on a
(c) There is only limited support for a centralised fund of the Singapore type, run by the Government or by a statutory authority. Private funds,
funds, operating on standardised basis but approved and regulated by Government or by a tripartite management body of some kind, are favoured.
(d)
(e)
(E)
a
There is a division of opinion as to whether scheme involving private provident funds should be voluntary or compulsory. The assumption on the part of those favouring a compulsory approach is that individuals will not themselves undertake the necessary level of saving to provide for security in old age.
The economic and financial arguments set out in the review paper have been largely ignored in the public debate, except for disagreement
supporters and opponents of compulsory provident funds about the extent and seriousness of the effect on production costs. However, while these arguments carry little weight with the general public, there is broad support from academic economists for the Administration's analysis of the potential dangers.
between
The economic and financial effects of a decentralised but compulsory provident fund scheme would be broadly similar to those of a CPF run by the Government or a statutory authority. The main point at issue is not, therefore, whether a scheme should be centralised or decentralised but whether it should be voluntary or compulsory.
Action in hand
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The Central Provident Fund review paper outlined a possible alternative strategy. In order to examine further the substance of this strategy, two working groups have been formed within the Administration. These are a working group on social security, chaired by the Secretary for
for Health and Welfare, and a working group on private provident funds, chaired by the Secretary for Education and Manpower.
15
The purpose of the former is to review the existing framework of social security provision with particular reference to the Public Assistance and Old Age Allowance schemes and to consider whether these are meeting the
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