Ganesh Sahathevan

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.ht...

It has been recently reported that Singapore's GIC has lost about $S 50 billion in value, while Temasek’s assets “shrunk “ by about $S 38 billion. The losses are thought to be unrealised. How might these losses affect Central Provident Fund (CPF) members in need of liquidity, whose demands may require liquidation of these impaired assets? The connection between the CPF, Temasek and GIC is best explained by these excerpts from articles published in the Business Times Singapore: The Republic's foreign reserves rose again in May to reach S$60.5 billion, up from S$59.3 billion in April. Though the May rise was marginal, the reserves of S$60.5 billion represent a creditable 19.6 per cent expansion over May last year…… The bulging reserves stem from accumulated CPF savings , the annual budgetary surpluses, surpluses from statutory bodies and the yearly balance of payments surpluses attributable to inflows of monetary capital and foreign investment. The nation, particularly t...

According to the Malaysian Insider, 25 Feb 2009: Malaysians have been subsidising the Express Rail Link (ERL) service since last April, it was revealed in Parliament today Transport Minister Datuk Seri Ong Tee Keat said that YTL Corporation’s ERL Sdn Bhd, the operator of the high-speed rail service from here to the Kuala Lumpur International Airport, had been indirectly subsidised since last April because the company is unable to cover costs due to poor sales. Ong justified the allocation to ERL by pointing out that there had been a massive capital outlay to operate the rail line but that ticket sales “cannot cover the cost of the outlay and maintenance.” http://www.themalaysianinsider.com/index.php/malaysia/19086-fly-ride-or-neither-taxpayers-still-pay-erl- And who made the most money on the "cost of the outlay"? According to the YTL website, 2001: 1. Ideal order book. Over 90%, or RM800m, of order book is for the ERL project. We value the core ERL project at RM0.25 sen DC...

"The time has come, off the back of the current crisis, to proclaim that the great neo-liberal experiment of the past 30 years has failed; that the emperor has no clothes....Neo-liberalism and the free-market fundamentalism it has produced has been revealed as little more than personal greed dressed up as an economic philosophy.....Minor tweakings of long established orthodoxies will not do," Lu Kewen, aka Kevin Rudd, Prime Minister of Australia ; The Monthly, February 2009 , No. 42 (http://www.themonthly.com.au/tm/node/1417) "....it is necessary to reassess the existing US dollar-dominated international financial system. It is a speculation-rife, supervision-lacking system. After the collapse of the Bretton Woods System in the early 1970s, the US rushed to introduce the Jamaica System, which is still in effect, in an attempt to carry forward its financial dominance. The Jamaica System, strictly speaking, is not new, and it has elements of Bretton Woods. Under this fina...

As reported in Forbes Asia, 12 Jan 2009: And in the third quarter, ended Sept. 30, the airline suffered its first net loss since it went public in 2004--a total of $136 million, much of that because the airline hedged against higher oil prices before they fell dramatically. More losses are coming because it thought oil prices would remain at $70, but now they've fallen below $40. Even at $50 the airline projected it would lose some $481 million on its soured hedges, though Fernandes says the lower fuel prices will allow him to make up the losses in three months. Some analysts have downgraded the stock from neutral to sell.The Group seeks to hedge this fuel price risk by entering into jet fuel derivatives contracts. ( Hit By Turbulence; Fewer people are flying, but AirAsia is deploying more planes. Tony Fernandes bet wrong on fuel prices, but his play for discount travelers may pay off. Ioannis Gatsiounis and staff ;12 January 2009, Forbes Asia .http://www.forbes.com/global/2009/01...

Malaysian plantation-to-property conglomerate Sime Darby (SIME.KL: Quote, Profile, Research, Stock Buzz) said on Monday it had obtained the government's approval to build a private low-cost carrier terminal (LCCT). The terminal will be built on Sime Darby's land in the southern state of Negeri Sembilan. "The proposed LCCT project is an integral part of the company's development plan for its Negeri Sembilan Vision City," Sime Darby said in a filing to the stock exchange (http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSKLR37928920090105) The terminal will service AirAsia only: The key thing is that we cannot slow down our growth because we have bought aircraft and we need a bigger terminal. We are building for 30 million passengers and we should be supported,” he said. By having a dedicated terminal, (Tony) Fernandes said the airline could bring down its cost by 20% and this would be translated to lower fares. Asked if other airlines would be able ...

Air Asia Sukuk Ijarah of RM500 mil (Joint Arranger & Primary Subscriber ) http://www.bankislam.com.my/bimb_pdf/84743MediaBriefingFYEJune2008.pdf ARAS SEJAGAT/AIRASIA Issuance: May 5 PRICED: MYR420M Size: MYR420M Tenor: 5 Yr Type: Ijarah Leads: Bank Islam Malaysia, Kuwait Finance House Readers should note that Bank Islam was the Primary Subscriber to the loan.How much of that loan Bank Islam has been able to off-load, given the problems in the credit market, remains unclear. It is likely that Bank Islam continues to be holder of a substantial amount of that loan.