Budget 2018: PAP tries to paint rosy picture of Singapore’s going-nowhere economy

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
1budget29PAP should get down to some real work instead of constantly engaging in propaganda to fool Singaporeans.  Before things get worse.

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4 Responses to Budget 2018: PAP tries to paint rosy picture of Singapore’s going-nowhere economy

  1. Sinkie says:

    What an irony … HDB was 1 of the major reasons for propelling PAPies old guard into power.

    HDB will become 1 of the main reasons for PAPies to lose power…

    HDB has a psychologically BIGGER impact to Sinkies then even CPF.

    Easily 67% of HDB flats were built in the 1970s-1990s…
    Remaining leases are running down…
    These aging flats are already harder to get bank/CPF financing for resale…
    Govt confirmation of ZERO value at lease end…

    It’s a ticking time bomb that will give PAPies only next 10-20 years to squeeze as much $$$$$ as possible out of little Red Dot before everything collapses.

  2. Confused says:

    I supposed it is partly why they are encouraging people to sell back part of the lease to get some cash to shut people ‘s mouth while hoping the remaining lease expires coincide with the leasee’s.

    If anyone outlive the lease, he or she will be roofless so to speak.

    • Sinkie says:

      2 problems with sale of tail lease:

      1. The amount is not very much, and almost all of it goes into CPF Life i.e. you get the $$$ back in a few hundred dollars a month … provided you live long enough.

      2. Doesn’t overcome the psychological impact for majority of sinkies, whereby property is seen as store of wealth to pass down to children. And for 99% of sinkies, property is the majority of their remaining wealth to give to their descendants. Most sinkies who have died in the last 30 years have enjoyed passing down some property wealth to surviving children, even if it’s just a humble 3-rm flat. PAPies are asking sinkies to throw away this entrenched cultural expectation, that their lifelong blood & sweat in paying for HDB flat is now ZERO value for their children. PAPies are now telling us — there’s no remaining value … it’s just for living consumption … treat it as lifelong rental.

      This is a 180-degrees opposite message from the last 50 years of “asset enhancement” of more & more expensive HDB flats. As more & more sinkies realized that it’s all a big CON job, they will overthrow PAPies from power.

  3. Confused says:

    70% of the citizens were to be blamed because their overwhelming support has embolden the pap to do what they like.

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