Read more at https://www.channelnewsasia.com/news/business/mas-monetary-authority-singapore-foreign-reserves-policy-11513068
(Updated: )
Lam Chian Leong
(1) The transfer of S$45 billion from official foreign reserves to the Government Sovereign Fund - is a good news as it will help to grow our income and can contribute to NIRC (Net Investment Return Contribution) every year.
(2) With higher NIRC generated by the investment - the pressure to increase tax will be lesser - as the NIRC will become Government Revenue to be used for Government Spendings as announced in Government Budget.
(3) At the same time, our Sovereign Fund will grow due to higher interest income earned and plough back as capital to the Sovereign Fund (50% of income earned - that are not contributed as NIRC as revenue for Government Budget).
(2) With higher NIRC generated by the investment - the pressure to increase tax will be lesser - as the NIRC will become Government Revenue to be used for Government Spendings as announced in Government Budget.
(3) At the same time, our Sovereign Fund will grow due to higher interest income earned and plough back as capital to the Sovereign Fund (50% of income earned - that are not contributed as NIRC as revenue for Government Budget).
No comments:
Post a Comment