and events supporting local writers. “These spaces are special to our literary arts community. They’re where book lovers gather, where literary events and book launches happen in support of our writers,” said Mr Wee.
Despite the closure of the SAM store, Epigram will continue to operate its online store. The publisher emphasized the need for continued support from readers: “We’ve come this far with everyone’s support, and we look forward to continued support from our readers as we transition to focus on online sales.”
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