4.1 We are building an inclusive society where every citizen shares in the country’s success. Since independence, three pillars – all linked to the CPF – have underpinned our social security system. The first – the CPF Special or Retirement Account – has enabled every working Singaporean to build a nest-egg for his retirement needs. The second – subsidised public housing through the HDB and the CPF Ordinary Account – has made home ownership a reality for the vast majority of Singaporeans. The third – the 3Ms of Medisave, MediShield and Medifund – has provided Singaporeans with affordable, high-quality healthcare.

4.2 The CPF helps us achieve our social stability. We should continue to strengthen our CPF system, and include as many Singaporeans as possible in it. The three existing pillars of our social security system continue to serve the majority of Singaporeans well. Through the CPF schemes, most Singaporeans are able to save enough to provide for their own social security. However, low-income Singaporeans are finding it more difficult to save enough in their CPF. Their wages have stagnated because of globalisation, and will continue to be under pressure. For this group, we now need a fourth pillar — Workfare.

4.3 Like the existing three pillars, Workfare will also be linked to the CPF, to encourage more low-wage workers to save for their longer term needs. In doing all this, we must continue to preserve the key principles which underpin our social security system — namely self-reliance and mutual support within the family, supplemented by the Government only to the extent necessary.