CENTRAL PROVIDENT FUND (Members with insufficient funds to meet housing loan repayments)

Mr Thomas Thomas asked the Minister for Manpower if he will provide (i) data on the number of Central Provident Fund (CPF) members, since 1st January 1999, who had insufficient funds in their CPF Ordinary Account to meet housing loan repayments and had to draw down from their Special Account or had to reschedule their loans or were not capable of servicing their loans, and (ii) comparative figures for the last few years.

Encik Othman bin Haron Eusofe (for the Minister for Manpower): Sir, as at 31st October 1999, 62,469 members had used CPF savings from their Special Account for their housing loan repayments under the scheme to assist such members following the 10% point reduction in employer's CPF contribution rate. From December 1998 to October 1999, HDB had also assisted a total of 14,877 mortgagors to reschedule their mortgage loan instalments or convert their loans to reduced repayment scheme or to include working family members as joint-owners to help to settle arrears. Another 261 HDB mortgagors were allowed to settle their mortgage arrears by instalment plan.

Sir, the percentage of CPF members who has insufficient funds in their CPF Ordinary Accounts to meet monthly housing instalment payments in 1999 is slightly higher than that in 1998. From January 1999 when the CPF cut came into effect to October 1999, about 5% of CPF members who pay their mortgage repayments with CPF savings has insufficient funds in their Ordinary Accounts to meet monthly housing loan repayments for their HDB and private property, as compared with the average of 3.6% in 1998. However, the 5% includes cases where members may have used their CPF savings for other purposes such as insurance and investment.