Singaporeans need to wake up to the fact that we have been shortchanged big time by PAP. For decades.
It’s really not difficult to understand the history of how CPF members have been scammed; the difficult part is for CPF members to wake up and reclaim what is rightly ours. 😦
Singapore is what it is today largely due to the use, or rather abuse since PAP confiscated a large part of our CPF returns via GIC, of CPF members’ retirement savings:
Image above from Roy’s blog. (Some of the information in this post may have been highlighted by Roy but I will attempt to put it across in a simpler way to interest more ordinary Singaporeans.)
Just how much did CPF members contribute to Singapore’s success? It appears almost all the capital PAP initially needed came from our retirement savings!
In the 1960s and 1970s, PAP borrowed mostly from CPF members because it could easily legislate the use of cheap funds for itself.
Since CPF members helped HDB to lower costs (image below), have CPF members not been shortchanged when HDB flats are sold to us at exorbitant prices?
PAP not only relied on our CPF retirement savings for constructing public housing but also in setting up GLCs which subsequently earned phenomenal returns.
Despite the success of GLCs being dependent on the generosity of CPF members, their returns were not distributed to members. Instead, PAP did the unthinkable by transferring GLCs to Temasek to be subsequently privatized.
Who benefited from such a convenient arrangement? Obviously only PAP elites who were appointed million-dollar CEOs despite having kosong private sector experience. CPF members were clearly shortchanged.
Once GLCs had no more need for our CPF, billions were then legislated as loans to the government for GIC to speculate in foreign assets which are subjected to forex, political and geographical risks.
PAP was aware that GLCs were mostly pow chiak businesses, eg PSA, Singapore Power, SMRT, etc because profitability depended not on business acumen but more on legislative tweaks. And so PAP kept GLCs for their elites at Temasek instead of sharing their returns with CPF members.
Just how lucrative these businesses are will confirm how much CPF members have been shortchanged.
(For this post, I just want to highlight how CPF members have been shortchanged. In Part 2, I will highlight some of Temasek’s profit guaranteed businesses to confirm CPF members are the losers.)