Should Singapore spend more of its investment returns? MPs urge prudence during Budget debate
Weighing in on a debate that reignited after last week’s announcement of a GST hike, several MPs cautioned against using more of Singapore's reserves to fund future spending needs.
(Updated: )
Ricky Lim ·
Under the current framework, the Government is allowed to spend up to half of its expected long-term real returns from the assets managed by the Monetary Authority of Singapore (MAS), state investment firm Temasek Holdings and the GIC.
For Mr Liang Eng Hwa, MP of Holland-Bukit Timah GRC, this 50-50 split is "a fair balance" between current and future generations.
"Rather than use more of the returns for current spending, we should let the power of compounding returns do the work by re-investing the other 50 per cent so as to grow the principal amount of the reserves and contribute to (the) bigger value of the NIRC (NIR contributions) in the future," he said.
"It is always tempting to go for the short-term painless solution. Our forefathers were resolute in not taking this easy path and so should we," added Mr Liang, who is also chairman of the Government Parliamentary Committee (GPC) for Finance and Trade.
"Going forward, we need bigger NIRC to keep our tax system competitive and importantly, progressive as well."
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Fully agreed with this Wisdom.
We must strictly adhere to this formula in using the reserve income - 50%-50% --- the Middle Path （中道）。
Posted in :- 24 Feb 2018
Ricky Lim ·
Singapore
Yes agree that Singapore Government should be steadfast in maintaining sufficient reserves as saving and buffer for Singapore.
Reserves should not be used up and the formula to grow the reserves, specifically :-
(1) Spend half of the income from reserve investment
(2) Save half of the income from reserve investment to be plough back to grow the principal
-- should be the right formula.
Like · Reply · 1m
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
Save half and Spend half - is Middle Path （中道）mah.
Like · Reply · 1m
Ricky Lim · Singapore
This is a time tested formula - and should not change formula that is working very well for Singapore.
For Mr Liang Eng Hwa, MP of Holland-Bukit Timah GRC, this 50-50 split is "a fair balance" between current and future generations.
"Rather than use more of the returns for current spending, we should let the power of compounding returns do the work by re-investing the other 50 per cent so as to grow the principal amount of the reserves and contribute to (the) bigger value of the NIRC (NIR contributions) in the future," he said.
"It is always tempting to go for the short-term painless solution. Our forefathers were resolute in not taking this easy path and so should we," added Mr Liang, who is also chairman of the Government Parliamentary Committee (GPC) for Finance and Trade.
"Going forward, we need bigger NIRC to keep our tax system competitive and importantly, progressive as well."
--
Fully agreed with this Wisdom.
We must strictly adhere to this formula in using the reserve income - 50%-50% --- the Middle Path （中道）。
Posted in :- 24 Feb 2018
Ricky Lim ·
Singapore
Yes agree that Singapore Government should be steadfast in maintaining sufficient reserves as saving and buffer for Singapore.
Reserves should not be used up and the formula to grow the reserves, specifically :-
(1) Spend half of the income from reserve investment
(2) Save half of the income from reserve investment to be plough back to grow the principal
-- should be the right formula.
Like · Reply · 1m
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
Save half and Spend half - is Middle Path （中道）mah.
Like · Reply · 1m
Ricky Lim · Singapore
This is a time tested formula - and should not change formula that is working very well for Singapore.
Like · Reply · 1m
Ricky Lim ·
Otherwise our children, our grandchildren, our grand-grandchildren etc ---- will suffer if we did not manage this reserve income properly.
We cannot be so selfish to pass the burden to our future generations.
Thus save half, spend half --- is the fairest formula for Singapore.
We cannot be so selfish to pass the burden to our future generations.
Thus save half, spend half --- is the fairest formula for Singapore.
