TODAY reported the following exchange between Opposition MP, Low Thia Khiang, and Minister of Manpower, Dr Ng Eng Hen, apparantly during a parliamentary debate.
MR LOW THIA KHIANG (LEFT): Does the
Government of Singapore Investment Corporation
(GIC) use money derived from CPF to invest?
DR NG ENG HEN (RIGHT): The relationship is not
so simple. Let me give an example: You put money
in a bank and you agree that you’ll get
2 per cent. The bank publishes a report and says
that it earned 8 per cent. You go to the bank and
say, you want 8 per cent. It doesn’t work.
But the Government takes over the liability of
the CPF Board and promises a risk-free rate to
members. The market test is, if anybody
else thinks he can take on that liability, please
MR LOW: Is the Government short-changing
Singaporeans by giving CPF members a
3.5-per-cent interest rate, while the GIC makes
9 per cent and pockets the balance of 5.5 per
cent? Is the motive of delaying the draw-down
age to enable the GIC to have a readily available,
cheap source of fund to invest?
DR NG: If it was that cheap, we would have a line
of suitors waiting for the money. There are none.
See Singapore Peasants, here's what you get after paying millions for a minister. This is the kind of nonsensical reply you get.
"The relationship is not so simple. Let me give an example: You put money in a bank and you agree that you’ll get 2 per cent. The bank publishes a report and saysthat it earned 8 per cent. You go to the bank and say, you want 8 per cent. It doesn’t work.But the Government takes over the liability ofthe CPF Board and promises a risk-free rate to members. The market test is, if anybody else thinks he can take on that liability, please line up."
Classic bullshit indeed. Firstly, a bank does not force you to deposit your money with it. You have the choice of not putting your money in the bank!!! Secondly, CPF is not a bank. It is a tool to help poor peasants save up sufficient funds for retirement purposes. CPF is not created to allow GICs to have access to cheap loans so that they can generate huge profits. Or is it? And just because CPF promises a risk-free rate to members doesn't mean it has the right to stash away the extra profits. Peasants are forced to put money inside CPF. If CPF loses money, it should jolly well fork out the risk-free rate to members. If it generates sulplus profits, peasants have every right to demand that the money goes back to them. As for Dr Ng's "market test", i would be delighted to be able to borrow money at 2.5% interest rate. I'm sure everyone else would too. The freaking line will stretch from JB to KL and back to SG.
I think peasants should just vote for me to be their prime minister lah. I'll hire Warren Buffett, the legendary investor, to manage Temesek's and GICs' assets. With Singapore's reserves standing at around $300 BILLION, according to opposition politician Mr Goh Meng Seng, Warren just needs to achieve an annual return of investment of about 20%. That will give us $60 billion. Then we'll share this $60 billion amongst the 4.5million people living on our tiny island. That works out to be $1111.11 a month for each person! Even Foreign Talents are included in this calculation. That's how rich we are!
And here's the best part of the deal.Hehe. I'll just ask for a salary of 500k a month ok? Value for money don't you think? Everyone gets 400 plates of Char Kway Teow a month for free instead of having to FORGO plates of Char Kway Teow!