CPF was "100 per cent safe''

(27-06-2014, 08:31 AM)egghead Wrote:

(26-06-2014, 10:56 PM)Temperament Wrote: i mean our $ has to be strong because we import almost "everything". And i agree it's a miracle. This i give credit to our G.

Now you understand the need for having our strong reserves.

Not really go and read why i only invested in SGX for >25+ years.
On the other hand i think our G still can be more generous to Singaporeans.

(27-06-2014, 08:40 AM)Temperament Wrote: Not really go and read why i only invested in SGX for >25+ years.
On the other hand i think our G still can be more generous to Singaporeans.

I also think that they can be more generous, so I am glad to see PGP and Medishield Life being rolled out. Hopefully PM will give more improvements on CPF coming 9-Aug.

What I disagree with is the very biased one-sided argument by many in online world.

(26-06-2014, 05:58 PM)Temperament Wrote: i mean is a one party majority in parliament real democracy?
Where all you have to do in Parliament just "Rubber Stamp"?
We need a >1/3 minority in Parliament to represent some dissenting voice?
If not how come Singaporeans has become about 60 % left?
What will happens if Singaporeans is less then 40% then?

Why not real democracy? It will only happen when the oppositions are much worse than the ruling party. Otherwise, how could that even happen? Do you mean that the oppositions are as good, but the voters are blind?

The oppositions can always voice their objection and let the people know why they object. By the way, most of the government policies might not be popular, but are sound nonetheless. Most of the time, the ruling party can silence the oppositions because the oppositions could not propose any better policies. That's very different from non-democracy.

(27-06-2014, 09:33 AM)egghead Wrote:

(27-06-2014, 08:40 AM)Temperament Wrote: Not really go and read why i only invested in SGX for >25+ years.
On the other hand i think our G still can be more generous to Singaporeans.

I also think that they can be more generous, so I am glad to see PGP and Medishield Life being rolled out. Hopefully PM will give more improvements on CPF coming 9-Aug.

What I disagree with is the very biased one-sided argument by many in online world.

No return comes without risk. The CPF is already offering higher than the risk-free rate can afford. Just compare the risk-free yield of Singapore government bonds and the return of CPF.

The higher return could result in economic loss of the government, in which case, the government will have no other way but to inflate it away. Is that some people want?

(27-06-2014, 09:45 AM)freedom Wrote:

(27-06-2014, 09:33 AM)egghead Wrote:

(27-06-2014, 08:40 AM)Temperament Wrote: Not really go and read why i only invested in SGX for >25+ years.
On the other hand i think our G still can be more generous to Singaporeans.

I also think that they can be more generous, so I am glad to see PGP and Medishield Life being rolled out. Hopefully PM will give more improvements on CPF coming 9-Aug.

What I disagree with is the very biased one-sided argument by many in online world.

No return comes without risk. The CPF is already offering higher than the risk-free rate can afford. Just compare the risk-free yield of Singapore government bonds and the return of CPF.

The higher return could result in economic loss of the government, in which case, the government will have no other way but to inflate it away. Is that some people want?

The higher return not neccessary result in economic loss. There is alr lotta surplus from the investment made with the cpf money. Its a matter of return some of this surplus to the people, or keeping and spending within the G. With the super high salary of the ministers and I dunno who else, this may not go well with many.

Since the thread is on CPF, it should be relevant, as the other CPF related thread. I moved it out from the Other sub-forum.

Please take note

Thanks

Regards
Moderator

(27-06-2014, 09:54 AM)Freenasi Wrote:

(27-06-2014, 09:45 AM)freedom Wrote: No return comes without risk. The CPF is already offering higher than the risk-free rate can afford. Just compare the risk-free yield of Singapore government bonds and the return of CPF.

The higher return could result in economic loss of the government, in which case, the government will have no other way but to inflate it away. Is that some people want?

The higher return not neccessary result in economic loss. There is alr lotta surplus from the investment made with the cpf money. Its a matter of return some of this surplus to the people, or keeping and spending within the G. With the super high salary of the ministers and I dunno who else, this may not go well with many.

CPF money invests into Singapore government securities. What's surplus are you talking about? It isn't a lot according to financial statements from CPF.

The Singapore government takes the risk and enjoys the return. CPF does not take any risk, why should it demand higher return?

part of government surplus goes into reserve. However, the reserve does not just belong to the current generation of Singaporean. It belongs to the future generations, too. The government is not at its liberty to deplete the reserve.

(27-06-2014, 09:54 AM)Freenasi Wrote: The higher return not neccessary result in economic loss. There is alr lotta surplus from the investment made with the cpf money. Its a matter of return some of this surplus to the people, or keeping and spending within the G. With the super high salary of the ministers and I dunno who else, this may not go well with many.

What do you think of making SSGS interest linked to inflation, say, CPI+1%?

(27-06-2014, 10:22 AM)egghead Wrote:

(27-06-2014, 09:54 AM)Freenasi Wrote: The higher return not neccessary result in economic loss. There is alr lotta surplus from the investment made with the cpf money. Its a matter of return some of this surplus to the people, or keeping and spending within the G. With the super high salary of the ministers and I dunno who else, this may not go well with many.

What do you think of making SSGS interest linked to inflation, say, CPI+1%?

What makes you think Singapore government can control inflation within Singapore?

If the oil price jumps 100%, you think Singapore government can make similar return? Or food price jumps 50%? Or labor cost jumps? Yes, the government can control land price, COE or certain taxes. But that's only part of the inflation.

A huge part of inflation in Singapore is out of control of the government. The government can't guarantee inflation-adjusted return. It merely can offer return what it can possible earn by collecting tax and investment domestic and oversea.

Sometimes, Singapore is only a red dot.

The problem is that the govt mandated minimum sum is too high and will be unachievable for half of the population in the future. This leaves it with 3 way 1) increase cpf return, 2) increSe cpf contribution or 3) reduce housing prices to avoid the depletion of individual acc balances. From the way it is, option 3) is not advisable as it undermines the legtimacy of thegovt as rising asset prices has been the pillar of our current govt legitimacy besides economic growth

The other way is to lower the minimum sum required in future.