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

The PAP’s Entrapment Plan Caused Household Debt In Singapore To Spiral Out Of Control

But let me show you one final deal – this one takes the cake.

Last year, “Singapore households (became) among the most indebted in Asia,… (where) households had borrowings worth 151 per cent of their annual income last year. (Chart 73)


Chart 73

If Singapore is so rich, why are Singaporeans still in debt? First, as explained above, the PAP pays us only enough wage to pay for the CPF and then pay them back the essential services. (For the low-income, they aren’t even paid enough and are forced to go into debt right from the start.)

But you would still need to spend, right? That’s where the banks are in on the game – make you take on debt to fund any additional purchases. So, because of the PAP’s devious entrapment plot, Singaporeans are forced into personal debt to fund additional purchases.

As Jesse Colombo had pointed out, “Singapore’s ratio of household debt to gross domestic product recently hit approximately 75 percent, which is up from 55 percent in 2010 and 45 percent in 2005. (Chart 74)”


Chart 74

Moody’s had also highlighted that, “household debt increased to 77.2% of GDP as of March 2013 from 64.4% at end-2007 (Chart 75).” If you understand this, this means that the PAP’s entrapment plan is going out of control. Two possibilities – either they have lost control of how to keep this entrapment plan in its place, or the PAP has embarked on a plot to cut down further on Singaporeans by using spiraling debt to entrap them.


Chart 75

The PAP Created Debt For Singaporeans And Made Us Pay For It

But still something more sinister. Above, this is only household debt.

But there’s another debt that the PAP has created – the government has created debt for Singaporeans by making Singaporeans lend them money (against our wishes). By doing so, the government has also driven Singaporeans further into debt.

This debt that the government is borrowing from you is from your CPF.

What is happening is that the PAP has created debt for Singapore, then make us take on this debt and pay it back (Chart 76).


Chart 76

How is this done?

By last year, the Singapore government has gone into a debt of $390 billion last year. National Debt Clocks calculated that this would have reached $404 billion this year. According to the government, none of this debt is debt owned by the Singapore government to other countries. All of this debt is owned domestically.

What this means is that the Singapore government is actually borrowing money from you. But where is this money coming from? It’s a hell lot of money! As explained, the PAP has borrowed money from your CPF to invest in GIC and Temasek Holdings. This debt of $404 billion is money they are borrowing from you via your CPF for their own investments (Chart 77).


Chart 77

So, why is it important for you to understand why the PAP forces you to lend them your CPF for their investments?

Here’s why – in a normal scenario, when someone wants to borrow money from you, they have to give you a collateral, or a form of security, so that you would know that they would not run away with your money.

But when the PAP borrows money from you to fund Temasek and GIC, did they give you any collateral? As far as I am aware of, there is none.

Now, what this means is that Temasek and GIC are free to use your money in any way they want, and they are not liable to you. They don’t owe you anything if they make bad investments, since there is no collateral (Chart 78).


Chart 78

So, there is no collateral? Well, not really.

If there are bad investments or if there is not enough money, the government would still need to find money somewhere, right? That is where you come in again, and many Singaporeans have already figured this one out.

You become a collateral for the debt that the PAP has created for you. What is happening is the PAP, pretending to carry a mandate for Singaporeans, have borrowed money from Singaporeans, then make Singaporeans pay for the debt. And if you cannot pay for the debt, then you have to pay for the debt (Chart 79).

Makes sense?


Chart 79

You see, if the government were to borrow from another country and if the government is not able to pay the debt, then Singaporeans would have to pay off the debt by paying higher taxes and/or receive lesser subsidies so that we can save enough surplus to pay off the debt, right?

In Singapore’s case, if the government cannot pay for the debt back, similarly Singaporeans would have to pay off the debt. Importantly, if they are already borrowing from us and we have to pay them the same amount to clear the “debt”, then aren’t we double-paying (Chart 80)?


Chart 80

But the mess-up comes in that the PAP is borrowing from us, but yet we have to pay off the debt. The PAP owns us our money, but makes us pay for what they own us (Chart 81).


Chart 81

Thus on top of the Wage-CPF-HDB Trinity to cut down your wages, through the monopolisation of essential services and banks, the PAP is able to create another triple debt lock-in mechanism to tie you into chronic personal and national debt.

Mind you, this debt is now 115% as a proportion of GDP. Add together the household debt of 77.2% of GDP, are Singaporeans forced to hold on to a debt of nearly 200%, or more than twice our incomes?

Not only that, because the government borrows $404 billion from our CPF for their investments, and we would need to pay this $404 billion back to them since this is our debt, does it mean that Singaporeans are actually in a debt of $808 billion, or 230% of GDP?

Is the government not only making Singaporeans double-pay for essential services but also double-locking us into debt? If this is the case, is our debt actually more than 300% of GDP (including household debt)? In short, are Singaporeans actually made to hold on to a debt of 3 times the GDP, or in other words, have we been triple-locked into debt created by the PAP (Chart 82)?


Chart 82

To put this into perspective, the government expenditure on social security, healthcare and welfare is only 2% of GDP. What this means is that the PAP has created a scheme that forces Singaporeans into such heavy debt but they are willing to shoulder only a paltry less than 1% of this debt that they have created for us (Chart 83)!


Chart 83

If so, since Singapore’s GDP is $370 billion last year, does this mean that Singaporeans are actually in a debt $1.14 trillion (Chart 84)?


Chart 84

This would mean that each Singaporean would be locked into a debt of more than $360,000. If each Singaporean were to pay back 100% of what we earn to pay off this debt, it would take us 8 to 9 years to finish paying off this debt. If we were to take half our wages to pay off this debt, it would take us almost 20 years to do so (Chart 85)!


Chart 85

Perhaps it is clear now why most Singaporeans would never be able to save and retire. Assuming that we want to retire at 65, we would still need to work for another 20 years to pay off the debt that the PAP has trapped us in, such that by the time we reach 85, if we haven’t already pay off the debt, we would die by then (Chart 86).


Chart 86

And this is what I call the Triple-Debt Lock-In.


Chart 87

The PAP Forces Singaporeans To Work Longer To Lock Us Into Debt

And because the money that they borrow is from “your” CPF, what is the best way to get you to give them more CPF? Several ways, one of which is for you to earn more so that you can pay more into the CPF.

But since they won’t pay you more as part of the Wage-CPF-HDB Trinity, then what else? They either get more people to work, as they are doing by importing foreign labour, or they make you work longer. Why else do they you think they are planning to increase the retirement age to 67?

You see what is happening – there is indeed a collateral from the borrowing of “your” CPF – it is your labour, and your extended labour at that.

And to increase the retirement age, there are many ways to do it – Dr Linda Low had explained that, “In 1984 the government tried to increase the CPF withdrawal age from fifty-five to sixty. The attempt was very poorly received, as people viewed the government as having broken a promise.” She then revealed that, “One way of getting around this problem has been to institute a scheme minimum sum, which softens the impact. Under this scheme, one can still take out a lump sum when one reaches the age of fifty-five, but one must keep a certain minimum amount in the fund, which can only be withdrawn as an annuity when one reaches the age of sixty. (Chart 88)”


Chart 88

And as I had written in the previous article, it was from 1996 that the CPF Minimum Sum was suddenly spiked up and has been growing much faster than inflation ever since (Chart 89).


Chart 89

But there is only as much as the CPF minimum sum can prolong their eventual aim of extending your retirement. At some point, they would need to actually extend your retirement age, and the time is soon, and thus the talk of extending the retirement age to 67 (Chart 90).


Chart 90

This is the final trick in the book – the CPF-Debt-Labour Bondage.


Chart 91

The Magic PAP Plan To Stab Singaporeans In The Back

Do you see the whole plan now? This Stab-You-In-The-Back Plan is a mix of the Wage-CPF-HDB Trinity to undercut your wages, the Double-Paying Trickery, the Triple Debt Lock-In Mechanism and this CPF-Debt-Labour Bondage to entrap you into a massive Ponzi scheme which has become so entrenched that all they need to do is sit back, shake leg and extract the wealth from you (Chart 92).


Chart 92

It’s all so easy now for the PAP. They have now created and institutionalised an automated wealth extraction plan that entraps your labour into a locked-in cycle, pay you low wages, extract the wage via CPF and HDB then take back the rest of the wage through monopolising essential services, increasing prices, creating debt and mortgaging your CPF for your labour which forces you to work for eternity. There is no more cleverly thought-out plan than this anywhere in the world that forces its citizens into thinking that they are liberated – yes, but slaves who have been led to think that they have been liberated.

Singapore never gained independence. We gained independence from the British but have become colonised by the PAP (Chart 93).


Chart 93

Now that you know this complete entrapment plan that the PAP has concocted to stab you in the back, there is one final thing that you need to know.

So, does this mean that all Singaporeans have thus been made to suffer? Well, obviously no. Some statistics will give you a clue as to who gets better at the expense of us.

As I had mentioned, the richest in Singapore earns one of the highest salaries in the world (Chart 94).


Chart 94

And pays one of the lowest taxes in the world (Chart 95).


Chart 95

Meanwhile, the poor and middle-income in Singapore actually pay much higher tax and CPF than the rich in Singapore. For a low- and middle-income earner, we actually have to pay up between 37% and 38% of our wages into tax and CPF, whereas high-income earners only need to pay 25% (Chart 96). This is because there is a maximum cap as to when a person needs to pay into CPF – if you earn above $5,000, you only need to pay CPF on the first $5,000 of your wage. The rest of your wage is CPF-exempted. How come the rich gets to be exempted from CPF but not the poor and middle-income who are more in need of this exemption, especially since the CPF is a bottomless pit?


Chart 96

Meanwhile, Singaporeans earn the lowest wages among the high-income countries even as the rich earn the highest wages among these countries (Chart 97).


Chart 97

Only about 13% of the richest Singaporeans are able to meet the CPF Minimum Sum. The richest 10% of Singaporeans have seen their income grow from 30% in 1995 to 42% in 2011. The richest 15% earns as much as the poorest 85% in Singapore (Chart 98).


Chart 98

So, who gets ahead while the rest of us Singaporeans languish. You can put the figure safely at 10% to 15%. Meanwhile, the Singapore Prime Minister belongs to the richest 0.1% in Singapore and the PAP politicians belong to the richest 5% (Chart 99).


Chart 99

Perhaps it might also be revealing that WealthInsight’s Singapore 2013 Wealth Book found that the richest 3% in Singapore owns 85% of the wealth in Singapore (Chart 100).


Chart 100

Thus it is honestly very irresponsible when Lee Hsien Loong had said that, “if I can get another 10 billionaires to move to Singapore and set up their base here, my Gini coefficient will get worse but I think Singaporeans will be better off, because they will bring in business, bring in opportunities, open new doors and create new jobs, and I think that is the attitude with which we must approach this problem. (Chart 101)”


Chart 101

Today, Singapore has the 4th largest concentration of billionaires in the world and the largest concentration of millionaires (Chart 102).


Chart 102

And we also have the largest concentration of millionaires in the world (Chart 103).


Chart 103

But for the rest of us Singaporeans, things have gotten so bad that Singapore is now ranked the most expensive place to live in the world (Chart 104).


Chart 104

But the PAP had the audacity to generate their own report to claim that Singapore is actually only the 60th most expensive city in the world (Chart 105).


Chart 105

But what does this all mean, when we also have the highest poverty rate among the high-income countries and countries in the region (Chart 106)? It means nothing. In fact, it means that Singaporeans are worse off.


Chart 106

In fact, do you know what this really means? The rich are getting richer, but there are now more and more poor people in Singapore.

Which is why it is utterly irresponsible that the PAP is resisting calls to define a national poverty line, claiming erroneously that this will result in a “cliff effect”, when it is clear that poverty is now a strikingly important issue in Singapore (Chart 107).


Chart 107

Mr Leong Sze Hian had also highlighted that, “middle-skilled jobs are disappearing, while demand for high- and low-skilled workers grows”.

If you understand what this all means, this means that the PAP is squeezing the middle-class out, to either become part of the poverty class or to move out of Singapore. Indeed, more than 300,000 or 10% of Singaporeans have already moved out of Singapore. This means that what the PAP is hoping to create is a super-rich class and a growing down-trodden poverty class who are then left to pick up the pieces. As of today, the poverty class forms the bottom 30% of the Singapore population and is still growing (Chart 108). I had warned of this previously.


Chart 108

Any wonder why the PAP is discouraging Singaporeans from receiving a degree education then (Chart 109)?


Chart 109

Perhaps now you will understand why the PAP has been erasing statistics and fudging statistics, and how they had also explained how it is not necessary to be completely transparent (Chart 110), 0r that it is not in our interests to know too much (Chart 111). Once you are able to put the statistics together, you will realise how the whole plan that the PAP has concocted to cut Singaporeans down actually work, and they cannot afford for you to know this at all.


Chart 110


Chart 111

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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