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95-821: It housed the headquarters of the Central Provident Fund Board (CPF). The CPF Building was designed by the Public Works Department of Singapore . The building was completed by 1976. Other firms involved in the development includes Lalesse Gevelliften BV (KONE Lalesse Gevelliftinstallaties), and the CPF. The building was reclad in 2001. On 12 August 2005, a rare demonstration by four people demanding greater transparency and accountability in Singapore's state-managed pension fund and other government-linked agencies. The two men and two women assembled at lunchtime outside

190-525: A ripple effect through the financial system and the economy (as well as any connected economies) as a whole. The foreign ministers of the 10 ASEAN countries believed that the well co-ordinated manipulation of their currencies was a deliberate attempt to destabilize the ASEAN economies . Malaysian Prime Minister Mahathir Mohamad accused George Soros and other currency traders of ruining Malaysia's economy with currency speculation . Soros claims to have been

285-479: A buyer of the ringgit during its fall, having sold it short in 1997. At the 30th ASEAN Ministerial Meeting held in Subang Jaya , Malaysia , the foreign ministers issued a joint declaration on 25 July 1997 expressing serious concern and called for further intensification of ASEAN's cooperation to safeguard and promote ASEAN's interest in this regard. Coincidentally, on that same day, the central bankers of most of

380-565: A further decline in South Korean shares since stock markets were already bearish in November. The Seoul stock exchange fell by 4% on 7 November 1997. On 8 November, it plunged by 7%, its biggest one-day drop to that date. And on 24 November, stocks fell a further 7.2% on fears that the IMF would demand tough reforms. In 1998, Hyundai Motor Company took over Kia Motors. Samsung Motors ' $ 5 billion venture

475-504: A greater devaluation? This is a relevant tradeoff, but there can be no question that the degree of devaluation in the Asian countries is excessive, both from the viewpoint of the individual countries, and from the viewpoint of the international system. Looking first to the individual country, companies with substantial foreign currency debts, as so many companies in these countries have, stood to suffer far more from… currency (depreciation) than from

570-618: A home under the CPF housing schemes. A Housing and Development Board ( HDB ) flat may be purchased under the Public Housing Scheme, or a private property under the Residential Properties Scheme. CPF savings may be used for full or partial payment of the property, and to service the monthly housing payments. With effect from 20 Aug 2024, the Loan-to-Value (LTV) limit for HDB loans was lowered from 80% to 75%. This brings

665-407: A large number of Indonesian corporations had been borrowing in U.S. dollars. This practice had worked well for these corporations during the preceding years, as the rupiah had strengthened respective to the dollar; their effective levels of debt and financing costs had decreased as the local currency's value rose. In July 1997, when Thailand floated the baht, Indonesia's monetary authorities widened

760-542: A large withdrawal of credit from the crisis countries, causing a credit crunch and further bankruptcies. In addition, as foreign investors attempted to withdraw their money, the exchange market was flooded with the currencies of the crisis countries, putting depreciative pressure on their exchange rates. To prevent currency values collapsing, these countries' governments raised domestic interest rates to exceedingly high levels (to help diminish flight of capital by making lending more attractive to investors) and intervened in

855-417: A mandatory insurance scheme that will enhance the existing Eldershield by 2020 for those aged between 30 and 40. Similar to Eldershield, to claim under Careshield Life, one has to lose the ability to perform at least three out of six daily living activities. Careshield Life premium has a longer payment period of 38 years (variable depending on re-employment age cap) compared to 26 years for Eldershield and there

950-537: A more extensive and costly old age pension, as was the norm in Britain at the time. Money contributed to the Central Provident Fund earned a nominal rate of return. The Central Provident Fund was expanded in 1968 to provide for housing expenses under the Public Housing Scheme. In 1984 the Central Provident Fund was again expanded to cover medical care expenses. In 1986 an investment option was added to give members

1045-578: A result of a dip in the values of the currencies of Russia and Latin American countries that weakened those countries' "demand for U.S. exports." In 1998, growth in the Philippines dropped to virtually zero. Only Singapore proved relatively insulated from the shock, but nevertheless suffered serious hits in passing, mainly due to its status as a major financial hub and its geographical proximity to Malaysia and Indonesia. By 1999, however, analysts saw signs that

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1140-473: A result of the crisis. Following the 1997 Asian financial crisis, income in the northeast, the poorest part of the country, rose by 46 percent from 1998 to 2006. Nationwide poverty fell from 21.3 to 11.3 percent. Thailand's Gini coefficient , a measure of income inequality , fell from .525 in 2000 to .499 in 2004 (it had risen from 1996 to 2000) versus 1997 Asian financial crisis. By 2001, Thailand's economy had recovered. The increasing tax revenues allowed

1235-542: A result of the crisis. In May 1997, the Bangko Sentral ng Pilipinas , the country's central bank, raised interest rates by 1.75 percentage points and again by 2 points on 19 June. Thailand triggered the crisis on 2 July and on 3 July, the Bangko Sentral intervened to defend the peso , raising the overnight rate from 15% to 32% at the onset of the Asian crisis in mid-July 1997. The peso dropped from 26 pesos per dollar at

1330-473: A series of bailouts ("rescue packages") for the most-affected economies to enable them to avoid default , tying the packages to currency, banking and financial system reforms. Due to IMF's involvement in the financial crisis, the term IMF Crisis became a way to refer to the Asian Financial Crisis in countries that were affected. The IMF's support was conditional on a series of economic reforms,

1425-494: A temporary rise in domestic interest rates…. Thus, on macroeconomics… monetary policy has to be kept tight to restore confidence in the currency.... From the then IMF managing director Michel Camdessus : To reverse (currency depreciation), countries have to make it more attractive to hold domestic currency, and that means temporarily raising interest rates, even if this (hurts) weak banks and corporations. From 1985 to 1996, Thailand's economy grew at an average of over 9% per year,

1520-489: Is a severe disability insurance scheme that provides monthly cash payout of $ 300 or $ 400 up to a maximum period of 5 or 6 years. CPF members with a Medisave account will be automatically enrolled into the scheme once they reach 40 years old unless they opt-out. In order to make a claim under this scheme, a person must lose the ability to perform at least three out of the six daily activities: Washing, Dressing, Feeding, Toileting, Mobility, Transferring. As of 2018, depending on

1615-585: Is depleted. In 2016, the Minimum Sum was renamed as the Retirement Sum. The retirement sum has been continuously increased over the years to account for inflation and longer life expectancies. CPF members who turn 55 in 2024 will need to set aside a Full Retirement Sum of $ 205,800 in their Retirement Account. Over the years, the Payout Eligibility Age has been progressively delayed from 60 to 65. For

1710-511: Is determined by the Ministry of Health. MediShield Life is a catastrophic care scheme to help citizens and their dependents to meet the high medical costs of prolonged or serious illnesses . Medisave savings may be used to cover the premiums for MediShield Life. Similar to Medisave, policies on Medishield Life coverage, usage and premiums are set by the Ministry of Health while the day-to-day operational aspects are run by CPF Board. ElderShield

1805-413: Is no way to opt out unlike Eldershield. The annual premium is also higher, starting at $ 200 for men joining at the age of 30 and $ 250 for women, with premium rising at 2% per annum initially. The monthly payout starts at $ 600 per month and last through a lifetime. The Dependents' Protection Scheme (DPS) provides insured members and/or their families with some money to get through the first few years should

1900-526: The Central Provident Fund ( CPF ), is a compulsory comprehensive savings and pension plan for working Singaporeans and permanent residents primarily to fund their retirement , healthcare , and housing needs in Singapore . The CPF is an employment-based savings scheme with the help of employers and employees contributing a mandated amount to the fund for their benefits. It is administered by

1995-459: The Government of Singapore Investment Corporation (GIC). Ngerng claimed there was an "uncanny resemblance" between this chart and another chart by news agency Channel News Asia regarding the relationship among City Harvest Church leaders, who were being charged with misappropriating funds. The CPF has been described as "a forced savings scheme" for Singaporeans with "monthly contributions into

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2090-565: The Jakarta Stock Exchange touched a historic low in September. Moody's eventually downgraded Indonesia's long-term debt to " junk bond ". Although the rupiah crisis began in July and August 1997, it intensified in November when the effects of that summer devaluation showed up on corporate balance sheets. Companies that had borrowed in dollars had to face the higher costs imposed upon them by

2185-604: The Latin American debt crisis . The effects of the SAPs were mixed and their impact controversial. Critics, however, noted the contractionary nature of these policies, arguing that in a recession , the traditional Keynesian response was to increase government spending, prop up major companies, and lower interest rates. The reasoning was that by stimulating the economy and staving off recession , governments could restore confidence while preventing economic loss . They pointed out that

2280-462: The U.S. economy recovered from a recession in the early 1990s, the U.S. Federal Reserve Bank under Alan Greenspan began to raise U.S. interest rates to head off inflation . This made the United States a more attractive investment destination relative to Southeast Asia, which had been attracting hot money flows through high short-term interest rates, and raised the value of the U.S. dollar. For

2375-543: The economies of Asia were beginning to recover. After the crisis, economies in East and Southeast Asia worked together toward financial stability and better financial supervision. The causes of the debacle are many and disputed. Thailand's economy developed into an economic bubble fueled by hot money . More and more was required as the size of the bubble grew. The same type of situation happened in Malaysia and Indonesia, which had

2470-554: The handover of Hong Kong sovereignty on 1 July 1997 . During the 1990s, hot money flew into the Southeast Asia region through financial hubs , especially Hong Kong. The investors were often ignorant of the actual fundamentals or risk profiles of the respective economies, and once the crisis gripped the region, the political uncertainty regarding the future of Hong Kong as an Asian financial centre led some investors to withdraw from Asia altogether. This shrink in investments only worsened

2565-472: The " structural adjustment package" (SAP). The SAPs called on crisis-struck nations to reduce government spending and deficits, allow insolvent banks and financial institutions to fail, and aggressively raise interest rates. The reasoning was that these steps would restore confidence in the nations' fiscal solvency , penalize insolvent companies, and protect currency values. Above all, it was stipulated that IMF-funded capital had to be administered rationally in

2660-432: The "General Agreement to Borrow" and the "Emergency Finance Mechanism". The scope and the severity of the collapses led to an urgent need for outside intervention. Since the countries melting down were among the richest in their region, and in the world, and since hundreds of billions of dollars were at stake, any response to the crisis was likely to be cooperative and international. The International Monetary Fund created

2755-533: The Basic Healthcare Sum (BHS). Amounts above the BHS will be transferred to citizen members' other CPF accounts, depending on their age. The BHS for members who turn 65 in 2024 is $ 71,500 and remains fixed for the rest of their lives. BHS for members who are below 65 in 2024 is $ 71,500 and will be adjusted yearly. Members do not need to make any top-up if they do not have the BHS. Policies on Medisave usage and BHS

2850-803: The CPF Investment Scheme – Special Account (CPFIS-SA), subject to caps. Assets that may be invested includes Insurance , unit trusts , Exchange Traded Funds (ETFs), Fixed Deposits , Bonds and Treasury Bills , Shares , Property Fund and Gold . From 1 July 2010, only monies in excess of $ 20,000 in the Ordinary Account and $ 40,000 in the Special Account can be invested. Profits made from investments are not withdrawable but members do not have to make any top-up to their CPF if they incur losses on investments. From 2003 to 2013, CPF members who left Singapore withdrew SGD$ 426 million, or 0.3 per cent of

2945-476: The CPF building in the central business district, Robinson Road, Singapore . They claimed they did not need a permit and staged their protest for about an hour. However, soon a dozen anti-riot police wearing helmets and knee-high protective gear and carrying shields and batons forced them to disperse. The CPF Building exhibited the International architectural style. Similar in design to DBS Building Tower One ,

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3040-500: The CPF contribution rate is 7%. The CPF contribution rate further decreases to 5% for individuals aged 70 and above. CPF OW ceiling is being progressively raised from S$ 6,000 to S$ 8,000 by 2026. The CPF Minimum Sum (MS) Scheme requires all members to set aside a minimum sum of CPF savings in the RA for retirement needs upon reaching 55 years old. CPF savings from the OA and SA would be transferred to

3135-656: The Central Provident Fund Board, a statutory board operating under the Ministry of Manpower which is responsible for investing contributions. The Global Pension Index, an index that assesses retirement income systems, placed Singapore as the best in Asia and 7th worldwide in 2023. CPF monies are used by the CPF Board to invest in the exclusive purchase of Government-issued Special Singapore Government Securities (SSGS), with

3230-549: The IMF, the reserves of Thailand and South Korea were perilously low, and the Indonesian Rupiah was excessively depreciated. Thus, the first order of business was... to restore confidence in the currency. To achieve this, countries have to make it more attractive to hold domestic currency, which in turn, requires increasing interest rates temporarily, even if higher interest costs complicate the situation of weak banks and corporations... Why not operate with lower interest rates and

3325-587: The LTV limit for HDB loans in line with loans granted by financial institutions, which remains at 75% for first home loans. If a flat is purchased under the Public Housing Scheme, mortgage insurance under the Home Protection Scheme will be necessary. CPF members may invest their Ordinary Account balance under the CPF Investment Scheme – Ordinary Account (CPFIS-OA) and their Special Account balance under

3420-487: The Ordinary Account, will earn an extra 1% interest. CPF members age 55 and above will also earn an extra 1% on the first $ 30,000 of their savings. As of 2023, the employer's CPF contribution is 17% for those up to the age of 55 and decreases to 7.5% for those aged 70 and above. For employees, the CPF contribution is 20% up to the age of 55, 15% for those above 55 to 60 years of age, and it decreases to 9.5% for individuals aged above 60 to 65. For employees aged above 65 to 70,

3515-494: The Pioneer Generation Package which provides additional support for the medical expenses of older workers. When the CPF was started in 1955, both employees and employers contributed 5% of an employee's pay to the scheme. The rate of contribution was progressively increased to 25% for both employers and employees in 1985. The employer contribution was cut to 10% during a recession in 1986. The employer contribution rate

3610-451: The RA for this purpose. Members whose savings are in excess of the MS and Medisave minimum sum would be allowed to withdraw them in cash. For members with insufficient savings in the RA, their property bought with their CPF savings will be automatically pledged to make up up to half of their MS. Members would receive a monthly stipend from their RA at the start of their Payout Eligibility Age until it

3705-571: The S$ 150,000 in instalments which was granted by the Prime Minister on the condition that Ngerng paid the S$ 30,000 in hearing costs immediately i.e. by 16 March 2016. Ngerng is expected to repay $ 100 a month from 1 April 2016 onwards over five years until 1 April 2021 when instalments are increased to S$ 1,000 until the full sum has been paid by the year 2033. Lee also rejected Ngerng's request to reimburse part of

3800-472: The Singapore Government, which is one of the few remaining triple-A credit-rated governments in the world. Ngerng apologized "unreservedly" on 23 May, admitting that his allegation was "false and completely without foundation". On 29 May 2014, Prime Minister Lee filed a defamation lawsuit against Ngerng. In a 4 August affidavit , Ngerng argued that his blog post had been misunderstood, and that he

3895-549: The Southeast Asian nations which had currencies pegged to the U.S. dollar, the higher U.S. dollar caused their own exports to become more expensive and less competitive in the global markets. At the same time, Southeast Asia's export growth slowed dramatically in the spring of 1996, deteriorating their current account position. Some economists have advanced the growing exports of China as a factor contributing to ASEAN nations' export growth slowdown, though these economists maintain

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3990-408: The U.S. government had pursued expansionary policies, such as lowering interest rates, increasing government spending, and cutting taxes, when the United States itself entered a recession in 2001, and arguably the same in the fiscal and monetary policies during the 2008–2009 Global Financial Crisis. Many commentators in retrospect criticized the IMF for encouraging the developing economies of Asia down

4085-587: The USD–Baht currency peg, and the Thai government was eventually forced to float the Baht, on 2 July 1997, allowing the value of the Baht to be set by the currency market. This caused a chain reaction of events, eventually culminating into a region-wide crisis. Thailand's booming economy came to a halt amid massive layoffs in finance, real estate, and construction that resulted in huge numbers of workers returning to their villages in

4180-467: The added complication of what was called " crony capitalism ". The short-term capital flow was expensive and often highly conditioned for quick profit . Development money went in a largely uncontrolled manner to certain people only – not necessarily the best suited or most efficient, but those closest to the centers of power. Weak corporate governance also led to inefficient investment and declining profitability. Until 1999, Asia attracted almost half of

4275-570: The affected countries were at the EMEAP (Executive Meeting of East Asia Pacific) meeting in Shanghai, and they failed to make the "New Arrangement to Borrow" operational. A year earlier, the finance ministers of these same countries had attended the 3rd APEC finance ministers meeting in Kyoto , Japan, on 17 March 1996, and according to that joint declaration, they had been unable to double the amounts available under

4370-486: The average total members' balances each year. From 2013 to 2017, an annual average of 13,500 CPF members, or 0.4% of total CPF members, withdrew their CPF monies when they left Singapore. CPF savings can be withdrawn on the following grounds: CPF nominations allow members to specify how their CPF savings will be distributed upon their passing. This ensures that their loved ones receive the CPF monies according to their wishes. By default, CPF members' nominees will receive

4465-548: The blog post alleged that Lee "is guilty of criminal misappropriation of the monies paid by Singaporeans to the CPF" and that the allegations were "false and baseless". Ngerng said that the article was a call for greater transparency on the CPF, the GIC and Temasek Holdings. and called for PM Lee to rebut the points made in his blog post. Singapore's Ministry of Finance has publicly stated that CPF monies are safe as all CPF monies are invested in securities that are issued and guaranteed by

4560-482: The central banks were hemorrhaging foreign reserves, of which they had finite amounts. When it became clear that the tide of capital fleeing these countries was not to be stopped, the authorities ceased defending their fixed exchange rates and allowed their currencies to float . The resulting depreciated value of those currencies meant that foreign currency-denominated liabilities grew substantially in domestic currency terms, causing more bankruptcies and further deepening

4655-401: The chain objectives of tightened money supply , discouraged currency speculation , stabilized exchange rate, curbed currency depreciation, and ultimately contained inflation . In the Asian meltdown, highest IMF officials rationalized their prescribed high interest rates as follows: From then IMF First Deputy managing director, Stanley Fischer in 1998: When their governments "approached

4750-601: The cohort who reached age 55 in 2022, about 50% of active members met the Full Retirement Sum (FRS) in cash while about 30% were unable to meet the FRS in cash or in cash/property. Members with at least $ 40,000 in their Retirement Account at 55 or at least $ 60,000 at 65 years old will be asked to select a CPF LIFE annuity plan, which will give them an income for life, starting from their Payout Eligibility Age. Those who are not on CPF LIFE can choose to join it or continue to keep

4845-472: The country to balance its budget and repay its debts to the IMF in 2003, four years ahead of schedule. The Thai baht continued to appreciate to 29 Baht to the U.S. dollar in October 2010. In June 1997, Indonesia seemed far from crisis. Unlike Thailand, Indonesia had low inflation, a trade surplus of more than $ 900 million, huge foreign exchange reserves of more than $ 20 billion, and a good banking sector. However,

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4940-611: The country, many factors arising from all aspects, including sports broadcasting on Indonesian television, including: Additionally, the Indonesian motorcycle Grand Prix , which was held at Sentul , was dropped from the 1998 Superbike and MotoGP calendars. World Rally Championship also dropped the Rally Indonesia from their 1998 calendar . The banking sector was burdened with non-performing loans as its large corporations were funding aggressive expansions. During that time, there

5035-853: The countryside and 600,000 foreign workers being sent back to their home countries. The baht devalued swiftly and lost more than half of its value. The baht reached its lowest point of 56 units to the U.S. dollar in January 1998. The Thai stock market dropped 75%. Finance One, the largest Thai finance company until then, collapsed. On 11 August 1997, the IMF unveiled a rescue package for Thailand with more than $ 17 billion, subject to conditions such as passing laws relating to bankruptcy (reorganizing and restructuring) procedures and establishing strong regulation frameworks for banks and other financial institutions. The IMF approved on 20 August 1997, another bailout package of $ 2.9 billion. Poverty and inequality increased while employment, wages and social welfare all declined as

5130-553: The crisis. However, the efforts to stem a global economic crisis did little to stabilize the domestic situation in Indonesia. After 30 years in power, Indonesian President Suharto was forced to step down on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah . The effects of the crisis lingered through 1998, where many important stocks fell in Wall Street as

5225-403: The crisis. Other economists, including Joseph Stiglitz and Jeffrey Sachs , have downplayed the role of the real economy in the crisis compared to the financial markets. The rapidity with which the crisis happened has prompted Sachs and others to compare it to a classic bank run prompted by a sudden risk shock. Sachs pointed to strict monetary and contractionary fiscal policies implemented by

5320-457: The damages i.e. S$ 36,000. 1997 Asian financial crisis The 1997 Asian financial crisis was a period of financial crisis that gripped much of East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide economic meltdown due to financial contagion . However,

5415-595: The deceased's savings in cash. On 15 May 2014, Roy Ngerng made a post entitled "Where Your CPF Money Is Going: Learning From The City Harvest Trial " on his blog the Heart Truths . Within the post, Ngerng created a chart which mapped the relationships between the Prime Minister of Singapore , Lee Hsien Loong , the Central Provident Fund (CPF), the Monetary Authority of Singapore (MAS), Temasek Holdings and

5510-404: The exchange market, buying up any excess domestic currency at the fixed exchange rate with foreign reserves . Neither of these policy responses could be sustained for long, as several countries had insufficient levels of foreign exchange reserves. Very high interest rates, which can be extremely damaging to a healthy economy, wreaked further havoc on economies in an already fragile state, while

5605-583: The financial and corporate sectors. In the mid-1990s, a series of external shocks began to change the economic environment. The devaluation of the Chinese renminbi and the Japanese yen , subsequent to the latter's strengthening due to the Plaza Accord of 1985, the raising of U.S. interest rates which led to a strong U.S. dollar, and the sharp decline in semiconductor prices, all adversely affected their growth. As

5700-449: The financial conditions in Asia (subsequently leading to the depreciation of the Thai baht on 2 July 1997). Several case studies on the topic of the application of network analysis of a financial system help to explain the interconnectivity of financial markets , as well as the significance of the robustness of hubs (or main nodes). Any negative externalities in the hubs creates

5795-508: The following CPF accounts: The OA and SA is combined to form the Retirement Account (RA) when one turns 55. The RA is used to meet basic needs during old age. From early 2025, the SA will be closed for members aged 55 and above. The CPF savings earn a minimum interest of 2.5% for OA and 4% for other accounts. In addition, the first $ 60,000 in the combined CPF balances, with up to $ 20,000 from

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5890-510: The fund" to be saved for retirement, or for expenses on "property, healthcare, and their children's education", while the GIC has been described to have "indirectly invested" funds from the CPF. Singapore's Ministry of Finance on its part has put forth its explanation as to why CPF funds are invested in Special Singapore Government Securities, to enable CPF Board to be able to pay its members all their monies when due, and

5985-497: The future, with no favored parties receiving funds by preference. In at least one of the affected countries the restrictions on foreign ownership were greatly reduced. There were to be adequate government controls set up to supervise all financial activities, ones that were to be independent, in theory, of private interest. Insolvent institutions had to be closed, and insolvency itself had to be clearly defined. In addition, financial systems were to become "transparent", that is, provide

6080-445: The governments on the advice of the IMF in the wake of the crisis, while Frederic Mishkin points to the role of asymmetric information in the financial markets that led to a " herd mentality " among investors that magnified a small risk in the real economy. The crisis has thus attracted attention from behavioral economists interested in market psychology . Another possible cause of the sudden risk shock may also be attributable to

6175-404: The highest economic growth rate of any country at the time. Inflation was kept reasonably low within a range of 3.4–5.7%. The baht was pegged at 25 to the U.S. dollar. On 14 and 15 May 1997, the Thai baht was hit by massive speculative attacks. On 30 June 1997, Prime Minister Chavalit Yongchaiyudh said that he would not devalue the baht. However, Thailand lacked the foreign reserves to support

6270-501: The insured members meet an untimely death, suffer from terminal Illness or total permanent disability. DPS covers insured members up to 65 years old. Members up to 60 years old will be covered for a maximum sum assured of $ 70,000. For members above age 60 and up to age 65, DPS covers them up to a maximum sum assured of $ 55,000. The annual premium increases with age, from $ 18 for 34 years old and below, to $ 298 for those 60 to 64 years old. The Ordinary Account savings can be used to purchase

6365-420: The interest that it commits to pay on CPF accounts. The government securities are invested as part of a combined pool of funds managed by GIC, rather than managed in a separate dedicated fund, as a standalone fund would have to be managed conservatively to avoid the risk of failing to meet obligations to CPF members. On 18 May, Prime Minister (PM) Lee responded through his lawyer Davinder Singh , who stated that

6460-467: The international financial community. Later that year, in July, South Korea's third-largest car maker, Kia Motors , asked for emergency loans. The domino effect of collapsing large South Korean companies drove the interest rates up and international investors away. In the wake of the Asian market downturn, Moody's lowered the credit rating of South Korea from A1 to A3, on 28 November 1997, and downgraded again to B2 on 11 December. That contributed to

6555-492: The kind of financial information used in the West to make financial decisions. As countries fell into crisis, many local businesses and governments that had taken out loans in US dollars, which suddenly became much more expensive relative to the local currency which formed their earned income, found themselves unable to pay their creditors. The dynamics of the situation were similar to that of

6650-433: The late 1980s and early 1990s. This achievement was widely acclaimed by financial institutions including IMF and World Bank , and was known as part of the " Asian economic miracle ". In the mid-1990s, Thailand , Indonesia and South Korea had large private current account deficits, and the maintenance of fixed exchange rates encouraged external borrowing and led to excessive exposure to foreign exchange risk in both

6745-415: The main cause of their crises was excessive real estate speculation. China had begun to compete effectively with other Asian exporters particularly in the 1990s after the implementation of a number of export-oriented reforms. Other economists dispute China's impact, noting that both ASEAN and China experienced simultaneous rapid export growth in the early 1990s. Many economists believe that the Asian crisis

6840-476: The main materials used in its construction were aluminium reinforced concrete , glass and granite . The structural types applied in its development were cantilever , with a concrete core. In November 2015, the building was sold to Ascendas Land (now CapitaLand ) for S$ 550 million. The last tenant moved out on 20 February 2017. The building was demolished and redeveloped into a 29-storey office tower called CapitaSky (formerly known as 79 Robinson Road), which

6935-584: The monies in their Retirement Account. It improves upon the Minimum Sum Scheme where payouts only last about 20 years. No minimum amount of RA savings will be needed to join CPF LIFE, however the monthly payout depends on the RA savings. Thus, members with lower RA balances will receive correspondingly lower monthly payouts. Members who have a life annuity from an insurance company that provides equivalent benefits to that of CPF LIFE may be exempted from joining

7030-608: The opportunity to manage their own risk and returns. In 1987, the Minimum Retirement Sum Scheme annuity was introduced. In 1990, MediShield health insurance funded by Central Provident Fund savings, was launched to provide universal healthcare to all Singaporeans. Later programs includes interest rate top up of 1% for the first $ 60,000 of retirement savings, the Workfare Income Supplement which supplements retirement savings for low-income older workers, and

7125-443: The path of "fast-track capitalism", meaning liberalization of the financial sector (elimination of restrictions on capital flows), maintenance of high domestic interest rates to attract portfolio investment and bank capital, and pegging of the national currency to the dollar to reassure foreign investors against currency risk. The conventional high-interest-rate economic strategy is normally employed by monetary authorities to attain

7220-484: The payout, entry age and gender, the annual premium for Eldershield ranges from $ 152 to $ 3132. This premium is non-guaranteed and may be adjusted in the future. According to Minister for Health Gan Kim Yong , about $ 2.6 billion have been collected in premiums for ElderShield, out of which around $ 100 million have been paid out in claims and $ 130 million in premium rebates from its inception in 2002 to end 2015. According to Gan Kim Yong, ElderShield collects premiums while

7315-423: The policyholder is aged 40 to 65, and provides lifetime coverage from age 40, even after the policyholder reaches 65 and stops paying premiums. The total amount of premiums collected exceed the amount of claims paid to-date because the premiums collected are meant to provide coverage against future claims throughout policyholders' lifetime. On 25 May 2018, the Ministry of Health announced that it will be introducing

7410-502: The proceeds from these transactions going into the past reserves . As at Dec 2023, the CPF managed US$ 424 billion (S$ 571 billion) for 4.49 million account holders. British colonial authorities in Singapore implemented a proposal by David Marshall via the Progressive Party committee, to create the Central Provident Fund in 1955 as a compulsory savings scheme to assist workers in retirement provision without needing to introduce

7505-537: The program, 787 insolvent financial institutions were closed or merged by June 2003. The number of financial institutions in which foreign investors invested has increased rapidly. Examples include New Bridge Capital's takeover of Korea First Bank. The South Korean won , meanwhile, weakened to more than 1,700 per U.S. dollar from around 800, but later managed to recover. However, like the chaebol, South Korea's government did not escape unscathed. Its national debt -to-GDP ratio more than doubled (approximately 13% to 30%) as

7600-461: The rate was almost exactly 8,000 to 1 U.S. dollar. Indonesia lost 13.5% of its GDP that year. In February 1998, President Suharto sacked the incumbent Bank Indonesia governor, J. Soedradjad Djiwandono , but this proved insufficient. Amidst widespread rioting in May 1998 , Suharto resigned under public pressure and Vice President B. J. Habibie replaced him. As a result of the financial crisis that hit

7695-586: The recovery in 1998–1999 was rapid, and worries of a meltdown quickly subsided. Originating in Thailand, where it was known as the Tom Yum Kung crisis ( Thai : วิกฤตต้มยำกุ้ง ) on 2 July, it followed the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U.S. dollar . Capital flight ensued almost immediately, beginning an international chain reaction. At

7790-546: The rupiah currency trading band from 8% to 12%. As a result, the rupiah suddenly came under severe attack in August. Therefore, on the 14th of the month, the managed floating exchange regime was replaced by a free-floating exchange rate arrangement. The rupiah dropped further due to the shift. The IMF came forward with a rescue package of $ 23 billion, but the rupiah was sinking further amid fears over corporate debts, massive selling of rupiah, and strong demand for dollars. The rupiah and

7885-458: The rupiah's decline, and many reacted by buying dollars through selling rupiah, undermining the value of the latter further. Before the crisis, the exchange rate between the rupiah and the dollar was roughly 2,600 rupiah to 1 U.S. dollar. The rate plunged to over 11,000 rupiah to 1 U.S. dollar on 9 January 1998, with spot rates over 14,000 during 23–26 January and trading again over 14,000 for about six weeks during June–July 1998. On 31 December 1998,

7980-526: The scheme. Medisave may be used to cover self or dependents' hospitalisation expenses. It may also be used for certain outpatient treatments like chemotherapy and radiotherapy treatments. The Basic Healthcare Sum (BHS) is the maximum amount a citizen member can have in their MediSave account and is the estimated savings they need in their MediSave Account for their basic subsidised healthcare needs in old age. Part of citizen members' working contributions will be allocated to their MA until their balance reaches

8075-532: The slump. Brunei , mainland China , Japan , Singapore , Taiwan , and Vietnam were less affected, although all suffered from a general loss of demand and confidence throughout the region. Although most of the governments of Asia had seemingly sound fiscal policies , the International Monetary Fund (IMF) stepped in to initiate a $ 40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia, economies particularly hard hit by

8170-435: The time, Thailand had acquired a burden of foreign debt . As the crisis spread, other Southeast Asian countries and later Japan and South Korea saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt . Foreign debt-to-GDP ratios rose from 100% to 167% in the four large Association of Southeast Asian Nations (ASEAN) economies in 1993–96, then shot up beyond 180% during

8265-470: The total capital inflow into developing countries . The economies of Southeast Asia in particular maintained high interest rates attractive to foreign investors looking for a high rate of return . As a result, the region's economies received a large inflow of money and experienced a dramatic run-up in asset prices. At the same time, the regional economies of Thailand, Malaysia, Indonesia, Singapore and South Korea experienced high growth rates, of 8–12% GDP, in

8360-466: The worst of the crisis. In South Korea, the ratios rose from 13% to 21% and then as high as 40%, while the other northern newly industrialized countries fared much better. Only in Thailand and South Korea did debt service-to-exports ratios rise. South Korea , Indonesia and Thailand were the countries most affected by the crisis. Hong Kong , Laos , Malaysia and the Philippines were also hurt by

8455-574: Was a haste to build great conglomerates to compete on the world stage. Many businesses ultimately failed to ensure returns and profitability. The chaebol , South Korean conglomerates, simply absorbed more and more capital investment. Eventually, excess debt led to major failures and takeovers. Amongst other stimuli, the crisis resulted in the bankruptcy of major Korean companies, provoking not only corporations, but also government officials towards corruption. The Hanbo scandal of early 1997 exposed South Korea's economic weaknesses and corruption problems to

8550-544: Was created not by market psychology or technology, but by policies that distorted incentives within the lender–borrower relationship. The resulting large quantities of credit that became available generated a highly leveraged economic climate, and pushed up asset prices to an unsustainable level, particularly those in non-productive sectors of the economy such as real-estate. These asset prices eventually began to collapse, causing individuals and companies to default on debt obligations. The resulting panic among lenders led to

8645-501: Was dissolved due to the crisis, and eventually Daewoo Motors was sold to the American company General Motors (GM). The International Monetary Fund (IMF) provided US$ 58.4 billion as a bailout package. In return, Korea was required to take restructuring measures. The ceiling on foreign investment in Korean companies was raised from 26 percent to 100 percent. In addition, the Korean government started financial sector reform program. Under

8740-490: Was granted, barring him from publishing future similar accusations regarding PM Lee and the CPF. Ngerng expressed disappointment at the verdict, but maintained that he would "still continue to speak up on the CPF and other issues that concern Singaporeans". On 17 December 2015 the court led by Lee Seiu Kin handed down a judgement ordering Ngerng to pay S$ 100,000 in general damages and S$ 50,000 in aggravated damages. Ngerng, through his lawyer, Eugene Thuraisingam proposed to pay

8835-451: Was initially slated to be completed in 2020. While AXA Tower has since become the tallest building ever voluntarily demolished outside of New York City , CPF Building remains the tallest building ever voluntarily demolished and replaced by a shorter building. Central Provident Fund Board The Central Provident Fund Board ( CPFB ), commonly known as the CPF Board or simply

8930-518: Was merely asking for more transparency and accountability for CPF monies. On 7 November 2014, the High Court of Singapore found Ngerng liable of defamation with damages to be assessed, which was the first such ruling in Singapore over a purely online article. Judge Lee Seiu Kin ruled that there was "no triable defence" and "no doubt that it is defamatory to suggest that the plaintiff is guilty of criminal misappropriation". An injunction against Ngerng

9025-409: Was reverted to match the employee rate until the 1997–1998 Asian Financial Crisis , and thereafter lowered to 10% for workers 55 years or younger. Since then, the employer contribution rate has been gradually increased. Employers currently contribute 3 fewer percentage points of salaries over S$ 750 for employees up to 55 years old. Employees and employers are required to make monthly contributions to

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