The Central Provident Fund (CPF) system has its share of detractors among Singaporeans but, overseas, it attracts a lot of positive attention.

This puzzling fact could be because Singaporeans do not realise they really have a good deal, says finance professor Benedict Koh, a member of the advisory panel that studied ways to improve the scheme.

He tells Insight in a recent panel discussion: “I present papers at international conferences. You won’t believe what people say: ‘Can I invest in your account?’. ‘Can foreigners buy it?’.”

Many people here are not aware that a 4 to 5 per cent interest rate guaranteed by a government with a triple-A credit rating – the highest rating – is simply unique, says Prof Koh, who is associate dean of the Singapore Management University Lee Kong Chian School of Business.

CPF savings currently accumulate interest of between 2.5 and 6 per cent, including additional interest on lower balances as well as for older members.

There is a legislated minimum interest of 2.5 per cent per year on Ordinary Account savings, but the rate will follow the three-month average of major local banks’ interest rates if that is higher.

For the July to September CPF interest rates, the latter was calculated from February to April and was only 0.24 per cent.

The interest rates on the Special, Medisave and Retirement accounts are pegged at 1 percentage point above the 12-month average yield of 10-year Singapore Government Securities, or 4 per cent, whichever is higher. But there is a limit to what people can expect from the system, because it must be a sustainable one, say Prof Koh and panel chairman Tan Chorh Chuan.

For instance, it is not advisable to extend the extra 1 percentage point interest on the first $60,000 of balances to a higher limit because, “eventually, someone would have to pay for that”, says Professor Tan.

Prof Koh adds: “You cannot guarantee paying interest on a risk-free asset that is permanently higher than the market rates. For a country like ours with limited financial resources, it’s not a prudent thing to do. I teach finance and my message in the first class is always ‘There is no free lunch’. You cannot want high returns and not take risks, you will never find such a financial product.”

For those who do have a higher risk appetite, but lack the time and expertise to actively manage investments, the panel recommended introducing a new Lifetime Retirement Investment Scheme to give members more options.

VIEWING IT AS A WHOLE

But if the system is so good, why do some people clamour to take as much money out of it as they can?

One reason could be that people tend to view the CPF system in fragments rather than as a whole retirement savings plan, says fellow advisory panel member Christopher Tan, chief executive of financial advisory Providend.

Looking at it in parts, people see that they put their money in when they are young, and when they want to take it all out at 55 they are unable to, and at 65 they try again and can withdraw only a portion.

In fact, it is similar to what people sign up for with conventional retirement plans offered by insurance companies, he says, where “you don’t take the money out early, and when you reach the age of 55 or 60 if you don’t take out a lump sum they pay it out as an annuity”.

In CPF Life, money that is in the Retirement Account when members choose to start getting monthly payouts is used as the premium for the annuity that provides the payouts.

“So if people see that connection and they see this like a retirement plan, if you look at CPF like another provider and compare all the products between the providers right now, it’s the best retirement plan you can find, really,” he said.

joseow@sph.com.sg

This article was first published on AUG 28, 2016.
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A piece of cloth and a pair of sharp scissors are all Mr Ken Chow needs to carve out the parts of a ship captain’s jacket.

He runs maritime uniform and tailor shop Ken Fashions for Men, which opened at the basement of Peninsula Shopping Centre in 1971.

The 77-year-old tells The New Paper on Sunday: “In the past 45 years, I’ve seen over a thousand ship captains.

“It is always a pleasant surprise when they come back and visit me because sometimes I don’t know how far they are going and when they’ll return to Singapore.”

Apart from tailoring suits and uniforms for ship captains, Mr Chow also sells peak caps, epaulettes and badges that are imported from Turkey and the US.

A tailor-made ship captain’s jacket costs at least $500 and a peak cap costs $250.

Other items such as baseball caps and a pair of epaulettes cost $50.

Back in the 1970s, crowds filled Peninsula Shopping Centre, Mr Chow says. But now, only a handful of people walk past his shop every day.

He says: “The tailoring trade is dying. Nowadays, people just come in to check the sizes and then proceed to order everything online.

“At least for me, the ship captains still come back and buy their uniforms because these are so rare.”

He adds that while many old customers have retired, young captains who have just graduated from polytechnics are now buying from him too.

Interestingly, Mr Chow didn’t start out as a tailor.

After secondary school, he became a salesman who sold household items.

After two years, he decided to pick up tailoring as he had a passion for fashion. He says his business kicked off immediately.

“I had many friends who were in the maritime business, so they started to introduce more and more friends to my shop,” he says.

“I never intended to sell uniforms for ship captains… it just happened.”

TRUST HIS WORK

One regular customer, Captain San Win, 50, has known Mr Chow since 1994.

He says: “Back when I first knew him, I was only a junior officer who was sent to Ken to buy uniforms.

“Now that I am working in Wallenius Marine Singapore, we decided to engage Ken as our regular tailor because he is experienced, and we trust his work.”

Even after 45 years, Mr Chow shows no sign of slowing down.

He says that even though his two children are not keen on taking over the business, he hopes that someone can take over one day.

“Once I retire, this shop will close. I am willing to teach someone as long as he has the passion to learn.”

This article was first published on Aug 28, 2016.
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Take a 15-year-old teenager’s video games away, put him in an overnight camp, and you may be surprised to find out how little he knows of the world.

“I’ve seen students not know how to peel an orange or use a lighter,” says Outward Bound Singapore (OBS) instructor, Mr Ng Kai Yong.

His role requires him to guide secondary school students who struggle when they have to spend time away from their parents and maids.

He says, laughing: “While kayaking, many of them were shocked that sea water is salty. They probably knew it, but the idea occurred to them only when they were at sea.”

Simple truths like these are why Mr Ng believes that outdoor learning experiences are important for every child, especially for those who have never had a camp experience before.

Mr Ng, 29, who started working at OBS 6½ years ago, says: “I don’t blame them because a lot of these kids are doing it for the first time. I don’t expect them to know how to tie knots straightaway, for example, so we have to teach them.”

Camps are typically between three and five days long and involve a variety of confidence, resilience and team-building activities, such as rope courses, trekking, abseiling and kayaking.

Around 14,000 students go through OBS every year, a number which is expected to rise.

Come 2020, all Secondary 3 students will have to undergo the expedition-based camp, the Education Ministry announced earlier this year.

By then, OBS’ new campus at Coney Island will be up and running, along with its two existing campuses at Pulau Ubin, increasing its capacity.

But for Mr Ng, that means a much busier time ahead as his job also requires him to train new OBS instructors.

WORRYING

With a sigh, he says: “It is quite worrying. Besides recruiting more instructors, we also need to maintain the quality of their training.

“There is a lot of commitment and responsibility involved for instructors.”

Some trainees, for example, start out not being able to swim or have a fear of heights, Mr Ng reveals.

His job is to make sure that by the end of the six to nine months of training, the instructors are ready to take on the responsibility of managing children outdoors.

Each instructor has to supervise a group of 16 students over five days of camp activities – no easy task considering the amount of planning and preparation required.

During an ongoing camp, instructors work around the clock, with a few breaks in between, says Mr Ng.

“The students sleep at 10.30pm, but the instructors sometimes stay up till 1am to discuss the next day’s activities,” he says, adding that they do get time to themselves to call their loved ones and rest.

At these camps, students are encouraged to “surrender” their mobile phones to demonstrate their commitment to the programme’s objectives.

This gives students a choice to give up their digital comforts, though some try to hide their mobile phones from the instructors.

“It is funny to see students rush to the PokeStop in our Pulau Ubin campus when they get their phones back at the end of the camp,” he says.

Instructors currently manage an average of three to four camps every month, says Mr Ng.

To help them cope, instructors enjoy some incentives – such as sugared drinks and snacks – away from the prying eyes of the camp participants, confesses Mr Ng.

“Alcohol is strictly forbidden. We are working after all,” he says.

While the going often gets tough, Mr Ng says the instructors feel rewarded when they see students challenge themselves or overcome their fears.

Every once in a while, he looks at his thick folder of letters from students, each thanking him for his dedication and guidance.

Says Mr Ng: “It makes all the hard work worth it, knowing that you’ve made a difference to their lives.”

SECRETS OF THE TRADE

1. Be sincere and patient when working with students who might not be too enthusiastic about the camp. Give them time, and they will eventually enjoy being at the camp.

2. Develop your own style of working with students, but also be accepting and open to how your colleagues do it.

3. OBS camps involve plenty of physical activities, so keepingfit is a requirement.

ngjunsen@sph.com.sg

This article was first published on Aug 28, 2016.
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Although the haze blanketed most parts of Singapore yesterday, with the 24-hour Pollutant Standards Index (PSI) ranging from 68 to 121 (unhealthy), most sports events around the country carried on and participants enjoyed their day out with no hitches.

Yesterday’s Puma Night Run at the Seletar Aerospace Park, which began at 6pm, saw the 12km and 6km Open runs go on as scheduled. All races would have been cancelled if the 24-hour PSI exceeded 200.

“It’s heartening to see the great turnout and energetic participants despite the gloomy outlook,” said Mr Gabriel Yap, Puma South-east Asia’s marketing head.

At the Queenstown Stadium, the national cerebral palsy football team played a friendly match against the Parliament team at 3pm, with the former winning 6-4.

The National Para-Swimming Championships also continued as planned, with 116 para-athletes competing at Toa Payoh Swimming Complex.

Mrs Michele Liauw, 41, whose 10-year-old son Jeremiah took part in the meet, said of the haze: “It wasn’t that bad. Not something that would kill you, and what doesn’t kill you makes you stronger, right?

“Besides, I’m sure if it was that bad, the officials would know better and would have called it off. We’ve all seen worse haze than (yesterday) anyway.”

However, the ActiveSG Football Academy called off its morning training sessions yesterday when the 24-hour PSI exceeded 100 at 7am. It measured 90 to 143, which was in the unhealthy range. The cancellation was announced in a Facebook post. The Academy will continue to monitor the air quality and will cancel training today if the 24-hour PSI level exceeds 100 at 7am.

Mr Rajan T., 55, whose six-year-old granddaughter Putri Omiraisha missed out on training at the Serangoon Stadium, said: “The children can’t help but feel disappointed. But calling the training off is a good move because health is a very important concern when it comes to young kids.

“You never know what might happen and how the haze might affect a child’s health. It’s always better to take precautions.”

Organisers of the Safra Singapore Bay Run & Army Half Marathon, which takes place today, will also monitor the three-hour PSI closely.

If the reading is between 101 and 200, the run will continue, but adjustments will be made to reduce prolonged or strenuous outdoor physical exertion. Should it exceed 200, the event will be cancelled.

Given the air quality forecast, the National Environment Agency advises the public to reduce prolonged or strenuous outdoor physical exertion. Those who are not feeling well, especially the elderly and children, and those with chronic heart or lung conditions, should seek medical attention.

yogarajp@sph.com.sg

Additional reporting by Jean Iau <!–

For more haze updates from AsiaOne, click here:

This article was first published on AUG 28, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.