REACH 488 - What are your views on Singapore’s Reserves? What are some of your takeaways from the CNA documentary?
(SK)
18 Aug 2023 (10am - 7pm)
REACH
18/08/2023, 10:11 am - +REACH: *Dear contributors,*
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18/08/2023, 10:12 am - +REACH: 📢 *Topic* 📢
As part of the documentary on Singapore’s Reserves, CNA was given exclusive access to a secret vault where the Government stores its gold reserves. Financial influencers also took part in an Ask Me Anything session with Prime Minister Lee Hsien Loong. The documentary also covered a multitude of questions regarding the Singapore’s Reserves, from the workings of Temasek and GIC, to the origins of the 50-50 proportion of the NIRC framework, and how Singapore reserves are used.
PM Lee described the reserves as a “great source of comfort and reassurance” that provides Singapore with “one extra card to play” should it run into a tough spot. Singapore has enough reserves “for most circumstances”, but it would be the "biggest misconception" to think that will always be the case with the country's spending needs already outpacing revenue growth, said PM Lee.
💬 *What are your views on Singapore’s Reserves? What are some of your takeaways from the CNA documentary?*
📌 *Origins of the 50-50 rule*
On how the 50-50 spending rule first came about, PM Lee noted that it was the idea of former President Ong Teng Cheong. Mr Ong served from 1993 to 1999 as Singapore's fifth President.
Under the NIRC framework, the Government can spend up to 50 per cent of the net investment returns on net assets invested by GIC, the Monetary Authority of Singapore and Temasek – the three entities that manage and invest Singapore’s reserves – and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
“If it’s not raining, I don’t touch it. If it’s a sunny day and I can afford to, I put a little bit more into it. However much there is, I keep on having this attitude that I would like to build it up a little bit more when I can, so that the next generation will be in a more secure position than I am today.” PM Lee said.
📌 *Reserves being used in other areas*
The Government does not disclose the full size of the reserves to protect national interests and prevent speculative attacks on the Singapore dollar.
Citing how Singapore was the first in Asia to secure the Pfizer-BioNTech’s COVID-19 vaccine, Deputy Prime Minister Lawrence Wong said the reserves had played “a critical role” in making that possible.
Singapore first tapped on its reserves in 2009, taking out S$4.9 billion (US$3.6 billion) to support the economy through the global financial crisis. Over a decade later, it drew on the reserves on three separate occasions during the COVID-19 pandemic between 2020 and 2022 – using about S$40 billion in all.
“Sometimes we think that the reserves are there only for future emergency,” said DPM Wong in his CNA interviews. “But in fact, the reserves are also an endowment providing for today’s needs and all of us are benefiting from it right now.”
👉 *Think of Singapore’s reserves as ‘rainy day’ money: PM Lee*
https://str.sg/i56J
👉 *Singapore's reserves cannot be built up again once gone: PM Lee*
https://str.sg/i52F
👉 *’Biggest misconception’ to think that Singapore will always have enough reserves, says PM Lee*
https://www.channelnewsasia.com/singapore/singapore-reserves-pm-lee-biggest-misconception-3699726?cid=internal_sharetool_androidphone_17082023_cna
👉 *Singapore not ‘oversaving’ with reserves ‘barely keeping pace’ with its economy: DPM Wong*
https://www.channelnewsasia.com/singapore/lawrence-wong-singapore-reserves-revealed-oversaving-3702421
👉 *Full Playlist of CNA's clips on Singapore Reserves*
http://go.gov.sg/lhl-cna-reserves
18/08/2023, 10:12 am - ~ REACH Singapore changed this group's settings to allow all participants to send messages to this group
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18/08/2023, 10:13 am - +Rama: Our hard earned savings must be extremely well managed.
18/08/2023, 10:13 am - ☸️ Danny 心: <Media omitted>
18/08/2023, 10:13 am - ~ REACH Singapore changed the group description
18/08/2023, 10:14 am - ☸️ Danny 心:
1. Our CPF life savings and HDB are part of the reserves - and they are invested by our sovereign fund GIC.
2. Hence we have to take Presidential election very seriously and the General Election seriously.
3. Because a rouge president and a rouge government that raid our reserves, sell our lands - will squander all our CPF life savings away - and we will be left with nothing to finance our house and retirement.
4. So important not to play play with our votes - and shoot ourselves in our own foot.
18/08/2023, 10:19 am - ☸️ Danny 心: https://www.channelnewsasia.com/commentary/singapore-reserves-budget-surplus-government-spending-gst-hike-tax-3701261 Should Singapore look beyond a balanced budget to ensure we will always have enough in our reserves?
The Singapore government is constitutionally obliged to achieve a balanced budget over its term of office. What about targeting a net surplus instead, ask Eddie Choo and Gillian Koh from the Institute of Policy Studies.
18/08/2023, 10:25 am - +Frankie Wee: 'Biggest misconception' to think that Singapore will always have enough reserves, says PM Lee
How big or small enough reserve when we have serving to inflation rising.
When we have GST increase. How about wage salary need adjustment mins needy income mid and poor.
18/08/2023, 10:29 am - +Smiley face: money not enough? ( 钱不够用？)
18/08/2023, 10:30 am - +Rama: Agree
18/08/2023, 10:30 am - +Frankie Wee: ✅✅✅
18/08/2023, 10:31 am - +Frankie Wee: Most of us wanted to pay off within 10-15 years mortgage housing. The rest they can saving for rain day without depend on the reserve
18/08/2023, 10:31 am - +Rama: Yes
18/08/2023, 10:32 am - +Frankie Wee: Pushing us mortgage is long term debt and anytime crisis economy will depend on reserve when it’s going happened.
18/08/2023, 10:33 am - +Coconut Tree: The programme was very very well produced and informative!
Kudos to the team!
18/08/2023, 10:33 am - +Rama: Any loan should be settled before age 55
18/08/2023, 10:35 am - +Smiley face: Living in the mist of prosperity and knowingly not acknowledging all?
(居于福而不识福 ? 活在欢乐的时刻不知道什么是幸运和繁荣!)
18/08/2023, 10:38 am - +Frankie Wee: Someone who was in NS and told that I have no worry 2 and 1/2 year service NS because my parent helped me saving for rain day and our housing is fully paid.
Ah boys said wow so unfair and delicious life.
18/08/2023, 10:40 am - +Ken: Huh?
18/08/2023, 10:40 am - +KL: 塞翁失馬，焉知非福。
money is a curse as well as blessing in disguise. <This message was edited>
18/08/2023, 10:42 am - +KL: Congratulations that sg caught those ppl and increase 1 billions to our reserve.
18/08/2023, 10:44 am - +Coconut Tree: replace 1 of the 40 billion used for Covid.
18/08/2023, 10:45 am - +Rama: Yes
18/08/2023, 10:45 am - +Frankie Wee: Illicit activities found
18/08/2023, 10:45 am - +Rama: 😄
18/08/2023, 10:47 am - +~L: Gov is making a good effort to explain a very complicated process. This is hard for the most experienced informed financial experts to understand, and there are lots of questions we probably won't get answers on.
18/08/2023, 10:48 am - +~L: For example, the President can't 'spend' any money, I assume, he or she can only authorise the Gov to spend it. Therefore we want a President and Gov to be aligned, but equally need checks and balances to avoid inappropriate collusion.
18/08/2023, 10:51 am - +~L: Our reserves are invested of course, otherwise we lose due to inflation. Any investment carries risk, so we can lose reserves due to global economic factors. We can 'spend' as a form of investment, for example, more efficient healthcare that saves us money over time.
18/08/2023, 10:52 am - +~L: how do we build back our reserves? Good investment (which carries risk) or through Taxes.
18/08/2023, 10:52 am - +~L: A positive budget (taxes are greater than spending) carries no financial risk, but can dampen growth and is politically unpopular.
18/08/2023, 10:53 am - +~L: To get more in taxes we need more employment and economic growth, which typically means more foreign workers - also politically sensitive.
18/08/2023, 10:54 am - +Frankie Wee: Once it’s lost can’t go back
18/08/2023, 10:54 am - +~L: Well, technically you can rebuild the reserves through taxes, and successful investment, but it's very hard and has a huge impact economically on the population.
18/08/2023, 10:55 am - +~L: Singapore's massive growth in the 80s helped build the reserves, I assume.
18/08/2023, 10:55 am - +Frankie Wee: Okay then can rising GST 30% back up the reserve
18/08/2023, 10:56 am - +Frankie Wee: Seriously I agreed LHL said once is lost reserve can’t go back save
18/08/2023, 10:57 am - +Frankie Wee: Govt have to be very very carefully invested
18/08/2023, 10:57 am - +KL: May I ask why reserve loses to bad investment ? Who will responsible for it ?
18/08/2023, 10:57 am - +~L: Exactly - but that has serious consequences too.
18/08/2023, 10:58 am - +~L: We've seen that happen before. No one can guarantee only profits and no losses. The question is if the investments were sound, or reckless.
18/08/2023, 10:58 am - +KL: Cos in 2022 I think gov already issue crypto is a dangerous investment in public but they still buy FTX . Seem like 2 orders issue differently <This message was edited>
18/08/2023, 10:59 am - +~L: FTX was a fraud yes, it wasn't an investment in crypto, but an investment in a company trading crypto - 2 different things.
18/08/2023, 10:59 am - +Frankie Wee: The future is changed even AI can challenge economy high risk and inflation
18/08/2023, 10:59 am - ☸️ Danny 心:
1. The formula of 50-50 rule - 50% NIRC use to finance the yearly fiscal budget and 50% to plough back to grow the reserves - whereby the NIRC is derive from income earned by investing in the sovereign fund - must be uphold at all cost as far as possible.
2. The reason being, 1/2 is meant for current used to keep our tax affordable.
1/2 should be set aside for future used, for our future generations and for our young.
We must uphold the ethics of not squandering the income away - by ensuring our current generation and future generations can enjoy the fruits of our hard earned reserves - and grow our reserves.
3. Hence we must upheld the 50-50 rules - and I will support this is enshrine into our Constitution if government one day decides to do so - in order to protect our reserves.
18/08/2023, 11:01 am - +~L: Maybe the 50-50 should have a minimum level, to maintain the reserves stay above inflation.
18/08/2023, 11:03 am - +~L: Currently under 50/50 if the expected growth is 2% (already below inflation) then the gov can spend 1% as they need. This means our reserves would only grow by 1%, and effectively be reduced in value due to inflation.
18/08/2023, 11:05 am - ☸️ Danny 心:
4. Just not too long ago, WP has wanted to spend more of the NIRC 60% for now and leave only 40% for our future generations.
5. In addition, WP and PSP suggest tapping the revenue of land sales to finance yearly fiscal budget.
5. I am strongly against both of these moves - as they are designed to squander our reserves away, wither down our reserves and leave very little for our future and our future generations.
In essence, both WP and PSP are trying to raid our reserves.
6. Hence, enshrining the 50-50 rules in the constitution and look after by the President will prevent such politicians from squandering our reserves away.
18/08/2023, 11:08 am - +~L: I remember the ERM in the UK, where the Gov tried to prop up the Pound's exchange rate. The Bank of England kept buying Sterling, but eventually had to give in and the Pound crashed. The gov lost the equivalent of $10bn that day.
18/08/2023, 11:08 am - +Rama: Blady nonsense
18/08/2023, 11:14 am - ☸️ Danny 心:
Hence I will support the 50-50 rules to be enshrined in the constitution - if government one day feel that this is necessary to protect the reserves - in case one day a rouge government take over.
18/08/2023, 11:14 am - +Rama: Agree
18/08/2023, 11:41 am - ☸️ Danny 心:
Note:-
1. Our CPF is part of the reserves invested by GIC sovereign fund.
2. The lands that build our HDB flats, private condo and landed properties - is also part of the reserves.
3. So when rouge politicians say spend more NIRC reserves, or use land sales revenues to fund the fiscal budget - they in fact are withering down our CPF savings and depleting our lands for housing.
4. So next time when the oppositions say tap our reserves - always remember, they are squandering our money, our CPF, our lands for our houses....
5. And we should teach such rouge politicians a lesson by not giving them the votes to squander our money!
6. Hence come President election - we have to vote wisely.
7. Hence come General Election, we have to vote wisely.
8. Which party that help to grow our reserves (our CPF), protect our reserves (our CPF), - we will vote for them.
9. The parties that think of ways to use our reserves frivolously, we should teach them a lesson - not to mess with our money! <This message was edited>
18/08/2023, 11:49 am - +KL: This don’t really applied to most singles :))
18/08/2023, 11:50 am - ☸️ Danny 心:
Singles don't contribute to CPF?
18/08/2023, 11:50 am - +KL: Not all , esp low income
18/08/2023, 11:50 am - +KL: Even gigs economy u know right
18/08/2023, 11:51 am - ☸️ Danny 心:
If reserves squander away, no NIRC, the government will not have money to give GST voucher, u-save etc to lower income.
18/08/2023, 11:51 am - +KL: :))
18/08/2023, 11:52 am - ☸️ Danny 心:
And lower income have to pay even more GST because no reserves means no NIRC, means government will have to levy higher taxes, higher gst.
18/08/2023, 11:53 am - +KL: Low income dont spent one :)
18/08/2023, 11:55 am - ☸️ Danny 心:
At least they need to eat (food), they need electricity and water, they need a house to stay.
So they need government reserves to help them.
18/08/2023, 11:55 am - ☸️ Danny 心: <Media omitted>
18/08/2023, 11:57 am - +Rama: Presidential hopefuls Ng Kok Song, Tharman Shanmugaratnam and Tan Kin Lian have received certificates of eligibility
https://www.straitstimes.com/singapore/politics/presidential-hopefuls-tharman-and-tan-kin-lian-have-received-certificates-of-eligibility
18/08/2023, 11:58 am - ☸️ Danny 心:
That means George Goh didn't make it.
18/08/2023, 11:59 am - +Rama: Yes
18/08/2023, 11:59 am - +Rama: Still got two not mentioned
18/08/2023, 11:59 am - ☸️ Danny 心:
Oh.
Who are they?
18/08/2023, 12:00 pm - +Rama: Elections Department did not mentioned
18/08/2023, 12:01 pm - ☸️ Danny 心:
Maybe that teacher who claims he is the ex-president in 1956.
And the other one, who say he want to be the commander in chief.
18/08/2023, 12:01 pm - +Rama: 😄🤷♂️
18/08/2023, 12:01 pm - +Rama: I was thinking about Tan Cheng Bok
18/08/2023, 12:02 pm - ☸️ Danny 心:
Oh is it?
He submitted?
18/08/2023, 12:02 pm - +Rama: Dark horse last minute!?
18/08/2023, 12:02 pm - ☸️ Danny 心:
Hahaha...
Don't know.
18/08/2023, 12:08 pm - ☸️ Danny 心: <Media omitted>
18/08/2023, 12:10 pm - ☸️ Danny 心:
So protect our reserves, means protect our own CPF.
Vote wisely.
18/08/2023, 12:15 pm - +Ah Heng: those who think reserved are to be spend because it belongs to the people are idiots!
18/08/2023, 12:16 pm - +Ah Heng: even your family reserved will not be any how spend what makes these idiots think the country shoudl spend every cents according to their whining?
18/08/2023, 12:16 pm - +Ah Heng: if yes please tell your friends and relatives who say reserved must be spend to share their saving with you (cos you are their relatives) see what they say
18/08/2023, 12:17 pm - +Ah Heng: really singapore brains are ashes now, simple logic no need psle certs theory also cannot see thru
18/08/2023, 12:18 pm - ☸️ Danny 心:
That's why vote wisely.
Only votes can tell rouge politicians what our true value system is.
Those who expound ethics of borrowing to live lavishly and leave the mammoth debt to our young, our future generations - is not our value system, not our culture. <This message was edited>
18/08/2023, 12:23 pm - +Ah Heng: problem we have a good percentage of people who cannot think properly
18/08/2023, 12:23 pm - +Ah Heng: they just want things to go their way
18/08/2023, 12:23 pm - +Ah Heng: which govt is perfect can they answer this
18/08/2023, 12:24 pm - +Ah Heng: do they want a govt who gives in to very stupid feedback they make and feed them from hand to mouth
18/08/2023, 12:24 pm - +Ah Heng: do they want to built a better and stable place for their young (usually the childless will not bother at such )
18/08/2023, 12:25 pm - +Ah Heng: is worrying to see how badly influence our young are with outside matters rather than to focus on inside while taking outside as a bad example
18/08/2023, 12:27 pm - +Ah Heng: we have to come to the fact -> yes our govt is not perfect but is it not better to have them rather then some living example govt from the west, east or even asia?
18/08/2023, 12:28 pm - +Ah Heng: if these people expect the incumbent govt to be perfect
18/08/2023, 12:28 pm - +Ah Heng: i will sure like to scrutinized how holy and perfect these people Lives and family are .... to the extend that our govt shoudl live and walk and eat like these holy and picture perfect family
18/08/2023, 12:29 pm - ☸️ Danny 心:
1. Communicate.
2. Reason out.
3. Emphasize the stake they have in this country.
4. Highlights the consequences.
5. Understand their pain points.
6. Address and resolve their pain points head-on.
7. Educate what should be the wholesome outcomes.
8. Eventually, people will come to a logical, reasonable decision.
9. Ultimately, this is the only place and country we truly belong.
10. Bring it down, no country means no home and everyone fate and future will be gone. <This message was edited>
18/08/2023, 12:31 pm - +Ah Heng: 8-> will never .. cos there will be external influences due to open door policies who will cause the mentally weak to dis our govt our country
18/08/2023, 12:31 pm - +Ah Heng: and that is normal we cannot have the whole population in 100% agreement
18/08/2023, 12:31 pm - +Ah Heng: but to have 50:50 of the people fight is not healthy too
18/08/2023, 12:32 pm - ☸️ Danny 心:
And eventually, convert the majority over.
Not possible to win over 100%.
18/08/2023, 12:33 pm - +Ah Heng: a country should have united people (citizens must show this first, then others will not dare or even harbour thoughts of other wise), then the newly migrants to this land will follow
18/08/2023, 12:37 pm - ☸️ Danny 心:
Hence this coming President election is a bell weather how people votes.
The votes of the respective candidates get - will be a good indication how Singaporeans think.
It will also have an indication how the coming GE will pan out.
18/08/2023, 12:38 pm - +Ah Heng: actually i lost confidence in our people their are dam fickle minded with no self thinking ability ... whatever opposition do is right ...
18/08/2023, 12:43 pm - ☸️ Danny 心:
They are just protest votes.
To keep the government on the toes.
Many who votes for the oppositions don't really think the oppositions are good enough to form the government.
They just want to poke the government - that they are unhappy with some policies that hurt them.
Or they want the government to know, they are not doing well and want the government to look into their needs.
Hence understand why people vote these way, understand the psychological factors how these votes pan out - will help government to come out with solutions to address their pain points - and in so doing, keep a good government in power.
18/08/2023, 12:44 pm - +Ah Heng: is good the govt see things this way and not just take it per your say protest vote
18/08/2023, 12:44 pm - +Ah Heng: if is the key word
18/08/2023, 12:44 pm - +Ah Heng: on ground the protest votes as a means of anger will in some way take form as real hate and displeasure with the govt .. which will not be healthy
18/08/2023, 12:45 pm - +Ah Heng: all in all people of this island better wake up else we really will be over ran by others
18/08/2023, 12:46 pm - +KL: Sorry cause you say Run over ? Not sure by who ? <This message was edited>
18/08/2023, 12:47 pm - +Ah Heng: migrants who will see locals as no up
18/08/2023, 12:47 pm - +KL: Orh I see
18/08/2023, 12:47 pm - +Ah Heng: economically countries will work less with us or use us as a based
18/08/2023, 12:47 pm - +Ah Heng: for business
18/08/2023, 12:48 pm - +Ah Heng: or maybe will demand more we give in so have their tiny business presence here
18/08/2023, 12:48 pm - +Ah Heng: look at lky and the old guards time
18/08/2023, 12:48 pm - +Ah Heng: is people knocking at our door
18/08/2023, 12:48 pm - +Ah Heng: of cos we also have to do our part to entice business here
18/08/2023, 1:24 pm - +Thomas: When a lie repeated constantly as a “truth”. Some people because of their own hatred or biases will take in as truth. Look at how Trump repeatedly tell election fraud for over 2 years and a good section of GOP believe him. Other politicians afraid to tell the truth and follow along but in their heart they know is wrong. They will go down the drain. To counter it, the moment such untruth is told by politicians, we need to aggressively counter it or else it takes root. If not politics will take a the worst form of partisan and no chance of cooperation. Population will be divided. Weak Politicians will tell lies or half truths to brainwash the electorate
18/08/2023, 1:30 pm - +Thomas: Donald trump has some unique skills that no other politician has. He sees what sells in messaging to his base. He is a reality show’s actor, a business man stiff his vendors. He possesses a unique skill of divide and conquer. If such person appears in Singapore politics, we are done for
18/08/2023, 1:43 pm - +Thomas: Our current crop of politician in PAP is not in the calibre of LKY where he will aggressively counter any untruth; they are too nice and afraid of confronting head on any untruth aggressively but with finesse. They must tell it where layman understands which LKY able to. LKY tells as it is. There will be people who hated LKY but a sizable of population believe him. Currently LHL and cabinet coming out with series of shows on CNA on reserves. I felt , it should be tackled early on as this was raise by opposition on the ground on how to use it and so on and I heard about it years ago. To ingrain into population what and why we have reserves , have it in our school education etc and current affair discussion. I felt this is too important to ignore and leave to future politician to articulate again.
18/08/2023, 1:48 pm - +Smiley face: "In life, we human finding our fits. Besides career or job or dreaming big, we have a long list of wishes, ideas and considerations to feed and to satisfy. At each portion of life, hopefully, we will gain a sense of fulfilment, settlement and fittings in our mind and there on moving forward with stride and confidence- anywhere and any moment !'
- - anonymity
18/08/2023, 2:00 pm - +REACH: 📢 *Topic* 📢
As part of the documentary on Singapore’s Reserves, CNA was given exclusive access to a secret vault where the Government stores its gold reserves. Financial influencers also took part in an Ask Me Anything session with Prime Minister Lee Hsien Loong. The documentary also covered a multitude of questions regarding the Singapore’s Reserves, from the workings of Temasek and GIC, to the origins of the 50-50 proportion of the NIRC framework, and how Singapore reserves are used.
PM Lee described the reserves as a “great source of comfort and reassurance” that provides Singapore with “one extra card to play” should it run into a tough spot. Singapore has enough reserves “for most circumstances”, but it would be the "biggest misconception" to think that will always be the case with the country's spending needs already outpacing revenue growth, said PM Lee.
💬 *What are your views on Singapore’s Reserves? What are some of your takeaways from the CNA documentary?*
📌 *Origins of the 50-50 rule*
On how the 50-50 spending rule first came about, PM Lee noted that it was the idea of former President Ong Teng Cheong. Mr Ong served from 1993 to 1999 as Singapore's fifth President.
Under the NIRC framework, the Government can spend up to 50 per cent of the net investment returns on net assets invested by GIC, the Monetary Authority of Singapore and Temasek – the three entities that manage and invest Singapore’s reserves – and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
“If it’s not raining, I don’t touch it. If it’s a sunny day and I can afford to, I put a little bit more into it. However much there is, I keep on having this attitude that I would like to build it up a little bit more when I can, so that the next generation will be in a more secure position than I am today.” PM Lee said.
📌 *Reserves being used in other areas*
The Government does not disclose the full size of the reserves to protect national interests and prevent speculative attacks on the Singapore dollar.
Citing how Singapore was the first in Asia to secure the Pfizer-BioNTech’s COVID-19 vaccine, Deputy Prime Minister Lawrence Wong said the reserves had played “a critical role” in making that possible.
Singapore first tapped on its reserves in 2009, taking out S$4.9 billion (US$3.6 billion) to support the economy through the global financial crisis. Over a decade later, it drew on the reserves on three separate occasions during the COVID-19 pandemic between 2020 and 2022 – using about S$40 billion in all.
“Sometimes we think that the reserves are there only for future emergency,” said DPM Wong in his CNA interviews. “But in fact, the reserves are also an endowment providing for today’s needs and all of us are benefiting from it right now.”
👉 *Think of Singapore’s reserves as ‘rainy day’ money: PM Lee*
https://str.sg/i56J
👉 *Singapore's reserves cannot be built up again once gone: PM Lee*
https://str.sg/i52F
👉 *’Biggest misconception’ to think that Singapore will always have enough reserves, says PM Lee*
https://www.channelnewsasia.com/singapore/singapore-reserves-pm-lee-biggest-misconception-3699726?cid=internal_sharetool_androidphone_17082023_cna
👉 *Singapore not ‘oversaving’ with reserves ‘barely keeping pace’ with its economy: DPM Wong*
https://www.channelnewsasia.com/singapore/lawrence-wong-singapore-reserves-revealed-oversaving-3702421
👉 *Full Playlist of CNA's clips on Singapore Reserves*
http://go.gov.sg/lhl-cna-reserves
18/08/2023, 2:19 pm - +Ah Heng: i think is one o fthe PE candidate said this why shoudl we make our reserved number know
18/08/2023, 2:20 pm - +Ah Heng: if others know this will give them a much calculated attack against us
18/08/2023, 2:20 pm - +Ah Heng: is like will you let your son or daughter know how much gold and money you have ?
18/08/2023, 2:20 pm - +Coconut Tree: Geroge Goh. did'nt get qualified,. Malaysian Born.
Wonder whats his motice
18/08/2023, 2:20 pm - +Coconut Tree: *motive
18/08/2023, 2:21 pm - +Ah Heng: most parents by nature will not cos of obvious reasons
18/08/2023, 2:24 pm - +Ken: Malaysian born cannot?
18/08/2023, 2:24 pm - +Ken: Got this requirement? <This message was edited>
18/08/2023, 2:26 pm - ☸️ Danny 心: <Media omitted>
18/08/2023, 2:26 pm - +Ken: If you all your family members know how much you have.. then yes you can vote to let all Singaporean know. How much the country has.
18/08/2023, 2:27 pm - ☸️ Danny 心:
He is now a Singapore citizen.
He can be a president if his other criteria qualify.
18/08/2023, 2:27 pm - +Coconut Tree: I didn't say it was a requirement. I said he was malaysian born. and he didnt get qualified. Not he didnt get qualified because he's malaysian born.
18/08/2023, 2:27 pm - +Coconut Tree: he didn't qualify
18/08/2023, 2:29 pm - ☸️ Danny 心:
He didn't qualify probably because of - $500 million equity as CEO for 3 years.
18/08/2023, 2:30 pm - +Ken: Singapore only independent how long 😂
18/08/2023, 2:30 pm - +Frankie Wee: I think he is leak of political views and acknowledging experience only youth leader for enterprise future.
18/08/2023, 2:31 pm - +Ken: Got one PE candidate staying overseas.. currently… is it true?
18/08/2023, 2:32 pm - +Coconut Tree: George Yeo didnt run leh =) unless you're referring to NKS?
18/08/2023, 2:33 pm - +Ken: Don’t know who… lol so ask if anyone heard this… 🤣
18/08/2023, 2:33 pm - +Coconut Tree: interesting
18/08/2023, 2:35 pm - ☸️ Danny 心:
Btw Goh Keng Swee, our Economy Czar is born in Malacca.
18/08/2023, 2:36 pm - ☸️ Danny 心: <Media omitted>
18/08/2023, 2:37 pm - +Frankie Wee: All of you liked him support to be president (George Goh)?
18/08/2023, 2:37 pm - +Frankie Wee: Statesman and economic is power political
18/08/2023, 2:40 pm - +Coconut Tree: no!
18/08/2023, 2:40 pm - +Frankie Wee: There different sector under govt and public private.
If he work under govt then he will know what is political next he can apply president.
18/08/2023, 2:40 pm - ☸️ Danny 心:
Tharman is still the best bet.
His international stature will bring alot of good overseas outcomes into Singapore - in the midst of global supply decoupling, geopolitical tension - as we need to navigate this external uncertain landscape.
His stature in international space is highly valuable. <This message was edited>
18/08/2023, 2:52 pm - ☸️ Danny 心:
This is more than just looking after reserves.
Come the next decades:-
1. How the global supply chain pan out.
2. How the geopolitical tussling evolves.
3. How global climate affect how countries react to protect their food resources.
Hence this will require a President who can connect all the dots and piece out how the global landscape evolve.
A President who works in conjunction with the PM - will need to engage the overseas leaders - to put Singapore in a good shape and protect our interests.
It is more than safeguarding our reserves and appointments of key civil servants.
A President who posses the calibre of a senior Statesman - will be at the best position to secure Singapore interest in the global world working in conjunction with the PM.
Looking at the 3 candidates, can nks and tkl meet this requirement?
Nks manage gic investment.
Tkl manage NTUC income.
Global leadership?🤔
18/08/2023, 2:56 pm - ☸️ Danny 心:
"China's sliding yuan could be next 'black swan event' for markets, hedge fund EDL says".
Geopolitical tensions driving Western countries to re-home supply chains that will starve China of foreign investment.
https://www.channelnewsasia.com/business/chinas-sliding-yuan-could-be-next-black-swan-event-markets-hedge-fund-edl-says-3705616#:~:text=China%27s%20sliding%20yuan%20could%20be%20next%20%27black%20swan%20event%27%20for%20markets%2C%20hedge%20fund%20EDL%20says
18/08/2023, 3:01 pm - ☸️ Danny 心:
Can anyone connect the dots,?
US decoupling of China - has badly cripple China economy.
China is our largest trading partners - and our export plummets consecutively for many months.
All these are challenges in which Singapore is facing.
A President with only experience in handling money and investment - but no experience in international affairs - will be handicapped in responding to sesimic changes that are happening globally.
But an Elder Statesman will possess the political acumen to respond appropriately and secure Singapore national interest and national security. <This message was edited>
18/08/2023, 3:02 pm - +Smiley face: Singapore trade slump worsens with key exports tumbling 20.2% in July
https://www.straitstimes.com/business/singapore-trade-slump-worsens-with-key-exports-tumbling-202-in-july
Degrowth and hopefully don't crash land it...
18/08/2023, 3:03 pm - +Smiley face: Fitch says China credit rating may be vulnerable to rethink
https://www.straitstimes.com/business/fitch-says-china-credit-rating-may-be-vulnerable-to-rethink
Thinking of JP Morgan and it's exposures in China, what will become the endgame for one or a few wallstreet banks?
"A large injection of short-term cash to China’s financial system on Wednesday and central bank interest-rate cuts on Tuesday have failed to restore optimism. The onshore yuan is falling toward its weakest level in 16 years against the US dollar,..."
18/08/2023, 3:04 pm - +Smiley face: Starting with corrections, aka devaluations !
Devaluation and Consolidation of economics both macro and micro!
Global De-growing, it's more than slowing down!
Stagnation + Stagflation before it becomes depressionary!
Depression?
Cash is the mighty king !
18/08/2023, 3:05 pm - +Smiley face: 10 years historical lows respectively...
$2.20. BOC
$2.33. AGB
$3.20. ICBC
$4.10. CCB
18/08/2023, 3:05 pm - +Smiley face: These big four Banks cumulatively may be exposed to losses of US$10 trillions or ¥75 trillions or more?
Factors of exposures include the past decade of forceful growths within China's microeconomics from properties, manufacturing, banking, and several subsidies of electric vehicles and green initiatives.
Aggressively, outside of China's macroeconomics, aka OBOR - the Belt and Road loans spanned across Asian, Europe and Africa through it's Asian Infrastructure Investment Bank (AIIB).
The AIIB is the equal of IMF/WB, things are unfolding, it yields insufficient cash flows and the added risks of many non recovery of loans especially to the less developed nations and the developing nations!
The entire stakes are yet to be accounted for and the significance and impacts may cost dearly to China's currency value and it's world standing as a stable, reliable and the next powerhouse against the USA?
18/08/2023, 3:07 pm - +Smiley face: The Two + Three Factors?
After the pandemic came the Ukraine war. And now the on-going Climate challenges to Economics turmoil and Social divergent based on inequalities of wealth and income. Times are getting tougher each day for many people of the world.
In California alone, criminals are targeting tourists and robbing them of their cash, rental cars, violence and killings. And shoplifters are ramping stores out of the broad daylights like there is no security, lawless and no tomorrow to come!
How about China or other parts of the world behaving?
All matters converge to one critical point that is survival!
18/08/2023, 3:12 pm - +Smiley face: https://youtu.be/AaLQzXVL8oE
18/08/2023, 3:15 pm - ☸️ Danny 心:
1. Possessing the experiences in dealing with global economic with other countries is not sufficient.
2. The candidates must also be able to assess political tussle that are taking shapes.
The regional tension that affect Asia Pacific.
The likely military confrontation that may take place.
3. Hence a President if meeting foreign leaders must be able to help to defuse such tension - although PM and his Cabinets are at the forefront to do the job.
But a President role is equally important.
Can the other 2 candidates do it with their current experience?
18/08/2023, 3:22 pm - +Smiley face: This psychoanalysis is not wholesale and it is not falsifiable too. According to Carl Jung, archetype is a "pattern that's universally recognized by people of different eras as a consequence of the collective unconscious..." It can either be dynamic or static character. Whereas stereotype is a raw and simplistic ways of categorizing or grouping human characters that ignores diversity among individuals.
Archetype in human behavior, experiences and hidden. The formation of archetypes are shaped by individual prior and present exposures and cultural experiences...
18/08/2023, 3:22 pm - +Rama: Agree
18/08/2023, 3:32 pm - +~L: Yes, this is the time for global leadership and international stature. We have to look beyond our borders that is the role of a president.
18/08/2023, 3:32 pm - +Rama: Iñ difficult times, an extremely strong hand is needed
18/08/2023, 3:50 pm - +Smiley face: Timing, Context, People
( 天时、地利、仁和 )
18/08/2023, 3:52 pm - +Rama: Agree
18/08/2023, 3:57 pm - +Smiley face: "Creme de la Creme? Crop vs Calibre?"
Strategy and leadership?
There is a crucial need to define and refine an organisation strategy that fits a leader (strategy before leadership) to enable these broad based and at times big picture initiatives or longer term projects closer to achieving them. (game plan)
Vision can only be imaginary through mental visualisation of the future; a deep scan and a long focal len into both the possibilities and the achievables, that's envision!
So what are the criteria of a leader?
A visionary, a trustee, a power shifter, a motivator, a loyalist, a game planner. Importantly, a leader whose character is paramount and it must be of the exemplary example to the entire team.
- - in progress - -
18/08/2023, 4:00 pm - +REACH: 📢 *Topic* 📢
As part of the documentary on Singapore’s Reserves, CNA was given exclusive access to a secret vault where the Government stores its gold reserves. Financial influencers also took part in an Ask Me Anything session with Prime Minister Lee Hsien Loong. The documentary also covered a multitude of questions regarding the Singapore’s Reserves, from the workings of Temasek and GIC, to the origins of the 50-50 proportion of the NIRC framework, and how Singapore reserves are used.
PM Lee described the reserves as a “great source of comfort and reassurance” that provides Singapore with “one extra card to play” should it run into a tough spot. Singapore has enough reserves “for most circumstances”, but it would be the "biggest misconception" to think that will always be the case with the country's spending needs already outpacing revenue growth, said PM Lee.
💬 *What are your views on Singapore’s Reserves? What are some of your takeaways from the CNA documentary?*
📌 *Origins of the 50-50 rule*
On how the 50-50 spending rule first came about, PM Lee noted that it was the idea of former President Ong Teng Cheong. Mr Ong served from 1993 to 1999 as Singapore's fifth President.
Under the NIRC framework, the Government can spend up to 50 per cent of the net investment returns on net assets invested by GIC, the Monetary Authority of Singapore and Temasek – the three entities that manage and invest Singapore’s reserves – and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
“If it’s not raining, I don’t touch it. If it’s a sunny day and I can afford to, I put a little bit more into it. However much there is, I keep on having this attitude that I would like to build it up a little bit more when I can, so that the next generation will be in a more secure position than I am today.” PM Lee said.
📌 *Reserves being used in other areas*
The Government does not disclose the full size of the reserves to protect national interests and prevent speculative attacks on the Singapore dollar.
Citing how Singapore was the first in Asia to secure the Pfizer-BioNTech’s COVID-19 vaccine, Deputy Prime Minister Lawrence Wong said the reserves had played “a critical role” in making that possible.
Singapore first tapped on its reserves in 2009, taking out S$4.9 billion (US$3.6 billion) to support the economy through the global financial crisis. Over a decade later, it drew on the reserves on three separate occasions during the COVID-19 pandemic between 2020 and 2022 – using about S$40 billion in all.
“Sometimes we think that the reserves are there only for future emergency,” said DPM Wong in his CNA interviews. “But in fact, the reserves are also an endowment providing for today’s needs and all of us are benefiting from it right now.”
👉 *Think of Singapore’s reserves as ‘rainy day’ money: PM Lee*
https://str.sg/i56J
👉 *Singapore's reserves cannot be built up again once gone: PM Lee*
https://str.sg/i52F
👉 *’Biggest misconception’ to think that Singapore will always have enough reserves, says PM Lee*
https://www.channelnewsasia.com/singapore/singapore-reserves-pm-lee-biggest-misconception-3699726?cid=internal_sharetool_androidphone_17082023_cna
👉 *Singapore not ‘oversaving’ with reserves ‘barely keeping pace’ with its economy: DPM Wong*
https://www.channelnewsasia.com/singapore/lawrence-wong-singapore-reserves-revealed-oversaving-3702421
👉 *Full Playlist of CNA's clips on Singapore Reserves*
http://go.gov.sg/lhl-cna-reserves
18/08/2023, 4:12 pm - +Ah Heng: read from the gossip web some talent from the banking industry had big mouth a rough figure of our reserved and seems to ask SINGAPORE to rethink about our reserved ....
18/08/2023, 4:13 pm - +Rama: Do they have have the exact currency baskets!?
18/08/2023, 4:13 pm - ☸️ Danny 心:
Earning money is very tough. it take years and decades.
Spending money is very easy a split seconds all money will be gone.
18/08/2023, 4:14 pm - +Rama: Yes
18/08/2023, 4:14 pm - +Ah Heng: this one no need say every one also know (those with brains)
18/08/2023, 4:29 pm - +Smiley face: "Is a thankless job! When you do salah, they grumbled all over you. When you do correct, only a handful clapped. As for all the other things you have done, only a few knew...!"
- - anonymity
Looking back almost four decades!
PM Lee:
" I think the key pivot was when we decided to recognise the reserves as being a lot of money and needing to have a second key. The idea was first floated by Mr Lee Kuan Yew in 1984 in his National Day Rally; I remember it because that was the year I came into politics and I attended the rally before I came into politics..."
- - in progress - -
18/08/2023, 4:31 pm - +Rama: George goh says ong teng cheong had the courage to challenge, That’s why President’s independence matters
George Goh Says Ong Teng Cheong Had Political Courage As President Like many Singaporeans, presidential hopeful George Goh has watched Channel NewsAsia (CNA)’s documentary with Prime Minister Lee Hsien Loong on Singapore’s reserves.George Goh praises former president Ong Teng Cheong PM Lee provided much clarification in the CNA documentary on Singapore’s reserves.
https://news.nestia.com/detail_share/11471898?media_type=1&invite_code=000562032624&nestiaShareChannel=whatsapp
18/08/2023, 4:33 pm - +Rama: https://www.channelnewsasia.com/singapore/singapore-presidental-election-2023-certificate-eligibility-candidates-3697306?cid=TWTcna
18/08/2023, 4:49 pm - +Smiley face: <Media omitted>
18/08/2023, 4:50 pm - +Smiley face: Let's reflect and learn....before triggering the keyboard and blasting it all over the world,...of this and about that?
18/08/2023, 4:51 pm - +Smiley face: 30 sec of silence... thank you...
18/08/2023, 4:59 pm - +Ah Heng: 30sec over liao hahahahhaa
18/08/2023, 5:05 pm - +Smiley face: Ok let's start...
18/08/2023, 5:05 pm - +Smiley face: 18 August, 2023
"The Big Funds Methods"
The global big funds often use the ratio of 60/40 for their allocations of investment assets.
Why Capital Gains (X) ?
Why Dividend Pays (Y) ?
Which stock types and ratio of contributions will make more capital for your longer term portfolio?
Answer: 60:40
60% capital appreciation stocks (x).
40% dividend earning stocks (y).
From your dividend earned, you can portion part of it to add to the capital gains driven stocks!
Gain (x) & Yield (y) ?
It's the Fixed and the Variable ratio of wealth building strategy!
Strategic stocks of a big nation are X, also include real estates, critical infrastructures development & key manufacturings, currencies and bullion.
Time deposits, Treasury bonds, company earnings, private equities, crypto, and rentals are Y.
The factor of Y is highly subjective to variations and markets turbulence. It can be unstable, imbalance and over the immediate and shorter timeline. It can also be the blip of the moment.
It's all about managing risks, the appetite and to absorb any major economics and or financial markets fluctuations and pricing shocks/shorts.
REMEMBER TO UTILIZE YOUR Y TO BUILD A ROBUST X FACTOR.✅
- - in progress - -
18/08/2023, 5:50 pm - +Rama: https://www.straitstimes.com/singapore/i-don-t-want-to-be-arrogant-i-m-somewhat-confident-i-can-win-the-election-tan-kin-lian?utm_medium=social&utm_source=telegram&utm_campaign=sttg
18/08/2023, 6:09 pm - +REACH: 📢 *Topic* 📢
As part of the documentary on Singapore’s Reserves, CNA was given exclusive access to a secret vault where the Government stores its gold reserves. Financial influencers also took part in an Ask Me Anything session with Prime Minister Lee Hsien Loong. The documentary also covered a multitude of questions regarding the Singapore’s Reserves, from the workings of Temasek and GIC, to the origins of the 50-50 proportion of the NIRC framework, and how Singapore reserves are used.
PM Lee described the reserves as a “great source of comfort and reassurance” that provides Singapore with “one extra card to play” should it run into a tough spot. Singapore has enough reserves “for most circumstances”, but it would be the "biggest misconception" to think that will always be the case with the country's spending needs already outpacing revenue growth, said PM Lee.
💬 *What are your views on Singapore’s Reserves? What are some of your takeaways from the CNA documentary?*
📌 *Origins of the 50-50 rule*
On how the 50-50 spending rule first came about, PM Lee noted that it was the idea of former President Ong Teng Cheong. Mr Ong served from 1993 to 1999 as Singapore's fifth President.
Under the NIRC framework, the Government can spend up to 50 per cent of the net investment returns on net assets invested by GIC, the Monetary Authority of Singapore and Temasek – the three entities that manage and invest Singapore’s reserves – and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
“If it’s not raining, I don’t touch it. If it’s a sunny day and I can afford to, I put a little bit more into it. However much there is, I keep on having this attitude that I would like to build it up a little bit more when I can, so that the next generation will be in a more secure position than I am today.” PM Lee said.
📌 *Reserves being used in other areas*
The Government does not disclose the full size of the reserves to protect national interests and prevent speculative attacks on the Singapore dollar.
Citing how Singapore was the first in Asia to secure the Pfizer-BioNTech’s COVID-19 vaccine, Deputy Prime Minister Lawrence Wong said the reserves had played “a critical role” in making that possible.
Singapore first tapped on its reserves in 2009, taking out S$4.9 billion (US$3.6 billion) to support the economy through the global financial crisis. Over a decade later, it drew on the reserves on three separate occasions during the COVID-19 pandemic between 2020 and 2022 – using about S$40 billion in all.
“Sometimes we think that the reserves are there only for future emergency,” said DPM Wong in his CNA interviews. “But in fact, the reserves are also an endowment providing for today’s needs and all of us are benefiting from it right now.”
👉 *Think of Singapore’s reserves as ‘rainy day’ money: PM Lee*
https://str.sg/i56J
👉 *Singapore's reserves cannot be built up again once gone: PM Lee*
https://str.sg/i52F
👉 *’Biggest misconception’ to think that Singapore will always have enough reserves, says PM Lee*
https://www.channelnewsasia.com/singapore/singapore-reserves-pm-lee-biggest-misconception-3699726?cid=internal_sharetool_androidphone_17082023_cna
👉 *Singapore not ‘oversaving’ with reserves ‘barely keeping pace’ with its economy: DPM Wong*
https://www.channelnewsasia.com/singapore/lawrence-wong-singapore-reserves-revealed-oversaving-3702421
👉 *Full Playlist of CNA's clips on Singapore Reserves*
http://go.gov.sg/lhl-cna-reserves
18/08/2023, 6:20 pm - +Khuan Yew: I think it was a good documentary and to have more transparency on how Singapore manages its reserves.
However, since the Government is effectively borrowing from the CPF and paying 2.5% or 4% to CPF members, it should consider increasing the CPF Ordinary Account interest rate. The benefits of investing the CPF monies only accrue to the Singapore Reserves but not to individual Singaporeans. 2.5% returns hardly produce a real return when adjusted for long term inflation of 2%. With future inflation expected to be higher, CPF monies might even shrink after taking into account of inflation.
That’s why most Singaporeans can’t retire on their CPF savings due to low rates of returns compounded over decades. If CPF rates were increased such that it would be 2% higher than inflation, over decades this would compound Singaporeans CPF nest egg significantly.
18/08/2023, 6:22 pm - ☸️ Danny 心:
If increase ordinary account interest rate of 2.5%, that means young couples borrowing from CPF for housing loans will be more than 2.6%.
18/08/2023, 6:23 pm - ☸️ Danny 心:
How does this address the retirement nest eggs when young couples will have a hard time to repay the CPF loans ?
18/08/2023, 6:25 pm - ☸️ Danny 心:
Special account provides for retirement.
Ordinary account predominantly are used for financing housing loans.
Hence difficult for me to comprehend this argument.
Which is also push forward by WP Louis Chua. <This message was edited>
18/08/2023, 6:28 pm - ☸️ Danny 心:
"WP MP Louis Chua calls for balanced CPF OA rates to safeguard Singaporeans’ retirement funds againts inflation"
https://www.theonlinecitizen.com/2023/05/31/wp-mp-louis-chua-calls-for-balanced-cpf-oa-rates-to-safeguard-singaporeans-retirement-funds-againts-inflation/#:~:text=WP%20MP%20Louis%20Chua%20calls%20for%20balanced%20CPF%20OA%20rates%20to%20safeguard%20Singaporeans%E2%80%99%20retirement%20funds%20againts%20inflation
18/08/2023, 6:28 pm - ☸️ Danny 心:
WP MP is always getting the policy wrong misplacing their compassion.
1. CPF OA is not for retirement - mainly use by people to service their HDB flats, condo and landed properties housing loan.
Currently 2.5%, means people using CPF OA to finance their house will have to pay 2.6%.
An increase in CPF OA interest rate will make people having to pay a higher interest rate to finance their house loans - putting a heavier financial burden and not helping the people to cushion higher cost of living.
Hence WP MP often get the "ball wrong" - making matter worst than helping.
2. PAP government is getting the policy right by increasing CPF SA and medisave interest rate to 4.01% - because CPF SA account are use to finance retirement by moving to CPF retirement account upon 55 years old.
Medisave is also used to pay for medical bills.
Both these accounts will help to cushion higher cost of living - and will not increase burden onto people using OA yo finance their housing loans.
3. Else young couples, middle age people who are still struggling to repay their housing loans will have unnecessary heavy burden if CPF OA interest rate are increased as suggested by WP MP.
18/08/2023, 6:28 pm - ☸️ Danny 心:
羊毛出在羊身上。 When interest rates are very low, Cpf rates held the fort and not let mortgagees down. Now, so quickly want to raise rates. Where the money come from huh? Raise gst to pay increase in Cpf rates, can?
18/08/2023, 6:28 pm - ☸️ Danny 心:
That's why CPF OA rate is a stabiliser to help Singaporeans to service their housing loan.
Cannot anyhow increase.
It will break those people who rely on CPF OA to service their housing loans.
Else many housing loan default will happen - causing untold unnecessary suffering to people.
That's why WP MP many cannot make it.
18/08/2023, 6:35 pm - ☸️ Danny 心:
Interesting.
Let us ask how tkl intend to address the:-
1. Cost of living
2. Make housing affordable
3. Secure jobs ?
18/08/2023, 6:37 pm - +Khuan Yew: What’s the fundamental objective of the CPF? To help Singaporeans (particularly those without much assets and financial knowledge) to grow their nest egg? Or is the purpose of CPF to grant loans to young couples?
18/08/2023, 6:38 pm - ☸️ Danny 心:
How much is the ordinary account are used for housing?
How much left are for other purpose?
Special account are specially for retirement account.
That is the nest egg. <This message was edited>
18/08/2023, 6:39 pm - ☸️ Danny 心:
CPF is make up of 3 components.
Not just ordinary account.
18/08/2023, 6:40 pm - +Khuan Yew: Below market rates loans basically means that the CPF retiree is subsiding the loans for young couples.
Who needs the money more? The retiree or the young working couple?
18/08/2023, 6:42 pm - ☸️ Danny 心:
Retiree use cpf life.
You can put your ordinary account to special account if you don't want to use your ordinary account to finance your house.
You can also invest your ordinary account on other investments of higher interest in other markets instruments.
18/08/2023, 6:43 pm - ☸️ Danny 心:
That is what some people did, invest their ordinary account in deposit that fetch higher than the ordinary account interest rate.
18/08/2023, 6:44 pm - +~L: I did that and had zero return for the last 3 years due to market drops.... no such thing as a risk free profit, at least CPF rate is solid.
18/08/2023, 6:45 pm - ☸️ Danny 心:
During bad times when interest rate is below 1% or below 2%, cpf have been paying 2.5% for many years.
Why no one want cpf to reduce the interest rate - if you want it to be fair?
18/08/2023, 6:45 pm - ☸️ Danny 心:
Exactly!
18/08/2023, 6:47 pm - ☸️ Danny 心:
So when next few years interest rate drop below 2.5%, adjust the cpf rate back again like the bank?
18/08/2023, 6:48 pm - +~L: Think of CPF like profit share. When the country does well, we al benefit, when in tough times we drop back. It's a fair and realistic system. It doesn't promise crazy high returns, but for elderly who get 6.5, it's really decent.
18/08/2023, 6:48 pm - ☸️ Danny 心:
CPF is to help people to finance house, for retirement, for health care.
Ordinary account is to finance housing.
Special account to finance retirement.
Medisave to finance healthcare.
18/08/2023, 6:48 pm - +~L: Exactly, a simple and effective system.
18/08/2023, 6:48 pm - ☸️ Danny 心:
Exactly.
18/08/2023, 6:49 pm - +REACH: *Dear Contributors,*
⏰ We will be closing the chat in *15 minutes* ⏰
Thank you very much for being part of our WhatsApp chat and participating actively.
Goodnight!
Megan 😊
18/08/2023, 6:53 pm - ☸️ Danny 心: <Media omitted>
18/08/2023, 6:55 pm - ☸️ Danny 心: <Media omitted>
18/08/2023, 6:56 pm - ☸️ Danny 心:
About 80% of household use CPF ordinary account to finance their housing loans.
18/08/2023, 6:57 pm - ☸️ Danny 心:
Increasing the CPF ordinary account interest rate - will hit majority of the household very badly.
It does not help to fight inflation, in fact the burden of the people will be tremendous.
18/08/2023, 6:57 pm - +Khuan Yew: It doesnt matter whether it is CPF life, ordinary account or special account. It’s not the variety of accounts that is key to retirement.
The basic tenet of retirement is to compound returns 1% to 2% above inflation for decades. With CPF returns that don’t beat inflation by much during the younger age, the nest egg does not compound significantly. There is about $520 billion of CPF monies invested with the Government. If the Govt pays just 1% more for the CPF interest, that’ll be $5.2 billion less in Net Investment Returns Contribution every year but $5.2 billion more for CPF members.
The government is about to compound the Singapore Reserves because it’s borrowing cheap money from CPF members. Just be aware of that.
18/08/2023, 6:58 pm - +Khuan Yew: They use CPF to pay market rate loans and HDB loans.
18/08/2023, 6:59 pm - +Smiley face: 18 August, 2023
"Tomorrow (来日方长)"
"In a multi variants of jobs and skills modelling, we have all sorts of finite outcomes that is a job with no adequate skills set, a skills that needs to be upgraded to higher if not socialised needs of a job, a job and skill that required new skills, having skills but no available jobs. All in all, these models clearly demonstrated that skills come before jobs just like structure and form."
- - anonymity
One clear vision is the Specialisation of skills and jobs will have a shorter lifespan and timespan all because of technological breakthroughs, automations & AI as the next automates of the workplace!
Two, the structure of an economy and its short term goals are both vital signs of employability for these fresh graduates. Presently, the world economics is heading for a slow down and the capacity for added expansions are limited if not a cautiously optimistic approach in procurement of resources like human capital.
Three, these impeding big changes don't come cheap and it will forego a portion of the revenue just to transit in-between changing and existing performances of a company.
Four, the full impact of these global changes will come to fruition given the current rates of change, it will take more than a decade to implement successfully from the big corporations to the small scale businesses to connect into a fully digitised ecosystem of manufacturing, trades and services: Private & Public in unison; how each is willing to invest or subsidise in our fresh graduates or existing workers to retrain or to reskill, to prep and to fit into the larger context of changes with no hesitation over the shorter term of profitability.
Five, so what will change to the future economics of humanity? Knowledge is the key to all cutting edge and groundbreaking discoveries whether is scientific or a specific technology.
A village of people?
One discovery commands an entire village of experts and non experts; the efforts of thousands of hands and hours to reach the pinnacle.
An example, the CERN supercollider involved over 3,000 physists, and more workers and technicians to build this revealing machine. No single human was capable to attempt this steep climb of this collider project, you need to master a big team of human to conquer the complexity and most of the time complicated and always sophisticated mini steps into the end of the tunnel of discovery.
All of these, you will need a steady, an all-weather team and take on the carnage and have courage to thrive the coming challenges unseen since the end of WW2!
Singaporeans must work in unison regardless of differences to conquer all the impediments of the test of time that will bring about our next generation of leaders to an even stable platform of governance and prosperity for our nation.
- - in progress - -
18/08/2023, 6:59 pm - ☸️ Danny 心:
I support increasing interest rate in SA and MA but not OA.
OA are predominantly use by majority of the household to finance their housing loans.
18/08/2023, 7:00 pm - ☸️ Danny 心:
If some people are not happy with their OA interest, then make use of CPF investment scheme.
18/08/2023, 7:00 pm - +Rama: Likewise
18/08/2023, 7:01 pm - +REACH: *Dear Contributors,*
We will be closing the chat for today.
Thank you very much for being part of our WhatsApp chat and participating actively.
Goodnight!
Megan 😊
18/08/2023, 7:01 pm - ~ REACH Singapore changed this group's settings to allow only admins to send messages to this group
18/08/2023, 9:11 pm - Only admins can message this group
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