Why is 100% of CPF retirement savings invested overseas?

From: pipakh
Sent: Monday, February 20, 2017 7:30 PM
Cc: LEON ; <a title=”sylvia ; WP ; <a title=”kathijah.rahaman ; C K WONG ; <a title=”cue_liew ; GERALD GIAM ; <a title=”ken_dxb ; JAYA ; <a title=”cklau60 ; STANLEY
Subject: Where is our CPF? (7)

Dear Pritam Singh

As elected MPs, it’s really a shame that you guys don’t even know where all the $300 billion in our CPF is invested.

Not only that, you have stood idly by while PAP continues to introduce legislations to trap more of our CPF into GIC with absurd justifications. This is expected of PAP MPs who are there to ensure transparency doesn’t see daylight, but WP?

Nobody invests 100% retirement savings in foreign assets

This is too obvious for WP not to have known but for decades, nobody has questioned the government.

You wouldn’t subject 100% of your retirement savings to high forex/political risks and neither would I. But why has PAP been allowed to do so for 100% of our CPF savings when most citizens will retire in Singapore?

Which PAP elite has invested 100% of his/her retirement savings in foreign assets?

Something is clearly amiss here and with each passing year of silence, an additional $25 billion CPF will find its way into GIC.

For the past few years, GIC has been forced to invest in assets at inflated prices. Why not stop tweaking CPF legislations, return CPF members our savings and let us decide how to spend OUR own money? Is it necessary to continue taking high risk?

GIC invests during every part of the economic cycle and undeniably must have made outsized returns when investing at rock bottom prices. But didn’t GIC also lose many shirts investing during periods of irrational exuberance?

Without the ability to pick and choose its timing, unlike other fund managers, GIC’s tikam-tikam, dollar-cost averaging model can only produce mediocre returns

Another cause for concern is its inconsistency (see chart above). In 2001, CPF Board suddenly invested $29 billion in SSGS**. This amount is equivalent to the total increase in SSGS in the subsequent 5 years or in the preceding 7 years. Why?

Since CPF was not invested in preceding years, it could mean CPF:
– Was diverted to other government projects.
– Was used for other purposes, undisclosed in Parliament, during/after the Asian Financial Crisis.
– Interest rates could not be increased above 2.5% because it wasn’t invested for a prolonged period.

(There is too much material information concealed from the public which an elected president would have been able to access.)

A large portion of CPF should have been invested locally in GLCs because they had been set up using our CPF. According to Temasek, GLCs have achieved unbelievably high 40- and 30-year returns of 15% and 14% respectively.

But PAP did not allow CPF members to benefit from GLCs’ performance. The beneficiaries appear to be PAP elites parachuted into top management of GLCs and the government which has been using their returns to supplement the budget. CPF members have been left with 3.5% crumbs from GIC (average CPF rate).

I hope you will begin to ask questions on obvious issues in Parliament and not allow 100% of Singaporeans’ retirement savings to be invested in risky overseas assets.

Thank you.


Phillip Ang


MAS AR 2015/2016

MAS AR 2008/2009

MAS AR 2002/2003

CPF balances* – $29 billion estimated for 2016 after taking into account $23 billion increase during the first 9 months.

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3 Responses to Why is 100% of CPF retirement savings invested overseas?

  1. Williams says:

    Did WP ever reply to your emails? If they didn’t, I would stop voting for them.

    • Phillip Ang says:

      They did not reply to my recent 7 emails. And I don’t expect them to.
      Between the PAP and WP, I don’t think we have any choice. 😦
      It appears WP has accepted PAP’s system and willing to play along with it. They could have raised many questions which hit at the heart of transparency and increased awareness among Singaporeans.
      Questions like, why is the remuneration of stat board CEOs or directors of Temasek and GIC not disclosed to the public despite millions in tax dollars paid to them? Singaporeans are being fleeced but this doesn’t seem to matter to WP one bit. WP has been a total disappointment and history will not forget what they could have done but did not.
      I am not a member of any political party but Dr Chee would have done a fantastic job in Parliament and held PAP accountable to the people.

      • Williams says:

        That’s why I voted Tan Jee Say and not Tan Cheng Bock during last PE. I wouldn’t want a silent president or MP to represent me. No part timers too. If Roy Ngergn, Han Hui Hui M Ravi or whoever were to come and challenge Lee HL, i would give my vote to them. Keeping the status quo will only push our country to the path of destruction.

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