In the press release by the CPF Board under the Prime Minister’s Office (PMO), CPF interest rates will continue to be depressed at 2.5% – the lowest return compared to any superannuation fund in the world. In the CPF press release, the S$2.2 million-a-year dictator Prime Minister wrote that 2.5% is still higher than his “formula”, which came out to be 0.32%:

“The Ordinary Account interest rate will be maintained at 2.5 per cent per annum from Oct 1 to Dec 31 this year as the computed rate of 0.32 per cent is lower than the legislated minimum interest rate.”

HDB mortgage rate will also continue to charge 2.6%, at 0.1% above the CPF interest rate. However, Singaporeans who had used their hard-earned CPF funds for mortgage payment will have to return capital plus compounded interest rates to CPF when they sell their house. The move is aimed to keep more cash swimming in CPF, and prevent cash withdrawal from housing sales.

CPF funds, amounting to S$368 billion (as of 2017 figures), are considered “government funds” and mixed with tax revenues for management by the sovereign wealth fund company GIC. Lee Hsien Loong conveniently sits himself as the Chairman of GIC, giving himself the power to deploy the funds for overseas investments. Drawing an undisclosed salaries from his chairmanship, Lee Hsien Loong abused his premiership powers to give GIC cheap CPF funds at low borrowing costs under the guise of a “Special Singapore Government Securities” bond – which is pegged at the prevailing CPF interest rate.

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