By Liyana
Low
NSP's secretary-general Hazel Poa calls for more
transparency from S'pore's sovereign wealth funds. …
The National Solidarity Party (NSP) is calling for Singapore's
next elected President to champion for more transparency from
Singapore's two sovereign wealth funds, Temasek Holdings and
Government Investment Corporation (GIC), as this relates to "the
management of our reserves".
NSP's secretary-general Hazel Poa noted in a press statement on
Monday, "It is a disturbing state of affairs when Temasek with
about 400 employees can report an $8 billion administrative expense
without incurring significant public scrutiny."
"$8 billion is more than one-sixth of our national budget," she
said.
According to Temasek Holdings'
group income statement, its administrative expense was $8
billion in 2009, $8.7 billion in 2010 and $7.3 billion in 2011.
Its revenue was $79.6 billion (2009), $76.7 billion (2010) and
$83.5 billion (2011), while its total profit was $9.0 billion
(2009), $6.8 billion (2010) and $15.8 billion (2011)
Poa also compared Temasek's and GIC's rates of return per annum
with rates from the Central Provident Fund (CPF). She argued while
Temasek Holdings claims yearly returns of 15 per cent over 20
years, CPF only pays out 2.5 per cent.
"We can see from the paltry interest rates offered by CPF,
Singapore taxpayers neither enjoy full disclosure nor noticeably
remarkable returns," said Poa.
Poa called for greater public awareness of relevant benchmarks
such as Malaysia's Employees Provident Fund, which guarantees a
minimum return of 2.5 per cent and delivered a 4 to 8 per cent
return annually since 1960.
Poa also pointed to Norway's sovereign wealth fund as being
successful and yet transparent with its citizens.
"There is a world of difference between GIC being transparent to
stakeholders on one hand, and foolishly telegraphing its investment
strategy to competitors," she said.
While the party acknowledged the ministerial salary review is a
step in the right direction, it also asked Members of Parliament
and their immediate relatives to disclose compensation they might
be receiving from Temasek, GIC or similar organization.
"With so many PAP MPs also juggling multiple, sometimes dozens,
of directorships and consultancies, it is clearly in the public
interest to know who else is paying their MPs and for what
purposes," said Poa.
She believes better finanicial transparency is the best way to
serve Singaporeans.
When asked on Monday, Presidential candidate Tan Cheng Bock said
he supports having more transparency financially. He could promote
this through his proposed annual statement from the President, he
said.
