The Singapore ruling party dictatorship have always maintained the half-truth that the CPF funds and the nationalised insurance schemes are non-profit. The other half left out being sovereign wealth fund company GIC making a windfall from the peoples’ CPF.

Each year, GIC indirectly steal CPF funds by collecting the margin above it’s obligatory bond payment to the CPF Board, through a set of meticulously-devised regulations enforceable only in a single ruling party state. Here is how the theft works on a national-scale:

First, the CPF Board issues a low interest-rate bond, called the Special Singapore Government Securities (SSGS), made available only to GIC. The SSGS bonds has only a return rate pegged to the current CPF interest rates at 2.5%, effectively making it the cheapest fund in the world.

With access to the cheap and literally limitless funds, GIC then need only pay 2.5% a year to the CPF Board, and keep any margin above the bond rate.

Completing the grand theft is Prime Minister Lee Hsien Loong, who sat himself as the Chairman of GIC, and abuses his premiership powers to depress the CPF interest rate at 2.5%. Since he inherited his Prime Minister position from his father in 2004, Lee Hsien Loong issued direct order keeping CPF at 2.5% for the next 14 years and counting.

In addition to his S$2.2 million-a-year Prime Minister salary, Lee Hsien Loong draws a further undisclosed amount as GIC Chairman. Based off the Chairman salary of state-owned bank DBS, Lee Hsien Loong should draw no less than S$10 million a year for his executive role in GIC. Armed with zero fund management experience, Lee Hsien Loong, a career politician and former military general, chair board meetings and lead GIC to making major investment decisions.

Then there is an added layer to cover up the shady work, with the government declining to be transparent on it’s management of public funds. The total amount CPF has in possession is undisclosed, but it is estimated to be at least S$120 billion, counting funds from newly-mandated insurances like MediShield Life and CareShield Life.

The 153rd-ranking Singapore media would provide support fire by publishing propaganda disinformation. When GIC lost over S$43 billion in 2017, state media covered up the losses and presented a profit instead.

In recent years, more Singaporeans are starting to feel the pain of having their CPF unknowingly stolen by GIC. The Minimum Sum was doubled from S$80,000 to the present S$181,000, while Withdrawal Age was raised from 55 to 65.

Unlike in the 1990s, most elderly are now forced back into employment as CPF retirement payment is insufficient. The root of the problem is essentially political, as the dictator has a free reign as both the regulator and fund manager. Lee Hsien Loong creates and desists law and national policies to his advantage, putting even the corruption bureau under his command. Like his personal friend Najib Razak in Malaysia, there would never be anyone higher than Lee Hsien Loong in Singapore unless he lose the general election.

Alex Tan
STR Editor