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For decades, the medisave has been used by the CPF board to stop Singaporeans from renewing their working licenses.
Singaporeans who are self-employed (such as small-time businessmen, taxi-drivers, insurance agents, and property agents, etc) have been penalised unfairly by the CPF board.
The CPF board requires these self-employed Singaporeans to top up their own medisave accounts every year. Failing to do so, they will not be able to renew their working licenses.
There is no room for negotiation, except to pay the ridiculous high installment like $200 – $1,500 a month.
For an annual income of $18,000, the self-employed has to top up around $1,200 into his/her own medisave. They have no choices but to continue their contributions, and in most cases they probably won’t get to use up their medisave money at all.
With an income of $18,000, after deducting their daily expenses and mortgages, most people would have nothing left to spare. Yet they are forced to top up their own medisave accounts.
Appeals to the CPF board are useless. The CPF board never back down. At most, it may give one-year installment plan for those who are unable to pay. For those who made $18,000 a year, they will have to pay around $100 a month.
Does it make any sense? Medisave is our own accounts, just because we couldn’t top up “our own money”, we won”t get our licenses renewed?
Basically, the self-employed are prevented from doing the jobs that they are familiar with, like driving taxis, selling insurances and being property agents.