Read more at https://www.channelnewsasia.com/news/singapore/expect-higher-security-spending-amid-rising-threats-heng-swee-9921834
(Updated: )
Ricky Lim ·
From S$14.8 billion in FY2011, Singapore's security spending has increased steadily to S$19.5 billion in FY2016, according to data from the Ministry of Finance (MOF). The latter accounted for 4.7 per cent of Singapore's gross domestic product (GDP).
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If 5% ROI can be generated from our reserve annually, it can just cover the $19.5 billion expenditure for security - but without profit to accumulate into the capital reserve to grow our reserve and bring more ROI.
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If 5% ROI can be generated from our reserve annually, it can just cover the $19.5 billion expenditure for security - but without profit to accumulate into the capital reserve to grow our reserve and bring more ROI.
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Ricky Lim ·
With combined Sovereign Fund of about $500billion with 5% ROI - it is possible to generate about $25billion per year of profit to cover the security expenditure.
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Ricky Lim ·
Also noted that FY2015, Govt revenue is $64.2 billion and Govt expenditure is $68.4 billion.
So the $25billion profit generated by Sovereign Fund will be more than to cover the $4.2billion deficit.
And $20.8billion can be plough back and accumulate to the Soveriegn Fund as Capital - to bring higher ROI.
So the $25billion profit generated by Sovereign Fund will be more than to cover the $4.2billion deficit.
And $20.8billion can be plough back and accumulate to the Soveriegn Fund as Capital - to bring higher ROI.
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Christopher Bong ·
Works at Happily Retired
Ricky Lim are you sure the sovereign fund are still there?? Has the losses incurred by Temasek and GIC been fully and transparently disclosed??
Reply · 5h
Ricky Lim ·
The sovereign fund are still there - the only thing is that the ROI may not be as good - as the Global investment climate has dampened.
Thus the need to look at other source of revenue may become necessary.
Thus the need to look at other source of revenue may become necessary.
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Ricky Lim ·
But honestly, we should not doubt what the Government has done for Singapore.
They have conscientiously build up the Nation reserve to protect Singapore.
They have published Temasek and MAS result publicly.
But GIC is not revealed as they need to protect Singapore from speculative attack on Singapore currency.
As for Temasek, they are bringing good annualised return of 17%.
Could not find the return of MAS.
As for GIC, they are bringing about 3 to 7% annualised return.
So my computation above is very conservative.
Just take $500 billion as capital reserve (which is very conservative) and 5% as average return (which is also very conservative) - it give $25billion annualised return to cover the $19.5billion security expenditure - which is sufficient.
The Singapore Government has been a responsible Government since its inception.
Thus we have to ensure that the good governance continue to prevail and a 4GL PM will emerge to continue to lead us into the 4 Generations.
The President and her Council is also pivotal to keep a watchful eyes on our reserves to ensure it will continue to be used, invested prudently and grow healthily.
They have conscientiously build up the Nation reserve to protect Singapore.
They have published Temasek and MAS result publicly.
But GIC is not revealed as they need to protect Singapore from speculative attack on Singapore currency.
As for Temasek, they are bringing good annualised return of 17%.
Could not find the return of MAS.
As for GIC, they are bringing about 3 to 7% annualised return.
So my computation above is very conservative.
Just take $500 billion as capital reserve (which is very conservative) and 5% as average return (which is also very conservative) - it give $25billion annualised return to cover the $19.5billion security expenditure - which is sufficient.
The Singapore Government has been a responsible Government since its inception.
Thus we have to ensure that the good governance continue to prevail and a 4GL PM will emerge to continue to lead us into the 4 Generations.
The President and her Council is also pivotal to keep a watchful eyes on our reserves to ensure it will continue to be used, invested prudently and grow healthily.
Like · Reply · 1m · Edited
Ricky Lim ·
Thanks to the foresight and vision of the Singapore Government - our taxes are kept low and the Government does not need to chalk up huge debt to finance Government spendings.
So if we don't continue to preserve good Governance - but instead go for populist approach --- Singaporeans will be digging our own grave.
So if we don't continue to preserve good Governance - but instead go for populist approach --- Singaporeans will be digging our own grave.
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Ricky Lim ·
But the above computation are just guestimate - it should not be treated as gospel truth.
The Budget announcement in feb or mar will provide the real figures - that indeed if the reserve earnings are sufficient to cover the expenditure - and whether other revenue sources will be required.
Only the Minister of Finance and MOF have privy to all the information.
The Budget announcement in feb or mar will provide the real figures - that indeed if the reserve earnings are sufficient to cover the expenditure - and whether other revenue sources will be required.
Only the Minister of Finance and MOF have privy to all the information.
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