Do you seriously think that all the monies that Singaporean
contribute into the CPF is sitting there "un-USED" to back the
Singapore Dollar ?
In the first place, do you understand the mechanics
in how the money of a country is being backed ?
In the early days when the PAP Government stepped into the
Government, there was ZERO amount in the Ministry of Finance and in
the Treasury - as claimed by LKY.
Money had to be raised to get the gears of Government running or
the machinery to govern Singapore will collapse.
The CPF was initially started by the British Colonial Government
as an addition to the Pension Scheme, and was intended to be a
Retirement Saving Fund - much like that offered by Banks
today.
The CPF scheme started by the Colonial Government was VOLUNTARY
based.
This provided the PAP Government with the easiest source of
money that is available immediately.
Legislations was passed to make CPF contribution a monthly
affair, and made COMPULSORY for all new workers - while those who
have been employed under the pension scheme, were offered a choice
of keeping the pension or switch over.
The money in the CPF was borrowed by the PAP Government for
all the infrastructure development in Singapore at a cheap rate of
2.5 per cent per annum.
The CPF was the Banker to the Government, and the loan
taken was returned to the CPF Board from the
annual surplus that the Government managed from all the
various revenue generating programs.
The CPF will in all probability keep the money collected in a
continuous state of investment in various areas - keeping a
balanced ratio of cash to investments.
There has never been any clear indication as to what kind of
investments the CPF monies had gone into, but one can be certain
that a substantial amount would have gone to the various types of
bonds offered by the Singapore Government and the various GLCs that
provide essential services to Singaporeans.
If the Singapore Dollar should go down in value, it will not be
a lack of CPF backing but more due to the Singapore economic
viability to support the SingDollar.
The revenue that this Singapore Government report is not
from the huge industrial output of manufactured goods exported,
but from the revenues that this Government collect through
various direct and indirect taxes imposed on Singaporeans, as well
as from the revenues collected by the various GLCs charging
Singaporeans for the essential services provided.
Singapore export less than Hongkong, yet the Governmet can
report huge annual surplus that outstrip Hongkong's.
No wonder this Government insist on being paid similar wages as
the Corporate Executives in the Private Sector, as the Ministers
are the executives managing Singapore Incorporated.
Whether it is used for investment or saving in our treasury, it
uphold the sing dollars, do you want your sing dollars to
depreciate overnight and find your saving lowered by half??
Without natural resources and near corruption free govt, do you
expect the politician here to rule like the junta or even our
neighbouring countries?? Just imagine, without any natural
resources and not even a single rice, we are on top in many
way against them, sure you got to do some managment stuff to
get things right. Other countries govt may be getting
lower paid, but the undertable money can be anytime,
more than our ministers paid, you bet.
You must understand that CPF is not entirely your money, as a
boss (under my daddy) i need to contribute 14.5% of my staffs CPF
UNDER THE LAW OF THE GOVT, not by the staff. The staffs contribute
20%. All these are mend to secure a good old age life, the govt can
alway move the 14.5% as these are by laws a contribution from the
employers, therefore u have to understand that this amount is not a
employee money, it is a fund under that laws to enforce the
employers to help their staffs. People have the wrong concept that
CPF is totally theirs, that is why the govt can manipulate the
funds and give back your share of 20% only. Anyway, the govt is
only planning to help the old agers to handle their CPF with care,
many spent lavishly and in the end no money.
