Singapore has delivered a $1.2 million humanitarian aid
package for Palestinian evacuees in Egypt, marking its tenth tranche of support
amid the Gaza conflict. Concurrently, the Singapore government has extended the
4% interest rate floor on Central Provident Fund (CPF) Special, MediSave, and
Retirement Account (SMRA) monies until December 31, 2026, ensuring stable
returns for CPF members.
Singapore's Humanitarian Aid to Palestinian Evacuees
Significant Aid Package and Delivery
As reported by the Singapore Red Cross and Singapore
Ministry of Foreign Affairs, Singapore has dispatched a fresh $1.2 million
(S$1.2 million) humanitarian aid package to support Palestinian evacuees in
Egypt. This marks the tenth tranche of assistance provided to civilians
impacted by the ongoing conflict in Gaza. The package was handed over during
Singapore President Tharman Shanmugaratnam’s state visit to Cairo, making him
the first head of state to engage directly with the Egyptian Red Crescent.
The aid comprises S$440,000 allocated for tents and an
additional S$758,000 designated for essential medical and educational services
for evacuees. These funds will provide medical consumables and equipment for
approximately 4,000 evacuees and support a mobile education unit serving about
2,000 Palestinian children across 11 accommodation centres managed by the
Egyptian Red Crescent.
Broader Context of Singapore’s Support for Gaza
The Singapore Red Cross (SRC) disclosed that since the
outbreak of the Hamas-led attacks in Israel on October 7, 2023, Singapore and
its citizens have contributed more than S$23 million in humanitarian aid to
Gaza. This contribution includes medical supplies, hygiene kits, water
filtration systems, food parcels, and nearly 15 tonnes of airdropped supplies.
An additional S$500,000 has been channelled through other Red Cross Red
Crescent partners such as the International Committee of the Red Cross to
bolster relief efforts. The SRC has also deployed an operations coordinator and
an eight-person team to assist Egyptian Red Crescent operations in 2024.
Benjamin William, SRC’s secretary-general and CEO, highlighted the significance of this tranche, stating:
“Access to education and healthcare is not only a fundamental need but also a lifeline of dignity and hope for those rebuilding their lives.”
He emphasised that the mobile education
unit seeks to deliver informal lessons and life skills to displaced children,
helping to restore a sense of normalcy in the face of prolonged displacement.
Engagement at the Egyptian Red Crescent
During his visit from September 19 to 22, President Tharman
Shanmugaratnam observed the symbolic handover of the donations and toured
Egyptian Red Crescent relief facilities alongside his spouse, Jane Ittogi
Shanmugaratnam. The visit included viewing mock-ups of the tents supplied by
Singapore and meeting with Dr Amal Emam, CEO of the Egyptian Red Crescent, who
acknowledged the urgent need for food, shelter, and medical supplies for displaced
families. Dr Emam described Singapore’s contributions as “a drop in the ocean”
but stressed the deep value of the support in addressing immediate humanitarian
needs.
Singapore’s Broader Political and Humanitarian Position
In addition to delivering humanitarian aid, Singapore has
condemned military actions in Gaza, called for the resumption of two-state
negotiations between Israel and the Palestinian Authority, and expressed
willingness to recognise Palestine in principle. Singapore is also preparing to
launch two new initiatives in 2026 to assist the Palestinian Authority,
reflecting its dual approach of providing relief while supporting political
dialogue.
Extension of CPF 4% Interest Rate Floor for SMRA Accounts
Interest Rate Stability in a Low-Rate Environment
On another front, the Singapore government announced the
extension of the 4% interest rate floor for interest earned on all CPF Special,
MediSave, and Retirement Account (SMRA) monies until December 31, 2026. This
decision was made jointly by the Central Provident Fund (CPF) Board and the
Housing Development Board (HDB), aiming to provide CPF members greater
certainty on the returns of their savings amid a falling global interest rate
environment.
Details of CPF Interest Rates
According to the CPF Board and HDB, the 4% floor rate will
apply for the entire next year, continuing to benefit CPF members holding SMRA
monies. The SMRA interest rate is pegged to the 12-month average yield of
10-year Singapore Government Securities plus 1 percent; however, the current
pegged rate remains below 4%, making this floor insulation crucial.
From October 1 to December 31, 2025, the interest rates for
CPF accounts are as follows:
- Special,
MediSave, and Retirement Accounts (SMRA): 4% floor rate
- Ordinary
Account (OA): remains at 2.5% per annum floor rate
- Housing
Development Board (HDB) concessionary interest rate for HDB housing loans:
2.6% per annum
Additional interest schemes are in place, allowing CPF
members aged 55 and above to earn up to 2% extra interest on the first $30,000
of their combined CPF balances, plus 1% on the next $30,000.
Government Assurance for CPF Members
The continuation of the 4% floor rate underscores the Singapore government’s commitment to safeguarding the financial interests of CPF members, providing a stable return on their retirement savings despite global fluctuations in interest rates. The joint release emphasised that this measure
“will continue to provide CPF members with certainty on the returns of their CPF savings amidst the falling interest rate environment.”