Increase in contribution rates?

We refer to the article “Self-help groups ask better-off to chip in more” (Sunday Times,  Aug 31).

$600,000 annual deficit?

It states that “Last year, its (Sinda) operating expenditure was $18.23 million, with more than half spent on education programmes. But its total income, including government grants, was $17.63 million.”

So, does it mean that its operating deficit for last year was only about $600,000 ($18.23 minus $17.63 million)?

According to Sinda’s annual report 2013 – it had accumulated funds of 26.2 million.

So, does it mean that it may have enough to cover its current annual deficit for more than 42 years ($26.2 million divided by $600,000)?

Urgent need to increase contributions?

If this is the case, then why is there such an urgent need to increase the contributions now?

CDAC?

According to CDAC’s 2013 annual report – it had total reserves of $6.2 million and a net deficit of $1.4 million.

So, does it mean that it has enough reserves to cover the current annual deficit for more than 4 years ($6.2 divided by $1.4 million)?

Eurasian Association has annual surplus?

The Eurasian Association had total reserves of $2.3 million and annual surplus of $196,000.

Since there is an annual surplus, why are contributions being increased?

Increase grants?

As the Budget surplus was $36.1 billion in FY2012 using IMF fiscal reporting guidelines – Why can’t the Government just increase the grants to cover the total annual deficits which are only over $2 million?

When was the last time that the Government increased its formula for grants to these self-help groups?

Increase of 13 to 329%?

The increase for the CDAC contributions is 50% for those earning $3,501, and as much as 200% for the higher income.

For Sinda, the increase is 29% for those earning $4,501 and as much as 329% for the higher income.

For the Eurasian Association, the increase is 13% for those earning $2,501 and up to 100% for the higher income.

By the way, a Malay, Chinese, Indian and Eurasian earning less than $1,000,  their monthly contribution is $1,  50 cents, $1 and $2, respectively.

S Y Lee and Leong Sze Hian