Corrupted Prime Minister Lee Hsien Loong has again exerted his dictatorial powers depressing the CPF rate at 2.5%. The CPF Board, under the Ministry of Manpower, today (May 23) announced that CPF Ordinary Account interest rate will remain at 2.5% from July to Sep 30 this year.
Since Lee Hsien Loong inherited his premiership power from his father Lee Kuan Yew in 2004, the CPF interest rate has stayed flat at 2.5% and never raised even when Singapore saw economic booms in the past 14 years.
As Lee Hsien Loong was made the Chairman of GIC and his wife the CEO of Temasek Holdings, the two sovereign wealth fund companies are able to borrow cheaply CPF funds and national reserves from the Ministry of Finance. The Lee Hsien Loong-controlled finance ministry issues and control the coupon rate of the Special Singapore Government Securities (SSGS). There is no detail behind the SSGS, but the government bonds specifically created for GIC and Temasek Holdings are expected to only meet a minimum 2.5% investment return rate, which is considered subpar when compared to other investment funds.
Both Lee Hsien Loong and his wife Ho Ching receives an undisclosed salary from their roles in GIC and Temasek Holdings. There is no public information on their salaries despite the involvement of public funds. However in 2015, Temasek Holdings published in an annual report revealing that the administration costs chalked up S$9.6 billion. The company stopped publishing administration fees in subsequent years after.
To further complicate public accountability, both GIC and Temasek Holdings are “private companies” in principle, with the owner being the Singapore Government. As they are neither a statutory board or a government agency, the two companies are immune to public scrutiny and information is privy only to dictator Prime Minister Lee Hsien Loong and his circle of ministerial cronies.
GIC is audited by the government’s Auditor General, who is accountable to the President. The current President is Lee Hsien Loong’s former PAP MP, Halimah Yacob, who was appointed un-elected by the Election Department. Through several high level corruptions including the re-writing of Constitution, the Election Department, under Prime Minister’s Office, disqualified two other contestant opponents to give Halimah Yacob a walkover win in 2017.
Due to low interest rate returns of the CPF, most Singaporeans are unable to meet the Minimum Sum of S$181,000 (increased from S$80,000 in 2003 when Lee Hsien Loong took power) at the Withdrawal Age of 65 (increased from 55 under Lee Hsien Loong’s order). It is common to see many Singaporean retirees, estimated at at least 100,000, working as cleaners and low paying manual labour jobs. For those who are unable to find employment due to their poor health, an estimated thousands of elderly destitutes and elderly poor collecting cardboard for a living.