Is our CPF money a pension fund?

What is a pension fund? A general definition from Investopedia for pension fund is, ‘A pension fund is a common asset pool run by a financial intermediary on behalf of a company and its employees, to generate stable growth over the long term and provide pensions for the employees when they retire.’

Is the CPF savings a pension fund?  The money is contributed by the employers and employees but it stops there. There is no financial intermediary to invest the fund on behalf of the company and employees to generate a stable growth over the long term and to provide pensions for the employees.  There are agencies taking the funds directly or indirectly to invest for their own interests, to make profits for themselves, and the returns to the owners of the fund are incidental or secondary. The primary objectives of agencies utilizing the CPF funds for investment is for their own benefits, without the approval of the owner of the CPF savings, without any agreement that they are investing their savings for their benefits. Only the CPF Board has a small role in this direction, by buying govt bonds and to return the proceeds to the owners of the CPF savings. That is far from managing and investing a pension fund.

Chris Kuan has made some comments on Roy Ngerng’s article on the CPF fund. This is what he said.

‘The “funnelling of CPF funds” thingy inferred by Roy is no different from any first world country in the way pension funds invests in government bonds and then how the proceeds move around in the government.

Typically public and private pension funds are required to hold a certain percentage of their assets in government bonds either because it is a regulatory requirement or because it is the prevailing asset allocation strategy. On a regular basis, the government will issue government bonds and a variety of investors buy them including pension funds. The debt proceeds from the issuance of the bonds are then for the government to use at its sole discretion. In most cases, the proceeds are used to cover the shortfall of revenues over expenditures, i.e. used for spending.

However nobody in the first world countries will say that the monies spent are “pension” monies in the same way we should not be calling the monies the Singapore government has given to Temasek or for GIC to manage are “CPF monies”.

So this “funnelling” is not exceptional. The exception is the design of the Special Singapore Government Securities (SSGS) issued to Central Provident Fund (CPF) and maybe the coercive nature of the relationship between CPF and the government but even the latter may not be so exceptional if we think CPF as more akin to a first world national social insurance fund than a pension fund.’

What is wrong with Chris Kuan’s analogy that our CPF fund is similar to other pension funds? In the first place, our CPF savings has never been called a pension fund.  The second point is that there is no direct relationship between GIC and Temasek as the fund managers of the CPF savings. For a long time, both funds even denied investing the CPF funds until quite recently when they admitted to have used the funds indirectly to invest. But there is no agreement or commitment by Temasek or GIC that they are the fund managers of CPF funds and whatever commitments to invest and to return the profits to the owners of the CPF funds. How then can these two funds be recognized as the fund managers of CPF funds?

This is definitely very exceptional for anyone to say that GIC and Temasek are the fund managers of the CPF funds and the CPF is a pension fund managed by these fund managers. They are not. They exist for their own agenda and mission, and have no direct relationship or link with the CPF fund.

What do you think of Fund managers managing the CPF fund without an official agreement and commitments, without any terms of reference as to how the funds will be invested, and how the profits should be returned to the owners of the fund?  I really cannot remember reading any such agreements that the GIC and Temasek are the official fund managers of the CPF fund and have a direct fiduciary duty to the owners of the CPF fund.

Please correct me if I am wrong.  Can we assume that the GIC and Temasek are the fund managers of our CPF fund? Where is the agreement? CPF savings is far from an international fund in the West as described by Chris Kuan. There is no active investment strategies by the CPF Board to maximize profits for the CPF savers other than the rudimentary buying of govt bonds.

South China Sea – An alignment of forces for domination and control

There are good and bad things coming out from this Hague circus and its South China Sea show. Let me start with the bad stuff first. The Permanent Court of Arbitration, an international institution created to uphold justice and peace, has unfortunately allowed itself to be embroiled in a power struggle for hegemony in the South China Sea. It is in the deep end, having sank into the quagmire for the last few years and unable to extricate itself to come up clean from the mud of infamy. Its decision is likely to compromise the good name and reputation of the institution of the Permanent Court of Arbitration and the judges involved.  At worst, it will destroy the very reason for the existence of such an international body, a highly respectable, neutral and legal institution to arbitrate and resolve international disputes.

And here is the good outcome from the pronouncement by the Court. I would not call it a legal and enforceable judgment. It is not and it will not be legal but a political statement from an institution that has lost its credibility as an independent and impartial world body. The good outcome will come about when countries with vested interests start to make their stand public to reveal their private agenda.  China would then know who are friends and who are foes.  There will be no need to hide behind a mask anymore.

There will be a new alignment of forces for control of the South China Sea, politically and militarily. The risk of war is real and eminent as the main protagonist will have the countries in the region fighting among themselves, leaving the main protagonists safe and sound from afar. The announcement by the Court would also make China’s choices and options easier. To borrow a phrase from George Bush Jr, it is either with me or against me. There is no need for pretences and speaking in fork tongues.  Asean countries will take their chosen places on both sides of the divide.

China does not need to be diplomatic anymore to appease the hegemon and think the problems of an open military confrontation will go away. China would have to take sides and close ranks with its friends against its foes. It is crisis time and China cannot afford to compromise its position and security to side with the hegemon and its foes against its friends. China must take decisive decision to part ways with the hegemon bent on confrontation. China would have to be resolute and firm and review all its policies vis a vis the hegemon and be prepared to take sides against the hegemon and its allies or be left to stand up against the hegemon and its allies, alone.

The Hague pronouncement is like D Day with the battle line drawn up. There is no more grey area, no more superficial friendship. The forces of the two sides will stand up to be counted and all policies must be realigned to face this new and risky challenge to China’s sovereignty and territorial integrity in the South China Sea.

A new and dangerous chapter in the story of the South China Sea is about to be written. The way forward is military confrontation with the hegemon and its allies upping the stakes in a winner take all gambit.  China’s appeasement policies to avoid war are not working. War is coming to China and the earlier China makes up its mind the better. It is a critical moment in history when China would have to call on all its friends and allies to act together to face the combined forces of the hegemon and its allies.

The only hope for avoiding a nasty confrontation is for the new President of the Philippines to break ranks and to start negotiation with China, to seek for a peaceful and mutually beneficial solution for both countries. Such a decision by the Philippines would be the only way to scuttle the aggressive intent of the hegemon, to give it no reason and justification to push for a nasty and explosive solution in open warfare in the South China Sea.

Would there be wisdom within the Asean ranks, especially those that have no conflicting claims in the South China Sea, to call out and walk away from the battle field drawn up by the hegemon? Or would they be dragged by the less enlightened Asean states into a war that has nothing to do with them and nor to their national interests?

Chas cheaters discussed in Parliament

Dunno how many millions have been sponged by the cheats from the Chas scheme. And the cheats are the medical and dental clinics run by highly trained and professional people that are likely to be in the pool waiting to be picked up to run as MPs in the next GE.

Actually I don’t blame them with a system that is so flimsy and full of holes that a herd of elephants could waltz through. How not to want to take advantage of a scheme asking to be taken advantage of, you ask me lah? But in Parliament some doctor did not think so and did not think the problem is so big and so serious. Seah Kian Peng cannot tahan and was heard saying it is big money, big public money. And it is only the tip of the iceberg. Not his exact words but something like that.

When asked to enforce the medical and dental clinics to itemize the bills, Lam Pin Min was reluctant until an angry auntie blew up. ‘Why is it so difficult, given so many feedback on overcharging?’  Dr Lam, the current Minister of State for Health then replied that the MOH is ‘seriously considering making it compulsory’. ‘Seriously considering’ only mah. To do or not to do still dunno. Maybe auntie should shout at the top of her voice to be heard. We need more fierce aunties in Parliament to get something serious done. Auntie Bee Wah should call on the support of uncles like Seah Kian Peng to make sure things are not forgotten and swept under the carpet. Oh, now I remember the exact words Seah Kian Peng said, ‘These are serious monies that are going out, taxpayers’ monies.’ Did MOH think so and agree with him? This part not reported in the media.

You people out there, you think this Chas cheating thing is serious enough or not? Say leh, must say then they would say got feedback from the people. If not they may think not serious enough and the not so straight medical and dental clinics would continue to be very happy with this Chas scheme. Maybe they will set up a COI to study study first then make the final decision, to itemize or not to itemize.

Being doctors and dentists also chiat lat. Rental so high, how to cover cost? This Chas scheme is really a gift from God. The Chas card holders and pioneer generations would be swarming the clinics for free treatments. Who cares about itemized bills or no need bills, free ok leow. This is the best system so far. Win win for everyone.

US plans nuclear attack on Russia and China

For some years USA has been building hundreds of huge underground bunkers - underground cities deep in the mountains all over the country. These underground cities are well equipped with modern facilities and amenities like roads, rails, electric power, reservoirs, hospitals and schools. USA may launch a surprise nuclear attack on Russia and China any time soon. These extremely mad American leaders think they will be safe in these underground cities . They have no qualms about how a nuclear exchange with Russia and China can kill hundreds of millions of people world wide including ordinary Americans so long as they stupidly feel they are safe in their underground cities.

America is nurtured on wars - perennial wars . The country is now run by extremely crazy and very mad people. They believe America should always be on top and no other country or countries would be allowed to come close to America's top position in military power, finance , wealth and riches in status. In view of this they feel compelled to take down Russia and China, the only two countries obstructing its path to complete world domination.

They are now turning their propaganda departments in full gear to demonise both Russia and China. Their propagandist machine is now in full swing to whip up all false reasons and excuses to arouse the people to support for their coming wars against Russia and China. They are unleashing all kinds of misinformation, disinformation, all kinds of lies , half  truths and the use of innuendos and insinuations to whip up the peoples feelings and psycho them to support their evil war plans.

They have built over a thousand military bases all around Russia and China's periphery to threaten the two nations. USA  has for years been dominating the Arabs in the Middle East and control their rich oil resources. They constantly stir up trouble, create strives and instability in the whole region to subject it to its hegemony agenda. In the course of it America is promoting and spreading terrorism. America is the world worst terrorist country and American terrorists are all over the world causing wars, instability and destruction. In fact America is the father of all terrorists when they organised and trained terrorist fighters in Alquaeda, Taliban and Isis and other terrorist groups in South America and Africa.

Now USA is shifting from Middle East to create choas, dissension and turmoil in the far East in East China Sea and South China Sea. It uses the sham excuse of "Freedom of passage and navigation" as a vehicle to start all the trouble and confrontation in the region. The fact is USA wants to dominate and control the whole of the East China Sea and the South China Sea together with its rich oil and mineral resources under the sea bed.

Before USA pivot to the East in 2009 there was peace and tranquility in the region. After its pivot to this region in 2009 it tries to drive a wedge between China and the neighbouring littoral states. It encouraged and instigated the neighbouring countries to go against China by claiming and illegally occupying Chinese territorial islands and reefs in the South China Sea. It hijacks all the powers of the Philippines and Vietnam and usurp its control of their relations with China.. USA is returning to the use of 'Gun Boat Policy of the 1840s against China. But this is the 21st century and this type of reckless action may yet backfired on the Evil Empire.

USA is risking the destruction and annililation of mankind in this world with its danger of threatening Russia and China with thermo nuclear war. All good and decent men in every country in this world must now take a stand to censor and stop the mad men in America from unleashing the world's ultimate Armageddon.

Southernglory 1

Tuesday, July 12th 2016

Treachery in The Hague

The Permanent Court of Arbitration at The Hague is due to pronounce the most farcical judgment in the history of this international tribunal that would drag its reputation to the bottom of a smelly pit. From being an impartial and legal institution, it has allowed itself to become a political quagmire, to be manipulated by interested powers to do its bidding. It’s hearing on the South China Sea dispute filed by the Philippines that it has no jurisdiction under UNCLOS and its stubborn insistence to make a political judgment would be the beginning of its road to ignominy, to be seen as anything but a just court.

Why is this so? So far no one has heard the names of the members of the Court hearing the South China Sea case. Read the following comments from Yoichi Shimatsu about the conspiracy and intrigue that end with the hearing of the South China Sea dispute and the key participants that made this treachery becoming a 21^st Century farce. The full article that has 2 parts are available at the 4^th Media, http://www.4thmedia.org/2016/07/abes-henchmen-rigged-the-spratlys-kaw-case-against-china/#.V4G4AUDUTsE.gmail

By Yoichi Shimatsu | Tuesday, July 12, 2016, 323 views

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First in a 2-part series, this investigative report exposes a high-level intrigue by pro-militarist Japanese diplomats in rigging “Philippines vs. China”, a law case in The International Tribunal on the Law of the Sea (ITLOS), which will soon render its decision on the maritime dispute over the Spratly Archipelago (Nansha in Mandarin). The second part to come will uncover the Tribunal’s political bias in favor of Manila’s marine environmental complaints against China in blatant disregard of the Philippines’ worst-offender record on ecology.

This investigative report is an open call to the UN Committee on the Law of the Sea and the Secretary General to launch an internal investigation into the political influence-peddling and corruption at the International Tribunal for The Law of the Sea (ITLOS), which has compromised the impartiality of the judicial panel for Philippines versus China.

The evidence so far indicates that the Hon. Shunji Yanai, the President of Court of Arbitration/ITLOS, encouraged and facilitated the Philippines case on orders from the office of Shinzo Abe and Japan’s Ministry of Foreign Affairs. The conspirators’ objective was to promote intentional bias and prejudicial tactics in the court proceedings in favor of the Philippine government in its dispute with the People’s Republic of China over sovereignty in the Spratly Islands (Nansha group) in whole as an archipelago or in part as separate sub-groups.

The evidence so far indicates that the ICA-ITLOS President, Shunji Yanai [柳井俊二], unlawfully and unethically promoted acceptance of Philippines vs. China into the Tribunal schedule at the behest of the Government of Japan. The tactical plan in the conspiracy involves judicial misconduct with the aim of influencing the United Nations and world public opinion to categorically reject without fair consideration all of China’s claims to the Spratly region. These illegal activities include a disguised effort to usurp jurisdiction from the International Court of Justice on principles of sovereignty as applied to maritime boundaries.

Since the predictable outcome for this one-sided case, throughout which only the Philippines side has been represented, will be to inflame regional tensions in East Asia and the Pacific to the military-strategic advantage of the Government of Japan, along with its pro-militarism supporters and criminal associates.

The principle suspects in this conspiracy, Prime Minister Shinzo Abe, Foreign Minister Fumio Kishida and their chief strategist Shunji Yanai, should be investigated for tampering with the court with the intent of launching neocolonialist aggression in violation of the UN Charter and Constitution of Japan….