SINGAPORE : Acting Second Minister for Finance, Raymond Lim, has
refuted MPs' claims that Temasek Holdings uses Singapore's reserves
to fuel overseas expansion.
Speaking in Parliament on Wednesday, he said: "It is not the
government's policy to inject Singapore's surpluses into
Temasek."
Mr Lim also assured the House that the government is committed to
keeping public spending down - public spending here is at about 17
percent compared to the OECD average of 30 to 40 percent of
GDP.
He added that investment income from Singapore's reserves have
given the country latitude and space to lower taxes aggressively
and also meet spending needs.
He said: "It is not the government's policy to inject surpluses
into Temasek to invest abroad. Temasek's expansion abroad has not
been fuelled by an injection of government funds. In fact on a net
basis, Temasek injects, in the form of dividends, funds to the
government each year."
He also said the government is determined to ensure there are funds
for start-ups.
He refuted Bukit Timah MP Wang Kai Yuen's comments that
Government-linked companies crowd out local companies.
He said: "It is not an ownership issue - but an issue of size. The
GLCs within the domestic market are big and provide strong
competition to the SMEs. If today we were to change the ownership
for the GLCs - the competition for the SMEs will still remain - the
larger issue in today's context - is whether you are a GLC or an
SME - the competition you face is not just local not just regional
but global."
Mr Lim also agreed with MPs who feel it is not the business of
statutory boards to generate surpluses for the government.
He said the government is committed to lowering the tax burden on
businesses. - CNA