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Straits Times
11 hours ago
- Business
- Straits Times
Banks can consider CPF Life payouts as retirees' income for new unsecured loans: MAS
Retirees above 65 who get decent monthly payouts from CPF Life can qualify for a new credit card if they meet the $15,000 annual income threshold. PHOTO: LIANHE ZAOBAO Banks can consider CPF Life payouts as retirees' income for new unsecured loans: MAS SINGAPORE – Retirees above 65 years old who get decent monthly payouts from CPF Life can qualify for new unsecured loan facilities such as credit cards if they pass the $15,000 annual income threshold set by the Monetary Authority of Singapore (MAS). While MAS does not prescribe specific incomes to assess a borrower's eligibility, it notes that banks can look at regular incomes that retirees get, such as rents, interest or dividend and annuity payouts, such as those from CPF Life or private insurers. But borrowers must show with that they are currently earning such income to qualify. The issue of eligibility of older folk for credit cards was highlighted in The Straits Times Forum recently when 64-year-old retiree Brian Yim wrote about his plight of having an existing card from Trust Bank cancelled just because he wanted to increase its $2,000 credit limit for an overseas holiday. He submitted his Central Provident Fund (CPF) statement, which showed that he had more than the prevailing enhanced retirement sum of $426,000, but the bank asked instead for a bank statement that shows a cash balance of $750,000. An MAS spokesperson told The Straits Times that another qualifying test for retirees above 55 is to have a minimum net worth of $750,000 because if this amount is put in a fixed deposit that earns 2 per cent interest, for instance, the annual income would be $15,000. This means that regular income is still preferred for paying bills. Hence, banks 'may consider various up-to-date income sources, such as a borrower's rental income and annuity payouts', the spokesperson said. ST learnt that most banks do not look at retirees' CPF for credit checks, but this practice is likely to change with MAS' confirmation that the CPF Life payout is a good income source. It would be hard for banks to reject CPF Life payouts since such lifelong income is guaranteed by the Singapore Government. Those reaching 55 in 2025 will get monthly payouts of $1,700, or $20,400 annually, from age 65 if they save $213,000 in their Retirement Account. They can also choose to top up to the maximum of $426,000, for a monthly payout of $3,300, or $39,600 annually. Mr Yim, who turns 65 later this year, says his expected payout would more than exceed MAS' $15,000 threshold but he has no intention of reinstating his Trust credit card. 'I am now happily charging to my five other credit cards that better deserve my business,' he said. Tan Ooi Boon is the Invest editor of The Straits Times. More on this Topic Why high CPF Life payouts means less need to have more savings Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
a day ago
- Business
- Straits Times
Why high CPF Life payouts means less need to have more savings
High CPF Life monthly payouts of up to $3,300 should help retirees pay for most of their expenses without having to dip into their savings. PHOTO: LIANHE ZAOBAO If you have planned for higher monthly payouts from CPF Life, you will probably not run out of money in your old age, even if you don't have a high amount saved. This is because payments of up to $3,300 a month should help retirees meet most of their expenses without having to dip into their nest-eggs. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
3 days ago
- Straits Times
Man charged over using air miles from KrisFlyer accounts he bought online to make purchases
The man was handed four charges under the Computer Misuse Act. PHOTO ILLUSTRATION: LIANHE ZAOBAO FILE Man charged over using air miles from KrisFlyer accounts he bought online to make purchases SINGAPORE – An Indonesian man was charged in court on May 29, after he allegedly bought KrisFlyer accounts illegally and used the accumulated air miles to make purchases. Rizaldy Primanta Putra, 28, was handed four charges under the Computer Misuse Act. Two of the charges were for the unauthorised access to computer material, and the other two for the unauthorised modification of such material. According to a police statement, after allegedly accessing the KrisFlyer accounts, Putra flew to Singapore in June 2024 and purportedly used the miles from these accounts to buy a Samsung phone and phone cover from a retail shop in Changi Airport and some pastries from a store in Bugis. The items amounted to more than $1,600. After Singapore Airlines lodged a police report on Oct 11, 2024, police officers established Putra's identity, but he had already left the country in September 2024. Putra returned to Singapore on Jan 11, 2025 and was detained by Airport Police Division officers at Changi Airport. In court on May 29, Putra indicated his intention to claim trial to the charges. While he told the court that he has a lawyer, District Judge Wong Li Tein told him that there was no lawyer in court to represent him. The judge adjourned the case and gave permission for him to make two local phone calls to contact his lawyer and to make arrangements for bail. He will be released from remand if he is able to arrange for a Singaporean bailor to furnish the $15,000 bail offered by the court. Putra will return to court on June 5 for a further mention of his case. For each charge of illegally accessing computer material, he can be jailed for up to two years, fined up to $5,000, or both. He can be jailed for up to three years, fined up to $10,000, or both, for each charge of illegally modifying computer material. In its statement, the police reminded the public to protect their online accounts by enabling multi-factor authentication or two-factor authentication. 'If you notice any suspicious or unauthorised transactions, please report the incident to your service provider or bank immediately,' the police added. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
3 days ago
- Business
- Straits Times
S'pore retail investors to get expert tips on Reits as the asset class comes back into play
The programme is supported by SGX Group, Reit Association of Singapore and the Securities Association of Singapore. PHOTO: LIANHE ZAOBAO S'pore retail investors to get expert tips on Reits as the asset class comes back into play SINGAPORE – Retail investors can get expert tips on real estate investment trusts as the market for Reits in Singapore heats up with falling interest rates and fresh listings on the horizon. Research analysts, trading representatives and Reit managers will hold 10 sessions under a newly launched educational series on the asset class aimed at enabling retail investors to better understand and assess the risks involved before putting their money into Reits. More than 300 investors, brokers and investment professionals will get to visit Reit properties and understand the assets that they invest in under the six-month programme, which is organised by the Securities Investors Association (Singapore), or Sias. Mr David Gerald, president of Sias, said on May 24: 'Going beyond reading annual reports or attending webinars, investors will now walk through the actual assets, engage the managers, ask questions and understand the fundamentals as part of investor education. Investors will need to understand and assess the risks involved as well when investing in Reits.' The programme is supported by SGX Group, Reit Association of Singapore and the Securities Association of Singapore. Head of equities at SGX Group Ng Yao Loong said SGX sees a healthy Reit IPO pipeline, particularly in emerging sub-sectors like data centres, purpose-built living spaces and logistics assets. Speaking at a Reits symposium on May 24, he noted that the Singapore bourse has emerged as the third-largest Reit listing venue globally by fund-raising, after China and India, in the last five years, adding that SGX is making efforts to ensure that Singapore remains the listing venue of choice for Reits globally. Japan's Nippon Telegraph and Telephone in its earnings release in May said it plans to list its data centre Reit on the SGX in the future. Singapore's Centurion said in a January filing that it is exploring the establishment of a Reit involving some of its workers and student accommodation assets. If the plan materialises, the Reit will be listed on the mainboard of the SGX. Mr Ng also introduced InvestSG, a platform where Reit investors can find sector insights, research, community discussions, market data and model portfolios on Reits, enabling smarter investment portfolio decisions. The platform is slated to be launched in the later part of 2025. Reits are funds that invest in a portfolio of income-generating real estate assets such as shopping malls, offices and hotels. They often take on some debt to buy assets and are subject to an overcall cap on gearing in Singapore. Similar to stocks, Reits are listed on stock exchanges, allowing investors to buy and sell units. With interest rates trending downwards, Reits are expected to benefit in 2025 as borrowing costs decline and investor appetite for income-generating assets grows. RHB Bank analyst Vijay Natarajan in a May 20 report noted that most of the 15 Singapore Reits, or S-Reits, under the bank's coverage reported in-line results for the first quarter, driven by softer interest cost pressures. He said the sharp fall in domestic rates is benefiting the S-Reits, with the majority of them reporting lower overall interest costs. The fall in benchmark rates has also resulted in lower yields for alternative options such as deposit rates, T-bills and Singapore savings bonds, and rising yield spreads for S-Reits – potentially creating room for fund inflows to the sector if the tariff overhang is removed, he added. Mr Ng said Reits stand out as an alternative asset class in times of market volatility, as they exhibit a lower correlation with macro uncertainties as compared to equities and other asset classes. 'As a sector, it is currently trading at a cyclically low valuation of 0.8 time P/B (price-to-book), or around a 20 per cent discount, while offering a forward dividend yield of around 6 per cent,' he said. A P/B ratio of 0.8 time for Reits indicates that the market price of the Reit is 80 per cent of its book value, suggesting that the Reit is trading at a discount to its underlying asset value. He added that Reits not only offer passive rental income, but also exposure to trends such as return-to-office mandates, the rise of artificial intelligence, and evolving consumption patterns. Mr Natarajan of RHB Bank said the direct impact of US tariff policies have been minimal on S-Reits so far, and favours the industrial, office, healthcare, and suburban retail sectors. Hospitality remains his least preferred sector. UOB Kay Hian analyst Jonathan Koh added that several S-Reits, including Frasers Centrepoint Trust, Keppel Reit and CapitaLand Integrated Commercial Trust, reported positive rental reversion, or a positive change in rental rates. 'Singapore is a safe haven due to fiscal discipline and its lowest reciprocal tariff of 10 per cent,' he said. He noted that a favourable rate environment, with a 10-year government bond yield of 2.6 per cent and a three-month compounded Singapore Overnight Rate Average, or Sora, at 2.3 per cent, has helped to boost the attractiveness of Reits, which are now offering yields of 6-7 per cent. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
4 days ago
- Health
- Straits Times
New guide to curb abuse and harassment of community care workers to be circulated in June
Health Minister Ong Ye Kung speaking at the Community Care Workplan Seminar on May 28. PHOTO: LIANHE ZAOBAO New guide to curb abuse and harassment of community care workers to be circulated in June SINGAPORE - A new guide to protect community care workers from abuse and harassment will be circulated to all community care organisations, which include nursing homes and hospices, in June 2025. Announcing the development of the guide at the Community Care Workplan Seminar on May 28, Health Minister Ong Ye Kung said all community care organisations are encouraged to implement the recommendations. The guide is adapted from the standardised framework launched in December 2023 to curb abuse of healthcare workers in public healthcare institutions such as hospitals and polyclinics. The framework includes a common definition of abuse and harassment, standardised protocols for response and measures that can be taken against abusers. The public healthcare clusters have since updated their protocols across their hospitals and institutions to protect their healthcare workers against abuse and harassment, the Ministry of Health (MOH) said in a statement on May 28. The ministry said the Agency for Integrated Care (AIC) and MOH partnered community care sector leaders over the past year to contextualise the guide for various care settings, such as nursing homes, active ageing centres, hospices, and home care services. The guide has been adapted to address challenges faced by community care workers, including safety protocols for home-based care settings where staff work in clients' residences. Special consideration has also been given to managing situations involving clients with dementia or lower mental capacity, who form a significant proportion of users of community care services. The initial framework for healthcare institutions came after the Tripartite Workgroup for the Prevention of Abuse and Harassment of Healthcare Workers set up in April 2022 released its findings from a survey of more than 3,000 healthcare workers and 1,500 members of the public in the second half of 2022. The survey by the workgroup had found that more than two in three workers had witnessed or experienced abuse or harassment in the year preceding the survey. Among the affected workers, 75 per cent did not report the incidents, enduring the abuse in silence. The workgroup comprises representatives from MOH, Healthcare Services Employees' Union, public healthcare clusters, community care partners and private healthcare providers. Under the framework, abuse and harassment are defined as words, communications, actions or behaviours that are inappropriate, threatening and insulting, and cause a healthcare worker to feel intimidated, alarmed or distressed. They also hinder staff's ability to carry out their duties. Such cases can occur in both physical or virtual settings. The guide states that, depending on the severity of the abuse or harassment, institutions may remove abusive next-of-kin and visitors from the premises of the healthcare institution. If necessary, institutions may also disengage in communications with abusive visitors and bar them from visiting patients in the hospital for a period of time. Join ST's WhatsApp Channel and get the latest news and must-reads.
