TR EMERITUS

We refer to the article “Sources of $5b funds to Temasek revealed” (Straits Times, Jul 9). Alas! We know exactly where the $5b injection into Temasek came from? It states that “Temasek had disclosed on Tuesday that it received a $5 billion capital injection from the Finance Ministry during its latest financial year ended March 31. In the past 10 years, the Government has injected capital into Temasek only a few times. The Ministry, which is Temasek’s sole shareholder, also told The Straits Times that the capital injection did not include proceeds from the Special Singapore Government Securities (SSGS), which are instruments that the Central Provident Fund (CPF) Board uses to invest Singaporeans’ CPF savings. In other words, Temasek does not manage any CPF monies, an MOF spokesperson reiterated.” Virgin disclosure? - We understand that this is the first time that we have a disclosure as to where exactly did the capital injection into Temasek came from. If this is the case – why? Transparency sometimes only? As to “In the past 10 years, the Government has injected capital into Temasek a few times. In Temasek’s 2007-2008 financial year, the MOF pumped $10 billion into the company. In 2011, the Government put in a further undisclosed amount to fund the joint venture between Temasek and Malaysian state investment firm Khazanah Nasional” - Why is it that sometimes there is transparency (how much was the capital injection) and sometimes there isn’t (don’t tell you how much was the capital injection)? Also, did any of the capital injections from the past say exactly where the money came from – like now – that it came from the “proceeds of the Singapore Government Securities (SGS), proceeds from government land sales in Singapore and government budget surpluses”, and “did not include proceeds from the Special Singapore Government Securities (SSGS), which are instruments that the Central Provident Fund (CPF) Board uses to invest Singaporeans’ CPF savings”? Before GIC was born – Temasek got CPF funds or not? Since Temasek started about 7 years before the GIC was formed – how do we know for sure that Temasek’s capital injections before GIC was formed – did not come from CPF funds? CPF funds were first co-mingled with the rest of Government’s funds? According to the article “CPF gives fair and safe returns” (Straits Times, Jul 9) – “What does the Government do with the proceeds from SSGS issuance? It pools them with the rest of the Government’s funds, such as proceeds from the tradable Singapore Government Securities (SGS), any government surpluses as well as the proceeds from land sales which under our Constitutional rules have to be accounted for as Past Reserves. “The comingled funds are first deposited with MAS as Government deposits. MAS converts these funds into foreign assets through the foreign exchange market. A major portion of these assets are however of a longer term nature, and are hence transferred over to be managed by GIC. More than $35b injections into Temasek – You sure none from CPF funds? “The SSGS proceeds are not passed to Temasek for management. Temasek manages its own assets, and does not manage any CPF monies.” - Since “it pools them with the rest of the Government’s funds” – how do we know for sure, especially in the early years, as to whether the Government’s injections into Temasek ($35 billion to date, plus an undisclosed sum in 2011 (“Why did MOF inject more funds into Temasek? Straits Times, Jul 9) – did or did not come from CPF funds? After 49 years, then you know (for sure or not?)? Finally, why did it take 49 years for Singaporeans to be told exactly where or where not, their CPF funds have gone to, and was managed by whom?   S Y Lee and Leong Sze Hian    Read More →

What Makes An Asian Tiger? Singapore's Unlikely Economic Success Lies In Its History (10 Jul) - When Dutch economist Dr. Albert Winsemius arrived in Singapore in 1960, tasked by the United Nations with salvaging the struggling island economy, he gloomily remarked upon “this poor little market in a dark corner of Asia.” Over five decades later, Singapore’s market is neither poor nor little—the country sports the world’s seventh largest GDP per capita and more than one in six households have $1 million in cash savings. In the past decade alone, the number of Singaporeans running their own business has doubled, giving the city-state the world’s second most entrepreneurs-per-capita, behind only the U.S. Yet when I arrived in Singapore in 2010, I didn’t understand how the city-state could be an entrepreneurial hub. My first night on the island, I attended a talk at a local university led by Danny Tan, CEO of HipVan. Danny asked the crowd of business students, “How many of you would like to start your own business?” — and none raised their hand. One young man said he needed to wait until he had “more experience first.” This was counterintuitive to what I’d experienced in Silicon Valley where everyday countless entrepreneurs (many not even college graduates—like Aaron Levie of Box.com) pursue their dreams. In the four years since my first visit, there’s now a thriving entrepreneurial ecosystem in Singapore supported by government financing and grants, community events, and lively coworking spaces, such as The Hub. When I moved here, I wondered: What permitted this island nation to so rapidly become the leading Asian hub for innovation, technology and entrepreneurship? How could my work here change the minds of young business students like those listening to Danny’s talk that evening years ago? From Open Port to Entrepreneurial Hub Singapore’s business-friendly government is often credited with the island’s success, but the origins of the country’s economic achievements lie much deeper. The city-state’s history as a port city began in 1819, when the British East India Company turned the strategically located, sparsely inhabited island into a Southeast Asian trading perch. In 1823, Sir Thomas Stamford Raffles, described as the “Father of Singapore,” officially declared Singapore a free and open port, forever cementing the nation’s status, and, one could argue, its future. In a report to the Bengal government, collected in his letters, he wrote, “First, I have declared that the port of Singapore is a free port, and the trade thereof open to ships and vessels of every nation, free of duty, equally and alike to all.” This concept was novel — to open a port free of duty — and later, in a letter to merchants of Singapore, he further asserted “that Singapore will long and always remain a free Port, and that no taxes on trade or industry will be established to check its future rise and prosperity, I can have no doubt.” Like all great port cities –– London, New York, Shanghai –– Singapore linked resource-rich mainlands with global shipping routes. Situated at the narrow southern entrance to the Straits of Malacca and protected by the power and prestige of the Royal Navy, Singapore made its first bid as a global port city amidst the burgeoning trade schedules of Pax Britannica. .... Less visible in Singapore’s moment of crisis was the insatiable drive of PAP to restore the stability that permitted prosperity under British rule. Because Singapore never developed a culture of political rights under British imperialism, the newly elected PAP sought to legitimize itself not by protecting rights –– the basis for the state in western thought –– but rather by overseeing robust economic growth. As economic historian W.G. Huff writes in The Economic Growth of Singapore, the PAP coordinated with Dr. Winsemius’ U.N. Technical Assistance team to embrace an aggressive development strategy, pairing a hands-off approach to regulation with a hands-on approach to recruiting foreign corporations. “The Singaporean model,” Huff writes, “carries the lesson that an extensive role for the government can be combined with free trade.” Rather than shun foreign capital, Singapore welcomed it with tax concessions and temporary import tariffs. The plan was simple: foreign firms would bring capital, technology and skills, and Singaporeans would learn. Eventually, they would be able to replicate the business practices brought to Singapore by foreign companies. [Read more:  Forbes Asia]  Read More →

(1 Jul) - A major rally at the end of the year, a slew of social projects and a portable exhibition kit. These are but some of the "presents'' the PAP has in store for party members and fellow Singaporeans to celebrate its diamond jubilee this year. In fact, giving back and serving the community is a central theme of the celebratory activities, according to PAP60 organising committee chairman Lawrence Wong. "It's more than just celebrating PAP60 amongst ourselves. We want to give something back to the community," he said. GROUND-UP INITIATIVES One major element of the celebrations will be a series of activist-led social projects for the community. Ideas will be solicited from the branches (grouped together at the regional or the GRC level), with the PAP HQ providing resources to translate them into action. "Already, the PAP activists are contributing to the community on a daily basis. It's the very DNA of the party - to be action oriented, to serve, and to get things done on the ground for the benefit of our people," said Mr Wong. "But PAP60 is a special occasion, so we will put in special efforts this year," he added. These will be new social projects on a ground-up basis across the whole of Singapore to address specific issues in the community. They could be demographic specific, such as targeting the elderly or youth, or specific to a certain geographical area in the GRC. TRIBUTE TO OUR ACTIVISTS Giving thanks to party activists who have contributed to the party in the past 60 years is another important aspect of the celebrations. "Turning 60 is a major milestone for us. We have come this far because of the commitment and dedication of our people. So this is a time for us to recognise the hard work and contributions of all our activists," said Mr Wong. A commemorative event in November will be held at the newly refurbished Victoria Concert Hall. This is significant because it was in the very same hall that the party was inaugurated 60 years ago. At the event, a book on 60 defining moments in the party's history, with stories from activists who lived through this period, will be launched. "Some of the story tellers are our pioneer activists and it will be a good occasion for us to pay tribute to our pioneer generation party members." There will also be a roving exhibition highlighting the party's key moments and the activists' stories. The exhibition will travel to a few places around Singapore. Venue details will be announced later on the PAP website. In addition to the roving exhibition, the PAP60 organising committee will provide each of the 87 branches with a scaled down "portable" exhibition kit comprising banners, posters and video clips. The branches can customise and use these resources to do their own mini-exhibitions. The series of celebrations will culminate in a major PAP60 anniversary dinner as well as a mass rally at the end of the year. More than 6,000 activists are expected to take part in the celebrations. Mr Wong added, "We had a good convention last year where we set out a resolution that outlined what the party stood for, and charted the directions ahead for the party. We will build on this resolution as we prepare for the party conference and rally this year."   [Source]: https://www.pap.org.sg  Read More →