Why Singapore needs to make CPF compulsory for Foreigners.

The world has evolved. Globalisation is real and a threat for export nations like Singapore. Having little focus on the core talents and skills the citizens should develop, Singapore has lost its manpower skills by conceding defeat by kowtowing to Foreign Talent. Is that so? 

Me thinks the bias in hiring foreigners not only lie in their super-low wages, but also make the national pension fund, the CPF a premium that the employer has to bear in these dark days.

IN Australia, this is already practice, and considering a fresh University grad gets about an average AUD$64,000 per annum, 9% employer superannuation (pension) is deducted to any investment portfolio they wish, earning a variety of interests of at least 5% per annum. Tax starts at 20% to 40% depending on income; naturally the higher you are paid, the greater the tax one pays. (So if you are a student studying in Australia right now, stay there and earn higher moola after tax!! I so envy you.)

Figure 1: Australia Tax Office requires all employers to pay mandatory pension at 9% whether part time, casual, non-resident worker in Australia.

Figure 2: Australian Graduates take home an average AU$64,000 per annum

All foreign talent should contribute to the CPF at the same rate as do all Singaporean Citizens and those who are third year PRs (they contribute lesser rates in their 1st year and 2nd year known as graduated rate). Singapore Citizens should not be the only ones penalised for contributing CPF. If this is really a Nation of equality, then the same fair rule should apply to foreigners.

Not only is it mutually beneficial for the Singapore government; they will be seen as taking care of foreigners and providing welfare for them as required by the International Labour Organisation. These efforts will also allow them to access to medical and health facilities from their own CPF rather than simplistic insurance borne by the company. 

Singaporeans will rejoice, and foreigners who have "Free housing", "free lorry transport" to work and home, will not resort to undercutting the low wages that Singaporeans are earning after CPF deduction. This will reduce deplorable scheming methods of displacing Singaporeans at the workplace, and will level the unequal employment landscape. CPF has been seen as burdensome by some companies when hiring PRs or Singaporeans.

IMHO: It's not really a "can't be helped" situation. Rather, our gahmen "bo chap". Hardworking people earn median wages. Higher income earners tend to be comfortable where they are and do not see the workarounds as clearly as those who sport a humble background. Scholars who have tasted the greener pastures outside of Singapore, return to break their bonds, and will simply tell you, life is great outside! It's true, I've lived overseas and life was damn good but i ain't no scholar - the world is beautiful with its imperfections!