Under the directive of Prime Minister Lee Hsien Loong on (Feb 15), the interest rate of the country’s retirement system will continue to be depressed at 2.5% per annum. This is the lowest return among pension fund in the world, less than half of Malaysia’s EPF 6.4%.
Ever since Lee Hsien Loong inherited his premiership indirectly from his former dictator father Lee Kuan Yew in 2004, CPF interest rate has been depressed at 2.5%. Despite having Singapore seeing a booming economy from 2007 to 2012, the Prime Minister did not raise the CPF interest rate.
In a clear case of conflict of interests, Prime Minister Lee Hsien Loong is also the chairman of the country’s sovereign wealth fund company GIC, while his wife Ho Ching controls the other sovereign wealth fund company Temasek Holdings. Despite poor performance in the two companies, Lee Hsien Loong and Ho Ching were never taken accountable for the losses amounting to tens of billions. In 2016, GIC reported an undisclosed tens of billions of losses, instead commenting that the 20-year-average has fallen. Temasek Holdings lost S$24 billion in a single year but Ho Ching is never taken to task.
Prime Minister Lee Hsien Loong controls the puppet president Tony Tan and legalised corrupted the legislation to reserve the next Presidential Election for a new puppet president, by tightening further the stringency of candidacy requirements and dictating only the Malay race could contest.
Singapore’s elderly are seeing increasing financial hardship due to the inadequacy of the CPF system.