7/31/2014

CPF an asset or liability to the govt?


We have been told that our CPF is part, or a major part, of our national reserves. It must therefore be an asset. As such, it is good to keep growing the reserves with more and more CPF money in it. And as an asset, you don’t have to worry about returning it. Our national reserves cannot be used anyhow right? It would need the President’s approval, if I am not mistaken, to touch our national reserves. So to touch our CPF money, which is part of the reserves, is unthinkable. Can see cannot touch. It is sacred, part of the national reserves. A govt can only spend the surplus revenue it generated.
 
What if the CPF is a liability to the govt, a borrowed fund that must be returned? If our CPF is a liability, then there would be no incentive to keep it in the reserves but to reduce it when there is a surplus, to reduce the liability. And if it is a liability, the funds managing it must also be thinking about redemption by the members. When CPF members hit 55, they are going to withdraw their CPF savings. But when funds managing the CPF money do not think it is a liability that is subject to withdrawal and redemption, there is no need to ensure that the fund is liquid to meet such requirements. The funds can invest for the long term, and when there is no need to return, and the long term can be forever.
 
Why is the CPF saving the nation’s reserves when it is the people’s money that must be returned? Is this an international convention, an accounting convention, to regard the people’s savings as national reserves and an asset that does not need to be returned?
 
Can anyone clarify on these contradictions?

Kopi Level - Green
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7 comments:

  1. AnonymousJuly 31, 2014 9:36 am

    " Is this an international convention, an accounting convention, to regard the people’s savings as national reserves and an asset that does not need to be returned? "

    Reminds me of China's "socialism with Chinese characteristics"

    Maybe this is international accounting with PAP characteristics?
    Is this true?

    ReplyDelete
  2. AnonymousJuly 31, 2014 10:01 am

    This is outright legalised robbery, pure and simple. It is evil, wicked and most unconscionable.

    ReplyDelete
  3. Ⓜatilah $ingapura⚠️July 31, 2014 10:10 am

    There are no contradictions. CPF is what the law and the interpretation of the law by the government says it is.

    In other words, what you think, how you apply reason: no pakai.

    IMO (not law ok, just my non-ex-spurt beach-bum opinion): Given the way the sg.gov conducts itself and runs the mother-cuntree, CPF will always be a cash-flow positive asset for the state. It'll NEVER be a liability, because in the event of a (cash) crisis, the govt. will simply change the rules, or take more money BY LAW off the people to "bail out" the fund.

    Clear enough?

    P.S. Singapore govt doesn't give a flying shit about arbitrary conventions be they international or what-not when it comes to domestic affairs. In international affairs -- different story. They go all out to present an image so stellar, the whole world becomes speechless with awe.

    ReplyDelete
  4. AnonymousJuly 31, 2014 10:29 am

    @ July 31, 2014 9:36 am
    "... international accounting with PAP characteristics?"

    There is some historical precedence for this:

    1. United Nations' Global Compact
    versus
    2. PAP government's "Singapore Compact" (a watered down version)

    http://www.unglobalcompact.org/

    http://www.csrsingapore.org/c/

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  5. AnonymousJuly 31, 2014 1:14 pm

    They need your CPF money to support the triple A grading. So how to return you the money? It will become A-.

    ReplyDelete
  6. AnonymousJuly 31, 2014 1:26 pm

    /// They need your CPF money to support the triple A grading. So how to return you the money? It will become A-.///
    July 31, 2014 1:14 pm

    I agree.
    Talk no use.
    We have to vote Opposition or we won't get back our CPF money.
    True or not?

    ReplyDelete
  7. AnonymousJuly 31, 2014 6:52 pm

    How pathetic you lots are. You will NEVER get your money at 55. Just have to face fact and take your bitter medicine. You vote them in all these years and now you have to live with the consequences. Tough it may seem and if you have hope that they will be voted out, dream on. They are in, solidly anchored and it will take a revolution to get them out. The Singaporeans are too timid and pansy to do anything like the Thais up north. Come GE, just a few $$ and all sheeples Singaporeans will kwai kwai vote them in again. So very sad......

    ReplyDelete