MPs offer ideas to improve CPF

[Jacmar]

I don't know why CPF vs EPF keeps on being talked about.

One offers riskfree return while the other offers equity linked return. If you want a equity linked return with your CPF, all you need to do is dump your CPF into an STI ETF (you can put 100% of investible limit).

As they say, the grass is always greener on the other side.
Let me put a contratrian view.

I was working in Malaysia for 3-4 yrs and when I reached 55 yrs I withdraw all the EPF money but at the same time I still keep my CPF(OA) money which I can withdraw at any time. This is despite the fact that EPF pays at least twice the CPF interest rate. This is putting yr money where yr mouth is and why did I do this?

1. S$ has a direction of appreciation whereas RM has the opposite direction. how fast is subject to speculation but for sure the gap will widen.

2. my money is more secured under cpf than in epf. During the AFC, Mahathir wanted to raid the EPF to use it to prop up the RM and the KLSE crony stocks. fortunately/unfortunately there were not much cash lying around as it was all invested n he couldn't do much except trying to get GCT to release the money in CPF owned by Malaysians. there is no telling in the next crisis what they will do with the epf money. already some are invested in crony companies.