CDAC taps into reserves to help more

It did it in the 1997-98 Asian financial crisis, and it is doing it again, in these tough times.

The Chinese Development Assistance Council (CDAC) is digging into its reserves to help needy families hit by the current financial downturn.

At the start of this year, the 16-year-old self- help group earmarked an $18 million operating budget to fund its welfare programmes and community assistance schemes.

But with more people turning to the CDAC for help, it has revised this sum to $20 million for the whole year.

This is an overall $3 million increase from last year's budget, and the second time that reserves were tapped.

These 'noticeable increases' were not unexpected, the chairman of the CDAC's board of directors, Mr Lim

Swee Say, who is also Minister in the Prime Minister's Office, said yesterday.

He predicted more people will seek help next year. Hence the CDAC is poised to fork out $21 million for its 2009 budget.

'Over the years, the CDAC has been running a very tight ship. We have always been prudent in our spending policy. In good years, we save the surplus budget for use in difficult years like these,' he said.

This year, 6,000 people approached the CDAC to sponsor skills training courses, an increase of 1,000 from last year. The number seeking jobs through the CDAC has gone up from an average of 120 a month to about 160 in the last three months.

Also, 1,800 needy families received aid under the CDAC's workfare assistance scheme this year, up from the 1,000 families that benefited last year.

Currently, $1.86 million of its $20 million budget this year is for funding its two education assistance funds.

The Hardship Assistance Fund received a $260,000 boost to $860,000 this year. This money, in the form of education bursaries, helps primary to tertiary students from low- income families.

This means an additional 1,000 students will receive the bursaries this year, up from the 1,600 who received them last year.

The remaining $1 million will go to the council's Ready For School Project. Started in 2004, it provides needy school-going children with education packs comprising $100 worth of stationery, and transport and book vouchers.

Their families each receive grocery vouchers worth $30.

Some 7,500 students from 3,500 needy families are expected to receive these packs by the end of this year.

CDAC's executive director Sam Tan said that even as it tackles needy families' short-term difficulties over the next two years, it will not neglect its longer-term objectives.

On Dec 20, the council will launch Vision 2012, its four-year plan to help low-income Chinese Singaporeans escape the poverty cycle.

It will open its first neighbourhood multi-service centre, CDAC@Bukit Panjang, in partnership with North West Community Development Council.

Housed in the void deck of an HDB block, it will provide tuition and enrichment programmes for needy students, job-matching services for workers and activities for senior citizens.