Someone asked Deputy Prime Minister Tharman at the Forum on CPF and Retirement Adequacy today about the triple-A rating of the government. He pointed out that the government had said that the CPF is guaranteed secure returns because the government has a AAA rating, and asked if the government can guarantee the rating because of how its managed Singapores finances. Minister replied that the triple-A rating comes about because the government has additional assets, which comes from years of fiscal prudence. He said that when the government sells land, they dont spend it. Surpluses from land sales and investment income add to the assets, which allows the government to come to its current financial position, and explains the strong credit rating. But then, the question we need to ask is this - if our CPF helps the government to accumulate the assets, then isnt it because of Singaporeans CPF that Singapore is able to have a AAA rating? If so, arent Singaporeans guaranteeing the returns on our CPF by ourselves? Then, shouldnt we get all the returns earned on our CPF back, and not just the 2.5% to 4% we are given back now?
Posted on: Tue, 22 Jul 2014 10:33:42 +0000
Trending Topics
Recently Viewed Topics
© 2015