[h=1]THARMAN PROVES THAT NG ENG HEN WAS LYING IN PARLIAMENT IN 2007[/h]
<!-- /.block --> <style>.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style> Post date:
4 Aug 2014 - 4:30pm
<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
Speaking in Parliament about the way GIC invests money, Finance Minister Tharman Shanmugaratnam, who is also a director in GIC, explained that the money used by GIC comes from a pool of government funds.
He explained that it is not only Special Singapore Government Securities (SGSS) or CPF money that is used, it is also a large amount of other, unencumbered assets.
Because CPF is the retirement savings of Singaporeans that the government must pay back to CPF members when they reach the draw down age, it is actually a liability or a debt that the government owes Singaporeans.
Using this 'borrowed' money for investments is a risky businesses.
However, Tharman clarified that GIC doesn't just rely on these borrowed funds. Instead, GIC also invests hundreds of billions of dollars worth of other assets that are not borrowed such as proceeds from land sales, government surpluses and more.
DPM Tharman also explained that GIC does its investments without regard for the Government's liabilities. In other words, GIC doesn't care that some of its funds are borrowed.
He highlighted that GIC does take risks with its investments but these are calculated risks with an aim for good long-term returns.
He said that as with all investments, there will be fluctuations in the value of reserves and this is part of standard investment risk. He added that the only way to avoid these fluctuations is to invest in low-return, low-risk investments but this would mean that the returns may not even meet inflation.
Tharman also pointed out that so far, GIC has managed to get good long term returns but he also said that investment markets are uncertain and volatile and short-term returns can be low or even negative at times.
He gave an example of the Global Financial Crisis which brought GIC's 5-year returns to only 0.5% for March 2013. But by 2014 when the GFC year was no longer in the 5 year return calculation, returns rebounded strongly.
Tharman also said that the President also looks after investments and will raise the flag if he feels that GIC has made poor investments. So far, this flag has not been raised, Tharman explained.
What is more curious about this explanation is that it is clear now that GIC does in fact use CPF funds as part of their pool of money for investment.
This was only just recently admitted by the government. Prior to that, the government continued to insist that CPF was not used by GIC.
In fact, in Parliament in 2007, Dr Ng Eng Hen responded to a question by Low Thia Khiang on whether CPF was used by GIC.
Dr Ng firmly replied 'No'.
(See: Back In 2007, It Was Claimed In Parliament That GIC Does Not Invest CPF Funds)
Earlier in 2001, Lee Kuan Yew also claimed that CPF was not used by GIC at all. He even said that the two were completely separate and "unlikely to cross paths in the future". (See: LKY : GIC Does Not Use CPF Funds)
With all this talk now about how GIC invests and the admission that CPF is in fact used as part of GIC's funds it would seem that both Lee Kuan Yew and Ng Eng Hen were lying.
<!-- /.block --> <style>.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style> Post date:
4 Aug 2014 - 4:30pm
<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
Speaking in Parliament about the way GIC invests money, Finance Minister Tharman Shanmugaratnam, who is also a director in GIC, explained that the money used by GIC comes from a pool of government funds.
He explained that it is not only Special Singapore Government Securities (SGSS) or CPF money that is used, it is also a large amount of other, unencumbered assets.
Because CPF is the retirement savings of Singaporeans that the government must pay back to CPF members when they reach the draw down age, it is actually a liability or a debt that the government owes Singaporeans.
Using this 'borrowed' money for investments is a risky businesses.
However, Tharman clarified that GIC doesn't just rely on these borrowed funds. Instead, GIC also invests hundreds of billions of dollars worth of other assets that are not borrowed such as proceeds from land sales, government surpluses and more.
DPM Tharman also explained that GIC does its investments without regard for the Government's liabilities. In other words, GIC doesn't care that some of its funds are borrowed.
He highlighted that GIC does take risks with its investments but these are calculated risks with an aim for good long-term returns.
He said that as with all investments, there will be fluctuations in the value of reserves and this is part of standard investment risk. He added that the only way to avoid these fluctuations is to invest in low-return, low-risk investments but this would mean that the returns may not even meet inflation.
Tharman also pointed out that so far, GIC has managed to get good long term returns but he also said that investment markets are uncertain and volatile and short-term returns can be low or even negative at times.
He gave an example of the Global Financial Crisis which brought GIC's 5-year returns to only 0.5% for March 2013. But by 2014 when the GFC year was no longer in the 5 year return calculation, returns rebounded strongly.
Tharman also said that the President also looks after investments and will raise the flag if he feels that GIC has made poor investments. So far, this flag has not been raised, Tharman explained.
What is more curious about this explanation is that it is clear now that GIC does in fact use CPF funds as part of their pool of money for investment.
This was only just recently admitted by the government. Prior to that, the government continued to insist that CPF was not used by GIC.
In fact, in Parliament in 2007, Dr Ng Eng Hen responded to a question by Low Thia Khiang on whether CPF was used by GIC.
Dr Ng firmly replied 'No'.
(See: Back In 2007, It Was Claimed In Parliament That GIC Does Not Invest CPF Funds)
Earlier in 2001, Lee Kuan Yew also claimed that CPF was not used by GIC at all. He even said that the two were completely separate and "unlikely to cross paths in the future". (See: LKY : GIC Does Not Use CPF Funds)
With all this talk now about how GIC invests and the admission that CPF is in fact used as part of GIC's funds it would seem that both Lee Kuan Yew and Ng Eng Hen were lying.