2/12/2013

How much have GIC and Temasek contributed…




How much have GIC and Temasek contributed to the national coffer annually? The combined asset managed by these two SWFs could be near a trillion. One used to claim a return of 17% annually but lately the numbers seemed to be more down to earth, something like 5%. Correct me if I am wrong on this as I am recalling it from some faded memories.

At 5% interest for a sum of $1 trillion it will work out to $50b annually. It the sum managed is $600b, the profit is some $30b annually. DBS Bank’s profit is about $3b lately and used to be between $1b to $2b. The two funds are equivalent to 15 to 25 DBS Banks in terms of profit. In a more general term, the amount could be the profits of a whole industrial estate like Jurong. It is big money and can make the budget that much easier on the Govt.

With this kind of profits, the contribution to the national coffer must be quite substantial and is a major source of national income. How have these returns benefited the people, in what ways, how much, not many people really know. It would be nice for the Govt to tell the people how great the contributions were from these two very profitable organizations and how the citizens have greatly benefited from them. Would there be some numbers coming out soon?

What is Singapore’s GDP now? $300b or $400b? The White Paper is planning for a GDP growth of around 2% or 2.5%. At 2% growth rate, the GDP should increase by $6b or $8b using the $300b as base. And this is what the White Paper seeks to achieve with the import of nearly a 100,000 immigrants annually over the next 17 years. This is really pathetic for the added social and economic costs of housing an additional 1.6m people in the island.

Compare the profits that could be generated by GIC and Temasek combined? With a lower average of $30b in annual profits, do we really need to import 1.6m people just for a token $6b to 8b increase in our GDP and to live with the consequences of a highly densely populated city? If the two SWFs could increase their profits by 10%, they could do what the import of 1.6m people could do. That would be neat isn’t it?

Now I have a better proposal than the White Paper and the WP’s paper. No need to increase the population at all. Just work on the productivity of the two SWFs and to raise their annual profits and there is no need to live in a congested concrete jungle with everything shrinking except the population.

22 comments:

  1. Rb..are u inferring that the mission statements of gic n temasick are to better the lives of Singaporeans ? Hehe...everything in the two institutions is on need to know basis and governed by OSA..so...the only thing we know about this 2 companies is that their fancy offices occupy prime office land...

    ReplyDelete
  2. rb
    They will say cannot.
    "This is raiding the reserves.... etc. etc."

    Enough is enough.
    We don't want to ask nicely anymore.
    1. Just keep voting Opposition until we get more transparency in the GIC & Temasek accounts.

    2. Keep educating Singaporeans to ask the question "How does this benefit me?"
    e.g.
    Temasek & GIC make a profit ... so waht?
    How does this benefit me and my children?

    ReplyDelete
  3. Why is the money? Don't bluff me.

    ReplyDelete
  4. Rb wake up. The money in GIC and Temasek is beyond the reach of ordinary Singaporeans. It is more like a private investment fund, the use of which is dictated by one man.

    Even your CPF money is not yours to touch. Yes, they give you trickles every month, that is about all. If you live in a HDB flat, that is also not yours lah!

    ReplyDelete
  5. After so many Presidents in office, we now have a Tan sitting there.

    So, RB, 'tan ku ku' lah!

    ReplyDelete
  6. So unimaginable but true to Singapore.

    One very old man controlling probably $1 trillion with fake transparency without accountability for so many years.
    "Get of my back" to late ex-President Ong request gave a good glimpse of the dangerous obssession of one man extreme love for total control.

    Very weak institutional system, that has a lots of downside risks.
    When the SUNLIGHT cannot shine the wood will be subjected to rot, pores, decay, toodstools, mushrooms, etc....most of which are poisonous.

    ReplyDelete
  7. Gic and temasek money belong to government and not u lar

    ReplyDelete
  8. I've said this time and time again:

    The people should have most of the money -- held PRIVATELY as private groups (families, businesses, organisations, communities), or individuals.

    The state should have the minimum amount of money -- balanced budget, small surplus and small reserves.

    i.e. the state should be POOR. The people should be RICH.

    If the situation is reversed as it is in Singapore, then you have a very shitty situation where the state has virtually a monopoly on resources and the people are left floating aimlessly up Shit Creek in a leaky boat without a paddle.

    ReplyDelete
  9. Well, Singapore is almost like a country under communism all along. The state owns almost everything. The people are just being lead to believe they own GIC/Temasek, which is bullshit.

    But, this is what the people voted for, isn't it?

    ReplyDelete
  10. @anon 210

    Singapore is the world's BEST RUN communist cuntree, no doubt.

    >> But, this is what the people voted for, isn't it?

    I repeat for the umpteenth time:

    The People Get The Government They Deserve

    ReplyDelete
  11. Redbean,
    you are speaking nonsense again because we don't have specific number of assets, we have infinite assets and money because we have creative accounting ! Everytime, money loss due to state gambling and reckless investment, just change accounting figure, find ways to milk citizens, bingo ! money back with interest bear by populace. Just ask Christoper Balding. Problem solved.

    We are better than Qing dynasty. No need for 八国联军 that invade china hostilely and fight foreigners, we happily invite 八国联军 and more foreign Tr#@$hes from tom, dick and harry countries to invade SinCity FOC.

    Why do you need to think this hard ?

    ReplyDelete
  12. Anon 2:30, this I must agree with you. The illusion of private wealth and ownership of HDB flats. And be happy with the CPF statements and hope that the money is there when your time has come to take it out.

    ReplyDelete
  13. Before the financial crisis, it was about one trillion - around $300b each for GIC, TH, MAS. After the crisis, no one knows how much was left, perhaps half under the best scenario. Do you think the forbes magazine would put the PM wife as one of the most influential woman if she did not have one trillion to play with?

    ReplyDelete
  14. If you also factored in the returns from COE and ERP, the monies can help to provide free healthcare, university fee and elderly pensions for many true blue singaporeans and will even have excess. Unfortunately, people still continue to vote for a party that told a 'good and faithful' president that it will take 50years to compute the reserve amount. How ridiculous can people get? How come they so blinded by propagandas?

    ReplyDelete
  15. "The People Get The Government They Deserve" - you are wrong. this statement is a piece of propaganda to avoid disorder created by the greedy rulers who created democracy. democracy itself is imperfect. how can something so imperfect be the modus operandi of your live present and future?

    People must believe that people deserve a better, honest, hardworking gov just like the people themselves. all they need to do is to unite and make the gov buzz off.

    ReplyDelete
  16. When you have creative accounting and creative statistic that cannot be revealed and cannot be in public scrutiny, then numbers don't matter any more. Why ? Any number can suga suga give you to make you feel good.

    We know how creative shitty our dear government is. So why obsessed with possibly fake figures especially from a a party that has zero credibility, zero integrity, zero transparency, zero accountability, zero honesty ?

    Go figure.

    ReplyDelete
  17. Dear redbean and others from my generation.

    It seems after so many years of PAP dominance in Singapore;
    the only creativity left in Singapore is creative accounting.

    Here is a true blue made in Singapore song by Western Union Band.
    Arguably, one of Singapore's finest.
    The song "Sausolito".
    To remind us of the creativity we have lost.

    http://www.youtube.com/watch?v=dSsCTndRp4k

    ReplyDelete
  18. @anon 442:

    Please continue to believe what your western-liberalised brain would have you believe.

    YES, democracy is a messy crazy process which can be hijacked by savvy politicos to achieve their nefarious ends -- if you are into "conspiracy theories" and the presence of pink unicorns and other fables.

    The duty of the voting citizen is individual: he has to get over himself and stay informed before casting his ONE PRECIOUS VOTE.

    However, sadly it is seldom the case. You get savvy voters, and you get dead shits who believe political "promises" or fall for deceits like false flag situations.

    Individually you might not get the government you yourself voted for, but COLLECTIVELY the people very much get the government they deserve. And politics is all about COLLECTIVE effort and expression.

    A healthy and robust democracy is better suited to resist the political manipulations of power-crazed psycho despots. However it is a CULTURE OF VIGILANCE -- again, a collective social phenomenon -- that will ultimately determine The People's DIRECT CONTROL on their destiny.

    ...or you can be like me -- don't give a flying fuck, treat Singapore like a 10-star hotel, and make my poorly formed opinions known on blogs like this. ;-)

    I hope that clears it up. However continue to stick to yur own beliefs and vote emotionally :-)

    I love the entertinment of stupidity in LARGE NUMBERS.

    Got vigilance?

    ReplyDelete
  19. 'everything is shrinking except the population' and of cos the gahmen salary.

    ms 841- it is either you wan to be ruled by democracy or you wan to rule democracy. anyway, it is not even democratic that election can only take place 5 years once. with today technology, we can have it twice a year even.

    ReplyDelete
  20. @ redbean 345:

    Certain "Illusions" are part of the cultural glue which binds individuals into a society. The illusions are not necessarily true, in fact some of them are outright myths -- like CPF being your money or HBD price being a measure of wealth, or that the government can actually 'look after' you.

    But almost everyone believes them, and the society simply continues. If you are the individual who challenges such "illusions", you become the 'negative spirit' and suffer the same contempt as an anarchist bomb-thrower.

    Stupidity in large numbers. Comedy gold!

    ReplyDelete
  21. Does ig matters how much GIC, Temasek and the Rulers have?
    Even if they are individually the RICHEST IN THE WORLD, what do You get?

    ReplyDelete
  22. What do I get ? Nothing !
    I served and raised money for the CC and in schools ( 1957 to 2002 ) and I got nothing. No pension is OK but no medical benefits., so when I'm really sick I think the only thing I can only do is to die misery. Why they want to have more foreigners is to make more profits for they will pay them at a lower salary than Singaporeans who will not be able to survive with their pay. Think !!!

    ReplyDelete