What Is Singapore’s CPF and How Does It Differ From MPF?

What Is Singapore’s CPF and How Does It Differ From MPF?

Singapore’s Central Provident Fund, set up by the colonial government in 1955, is the city-state’s mandatory savings plan covering housing, healthcare and retirement — fully funded, so payouts equal what you saved plus interest, with no cross-generation subsidy. At September 2002 it had 3.0 million account holders and S$95.4 billion in savings.

How are the accounts split?

Three accounts: Ordinary (housing, investments, insurance, education), Special and Medisave. Each has its purpose — more flexible than MPF.

What’s the biggest difference from Hong Kong’s MPF?

CPF is state-run with conservative investments and quarterly-set interest rates; MPF uses private trustees and market investments — more choice but higher fees and self-borne risk. CPF can also fund home purchases; MPF cannot.

What can Hongkongers learn?

Versatile uses and low charges are CPF’s strengths. Under Hong Kong’s system, workers’ best move is picking low-fee funds — compare them.