The CPF scheme has been abused by PAP for decades.
A few years before CPF was used to fund public housing, long-term CPF rates were higher than 12-month deposit rates (image below). As they should be.
But after the Public Housing Scheme was introduced in 1968, PAP began to depress long-term CPF rates.
From 1968 to 1981, 12-month FD rate was higher than CPF rate in 9 out of 14 years. This of course didn’t make sense but since PAP had full of control Parliament, CPF members were at PAP’s mercy.
PAP had a very good reason to depress CPF rate: CPF became a cheap source of funds to construct our public housing ‘miracle’. At the same time, PAP also borrowed our retirement savings cheaply to fund infrastructure construction as well as expanding GLCs like Keppel Corp, Surbana Jurong, etc.
With low rates of return, CPF members were clearly ripped off as this had subsequently affected their retirement.
No wonder many members have dubbed CPF ‘Con People Fund’.