CPF members have been told our CPF has been invested in Special Singapore Government Securities (SSGS).
In July, DPM Tharman confirmed this and said: “Before we amended the Constitution in 1992, CPF monies, which were invested in Special Singapore Government Securities (SSGS), could be used by the Government to finance infrastructure – such as road infrastructure, Singapore’s economic infrastructure and social infrastructure”.
But according to the MAS, there were a number of years which our CPF was not invested in SSGS. Since 1981, CPF net contributions were positive every year except in 1993, 2000 and 2001. With reference to the table (below):
1. Holdings of government bonds (SSGS) fell by $422 million in 1984 despite the positive net contributions.
2. SSGS holdings fell a further $817 million the following year in 1985 despite an increase in net CPF contributions.
3. SSGS holdings remained unchanged in 1986 despite an increase in net CPF contributions.
4. SSGS holdings was unchanged in 1990 and 1991 despite an increase in net CPF contributions.
There are contradictions and I hope the government could clarify the following:
1 Why was our CPF not invested in SSGS as claimed?
2 Why was our CPF left idle as advanced deposit with the MAS for a number of years?
Perhaps the PAP has not been able to pay CPF members higher returns because not all our CPF was not invested?