Spending more of returns from investing reserves a ‘slippery slope’: Indranee
Read more at https://www.channelnewsasia.com/news/singapore/spending-more-of-returns-from-investing-reserves-a-slippery-9976194

By Elizabeth Neo @ElizabethNeoCNA

21 Feb 2018 07:58AM (Updated: 21 Feb 2018 12:35PM)

Ricky Lim · 

Singapore

Posted on :-
July 14, 2014

babe • 15 hours ago

Maybe want to consider this :-

(1) Should not spend all the returns from investing the nation's reserves.

(2) Should not save all and plough back all the returns from investing the nation's reserves.

(3) Should consider working out a formula to save some and plough back the returns from investing the nation's reserves and spend some on the returns from investing the nation's reserves on social spendings due to ageing population.
By doing so, the National Reserve can continue to grow and at the same time, can help the ageing citizens through social spending - "Best of Both World".

babe babe • 15 hours ago

In other words, spend half, save half - not spend all or save all if possible will be the best.

Like · Reply · 1m

Ricky Lim · 

Singapore

Under the NIR framework, the Government can spend up to half of the expected long-term investment returns generated by the Monetary Authority of Singapore, Temasek Holdings and GIC.
Increasing the spending above 50 per cent means using up more money and putting less into the principal sum, Ms Indranee said.
“We think that 50 per cent is a fair figure. If you start going down the slippery slope then after a while you have to make your principal work a lot harder. And then you are also not assured that you will be able to get consistent returns all the time, you don't know what the investment market will be like.
---
Fully agreed with this Wisdom as per posted on :- July 14, 2014.

Like · Reply · 1m

Ricky Lim · 

Singapore

Save half and Spend half - is Middle Path （中道）mah.

Like · Reply · 1m