CENTRAL PROVIDENT FUND SCHEME FOR FOREIGN WORKERS (Withdrawal of savings before age 55)

Dr Kanwaljit Soin asked the Minister for Labour, after 1998, or when the tax exempt Central Provident Fund (CPF) contribution scheme for foreign workers ceases (whichever is the later), whether he will allow the foreign workers to withdraw their savings from their CPF account at that time without waiting till the age of 55.

The Minister for Labour (Dr Lee Boon Yang): Mr Speaker, Sir, existing CPF withdrawal rules allow foreign workers, except West Malaysians, to withdraw their CPF savings when they leave Singapore at the end of their employment. As for West Malaysians, they are allowed to withdraw their CPF savings at age 50, if they have not worked in Singapore for the two years prior to their application for withdrawal. Hence, foreigners, unlike Singaporean workers, need not wait till the age of 55 to withdraw their CPF savings.

The Ministry has no intention to change these withdrawal rules for foreigners with CPF savings who will be exempted from mandatory CPF contributions on or before 31st December 1998. The exemption from CPF contributions does not affect savings already accumulated in their CPF accounts.