Sunday, September 30, 2007

Temasek and GIC returns

I refer to a section of the reply given by Jacqueline Poh, from the Ministry of Finance:

The current arrangement thus enables all CPF members to earn fair and risk-free returns on their retirement savings, while benefiting from the good performance of GIC and Temasek through the annual Budget. This is the right way to help Singaporeans save for their old age, and enjoy peace of mind in their golden years.

I think she missed the main point. The point is that up to now, there's no law or formula stating that some of the returns of GIC and Temasek should be channeled back to Singaporeans. This lack of transparency is causing Singaporeans to be over-active in their imagination. Given the government's track record of using law or formulas, it's a wonder why up to now, no such formula has been enacted.

I refer to the recent bonuses given to the MINDEF personnel. A formula was introduced where the GDP increase was linked to their special bonus. Is it so hard to enact a law that says returns above x%, xx% of it will be returned to Singaporeans as a form of bonus??

As the saying goes... Take money easy, give money hard. Give raise easy, give benefits hard.

No comments:

Visit Rhinestic's Knick Knacks @ Etsy for handmade goods and supplies!

Related Posts Plugin for WordPress, Blogger...