Before Budget 2018 was announced, MSM had tried to paint a picture of “Singapore’s strengthening economy”. (Budget 2018: Economists expect bumper surplus for 2017)
According to MSM’s sought-after economists like OCBC’s Selena Ling, she had expected an overall surplus of $5.41 billion for FY2017 due to our healthy economy. Selena: “The healthy Singapore economy has lifted many boats, including benefiting tax collections”.
Other economists shared her view: the “bumper surplus” was the result of a healthy economy.
When the budget was finally announced, the “bumper surplus” of $9.6 billion was higher than anyone had expected. And it had nothing to do with our strengthening economy.
On 25 Feb, the government finally clarified that MAS alone contributed $4.5 billion to the FY2017 surplus. (Singapore’s surprise budget surplus: Unexpected currency moves among contributing factors)
The $4.5 billion came from MAS’ record $21.9 billion gains in foreign investments.
If the “bumper surplus” had anything remotely to do with our economy, it would have been reflected in the STI. Where many global stock indices have made post 2007 highs, including neighbouring countries, the STI continues to struggle, unable to reach even 5% below its 2007 record peak. Worse, most of STI’s gains come from only 3 banks.
Foreign investors are not stupid and most should have known by now that our economy will get nowhere with PAP expecting to earn profits by inflating land prices and increasing foreigner headcount to create demand.
If our economy has been strengthening, why have HDB retirement asset prices been declining since Q2 2013?
HDB Resale Price Index: Data.gov.sg
PAP should get down to some real work instead of constantly engaging in propaganda to fool Singaporeans. Before things get worse.