Singapore's CPF and the GSIC losses: Is there a shorfall in the amount due CPF members?

According to the CPF Annual Report 2007:

As at 31 Dec 2007 members contributions of $S 136,586,858,000 were applied primarily to special issues of Singapore Government securities of $S 111,520,180,000.
(http://mycpf.cpf.gov.sg/CPF/About-Us/Ann-Rpt/Ann_Report)


According to the International Monetary Fund:

Gross debt is issued to the Central Provident Fund (CPF) and as part of the Singapore Government Securities (SGS) program. The government invests
the proceeds raised through this issuance in foreign assets through the Government of Singapore Investment Corporation.
http://www.imf.org/external/pubs/ft/scr/2006/cr06150.pdf


The GSIC manages all reserves(defined to include the CPF and Government surpluses; see story below). Therefore, the GSIC's funds under management would include funds from the CPF as well as the "official" foreign reserves, which at January 2009 amounted to $S 251 770 600 000 (http://www.mas.gov.sg/data_room/reserves_statistics/Official_Foreign_Reserves.html)


The "official reserves are primarily funded by deposits of the Singapore Government (see MAS Annual Report 2007-08 at http://www.mas.gov.sg/about_us/annual_reports/annual20072008/71.html AND http://www.mas.gov.sg/about_us/annual_reports/annual20072008/masar_08.pdf)


Adding the amount due to CPF members and adding the "official" reserves of the MAS ; the GSIC should have funds under management of at least $S 360 billion (ie $S 111,520,180,000 in CPF contributions invested in SGS and $S 251 770 600 000 in "official" reserves.


Meanwhile, according to reports from Singapore:


Government of Singapore Investment Corp, which has helped bail out troubled global financial institutions, suffered an investment loss of about 50 billion Singapore dollars (33 billion US) last year, sources told Dow Jones Newswires on Tuesday.

(http://business.asiaone.com/Business/News/My%2BMoney/Story/A1Story20090217-122672.html)ALSO SEE http://www.bloomberg.com/apps/news?pid=20601080&sid=adldZ5kLXljw&refer=asia

Hence, the sums under management would now amount to S$ 310 billion. The MAS has not made any changes to its estimates of official reserves. Therefore, assuming official reserves have remained at about $ 250 billion, the remainder of $ 60 billion would be what is left of funds provided by the CPF.
This is approximately half of the amount due to CPF members provided via the SGS scheme: $S 111,520,180,000.

The unknown here is the GSIC's retained profits. That, to paraphrase Donald Rumsfeld, will remain an unknown unknown until and unless the GSIC provides detailed financial statements.

Comments

Post a Comment

Popular posts from this blog

Ben Robert-Smith : How was Justice Anthony Besanko of the Federal Court able to find that the crime of murder has a civil twin, which can be determined on a balance of probabilities

Image
 by Ganesh Sahathevam                                                                                                                  The Hon Justice Anthony Besanko Media reports about the Ben Robert-Smith defamation matter  have at least given the impression, if not asserted,  that Justice Anthony Besanko of the Federal Court found  that Robert-Smith had committed murder. Most if not all reports have been at pains to stress that the finding was based on a balance of probabilities, and not beyond a reasonable doubt, for the matter was a civil and not criminal matter.  However,  reading his summary one can immediately see that Justice Besanko  found not that Roberts-Smith had committed murder but that the " respondents had, (on  a balance of probabilities) established the substantial truth"  that  Roberts-Smith had committed murder.  However, murder is a  crime and a finding of murder in a criminal court (which is the court in which crimes like murder can be determined!) inv
Read more

Who authorised former NSW Police Commissioner Mick Fuller to say anything about the Berejiklian era quarantine fee and why? Fuller's notice confirms suspicion that NSW Berejiklian government had no basis to impose the quarantine fee, nor quarantine persons who were COVID negative 

Image
 by Ganesh Sahathevan      Premier Gladys Berejiklian with NSW Police Commissioner Mick Fuller and Brigadier Mick             Garraway Who authorised former  NSW Police Commissioner Mick Fuller  to say anything about the  Berejiklian era  quarantine fee and why? Fuller's issuance of his  COVID  quarantine notice, and subsequent silence, would seem to confirm suspicions raised on this blog that NSW's Berejiklian government had no basis to impose its quarantine fee. Fuller's conduct also adds to suspicion that the Berejiklian government did not have the authority, even under its COVID emergency powers, to quarantine persons who were COVID negative. International arrivals had to test negative for COVID before boarding their flights to Sydney, and tests had to be administered within 72 hours of departure. Quarantine on arrival of those who exhibited no COVID symptoms was quite likely unnecessary. It did, of course help bolster Gladys Berejiklian's approval ratings. TO BE RE
Read more

Revenue NSW COVID Quarantine Fee payment demand notices suggest that Police Commissioner Mick Fuller breached the law with his demand for quarantine fees

Image
 By Ganesh Sahathevan  Anyone who has received a Revenue NSW Quarantine Fee demand for payment notice  will be familiar with these words that are contained in the notice: What is the quarantine service fee? A mandatory quarantine service fee applies to all travellers arriving in New South Wales (NSW) who are required to quarantine as part of the public health order. Mandatory quarantine is needed to stop the spread. of COVID-19 in NSW The qurantine fee has been charged pursuant to Section 70 of  the NSW Health Act. However, as previously reported, that section does not permit any imposition of mandatory fees.  However, in apparent defiance of Section 70 of the Health Act, Fuller issued a notice   in which he said  that Revenue NSW " will be charging a mandatory quarantine fee". TOE BE READ WITH  Former NSW Police Commissioner Mick Fuller said in his notice that Revenue NSW " will be charging a mandatory quarantine fee" - Former NSW Ministers Hazzard, Tudehope insis
Read more