Revealed: How The Pap Uses The Wage-CPF/HDB-Debt Cycle To Stab Singaporeans In The Back

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?


Chart 28

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).


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.


Chart 30

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).


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.


Chart 32

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)”


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)”


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.


Chart 35

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”?


Chart 36

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?


Chart 37

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!


Chart 38

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?


Chart 39

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).


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).


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”?


Chart 42

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)!


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.


Chart 44

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)!


Chart 45

You still want to trust them?

Page 1, 2, 3, 4, 5


  1. Raymond Lim

    Very well presented. This is indeed the truth that many daft Singaporeans are refusing to see all along. I am going to share this with all my family and friends. I am going to take it upon myself to educate them to not vote for PAP come 2016. Say no to PAP.

  2. John Koh

    So not voting PAP in? Will those charts reverse their trends? By the way, you may not even have any trends to chart! We’ll be charting trends for basic needs and poverty. Then you’ll die comparing them with Norway.

    • Ace

      Some people just don’t know what their priority is. Suppose you had been kidnapped, do you want to escape from the kidnappers first or are you worried that after you escape, will someone else kidnap you? Let’s deal with one thing at a time and cross the bridge when we come to it.

    • joe doe

      I agree with Ace. Don’t be a wussy, John. You don’t have a crystal ball or 20/20 hindsight, so you are not in a position to foretell the unknown. First thing first -> get rid of PAP.

  3. eric

    So according to Roy, a ‘low wage’ worker should earn $3k. The auntie who sweeps our void deck should earn 3k from according to Roy earns 800 now.

    A median wage worker who earn 3k now should earn 6k. So the will university grads not demand more?

    If a low wage worker can earn 3k, will prices remain the same? Will a plate of chicken rice at a hawker center still cost $2.50?

    • Aye

      Hello Eric, can I know your Facebook name? Mind to share with us? I also want to know whether you are certified economist.

      Singapore and other countries have beggars. BUT I see so many poor elderly collecting scrap materials in rich Singapore. This situation does not appear in other countries. What can the new PAP help them?

    • Simple man

      Firstly, wage is only one component of total cost.
      Secondly, if wages of the low and median wage worker is doubled or tripled, do you think it is a problem if prices of food in a hawker centre is double of what it is now?

      The cost of living will certainly be higher but lower in proportion to increase in wages meaning that we will have a better quality of life. Simple enough to understand?

      • joe doe

        Yes, this is simple logic. I hope eric don’t carry the balls to far. Your credibility sucks, eric.

      • Roy Ngerng

        A research has already shown that a 10% increase in wages will only result in a 0.4% increase in general prices.

        Let me just give you the simple reality – in Norway, wages are 3 to 5 times higher but grocery prices are similar, and housing and cars are cheaper.

        So your “fallacy” is illogical.

    • Sgcynic

      Wow Eric, the first brilliant question I ever heard from you!

      “If a low wage worker can earn 3k, will prices remain the same? Will a plate of chicken rice at a hawker center still cost $2.50?”

      I really don’t know. When rentals can increase by 50% from $8k to $12k, making low wage workers progressively earn wages down to $500 per month also not enough. What do you think? Heh

      • Sgcynic

        Still have lah. Just need to take a $2.50 bus-MRT-bus trip with seamless transfer to enjoy.

  4. eric

    Your article is indeed eye-opener! There will be worms inside PAP cans and skeletons inside PAP wardrobes.

    PAP has already cheated our feelings, robbing our hard earned money because of CPF increased minimum sum and increased withdrawal age. HDB took advantage of CPF loan interest to rob our hard earned money.

    CPF loan should not have interest. Why is PAP so greedy and selfish?

    Shame on PAP, Lee Hsien Loong and his wife Ho Ching! Vote PAP out in 2016!

    Fuck PAP off!

  5. Simple man

    In addition. CPF Life means that they can drag out the payout of CPF by another 20 years (assuming life expectancy is 85 years) and pay very little residue to your beneficiary. Why they want to do this is simply because the returns on the use of your CPF is much higher that the borrowing cost from us.

    So why do you think they have now come up with compulsory MediSave Life?

    You get screwed from birth till death, right, left and centre. This is worse than a Ponzi scheme.
    In a Ponzi scheme, you have the option to get out while you are still alive. Here, your compulsory Ponzi membership expires only when you die.

  6. anonymous

    Singaporeans live in an invisible slave matrix where they can’t see, hear, smell, or touch. Worse, they are brainwashed in schools to support the PAP from young. Thanks to internet everything is exposed, its up to Singaporeans to break free for themselves.

  7. L(iving) H(ell) L(ord)

    Those peoples whom involved in inventing this systems (past & present, directly or indirectly), must have deep in their stone heart, acknowledged there is truth in this article.

  8. Raymond Lim

    My blood boils when I read part 2. It is indeed an eye-opener as others have said. Thanks for compiling all these facts into very easy to digest charts and exposing the lies that PAP has been propagating all these years. A really well researched article.

  9. Calvin

    I have been following your blog for a while and not only I have understood what has been going on but also to feel the effects of it. Not only are the rich getting richer, but they are also getting greedier. Look at how many honest businesses were forced to shutdown due to the exorbitant increase in rent and the inability to hire staffs due to wages and quotas. The standard of essential services like public transport and telecommunications here are so poor and we often hear praises of them being world class, and such praises really makes my blood boil.

    Singapore needs a change. And the change needs to come from each and everyone of us.

  10. anonymous

    It makes sense now why they build casino and locals are deterred from entering. its all about lining their pockets.

  11. Raymond Huang

    I have followed your blog through Tremeritus for some time. I also think that there are a lot of people who still think that perhaps we should change the leader or have a coalition and everything will be solved. It does not work that way.
    There is no option but to aim to remove the ruling party altogether so that Singaporeans can be self-governing again.
    Also we cannot let the ruling party choose who they prefer to be the opposition party. That is for the people to decide. So any change in leadership or succession planning that is “underway” is really meant for the ruling party alone–not for Singapore.
    Singaporeans should keep that in mind.

  12. Richard Charles

    Roy, why don’t you expose the truths in the main media such as the press or STOMP. Best still if BBC or CNN can report it to the whole world the PRO ang mo Singapore government will have to change to save face. Otherwise, do you really think the PAP will let us bring them down by just mere voting? Remember, all those in power are afraid to lose it & they will do anything to keep it.

      • Calson Cheng

        Hey there. Malaysian here.

        You have written a fantastic article.

        A true eye opener for an outsider like myself.

        All the best in liberating your country from your corrupt government. We’ll also do our best to remove our own.


      • Roy Ngerng

        Thank you, Calson, may both Malaysia and Singapore work towards a government and society which will enshrine equality and the protection of their peoples and bring our region towards a renewed peace, prosperity and equality and the Nordic region had been able to achieve.

  13. S128

    Just a factual clarification on the accrued interest. See

    If you sell your HDB flat, you need to refund the principal amount you had earlier withdrawn for the purchase of the flat, including the accrued interest, to your CPF account. This interest is the amount you would have earned, had the savings not been taken out.

    If you are aged 55 and above when you sell your flat, the CPF refunds will be used to top up your Retirement Account up to your cohort Minimum Sum and your Medisave Account up to the current Medisave Minimum Sum. Any excess CPF refunds will be paid to you within 5 working days from the crediting of the refunds to your CPF account.”

    As CPF account holder is required to refund the accrued interest to his CPF account (and not another party), and excess CPF refunds could be withdrawn at age 55 years and above, the CPF account holder would effectively not “lose” the accrued interest he refunded isn’t it? What the account holder effectively lost is the interest he would have earned had he not withdrawn the money for purchase of the HDB flat.

    • Roy Ngerng


      (1) This interest should be paid by the government in the first place.

      (2) If you don’t pay back the accrued interest, whatever you have inside would be eaten up. If you have to use cash in hand to pay back the accrued interest, this is money lost in cash which you could have used for something else.

      (3) In the first place, the government gives a low 2.5% interest – proven to be the lowest in the world – on the CPF and second, the government jacks up the prices of HDB flats, which cause us to lose our CPF.

      It’s because of the poor interest rates and unjust increase in flat prices that cause us to lose our CPF.

      If the government is sincere, return the interest that that use our CPF to earn – they taken our CPF to earn up to 16% interest in Temasek Holdings but return us only 2.5%.

      Effecticely, we’ve been robbed of our returns.

      • Chin Boey Song

        Hi Roy,
        Thanks for sharing what I believe, many ordinary folks out there still do not know what the CPF “Acrued Interest” means and how its mechanism actually works…

        Your sharing will live on…

  14. Daybit

    You got it wrong la

    Why CPF pay us interest? Simply because we contribute into the fund and the Government uses the fund for investment. That is why we earn interest from our CPF savings.

    when we withdraw the money from CPF for our flats and $$$ is not available for the government to invest. So why the government should pay the interest?

    You want CPF to pay us a higher interest ah?
    HDB loan is marked at 0.1% above the CPF interest rate hor. If the interest if CPF interest is 5% and HDB loan is 5.1%. What will happen to our loan repayment??

    During the 80s, flats were very cheap – a 4 room flat was around $40K. If I bought a flat then and sell it today, if I only return $40K to the CPF. WIll it be enough for retirement?

    Be realistic.

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  16. chris

    It woud be ridiculous to pay the CPF accrued interest, even though it is a tool for money creation.
    Was told many years ago that the lien would simply expire when one retire or pass away. It can’t be paid if your property is not sold and in any case they have to return you the cpf monies after retirement or death. Question is what happens if it is not sold, does the cpf lien carry on indefinitely? Good job bringing it up as I couldn’t get an answer on this.
    Your other points are valid too.

    • chris

      CPF site says that if sold, transferred, etc it need to be paid even after 55yo and it goes into the retirement a/c to be distributed back to you in bits.
      Don’t touch the cpf!

  17. chris

    This is just preliminary. All those points about HDB interest rates, etc are all irrelevant and can be solved.
    Rules are made by man.

  18. Dan

    Can this be a good strategy: After redemption of my bank housing loan, i should then pay CPF (using own cash) all monies utilised for HDB plus accrued interest to prevent compounded growth of accrued interest? In this way, government at least will need to pay me 2.5% interest. Am i correct?

    • Dan

      I mean we should not wait until the sale of HDB flat to repay CPF the monies utilised for HDB plus accrued interest. If the sales of HDB is 30-50 years as you indicated, i actually run into a snowball growth of accrued interest. If this is true, i better act fast to cover the ‘hole’ after completing bank loan. Thanks.

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