CENTRAL PROVIDENT FUND MEMBERS (Use of contributions as down payments for house purchases)

Mr Lim Cheng Lock asked the Minister for Labour if he will consider setting up a committee to examine the feasibility of allowing members of the Central Provident Fund to use their contributions as down payments for the purchase of houses in order to promote home ownership among the lower income group and to recommend such amendments as are necessary to the Central Provident Fund Ordinance, 1955.

Mr Jek Yeun Thong: Mr Speaker, Sir, the hon. Member's suggestion has already been given consideration before by my Ministry.

For his information, there are 325,433 out of a total of 442,351 members of the Central Provident Fund who have a balance of less than $1,000. This constitutes 74 per cent of the C.P.F. membership. Further, 254,880 members have a balance of less than $500 in the Fund and this constitutes 58 per cent of the C.P.F. membership. The C.P.F. records also show that about 63 per cent of the persons currently contributing to the Fund earn $200 a month or less. These persons have their contributions paid in only by their employers.

In view of the low balances held by the great majority of the members of the Fund, it is considered that no useful purpose would be served at present to set up such a committee.