Wednesday, March 05, 2008

Money No Enough! - forwarded email

Ok normally I don't do spam or forward emails, but this one is something I wish to share with our tiny red dot local residents on how they grasp or understand the fallacy this email and actually if they understand the policies and decisions made by our leaders.

I've heard a lot of these investments from my banker friends on the ground, not sure the exact figures but I heard our gahmen already lost USD$4 billion based on UBS alone based on last week, so if they did not take only 8 days to decide the purchase and buy now, we wouldn't need to have 2% GST hike for the next 3.68 years. Anyway this is the email I got this morning, I just cut and paste what was sent - what an erroneous bullshit to blame our gahmen..we just buying things on sale mah, later when price go up, we sell and make $ then maybe they will remember to cut GST? (I hope! anyway I did not even correct the grammar or spelling)

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This is the most simplified version of the Annual Report for 2007 based on the media reports.
Or according to Jack Neo; is it Money: Not Enough??


You figure it out!


In the past year alone, the Singapore government through its investment arms of Temasek and GIC - invested a whopping $34, 560, 000, 000.00 in various investments worldwide.


That's $34.56 billion.

GIC:

UBS - $14 billion
British Land - $388 million
Citigroup - $9.8 billion
US Hedge Fund - $429 million

Temasek:
British Bank Barclays - $4.3 billion
Merrill Lynch - $5 billion
Standard Chartered - $643 million
And if you think the government is stretching itself too thin, no worries. GIC deputy chairman and executive director Tony Tan says the GIC has capacity to bail out another bank. (AFP)

Now, government investments are not a bad thing, to be sure. Of course there are questions of transparency and accountability which some people have brought up. Be that as it may, what is even more troubling is another issue.

This is the constant lament of the government about not having enough money or financial resources to deal with Singapore's ageing population, helping the poor, providing subsidized healthcare and so on.

Thus, the government has introduced the GST hike to 7% ("to help the poor"), and is introducing the Compulsory Longevity Insurance (for our ageing population), and Means Testing (for healthcare).

All of these are paid for by Singaporeans, in some way or another.

In raising the GST to 7%, ChannelNewsAsia reported PM Lee as saying:


"Mr Lee explained that the hike was necessary to finance the enhanced social safety nets, needed to help the
lower income group.." (CNA)



The extra 2% will give the government a further $1.5 billion to finance "the enhanced social safety nets, needed to help the lower income group".


Now, if the GIC and Temasek Holdings have $34 billion to bail out ailing foreign banks, why does the government not have the money (a mere $1.5b) to help poorer Singaporeans, which it says it needs?


Why does the government not have enough money to spend more on the aged and healthcare?


Contrast the obscene spending by the GIC and Temasek with the pathetic excuse given by MCYS minister Vivian Balakrishnan about giving those on public assistance a further $23 increase, which some MPs have asked for:


"The government is reviewing the S$290 monthly public assistance (PA) allowance for needy Singaporeans to see if it should be increased. It is also conducting a separate review on the qualifying income limit for assistance, which currently stands at S$1,500 a month. The review is expected to be completed later this
year." (CNA) (TOC)


Why does the government need to have months of "review" to ascertain whether giving another $23 to those most in need is justified? If this is not the height of hilarity, then I don't know what is. It would be funny if it weren't so sad that our government would not blink an eye in spending billions bailing out foreign banks in risky undertakings while being so hardfisted about giving a mere $23 to its most vulnerable and needy citizens.


Something is just not right.


How did the government suddenly make $34.5 billion appear out of thin air when they were just lamenting, not too long ago, that they didn't even have $1.5 billion to help the poor?


Now, the next time I hear the government says it does not have enough money and need to raise this and raise that to fund certain "programmes" to "help the poor", I will tell them:

"Please stop lying to us."


Update:

Minister of State for Finance, Mrs Lim Hwee Hua, said this in 2006:


"In the case of Temasek, since inception, Temasek has delivered 18% total shareholder return by market value and 16% total shareholder return based on shareholder's funds.


As for the exact size and returns of our investments, we have explained on numerous occasions that the disclosure of such information is not in Singapore's national interest. Our financial reserves help to maintain confidence in the Singapore dollar and the Singapore economy. Any revelation would make it easier for currency speculators to target the Singapore dollar.


Mr Chia can take comfort in the fact that there is full accountability for GIC and Temasek's overall performance and risk management."


Now, even a fool will have to ask: Where has all that "18% total shareholder return" gone to? Gone to whom?


Read this from a fellow blogger: Does any one local benefit privately from Temasek's huge foreign investments?


Where are the 84 MPs in Parliament? Why isn't anyone asking such simple questions? Why do GIC and Temasek have so much to spend while our govt keep saying that they don't even have enough to help the poor?


An interesting note: The total spent so far by GIC and Temasek ($34.56 billion) exceeds our 2007 National Budget of $33 billion.


Now, imagine that.


GIC and Temasek Holdings are spending more on their shopping sprees than the govt spends on the entire national budget.


So Mr Prime Minister, please stop lying to us that you don't have enough money to help the poor.


Point to note, perhaps our gahmen have reasons for being so heartless and operating like a company/corporation - so that our currency can remain strong and we can go overseas or online to shop for cheap US goods which is already 20% discounted off. But we talking about the poor here lar, they don't have computers to go online let alone go shopping in US lar..

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