Tan Kin Lian - Perspectives Allow retrenched workers to make monthly withdrawal from CPF
I do not like an unemployment insurance scheme. It is difficult to manage and is likely to be abused. The cost to the taxpayers or participants is likely to get out of control. It will become quite expensive.
The Workers Party proposed a scheme several years ago. They projected a low cost. At that time, I found their assumptions to be unrealistic

DPM Lawrence Wong now wants to introduce a variation of this scheme using Skills Future. I think that it is a bad idea to develop a convoluted scheme, by altering another scheme that was created for another purpose.

I prefer that the retrenched workers be allowed to withdraw a monthly sum from their CPF savings, i.e. take out their own money. If they have insufficient CPF savings, they can borrow the money from CPF and run a negative balance that has to be paid back from future savings

My suggested scheme is not ideal and not perfect, but is likely to be more workable than an unemployment insurance scheme.

Tan Kin Lian

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