6% CPF rate across causeway

[Lovelle]

PETALING JAYA: The Employees Provident Fund (EPF) Board has declared a dividend of 6% for 2011 the highest in the last 10 years.
In a statement yesterday, EPF said the dividend, an increase of 20 basis points over the 5.8% paid out in 2010, translates to RM24.47bil being distributed to its members.

[Arcachon]

PETALING JAYA: The Employees Provident Fund (EPF) Board has declared a dividend of 6% for 2011 the highest in the last 10 years.
In a statement yesterday, EPF said the dividend, an increase of 20 basis points over the 5.8% paid out in 2010, translates to RM24.47bil being distributed to its members.

Will you withdraw all your money from Singapore CPF and deposit in Employees Provident Fund (EPF) Boar? If No, why.

If I am a Malaysian, I would no do it.

[TKT]

One thing that is apparently "superior" for EPF vs CPF is that there is no maximum contribution.

If not mistaken, the EPF is around 12% of income but there is no ceiling for basic pay or bonus.

In Singapore, the ceiling I think is S$4500 or S$5000, cannot recall now.
In Malaysia, correct me if I'm wrong, no ceiling.

So, theoretically, if someone earns M$100,000 per month, his EPF contribution is M$12,000!

I have no clue how much is paid by employee and how much by employer though... but based on this simple analogy, now you know why some Malaysians can so rich when they retire! :ashamed1:

Caveat : like I said, I dont know how much the above is true as heard it from friends casual talking, so not really sure of the details nor bothered to check. So, if anybody knows, please feel free to correct me if you wish to.



:47:

[richwang]

In Singapore, the bank deposit rate is about 0.x%, the housing loan rate is 1.x%, and CPF rate is 4.x% (for retirement).

In Malaysia, the bank deposit for MYR is about 3+%, the housing loan rate is about 5+%, and EPF rate is ONLY 6%.

And the long term exchange rate for SGDMYR=R will go up (unless leaders and voters are permenently becoming sily.)

So my preference is still to lock the money in SGD.

Thanks,
Richard
PS. If you really have that extra cash to spare, you can put into the CPF account for your wife, brothers, sisters and parents (up to S$120K?)

[roly8]

In Singapore, the bank deposit rate is about 0.x%, the housing loan rate is 1.x%, and CPF rate is 4.x% (for retirement).

In Malaysia, the bank deposit for MYR is about 3+%, the housing loan rate is about 5+%, and EPF rate is ONLY 6%.

And the long term exchange rate for SGDMYR=R will go up (unless leaders and voters are permenently becoming sily.)

So my preference is still to lock the money in SGD.

Thanks,
Richard
PS. If you really have that extra cash to spare, you can put into the CPF account for your wife, brothers, sisters and parents (up to S$120K?)
interesting info. :D

[richwang]

http://mycpf.cpf.gov.sg/Members/Top-Up_LO.htm

The CPF Minimum Sum (MS) Topping-Up Scheme allows you to give top-ups to yourself and/or your loved ones’ Special Accounts (for recipients below age 55) or Retirement Accounts (for recipients age 55 and above). Such gifts help build up the MS and can come from your CPF or in cash.
To make a top-up using your CPF to your loved ones (i.e. grandparents'/parents'/siblings'/spouse's Retirement Account and/or Special Account), the net balances in your Ordinary and Special Accounts, including amount withdrawn for investments, must be more than the prevailing Minimum Sum. Only Ordinary Account balances can be used for the top-up.
You can also enjoy tax relief of up to $7,000 per calendar year, if you or your employer use cash to make top-ups for you. You can enjoy an additional tax relief of up to $7,000 per calendar year if you use cash to make top-ups for your siblings, spouse, parents or grandparents. To qualify for tax relief for cash top-ups for siblings/spouse, your sibling/spouse (i) must not have income exceeding $4,000 in the year preceding the year of top-up (e.g. salary or tax exempt income such as bank interest, dividends and pension) or (ii) is handicapped. If you are topping up by cheque, your application must reach the Board by 30 Dec 2011, 2 pm to enjoy tax relief for Year of Assessment 2012.

[richwang]

http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_31May2010.htm

So the minimum sum is now $131,000.

[richwang]

http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_31May2010.htm

the prevailing MS will be revised to $131,000, up from $123,000

(131,000 / 123,000 - 1 ) *100 = 6.5

Let's see what will be the real official inflation rate for Year 2011 when we approching July 1, 2012.

Thanks,
Richard

[Lovelle]

Will you withdraw all your money from Singapore CPF and deposit in Employees Provident Fund (EPF) Boar? If No, why.

If I am a Malaysian, I would no do it.

Even if u want , EPF won't take your money. Why would they want to take ur money ?

6% is enough to cover inflation and any fluctuation in currrency. If EPF can achieved an average 4% over 10 years many Malaysians would be well to do even for those who are at lower income bracket compare to Sg.

in sg, can see cannot touch...why all of you are here in buying risky stuff like properties to achieved 2.2 % to 4.5% returns ? still must work for your meagre 4%...

[Arcachon]

http://sgforums.com/forums/10/topics/108680

[CCR]

http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_31May2010.htm

the prevailing MS will be revised to $131,000, up from $123,000

(131,000 / 123,000 - 1 ) *100 = 6.5

Let's see what will be the real official inflation rate for Year 2011 when we approching July 1, 2012.

Thanks,
Richard

What will be the minimum sum in 10 years time? I think most singaporeans will have nothing to withdrawn when they retire with the ever increasing MS.... so only CPF LIFE left.... no lump sum to withdraw