MINIMUM INTEREST RATE ON CENTRAL PROVIDENT FUND CONTRIBUTIONS

Mr Thio Chan Bee asked the Minister for Labour and Law whether he will consider introducing amending legislation to raise the minimum rate of interest payable on contributions to the Central Provident Fund.

Mr Byrne: Mr Speaker, Sir, under the Central Provident Fund Ordinance, the Central Provident Fund Board is obliged to declare a minimum rate of interest of 2½ per cent per annum, and the Board is precluded from declaring any higher rate of interest unless and until the assets of the Fund valued at the current market price exceed its liabilities by ten per cent.

At present, the Fund's assets at current market prices have not exceeded this limit of ten per cent.

In the present circumstances, there is no case for considering amending legislation to raise the present minimum rate of interest.