Tag Archives: THARMAN

DPM THARMAN: CPF RECOGNISED AS ROBUST INTERNATIONALLY

The Government then takes on the risk itself through investments, mainly in the Government of Singapore Investment Corporation (GIC), as well as in the Monetary Authority of Singapore. Even with the GIC publishing its returns, Mr Tharman said: "It doesn't affect the CPF member because he or she is assured of a fair rate of return with no risk." This, he said, is unique among social security systems around the world. He cited pensioners elsewhere who have had their retirement savings wiped out because of the global financial crisis.

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BACK IN 2011, FINANCE MINISTER THARMAN SAYS GST WILL NOT BE RAISED FOR 5-YEARS

He said: "As Finance Minister, I have made that very clear in Parliament that at least for the next five years - it does not mean we will raise it in five years' time - but at least for five years, there is absolutely no reason to raise the GST, because this was the whole idea - we strengthen our revenue base in time. In fact, in the good years before the crisis, it came in very handy in the crisis but it is also going to come in handy in the next five years when we build our infrastructure in health, in infrastructure and we increase our support for the poor. That was the original motivation for GST, help the poor more and prepare Singaporeans for the future through investment income, two very solid sources of revenue to help us in the years to come."

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FINANCE MINISTRY: THIS IS HOW THE GOVERNMENT SPENDS YOUR CPF MONIES

CPF monies are invested by the CPF Board (CPFB) in Special Singapore Government Securities (SSGS)[1] that are issued and guaranteed by the Singapore Government. This assures that the CPF Board will be able to pay its members all their monies when due, and the interest that it commits to pay on CPF accounts. As the Singapore Government is one of the few remaining triple-A credit-rated governments in the world, this is a solid guarantee.

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ECONOMIC GROWTH IS THE ONLY WAY FORWARD

If our economy is weak, with no foreign investments, there will be no work to attract foreign workers here, and even our own people would have to emigrate to find work. We want better public transport, infrastructure and housing. Sure, if we have the money, these expectations can be easily met. We want more subsidies for better social services. It is good that Singaporeans have empathy for the disadvantaged, but this has to be balanced with affordability, otherwise we will go down the road of bankruptcy taken by some countries.

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Singapore is a country, not a corporation.

The government of the day has a moral obligation to help its citizens and uplift their lives. The makeup of the Singapore economy is much more diversified than what the author suggests. Singapore is fully plugged into the global trading system with trade as a primary driver. Financial services account for more than one-tenth of our GDP. The drive to diversify, strengthen other sectors and grow new emerging ones is an ongoing process to ensure that we do not put all our eggs in one basket. The government also has sufficient reserves to move Singaporeans into new sectors should such a catastrophic event occur which in all likelihood is almost close to impossible. Why? Simply, financial services is an intractable part of modern day life and an essential business activity that helps move global trade and facilitate transactions. Singapore is one of the leading financial centres in the world, not the only one. There are others. New York and London, for example. The big countries have a stake in the smooth functioning of the global financial system that is vital to their continued economic development and prosperity.

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TEMASEK HOLDINGS INVESTS $188M IN NIGERIAN ENERGY GROUP

TEMASEK Holdings has invested US$150 million (S$187.8 million) in Nigerian firm Seven Energy as part of its expansion in emerging markets. Temasek made the investment alongside the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which committed US$75 million. The IFC's African, Latin American and Caribbean Fund committed US$30 million more. The funds will be used to help Seven Energy develop its growing portfolio of assets in Nigeria.

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JOSEPHINE TEO: “GST VOUCHER IS A WHOLE SYSTEM OF BENEFITS”

The GST voucher is part of a progressive system of taxes and benefits that ensures that lower-income households get back far more benefits than the taxes they pay, including GST... The GST that they pay is hence far more than offset by the benefits they receive. - Senior Minister of State for Finance Josephine Teo

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THE BIND OF SINGAPORE

It is not surprising that most small city states inevitably are mercantile cities. Without any natural resources, there are only two sources of income for such states, capital and labour. The problem of course is that we are, perilously, dependent upon the state of the world economy and the fickle movements of financial capital. Should a catastrophic global financial meltdown occur, we would be obliterated.

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INSIDE SINGAPORE’S SUCCESS

How did Singapore become the envy of the world? In many ways, it did what competent governments are supposed to do. Quality public housing? Check. Top-notch public education? Check. An open, pro-business economy? Check. The city-state also continues to develop innovative approaches to challenges such as immigration, taxes and debt. Singaporean Finance Minister Tharman Shanmugaratnam recently sat down with Credit Suisse to explain how the country became the alpha male of the Asian Tigers and a global archetype of economic success.

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RYAN GOH: SOME THOUGHTS ON SAVINGS & RETIREMENT

Now, this will sound like a stretch to many but a million dollars 37 years from today is not a big deal. In fact, a million dollars today is even less of a deal than 37 years ago. This, in basic economics, is the difference between nominal and real variables. Nominal refers to the dollar amount while real refers to the amount that your dollars can buy. For example, if a cup of kopi (local coffee) costs $0.50 twenty years ago but costs $1.00 today, we can say that there is a change in nominal value but essentially no change in real value.

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