Using The HDB To Siphon Off Singaporeans’ CPF
But that’s not yet all. In the previous article, I had wrote about how the CPF and HDB have become the banks of the PAP, where they’ve created an entrapment plan for you to use your CPF to pay for your HDB flat so that you are forced to channel the funds from your CPF into their HDB bank, and then forced you to pay another unreasonable and illogical amount back to the CPF, which they call the “accrued interest”, so that you are made to fork out additional funds from your own pocket, for no reason whatsoever, to pay into the CPF bank.
This illogical amount is part of an insidious scheme which requires that you pay “back” into the CPF the interest rate which you would have earned if you had kept your money in the CPF and not borrowed it. Effectively, the PAP is making you borrow your CPF from them and making you pay an interest back to them on the “loan” (Chart 28). But, shouldn’t this money be yours in the first place, and how it should be used should be up to you to decide?
And thus the PAP had turned what is our retirement funds and our homes into the CPF and HDB banks to siphon off money from Singaporeans.
This is what the PAP knows – they have already made you pay part of your wages into the CPF anyway and they have sold you the plan that you have to buy your own flat. Thus with this two – CPF and HDB – they created the dual CPF-HDB entrapment scheme to turn the CPF and HDB into their banks and siphon your money off (Chart 29).
But what’s the significance? In 1994 (yet again), the PAP so-called “liberalised” the CPF and allowed “first-time HDB buyers (to use their CPF when) applying for resale flats”. By opening up the public housing to the so-called “free market”, the PAP was able to use this method to allow the prices of flats to be speculated upwards.
In fact, after the resale flat market was “liberalised” in 1994, indeed, prices dramatically shot up right after 1994 (Chart 30).
So – 1994 again.
And with their higher prices, what does this mean?
Exactly, first, the higher flat prices meant that Singaporeans who had used their CPF to pay for their flats would have to sacrifice more of their CPF to pay their mortgage to the HDB bank. And because they also had to pay the interest “lost” on their CPF borrowed back, the higher flat prices meant that they had to pay a higher amount out of their own pockets into the CPF bank, which they shouldn’t have needed to. Thus more money lost to the HDB bank and then more lost to the CPF bank (Chart 31).
However, things got so bad that prices shot through the roof and by 1997, the housing market had developed such a huge bubble that the housing market crashed.
But in its wanton greed, the PAP obviously never learnt from it and has allowed housing prices to shoot up to new heights today such that in January this year, Jesse Colombo had to sound the death knell and warned that “Singapore’s Economy Is Heading For An Iceland-Style Meltdown” as “Singapore’s (housing) bubble will most likely pop”. Of course, this was fervently denied by the PAP which led Jesse Colombo to pen another scathing hit-back at the Monetary Authority of Singapore for denying the existence of a housing bubble.
Such denial is of course disastrous. It had been shown that, “the economic stratification of society into Elites [rich] and Masses (or “Commoners”) [poor]” has “a central role in the character or in the process” of how “advanced, sophisticated, complex, and creative civilizations” can collapse, sounding yet another death knell to the PAP.
But, what does the PAP care as even NASA had explained that, “Elite wealth monopolies mean that they are buffered from the most “detrimental effects of the environmental collapse until much later than the Commoners”, allowing them to “continue ‘business as usual’ despite the impending catastrophe,” thus continuing in their denial and “to be oblivious to the catastrophic trajectory”. NASA also explained that, “While some members of society might raise the alarm that the system is moving towards an impending collapse and therefore advocate structural changes to society in order to avoid it, Elites and their supporters, who opposed making these changes, could point to the long sustainable trajectory ‘so far’ in support of doing nothing.”
As such lies the reason for the inherent denial of the PAP and the explaining away of how the inequality of Singapore has stabilised (Chart 32). The PAP has made themselves rich enough to be able to still live a comfortable life, even as Singapore is breaking down right in front of our eyes.
But if so, is the PAP still serious about the role of being in the government or are they only riding on their having hijacked the government to further their own selfish desires to accumulate more wealth for themselves, at the expense of Singaporeans?
How They Took Your CPF To Invest And Denied Knowing How They Did It
Now, please let me give you more context before I explain below what all this means to you and how the PAP is actually stabbing you in the back.
The CPF in itself is not yet as sinister unless you know how your money is being used and when you find out what you had actually not been told. As I had discussed several times, the CPF is invested in Temasek Holdings and GIC.
So, the GIC might claim that the “GIC manages the Government’s reserves, but as to how the funds from CPF monies flow into reserves which could then be managed by either MAS, GIC or Temasek, this is not made explicit to us. (Chart 33)”
And apparently, the GIC claims that, “The Government, which is represented by the Ministry of Finance in its dealings with GIC, neither directs nor interferes in the company’s investment decisions.” GIC also claims that, “(the government) holds the board accountable for the overall portfolio performance. (Chart 34)”
But do you know that on the board of the GIC are the Singapore Prime Minister, the two Deputy Prime Ministers, the Finance Minister and the Minister of Trade & Industry (Chart 35)? So, the PAP has not only made themselves the government, they have also put themselves on the board of GIC – with the Singapore Prime Minister and Deputy Prime Ministers no less, and they claim that they do not know how “your” CPF monies are being managed?
And the PAP dares claim that “the government … neither directs nor interferes in (GIC)’s investment decisions” and leave it to the board to be “accountable”, but if the PAP is the government and the PAP is the board of directors on the GIC, doesn’t that mean that they are already directly interfering in the investment decisions? Then why does the PAP tells us something as silly, nonsensical and a blatant mistruth right beneath our noses?
Now, this is not a laughing matter. Lee Hsien Loong, Teo Chee Hean, Tharman Shanmugaratnam, Lim Hng Kiang, even Heng Swee Keat and Raymond Lim (who was previously transport minister before he was kicked out of government) are the directors and Lee Hsien Loong the Chairman of GIC, and Lee Kuan Yew the senior advisor, and they can put on the GIC website that none of them knows how our CPF monies are being managed?
Not only that, the Chairmans of DBS, UOB and the Singapore Exchange are also the GIC’s directors.
Not only that, apparently, the workers in the GIC are also “paid a fee as the fund manager looking after Singapore’s foreign reserves” (Chart 36). So, does this mean that not only does the PAP ministers already earn million-dollar salaries, are Lee Hsien Loong, Teo Chee Hean, Tharman Shanmugaratnam, Lim Hng Kiang, even Heng Swee Keat also earning millionaires from being the “fund managers” in the GIC? Are they paying themselves extravagant salaries not only from our taxes into their ministerial salaries, but are they also extorting our CPF to pay for their extravagant salaries as “fund managers”?
Do you know what this all means – all your money is being controlled the PAP and you are none the less wiser about how they are being used because the PAP can claim to run the 8th largest sovereign wealth fund in the world (Chart 37) with your money, and claim that they do not know how your CPF monies is being managed, even though they happen to also run the government?
Meanwhile, the current Singapore president Tony Tan had the cheek to say on his Facebook page that he had “exercised the President’s discretionary power provided for under the Constitution to give (his) assent” to Budget 2014 because “This is a prudent and responsible Budget”?
Do you see what is freaking wrong, Singaporeans? This is your CPF monies which the PAP is managing, which they siphon away to invest with and then tell you they don’t know how they are managing it? And the current president of Singapore who was also previously the GIC’s deputy chairman (Chart 38) and who would know all these, actually had the decency to approve the government’s budget? Meanwhile, the largest banks in Singapore are in on it as well and these banks manage your wages and CPF!
Singaporeans, do you know what the PAP is doing to you? They are not just pulling a fast one on you. You are being f***ed. Big time.
The PAP Lost Half The Value Of Your CPF In Bad Investments
So, clearly, the PAP has transferred your CPF into Temasek Holdings and GIC to invest. So, they have denied any knowledge of how they are using your CPF even though they have their hands in everything.
But from a certain Dr Linda Low who had previously worked in the Ministry of Finance, she shared that it was in 1993, as part of the government privatisation program, “Singapore Telecom … was privatized in 1993” and “a huge sum (was) withdrawn from the CPF (and) … invested into Singapore Telecom. (Chart 39)” Singapore Telecom is what is known today as Singtel.
The question is, how big an amount is “huge” and has this money ever been returned to our CPF?
Again – we are seeing a series of events being launched in 1994 by the PAP to entrap Singaporeans’ wealth and transfer it to themselves.
By now, most Singaporeans would know about how from 2003 to 2007, Temasek’s investment had grown by “S$114 billiion” but “the end of March 2008 to November 2008”, Temasek lost “58 billion Singapore dollars from, or a little over than half of its portfolio-value gains from the previous five years” (Chart 40).
Now, to put this into context, by 2008, Singaporeans had contributed a total balance of $151 billion. A loss of $58 billion represents a loss of almost 40% of your CPF monies (Chart 41).
Mind you, the government had lost $58 billion or what is nearly 40% of your CPF, but in the same year, they only allowed Singaporeans to withdraw $11 billion, or only 7% for our use (Chart 42). So, it’s OK for the government to lose 40% of the value of our CPF but yet let Singaporeans take out a miserly 7% of what is supposed to be “our own money”?
And do you know that today, the CPF has grown to $253 billion but last year, Singaporeans only managed to withdraw $15 billion to use, or only 5.9% of what we have accumulated (Chart 43)!
Note too that the PAP is only willing to pay a 2.5% to 4% interest on “our” CPF but “our” CPF has helped them to earn 16% and 6.5% with Temasek and GIC respectively, and they have not bothered to return this interest to us. This interest that is not returned to us is also an implicit tax that the government is making us pay.
And as also mentioned, why should the PAP be allowed the unilaterally decide how much interest Singaporeans should earn from our CPF? Where at all is the benchmark of how the CPF interest rate is pegged? If our CPF is invested in Temasek Holdings and GIC, then our CPF should be earning closer to the range of 16% and 6.5% (Chart 44). By manipulating the interest rates and artificially determining the interest rates on our CPF, the PAP is illegitimately siphoning off our money from our CPF.
Do you see what is going on? The PAP has taken your CPF for their own investments, they haven’t explained to you how your CPF is being used or whether they have returned your CPF. Meanwhile, the PAP owns GIC and Temasek Holdings and they can tell you that they have no clue at all how your CPF is being managed, when they have put themselves on the boards of GIC and Temasek and even got the banks in the game, and none of them said that they can be accountable to you as to where your money is going (Chart 45)!
You still want to trust them?