MP Now Convinced CPF Funds Don't Come Cheap

Source : The Straits Times, Oct 3, 2007

I REFER to the article, 'CPF returns: As good as it can get' (ST, Sept 29).
In the article it was reported that I used the word 'cheap' to describe CPF monies as a source of funds for the Government, in the debate in Parliament on CPF reforms.

I wish to clarify that my choice of the word was motivated by a comparison between the cost of CPF monies to the Government and the returns that the Government is able to get in the longer term through careful fund management.

Indeed, this is an issue with a number of Singaporeans and I had thought it appropriate to reflect these sentiments, on the occasion of the debate on CPF changes, to get an explanation from the Government.

I should emphasise that the word was not chosen, as some may have suggested, to imply that the Government was making money at the people's expense.

I am glad to note that your newspaper had accurately reported my remark that any income derived from such investments has been applied for the benefit of the people of Singapore.

Having considered carefully the explanation of the Second Minister for Finance, Mr Tharman Shanmugaratnam, I am now satisfied and have come to the conclusion that the CPF monies, with risk-free interest guaranteed, do not represent a cheap source of funds to the Government, particularly now that the interest rate on the CPF balances has been pushed higher by the recent changes.

Sin Boon Ann
MP for Tampines GRC