I refer to the article “Government launches websites to bust online rumours” (Straits Times, Sep 22).
It states that “In a bid to cut through the swirl of rumour and distortion online, the Government has quietly launched a few “myth busting” initiatives. The first is a new section on its www.gov.sg website called “Factually”. Since May, it has collected a series of primers on hot topics like the national reserves, certificates of entitlement and procurement processe”.
Reading “demystifying” & “Myth” together
In the interest of helping readers to have a better understanding of the issues, I think that putting the “demystifying” article side by side with some likely so called “myth” articles, may help readers in forming their opinions as to what is myth or fiction.
The Reserves
According to the article on the Reserves at www.gov.sg ‘Factually’,
“Reserves
What comprises our reserves?
Published Date: 31 August, 2012
Our reserves refer to the total assets minus liabilities of the Government and other entities specified in the Fifth Schedule [1] under the Constitution.
Government Assets include:
Government’s Liabilities include:
(i) Physical assets like land and buildings;
(ii) Financial assets like cash, securities and bonds.
(i) Singapore Government Securities (SGS)
Issued for purposes of developing our domestic debt market and providing a risk-free benchmark against which other risky market instruments are priced off
(ii) Special Singapore Government Securities (SSGS)
Government bonds issued to the CPF Board. CPF monies are invested in these special securities which are fully guaranteed by the Government. The securities earn for the CPF Board a coupon rate that is pegged to CPF interest rates that members receive.
Who manages our reserves?
Singapore’s reserves are managed by three agencies – the Government of Singapore Investment Corporation (GIC), Temasek Holdings (Temasek) and the Monetary Authority of Singapore (MAS).
Managing Body
Profile
Funds
Amount of Funds
Central Bank of Singapore
Official Foreign Reserves
S$304 Billion
(as of 30 April 2012)
Investment company managed by commercial principles
Temasek’s own assets
S$198 Billion
(as of 31 March 2012)
Professional fund management organisation
Government funds
Well over US$100 Billion
Why doesn’t Government reveal the overall size of our reserves?
It is not in our national interest to disclose the full amount of Singapore’s Financial Reserves. Full disclosure will make it easier for markets to mount speculative attacks on the Singapore dollar during periods of vulnerability. Furthermore, as a small country with no natural resources or other assets, our reserves are a key defence for Singapore in times of crisis. It would be unwise to reveal the full and exact resources at our disposal. Thus, confidential information of the exact figures must remain undisclosed as this is crucial to the survival of Singapore, especially in times of crisis.
More information
· MOF – Section I – What comprises the reserves and who manages them?
· MOF – Our Nation’s reserves
· Monetary Authority of Singapore – Most popular FAQs
· Forum reply- GIC manages its investment portfolio for the long term (23 September 2011)
Tags: #Reserves, #August 2012
[1] Fifth Schedule entities refer to key statutory boards and Government companies that are listed in the Fifth Schedule under the Constitution. Examples of Fifth Schedule entities are CPF Board, MAS, HDB, GIC and Temasek. The reserves of these entities are protected under the Reserves protection framework.”
“Myth articles”?
Here are the links to some likely so called “myth” articles that you may like to read.
Increase social spending means more taxes?
GIC returns: half the story?
Of course, the sum of the Reserves may not be the only issue pertaining to the Reserves.
Part 2 shall be on the “demystefying” article on the $1m HDB flat affordability.
Leong Sze Hian
