Performance of the Civil Service

Someone ask: What is the service & efficiency level in the government sector? Are the bonuses of civil seIrvants "guaranteed", unlike the private sector? Is it a metal rice bowl mentality, leaving to complacency, no need to improve? Should the public has a chance to give them appraisal of the performance of civil servants?

Here are my views:

1. There is a fair degree of inefficiency in the public sector. Many civil servants stick to the book, instead of exercise judgement. They do not want to take any risk, as it may cause them to lose their job, if they make a mistake.

2. They impose systems that make them secure or reduce their work, but pass the burden to the public. I have spent hours on submitting many online forms that save just a few minutes of the time of the civil servant.

3. They spent too much effort on achieving their key performance indicators (KPI) that may be badly described. The effort goes to achieve results that are not useful. For example, they bring in foreign direct investments (FDI) that may not benefit our economy, but the numbers are counted anyway.

Not all civil servants fall into this description. Some are quite good and exercise initiative. But, I believe that a large number just follow the book blindly without regard to the wider consequences.

The civil servants receive a bonus that is related to economic growth, and not on the profit of their agency. They bonus is somewhat performance related, but there are people who doubt that economic growth is a good indicator of good performance.

Improve the means tested scheme

2 February 2012 

Eidtor, Forum Page

Straits Times

A panel of Member of Parliaments have the Government

to refine its means testing to make them more equitable and

representative. 

This testing is now used for large scale transfer schemes, such 

as GST Voucher and Central Provide Fund top-ups. Currently, 

they are based on assessable income and annual value of 

residences. 

There has been many complaints from retirees who have 

insufficient income but now live in property with annual values that

exceed the thresholds. 

As means testing is going to be used quite often, the Government

should take the additional step of keeping a record of people

who fall within the test.  The people who qualify could fall within

the currently used criteria. 

Those who fall outside the criteria and do not have adequate income

can apply to be assessed on a case-by-case basis. If approved, their

record can be updated to allow them to be entitled to the financial 

assistance. 

At a later date, applicants can apply for a "means tested card" that can 

be used to access other benefits, such as health care or transport.

Tan Kin Lian

Referendum on Population White Paper

This is the proposed home page of the Petition calling on the Government to call a Referendum on the Population White Paper. May I have your views?

http://tankinlian.com/admin/file.aspx?id=754&IID=761

Free talk on Thinking and Problem Solving

Learn how to solve puzzles and improve your skill in thinking and problem solving.
Free talks are conducted by Tan Kin Lian on Saturday mornings. Book here.
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Content of the talk can be found here
http://tankinlian.com/Admin/File.aspx?ID=742&Frame=1

Withdrawal of CPF savings at 55

Many people are angry at the Government for holding back their CPF at age 55. They argued, "This is our money. Give it back to us at 55, as you had promised. We know how to handle with our money. It is our business, even if we lose it"

I do not support this argument. At the same time, I do not agree with the way that the Government is handling this matter. There should be a sensible compromise.

Here are my reasons:

1. The government is not holding back all of the CPF. They are only holding back the minimum sum. This is the amount that is deemed necessary to support the cost of living for the next 20 to 25 years.

2. Any CPF savings above the minimum sum is paid out at 55. Many people may not have any savings left to take out, as they had spent too much of their savings on buying or upgrading their HDB flats. But there are others, who have been more prudent, that do have some money to take out at 55.

3.  If all the money is taken out at 55, there is a real risk that many people will lose their savings due to bad investments or were cheated by crooks or "lovers". We cannot ignore this risk or allow these naive people to be exposed to it.

4. I repeat - the Government only keeps back the minimum sum (i.e. any excess can be taken out) and gives an attractive interest rate for this minimum sum in the retirement account or in CPF Life. On balance, I think that this is a wise and fair move.

Having said this, I do not agree with the way that the Government is handling this matter. These are the changes that they should consider:

a) Allow the member to make partial or full withdrawal of the CPF minimum sum under certain specified circumstances, provided that they have received counselling  by a specially trained financial adviser.

b) For example, if there are debts to be paid due to illness, unemployment or other acceptable grounds (including bad mistakes made in the past), or even to take an extended holiday, the requests should be considered.

c) For people who are capable of handling their own investments, and can show evidence to that effect, they can request for full withdrawals.

d) Those who wish to migrate from Singapore should be allowed (and I think that this is already the case).

e) If the minimum sum is insufficient, the member should be allowed to ask for the required monthly withdrawal amount, even if the money runs out earlier than 20 years.

My advice to consumers is to keep as much money in the CPF as is allowed, as it is a good, risk free and hassle free investment.

Be assured that the Government has more than enough money to pay you the monthly installments. Do not believe in the rumors that the Government does not have the money. The Government is, in fact, too rich from the high taxes and levies that they have been collecting!

Be prudent in buying life insurance

Understand what needs to be insured and what can be left uninsured
http://tankinlian.com/Admin/File.aspx?ID=281&Frame=1

Insurance package for 1% budget

Here are some tips to get a suitable insurance package for 1% of your annual income. If you earn $60,000 a year, you only need to spend $600 a year on your insurance.
http://tankinlian.com/admin/file.aspx?id=752&IID=759