CPF CONTRIBUTIONS BY HAWKERS

Mr Yeo Toon Chia asked the Minister for Labour whether it is feasible for the Central Provident Fund Board to work together with the Hawkers Department of the Ministry of the Environment to request all licensed hawkers to contribute to the Central Provident Fund as compulsory savings for future purchase of Housing and Development Board flats and for old age.

The Minister of State for Labour (Mr Sia Kah Hui) (for the Minister for Labour): Mr Speaker, Sir, the desirability and feasibility of requiring hawkers to contribute to CPF should first be examined before we decide to bring them within the CPF scheme.

Those in favour of requiring hawkers to contribute would argue that hawkers require financial protection when they grow too old to provide for themselves. While some of them earn good incomes, many are only making a marginal living with hardly anything to set aside for old age. Those able to save could have their savings wiped out by business failures or other misfortunes. Hence, bringing them within the CPF scheme would enable them to save for old age.

On the other hand, those against the idea would argue that hawkers earning a meagre income would hardly have enough to contribute to the CPF. To require them to do so would only add to their hardship.

Furthermore, a hawker's income fluctuates from month to month. There is, therefore, difficulty in determining the monthly income of hawkers to decide the amount that they should contribute. The inflationary impact of requiring hawkers to contribute should not be discounted. There is also the problem of the collection of CPF contributions from hawkers, especially if the monthly contribution is small.

The CPF Board is now studying the desirability and feasibility of requiring hawkers to contribute to CPF.