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02 Oct 2020  (506 Views) 
Covid-19 crisis

Abuse of the Job Support Scheme

I do not like the approach used to give Job Support Scheme based on contribution to the CPF. The employer could make fake contribution to earn the financial support.

For example, an employer can create 10 employees each earning $5,000 monthly and contribute CPF of these employees. The total CPF contribution is 30% (say). The JSS gives 50% to the employer. The employer pocket 20% and the employee pocket 30%.

The employee may agree to give back half of the 15% to the employer.

This potential abuse was obvious to me right from the start. I am surprised that the highly paid ministers and civil servants implemented this scheme, in spite of its flaw. 

Is there a better approach?

Right from the start, I suggested that the government should allow workers to withdraw money from their CPF account to meet their living expenses. This was the approach adopted in Malaysia. 

It is simple, neat and clean. The abuse is likely to be small and does not impact the state finances. After all, the workers are taking out their own savings. 

I continue to be troubled by the insanity of our government ministers.

Tan Kin Lian


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