We refer to the “CPF & YOU” advertisement in the Straits Times of 24 July (see image below).
“CPF & YOU” Advertisements everyday?
Such bigger than a quarter page advertisements have been appearing daily, and we understand that so far there are 9 different advertisements explaining various aspects of how our CPF works.
As we understand that there are advertisement versions in the 3 other languages – have such advertisements been in the Chinese, Malay and Tamil newspapers as well?
Let’s look at today’s advertisement
– “Can the Government spend CPF monies?”
CPF is invested, then silence?
The advertisement ends with “The monies the Government receives when it issues government securities are invested.”
– This kind of leaves one “hanging in the air”, as anyone reading it may think – So, where or what is it invested in and what were the returns?
In this connection, since the Government has recently clarified that only the GIC had invested CPF funds – Why does the subject advertisement not say so? Also, since the Government has also recently revealed that GIC’s annualised returns in S$ for the last 20 years was 5.2% – Why is it silent now?
By the way, the question that people have been asking on the returns from inception of the GIC, has still not been answered.
Cannot spend or never spent CPF?
“No. Under the Constitution and the Government Securities Act, the Government cannot spend the monies from issuing SSGS to the CPF Board.”
– This may not be entirely correct, because the Finance Minister said at the Institute of Policy Studies CPF Forum on 22 July, that prior to 1992, CPF funds were used (spent) on infrastructure.
Triple A rating and guarantee?
“How are CPF monies invested?
This means that your savings and the minimum interest rates are both guaranteed by the Government. This is a solid guarantee. The Singapore Government is one of only 11 governments in the world with a triple A credit rating from the major global credit rating agencies.”
– What has a triple A credit rating got to do with a country’s national pension fund? Has any Government that did not have a triple A credit rating – ever run away with the people’s money? – did not return the people’s money?
In contrast, in a sense, Singapore may be the only country in the world that kept the excess returns (GIC’s returns minus the average weighted interest on CPF accounts)?
Are not all the countries’ national pension funds implicitly guaranteed by the Government – that they are the people’s money and will be returned to them?
Guaranteed interest rates?
“Regardless of financial market conditions, you will always be able to receive the guaranteed interest rates.”
Has any national pension fund ever paid zero or negative interest rates in any year in history?
Is our CPF rate the historically lowest real rate of return among all national pension funds in the world?
S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the 3rd Return Our CPF – HDB protest on 23 August 4 pm to 6.30 pm at Speakers’ Corner https://www.facebook.com/events/648543138548193/
