Is there black hole in government reserves?

With an estimated more than $1 trillion reserves, there is no justification for another GST tax hike.

That PAP has insisted on raising GST by 2% after GE2020 has raised concerns about the state of our reserves.  This is because a $1 trillion reserves generating net/expected real returns of 4% amounts to $40 billion.

(Excluding $10 to $20 billion in annual addition from land sales revenue as well as billions in CPF returns confiscated.)

Currently, only $16 billion NIRC is used to supplement government revenue.  It is rather ridiculous that PAP has resorted to increasing GST rate to raise less than $4 billion in revenue when another source of revenue is available.

Even if NIRC is increased to 70%, reserves will still continue to increase and PAP’s doomsday scenario will not pan out.

Something is amiss and it’s possible that:
– Our actual reserves is much less than the estimated “more than $1 trillion”
– PAP is covering up huge investment losses.

Without suing people till their pants drop, the government could put a stop to public speculation with more transparency.

Or is there really a black hole in our reserves as many have suspected for years?



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5 Responses to Is there black hole in government reserves?

  1. Sinkie says:

    Norway’s trillion-dollar SWF just reported returns of US$131B for 2017 (13.7%)

    Let’s see what returns GIC & Temasek will report.

    PS: 2017 was an exceptional bullish year — anyhow invest also can make money.

    • Phillip Ang says:

      Thanks. Will just post this to raise another question on PAP’s opacity. 🙂

    • Phillip Ang says:

      Barring a sudden market collapse, Temasek should do very well. DBS is up about 50% and together with Chinese banks, Temasek’s portfolio should increase by at least $15 billion to $20 billion, excluding dividends and investment profit.

  2. Anonymous incognit4444 says:

    Of course there’s a blackhole. How many other Temask based companies have paid fines that we don’t know about? Exactly how was Keppel’s fine paid?
    What investments imploded? How much are the execs really paid and on what criteria?

    • Phillip Ang says:

      Their obscene remuneration is too embarrassing to be disclosed. Total remuneration of 15 Norway’s fund senior management executives is only S$11 million. They manage a US$1 trillion fund.

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