Latest news with #Yeoh
Business Times
5 hours ago
- Business
- Business Times
MOF says SRS withdrawal process ‘can be improved', will work with banks on this
[SINGAPORE] The government will work with Supplementary Retirement Scheme (SRS) bank operators to smoothen account holders' process of withdrawing funds from their account. The response comes shortly after The Straits Times (ST) published a letter on its Forum page on Monday (Jun 16) by account holder Francis Yeoh, who described the current process as inconvenient, as it requires an individual to be physically present at a bank. The SRS is a voluntary scheme that was created to complement the Central Provident Fund (CPF), and to help Singaporeans save more for their retirement by allowing them to contribute up to a maximum of S$15,300 into accounts operated by DBS, OCBC and UOB. In late 2024, a proposed framework aimed at expanding and streamlining the SRS was shelved after the three local banks withdrew their joint application. This prompted the Competition and Consumer Commission of Singapore to halt a review it was to undertake on the framework, which sought to improve access to SRS products and boost competition among providers. Unlike withdrawals, contributions to SRS, which are eligible for tax relief, can be processed digitally. In his letter, Yeoh noted that the process of requiring individuals to be physically present at a bank to withdraw funds from their SRS accounts was time-consuming, and described the process as 'surprisingly outdated and frustrating' – particularly given that CPF withdrawals can already be done online. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added that this seems 'misaligned with Singapore's push for digitalisation'. On the ability to make digital withdrawals, the CPF Board told The Business Times (BT) that this is supported by a 'digital-first, not digital-only' approach – offering members convenient digital access while retaining non-digital alternatives. A spokesperson said that robust security measures are in place for all online transactions, including Singpass two-factor authentication, real-time SMS and e-mail alerts, and verification to ensure funds are credited only to bank accounts belonging to the member. Additional anti-scam measures include a default daily withdrawal limit of S$2,000 for members aged 55 and above (adjustable up to S$50,000), a CPF Withdrawal Lock feature, and a 12-hour cooling-off period for changes to withdrawal limits or account settings. Yeoh had asked why a similar level of digital convenience could not be extended to SRS withdrawals. 'As our population ages, more retirees will seek access to their SRS funds,' he noted. 'Requiring them to queue for hours to manage their retirement savings is inefficient, inconvenient and, frankly, unnecessary.' He added that he hopes the banks and the authorities can review this process. In response to Yeoh's letter, the Ministry of Finance's (MOF) director of communications and engagement Farah Abdul Rahim acknowledged on Friday that the current withdrawal process 'can be improved for greater convenience'. She said, however, that the current process of requiring account holders to be physically present at a bank when making a withdrawal enables SRS operators to give customised advice to the individual. 'This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction.' BT has sought a comment from the Association of Banks in Singapore, of which the three local banks are members. Financial advisers told BT that the feedback was valid, and highlighted the need for more flexible withdrawal options. Dr Ben Fok, chief executive of Bill Morrisons Capital, noted that since both CPF and SRS are designed to provide retirement income, their withdrawal processes should be aligned to promote clarity and ease of use. He added that integrating both schemes into a single digital interface could help reduce confusion and ensure they work more seamlessly together – minimising the need for physical visits and improving overall user experience. 'This approach would support retirees in managing their retirement funds more efficiently, offering a seamless and convenient way to access their savings,' he felt. Christopher Tan, group chief executive of Providend, suggested that banks offer three tiers of access to cater to varying user preferences. The first would be a fully digital option, through which account holders can use the bank's mobile application or an online portal to transfer funds from their SRS account into their preferred bank account. A second option could involve submitting a physical application form, with the funds either sent by cheque or credited directly. The third option is for those who are less digitally inclined or prefer face-to-face service. For them, visiting a bank branch should remain an option.
Business Times
13 hours ago
- Business
- Business Times
Finance ministry says SRS withdrawal process ‘can be improved', will work with banks on this
[SINGAPORE] The government will work with Supplementary Retirement Scheme (SRS) bank operators to smoothen account holders' process of withdrawing funds from their account. The response comes shortly after The Straits Times published a forum letter on Monday (Jun 16) by account holder Francis Yeoh, who described the current process as inconvenient, as it requires an individual to be physically present at a bank. The SRS is a voluntary scheme that was created to complement the Central Provident Fund (CPF) to help Singaporeans save more for their retirement by allowing them to contribute up to a maximum of S$15,300 into accounts operated by DBS, OCBC and UOB. In late 2024, a proposed framework aimed at expanding and streamlining the SRS was shelved after the three local banks withdrew their joint application. This prompted the Competition and Consumer Commission of Singapore to halt a review it was to undertake on the framework, which sought to improve access to SRS products and boost competition among providers. Unlike withdrawals, contributions to SRS, which are eligible for tax relief, can be processed digitally. In his letter, Yeoh noted that the process of requiring individuals to be physically present at a bank to withdraw funds from their SRS accounts was time-consuming, and described the process as 'surprisingly outdated and frustrating' – particularly given that CPF withdrawals can already be done online. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added that this seems 'misaligned with Singapore's push for digitalisation'. 'As our population ages, more retirees will seek access to their SRS funds,' said Yeoh. 'Requiring them to queue for hours to manage their retirement savings is inefficient, inconvenient and, frankly, unnecessary.' He added that he hopes the banks and the authorities can review this process. In response to Yeoh's letter, the Ministry of Finance's director of communications and engagement, Farah Abdul Rahim, acknowledged on Friday that the current withdrawal process 'can be improved for greater convenience'. She said, however, that the current process of requiring account holders to be physically present at a bank when making a withdrawal enables SRS operators to give customised advice to the individual. 'This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction.' The Business Times has sought a comment from the Association of Banks in Singapore, of which the three local banks are members. Financial advisers told BT that the feedback was valid, and highlighted the need for more flexible withdrawal options. Dr Ben Fok, chief executive of Bill Morrisons Capital, noted that since both CPF and SRS are designed to provide retirement income, their withdrawal processes should be aligned to promote clarity and ease of use. He added that integrating both schemes into a single digital interface could help reduce confusion and ensure they work more seamlessly together – minimising the need for physical visits and improving overall user experience. 'This approach would support retirees in managing their retirement funds more efficiently, offering a seamless and convenient way to access their savings,' he said. Christopher Tan, group chief executive of Providend, suggested that banks offer three tiers of access to cater to varying user preferences. The first would be a fully digital option, through which account holders can use the bank's mobile application or an online portal to transfer funds from their SRS account into their preferred bank account. A second option could involve submitting a physical application form, with the funds either sent by cheque or credited directly. The third option is for those who are less digitally inclined or prefer face-to-face service. For them, visiting a bank branch should remain an option.
Business Times
17 hours ago
- Business
- Business Times
MOF says SRS withdrawal process ‘can be improved'; to work with banks
[SINGAPORE] The government will work with Supplementary Retirement Scheme (SRS) bank operators to improve the process of withdrawing funds from their account. The response comes shortly after The Straits Times published a forum letter on Monday (Jun 16) by an account holder, Francis Yeoh, who described the current process as inconvenient, as it requires an individual to be physically present at a bank. The SRS is a voluntary scheme that was created to complement the Central Provident Fund (CPF) to help Singaporeans save more for their retirement by allowing them to contribute up to a maximum of S$15,300 into accounts operated by DBS, OCBC and UOB. In late 2024, a proposed framework aimed at expanding and streamlining the SRS was shelved after the three local banks withdrew their joint application, prompting the Competition and Consumer Commission of Singapore to halt its review . The framework had sought to improve access to SRS products and boost competition among providers. Unlike withdrawals, contributions to SRS, which are eligible for tax relief, can be processed digitally. In his letter, Yeoh noted that the process of requiring individuals to be physically present at a bank to withdraw funds from their SRS accounts was time-consuming, and described the process as 'surprisingly outdated and frustrating' – particularly given that CPF withdrawals can already be done online. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added that this seems 'misaligned with Singapore's push for digitalisation'. 'As our population ages, more retirees will seek access to their SRS funds,' said Yeoh. 'Requiring them to queue for hours to manage their retirement savings is inefficient, inconvenient and, frankly, unnecessary.' He added that he hopes the banks and the authorities can review this process. In response to Yeoh's letter, the Ministry of Finance's director of communications and engagement, Farah Abdul Rahim, acknowledged on Friday that the current withdrawal process 'can be improved for greater convenience'. However, she explained that the current process of requiring account holders to be physically present at a bank when making a withdrawal is to allow SRS operators to give customised advice based on the individual's circumstances. 'This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction.' The Business Times has sought comment from the Association of Banks in Singapore, of which the three local banks are members. Christopher Tan, group chief executive officer of independent wealth adviser and fund management firm Providend, told BT that the feedback was valid, and highlighted the need for more flexible withdrawal options. Tan suggested that banks could offer three tiers of access to cater to different user preferences. The first would be a fully digital option, where account holders can use the bank's mobile application or an online portal to transfer funds from their SRS account into their preferred bank account. A second option could involve submitting a physical application form, with the funds either sent by cheque or credited directly. For those who are less digitally inclined or prefer face-to-face service, he said visiting a bank branch should remain an option.
Straits Times
19 hours ago
- Business
- Straits Times
Forum: SRS withdrawal process to be improved
We thank Mr Francis Yeoh for his letter 'Take the queueing pain out of SRS withdrawals' (Jun 16). The Supplementary Retirement Scheme (SRS) aims to help Singaporeans save more for their retirement. Currently, SRS operators require members to be present in person for withdrawals and account closures, so that they can receive customised advice based on their individual circumstances. This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction. We agree that the current withdrawal process can be improved for greater convenience. The Government will take Mr Yeoh's feedback into account, and work with the SRS operators to improve the current process. Farah Abdul Rahim Director, Communications and Engagement Ministry of Finance More on this Topic Forum: What readers are saying Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
2 days ago
- Business
- The Star
5% housing discount for all a fair move, say groups
GEORGE TOWN: The Penang government's decision to give a 5% housing discount on overhang properties to all house buyers is well received by political parties and associations. Penang MCA secretary Yeoh Chin Kah, in welcoming the move, said any policy introduced must be grounded in the principle of supporting vulnerable groups, rather than being based on racial or religious distinctions. 'It is vital that the state government exercises prudence and ensures fairness across the board,' he said. He said the state must address the issue of oversupply in the mid-range housing segment with urgency. 'A downward price adjustment may be necessary to better align with the actual needs of the people,' said Yeoh in a statement. 'The 5% housing discount should be strictly reserved for vulnerable and genuinely qualified individuals, as they truly need the assistance,' he added. Yeoh said it must not be misused or allocated indiscriminately to parties who may exploit the opportunity for speculation, thereby inflating property prices further. 'We welcome the state government's willingness to recognise its shortcomings and take corrective action,' he said. Yesterday, Penang Chief Minister Chow Kon Yeow said the state executive council decided to extend the discount to all buyers for a year under the Madani Home Ownership Campaign. He said the discount is limited to developers who registered with the state in the campaign and those registered with the state Housing Board. The Penang government courted controversy earlier when it announced on June 5 that the 5% discount would only be given to Indian Muslims. Penang MIC chief Datuk J. Dhinagaran said the state has made the right move to offer the discount to all rather than one particular community. 'Everyone should benefit from the programme as there are many who haven't bought their first property, and this will be an opportunity for them to purchase one. 'Any policy created should be beneficial to all, which is the most logical thing to do for a fair and equitable society,' added Dhinagaran. Penang Hindu Association president P. Murugiah said every group or community should benefit from housing programmes, and the state government's decision to give a 5% discount to all was most welcome. 'People from B40 and M40 groups should benefit from this programme as many individuals face a lot of hurdles when purchasing their first property. 'This discount will help them save money, which could be used for other purposes such as fees for sales and purchase agreements,' he said.
