• In 1955, the British colonial government implemented the Central Provident Fund (CPF) system in Singapore. The Central Provident Fund Board, a statutory board, manages the retirement funds of the people.
• All employees are required to make regular contributions to their CPF, which is usually 10–20% of their salary. Employers are also required to make contributions to their employees’ CPF.
• Members can use their CPF savings in matters related to housing, insurance, investment, education and medical needs.
• In 1970s, the CPF Board introduced the Special Account to help members accumulate more savings as retirement funds. The MediSave Account was established in 1984 to prepare members for future medical expenses. In 1990, the MediShield scheme was introduced to help members cope with the financial costs incurred from chronic and critical illnesses.

Amendments to the Central Provident Fund scheme will allow the Government to establish a sustainable mechanism to address the challenges of an ageing population, without the need to use funds from the national reserves. It also adheres to the Government’s principle of preventing the public from developing a dependence on the Government. (Lianhe Zaobao, 15/9/2007)