The Real History of the CPF and the Singapore Economy

Pages 1 2 3 4 5 6 7 8

The PAP Goverment Takes Singaporeans’ CPF to Invest in the GIC and Denies Doing So, but Finally Admits to the Truth This Year

Which is why it is highly problematic that for more than a decade now, the PAP government had refused to admit that they take our CPF to invest in the GIC and Temasek Holdings.

In fact, it is only on 30 May this year that the PAP government finally admitted to the truth that “The Government’s assets (which our CPF is part of) are therefore mainly managed by GIC.

But this is after numerous denials.

Lee Kuan Yew denied the truth in 2001.

Screenshot (45)

Lee Kuan Yew denied this again in 2006.

Screenshot (49)

Then-Manpower Minister Ng Eng Hen also denied this in 2007. The Worker’s Party’s Low Thia Kiang had asked, “Does the Government Investment Corporation (GIC) use money derived from CPF to invest?” Ng Eng Hen said, “The answer is no.”


In fact, in 2008, then-Second Finance Minister also claimed that the “Government does not get involved in managing (GIC’s and Temasek’s) investments” and that “these agencies make their own independent commercial and operational decisions”, because it will otherwise “raise even more concerns”.

However, there is indeed even more concern today now that it is known that the PAP government would undoubtedly be involved in managing the GIC, but has continuously denied their involvement!

For the PAP Government is on the Board of Directors of the GIC, with the Singapore Prime Minister as the Chairman no less, and the two Deputy Prime Ministers, two other ministers and an ex-minister. Lee Kuan Yew is the Senior Advisor.

Screenshot (50)

 GIC Raymond Lim

Screenshot (51)

And yet, the GIC Board of Directors are also in the government!

Screenshot (69)

Screenshot (71)

Screenshot (74)

Parliament Raymond Lim

As such, how can it be possible that the government “does not get involved?

It is thus ridiculous that the GIC claims that, “The government holds the GIC board accountable for portfolio performance, but does not interfere in the company’s investment decisions.

Screenshot (85)

It is even more absurd that the PAP government would claim that, “The Government plays no role in decisions on individual investments that are made by GIC, MAS and Temasek. At the GIC and MAS, whose boards include Ministers, these investment decisions are entirely the responsibility of their respective management teams.

Ministry of Finance - Section I  What comprises the reserves and who manages them

It is quite impossible that the PAP government does not interfere or gets involved in the GIC, unless they are two-headed with two different brains, which in this case, is quite clear that two heads are not better than one. The lack of transparency and accountability is thus glaring and it cannot be even clearer the conflict of interest, which puts Singaporeans at a serious disadvantage.


In fact, I had written two articles in 2012 and 2013 which traced specifically on the government’s websites how our CPF is indeed taken by the government to invest in the GIC and Temasek Holdings. However, the PAP government deleted the evidence from their websites later on.

Thus it is no longer possible for Singaporeans to know that our CPF, via the government bonds, are invested in the reserves.


And it is also not possible for us to know that the reserves (and our CPF) are managed by the MAS, GIC and Temasek Holdings.

Removed reserves managed by

All these, until the PAP government was finally forced to admit that they do take our CPF to invest in the GIC on 30 May this year. And in spite of the Temasek Holdings’ denial of having used our CPF, it is clear that the Temasek Holdings is guilty of having done so.

Indeed, from what this article, it can be seen that the PAP government is completely hooked to Singaporeans’ CPF to achieve every means and ends which they set their hearts to, except to actually use it to take care of the people. How the PAP government have such audacity to do this is perhaps astonishing, and the blatant denials of the truth for more than the past decade. That the government has reneged on protecting Singaporeans, by manipulating our CPF for their own uses has become a national security threat to Singaporeans and to have the PAP continue to be in government is of great disservice to the people of Singapore and puts the lives of Singaporeans at risk.

Indeed, “It was clear from the very outset that the CPF would make available to government a cheap source of credit for social and economic development. For many years, CPF funds were invested almost exclusively in Singapore government bonds. This provided the state with vast resources to pursue its developmental and social goals.

However, “Noting that some had hit out at the Government for using their CPF funds as ‘cheap money’ for its investments, (Lee Hsien Loong) said: ‘Some people say…Government wants cheap money to go and make a profit. We do not have to make cheap money. This is not that kind of government.’

Also, when Low Thia Kiang asked, “is the motive of holding payment of CPF, the draw-down age, to enable GIC to have a readily available and cheap source of funds to invest?”, Ng Eng Hen had replied, “if it was that cheap, we would have a line of suitors waiting for that money. There is none.”

Really? In 1983, it was already reported in The Straits Times that, “The CPF  … provided a cheap source of finance for the government. The CPF purchases government stocks, and the government loans the money cheaply to the HDB.”

Newspaper Article - The dollars and sense of CPF

So, will the PAP please come clean? Will they please admit the truth as to what they are really doing with Singaporeans’ CPF monies?

Today, many Singaporeans are unable to retire and indeed if what we could potentially have saved enough to allow us to retire, but we are yet unable to do so, then the PAP has some serious answering to do.

And they do.

Indeed, Yasue Pai asserted that “The lack of transparency in the way the government invests CPF balances and the lack of an overall strategic objective of the CPF puts into question whether the system is really in the best interest of members.

The Elephant in the Room: Will CPF go Kaput when Flats Have Zero Value?

And yet, there is still one thing the PAP government has not dared to address. It is all fine and dandy for the PAP government to skip along and take our CPF away for their foolhardiness, and for them to build castles in the air, but when the flats have lived out their lifespans and are left to linger, what then of the flats, and what then of our CPF which have been quarried away?

Indeed, Gerald Giam had questioned the Minister for National Development Khaw Boon Wah who “confirmed that the value of the flats will be zero at the end of their 99-year lease” and that the Selective En Bloc Redevelopment Scheme (SERS) “is not a scheme intended solely to replace old flats reaching the end of their lease”, which means that if your flat is not en bloc prior to it losing its value, you are sitting on a ticking time bomb, which your CPF will be sucked into, or away.

In effect, the PAP government has siphoned your CPF off for their housing profit, knowing full well that as much as they claim that Singaporeans have a “rich asset” in the HDB flats, this asset will be worth nothing because of their lease management.

And as Gerald puts it, “This number will grow larger each year” which means the problem will only get bigger and bigger.

And even as the PAP government invents the Lease Buyback Scheme, at last night’s National Day Rally, Lee Hsien Loong only went as far as illustrating how much Singaporeans could earn if the last 35 years of lease of the flat is sold back to the HDB.

However, Professor Joseph Cherian had shown that the HDB flat starts losing its value after Year-66 and will eventually have zero value at the 99th year, which means that if the flat only has 33 years of lease left, the flat would start declining in value.

Screenshot (29)_edited

So, what if a person has less than 33 years of lease left? If he/she decides to sell the lease back, he/she would be terribly shortchanged. And in light of how SERS is not a mandatory scheme, the person would either be stuck with an over-priced flat he/she paid too much far or be left with too little savings to retire on, since he would now be “cash-poor” and “asset-poor” as well.

Thus the PAP’s “asset-rich” rhetoric will run its course soon. It can only be proclaimed as long as the majority of the flats have not reached 66 years of age, but once a significant threshold starts to cross over, the PAP’s rhetoric will quickly unravel.

And if the PAP government would keep turning a blind eye to not just the over-extravagant use of the CPF for housing, and the seriousness to tackle the issue of flat pricing and lease, then we are looking at the end of the Singapore Miracle come to fruit.

Perhaps now when we understand how the PAP government has tied the CPF into almost all aspects, if not all aspects of the Singapore economy and constructed the economy around taking Singaporeans’ CPF to use as their financial bedrock, you will understand why the PAP government would do anything at any costs to contain any talk about the CPF, to protect this system that they have so craftily created to wean on.


The short story of it all is – the PAP has styled their survival along leeching on Singaporeans’ CPF and our sustained modern-day slave-labour to generate wealth for their livelihoods. In all honesty, Singaporeans matter only as much as the lives of the PAP are sustained.

Perhaps now we might understand why there were no significant changes made to the CPF at the National Day Rally last night – the PAP government has come to the end of their tweaking. They have over-stretched themselves with our CPF and are willing to strike a balance on the use of our CPF to as far the extend as they are doing now, in order for them to still be able to tap on our cheap source of funds for their easy access. To them, they have perfected this feedback loop for their purposes. Doesn’t matter if it doesn’t work for Singaporeans or that it is our money. They have legalised the usage.

Pages 1 2 3 4 5 6 7 8

Return Our CPF burning sun poster

Join the #ReturnOurCPF Facebook event page here.


    • @tan

      i guess, you are a woman’s, hmm, guess again, you are an old single woman, understand why are you so bitchy, you like stopping by, but always wrong door, your PAP’s door is not here, pls out ! never come back again ! here no welcome an old single woman like you , even no man in PAP wants you !

  1. I Am A New Citizen

    After reading Roy’s blog, I now realize my mistake.
    As a Singaporean citizen now, I fully understand the disadvantages of citizenship.
    I fully support all efforts to abolish CPF and NS.
    It’s definitely in my self interest to vote Opposition.

  2. Deaf Toad's Toothpick

    Does Ngerng really believe the rubbish he spouted? With all the accusations he made posts after posts, it would be hardpressed to believe that he won’t be sued over and over again.

    But it makes for good drama, I admit.

    • Monkey See, Monkey Do

      ” … its like saying the sky is blue because I am wearing a blue shirt.”

      Oh! You mean like;
      I once knew an old man who withdraw all his CPF money.
      Within 6 months he used up all his money on gambling (@ PAP’s 2 casinos) and women in Batam.
      And now he wants welfare from the PAP government.
      Because of this one instance (no proof that it happened)
      PAP government is fully justified to hold onto Singaporeans’ CPF money beyond 55 years under a set of ever “evolving” rules.

  3. Daryl

    It has always been the bane of Singaporeans that the govn is able to arbitrarily increase HDB prices year after year. It is not a free market as many professionals will attest to. How can it be when the govn owns the very flats we stay in and sets the prices based on factors that the govn control – like land costs, roads, carpark, recreation area costs etc !!!! Completely ridiculous !!! And the facts are that the monies in the CPF belong to the people and the govn should be responsible enough to manage the funds for the benefit of the people, not make use of them for their own enrichment !!! bull to the PAP !!! Crappy govn that we have !!!

  4. RYAN

    Lee Hsien Loong’s speech has brought a serious crisis for each CPF owner, not only govern long-term economic stagnation and corruption lead to social discontent over 10 years, also affect the government’s popularity. hope the people of Singapore unite forces, called on him to hand over power to step down as soon as possible.

  5. ThankURoy

    I am SURPRISED that @tan and @Deaf Toad’s Toothpick ‘read’ without realising that Roy is quoting from books and not come up with his own theory. Roy has made a GREAT EFFORT in bringing these information to the mass who may not be aware that experts have been warning the Govt. Whoever wants to SUE, should sue the source of the information, ie. the experts and authors of those books (including, the one who say ‘you will repent’).

    Blessings be with Singapore! (with people in the 60%)

    • The Oracle

      Roy quoted books but also put his usual anti-government its-easy-in-hindsight free-and-easy-with-the-numbers spin on everything.

      His numbers are rarely correct – for example: “By 1985, Singaporeans had to pay half our wages into the CPF!”. To be more precise at this time employees contributed 25% and employers contributed 25% so Roy concludes people are paying half their wages in CPF – but this is just wrong.

      The correct percentage in 1985, using an example of a $2,000 salary, is:
      Employee contribution: $500
      Employer contribution: $500
      Percent of total income to CPF = (employee + employer contribution)/(salary + employer contribution) = 1000/2500 = 40%
      Employee takes home 60% of total income or 75% of salary and at no time does he only receive 50%.

      It doesn’t matter that I’ve pointed this out before as Roy clearly doesn’t want facts to get in the way of a good story.

      • A PM Lee Fish Story

        I think PM Lee cares more for a discarded fishball stick than he does about disadvantaged Singaporeans.
        One brand new government agency because of a discarded fishball stick.

        Do you think PM Lee will form one new government agency because one Singaporean has been left behind?

      • ThankURoy

        Thank you @The Oracle, for highlighting the numbers, the way I thank Roy for his numbers.

        I think at the end of the day, the essence of the issue is ‘Are Singaporeans getting better?’
        Not just in terms of numbers stated in Statistics, but overall ‘FEEL’ as a Singaporean.

        @The Oracle cannot deny the fact that more SMCs being voted to the Opposition is an obvious sign that something is not right. Only about 30-over% votes given to an ex-PAP-related President is also a sign that more are getting unhappy with the incumbent. Social media is just a platform for more transparency.

        To add insult to Singaporeans, is the way that the incumbent solve problem, like forming a new agency, instead of looking at duplication of roles in the Ministries, over a ‘fishball stick’. It just goes to show how the incumbent too, does not want the facts (put up through the ‘voices’ in the social media) to get in the way of their ‘good show’.

      • The Oracle

        Definitely some truth in that – the world is changing and that it is much easier for citizens to criticize and harder to ignore them – and government needs to be more inclusive of all sectors of our society.

  6. anon

    Perhaps Roy could consider packing all the pages into a single file of a suitable format (eg .MHT, .PDF, .DOC .EPUB etc). It may be an easier read compared to 8 pages online all at one sitting

    Do take note of any copyright issues though.

  7. seesiwpeng

    @The Orcle…you lowly scum bastard dog is back after getting permission from your Line Leader?
    Who cares what you spew nonsense here, we allow you here to make u a scumbag bastardize idiot banana sucking dog eating from the crumbs of the table of all of us, as usual digging with fingers to satisfy of your lowly scum swine masters…
    honest to the bone, even unto you wearing a skirt is so insulting to women! asking you to screw a spider is so insulting to the creature…guess what, you are the lowest of evolution ever seen here on Earth!

    • The Oracle

      Hahahahaha! You can’t stand even the slightest criticism of Roy and this just proves you and your fellow members of Roy’s gang are not fit to run a country!

      • reply "The Oracle"

        The Oracle,
        in your country, Your happiness index ranked first outside,
        95% women never married , and you still enjoy the paper,
        don’t you think a severe deformity of Singapore, as a leader to be responsible,

        about you, The Oracle !
        you took huge pay daily , you talk a bunch of unrealistic here with a group of unemployed & unfortunately people, such person like you, if still alive today, better go as good as dead.

  8. The Oracle

    I apologise to all that m such a scum, please forgive me and I shall learn to jerk out well before coming to this Blog again.

    • The Oracle

      I apologize for being a PAP idiot-savant.
      My PAP parents dropped me on my head when I was an infant.
      They say it was an accident.

  9. 请他早点滚下台

    你们的总理不喜欢听到贪污这个字,那么, 用“贪心”两个字最适合他 。他170万年薪, 是全部4000户人家的生计总和,是美国总统的4倍。 可见他是那么的贪心, 用巨大地胃口来满足贪心, 排名全球贪心指数第一名。

    新加坡人民团结起来,推翻这个腐败贪心的领导人。请他早点滚下台 !

    Your Prime minister Lee don’t like to hear the ” corruption ” such word,
    therefor, use “greedy” word most suitable for him.
    His annual salary is 1.7 million USD, is the sum of all the 4000 people’s livelihood, is four times of the American president’s.
    Showing that he is so greedy, too greedy.
    with an huge appetite to satisfy the greedy, greedy index ranked first worldwide.
    Singaporeans unite to overthrow the corrupt greedy leaders.

  10. 他要挤干你的最后一滴血

    过了55岁继续扣押我们的公积金,因为李总理老婆的淡马锡控股某个交易亏本, 所以要拖死我们,那么某个交易赚钱,为什么不分给我们 ? 他老婆亏本要我们多赔10年, 他老婆赚钱分红没有我们,他要我们省吃俭用,租出房间来套现, TMD这一家子不是人 !

    做老公的李总理,要为老婆何晶每天从淡马锡控股拿巨额回报保密,什么天机不可泄密,一对缺德货色,不如他们早早死掉算了 , 他们活着对人民一点意义都没有, 反而整天控告人民, 搞到有工作的人, 被失去工作, 没工作的人,被晾在一边。好像一切不关他们的事。不做好事的总理,不为人民做事的总理, 他们是人民的公敌, 现在,人民要团结,把他赶下台。

  11. Pingback: What PAP Has Done to Your CPF and Doesn’t Want Singaporeans to Know (The Real History) | The Heart Truths
    • The Oracle

      Even that is way too high. The potential short-changed amount:

      1) Start with total funds in CPF today: $264,767,600,000

      2) Interest paid ranges from 2.5% to 5% with many getting 3.5% to 5% as Roy asserts more than half have circa $55,000 (less than the potential $60,000 that gets an extra 1%). All in all we can assume the average is 3.5% as paid on the special Singapore government bonds (those with smaller balances do better and those with bigger balances do a bit worse).

      3) What should CPF pay? Given GIC real rate of return over the past 20 years of 4.1% and inflation over the same 20 years of 1.9%, a case can be made for 6% return instead of 3.5%.

      4) Other assumptions: Average CPF member in the scheme for 20 years, annual wage growth of 6% notional. I put it all in a spreadsheet and:

      CPF Contributions CPF Actual CPF Ideal
      6.00% 3.50% 6.00%

      1995 5,250,000,000 $5,433,750,000 $5,565,000,000
      1996 5,565,000,000 $11,383,706,250 $11,797,800,000
      1997 5,898,900,000 $17,887,497,469 $18,758,502,000
      1998 6,252,834,000 $24,985,243,070 $26,512,016,160
      1999 6,628,004,040 $32,719,710,759 $35,128,421,412
      2000 7,025,684,282 $41,136,483,868 $44,683,352,036
      2001 7,447,225,339 $50,284,139,029 $55,258,412,018
      2002 7,894,058,860 $60,214,434,815 $66,941,619,130
      2003 8,367,702,391 $70,982,512,009 $79,827,880,813
      2004 8,869,764,535 $82,647,106,223 $94,019,504,068
      2005 9,401,950,407 $95,270,773,611 $109,626,741,744
      2006 9,966,067,431 $108,920,130,479 $126,768,377,726
      2007 10,564,031,477 $123,666,107,625 $145,572,353,755
      2008 11,197,873,366 $139,584,220,325 $166,176,440,748
      2009 11,869,745,768 $156,754,854,906 $188,728,957,707
      2010 12,581,930,514 $175,263,572,910 $213,389,541,514
      2011 13,336,846,345 $195,201,433,928 $240,329,971,130
      2012 14,137,057,125 $216,665,338,240 $269,735,049,950
      2013 14,985,280,553 $239,758,390,451 $301,803,550,333
      2014 15,884,397,386 $264,590,285,411 $336,749,224,582

      Difference: $72,158,939,171
      Per member short: $24,052.98
      Above based on average balance of: $88,196.76
      For Median balance of $55,000 as stated by Roy:
      Per member short: $14,999.57

      So, the average member as defined by Roy has about $15,000 less in their CPF account, subject to confirmation of my assumptions. You can’t count the money withdrawn over the years for housing loans unless you also count the profit members have made on those properties.

      $15,000 is still significant but nothing like the crazy numbers Roy claims.

      • reply The Oracle

        old man at trickery and sly wily like old fox, you are the black hand ruined your premier

  12. Pingback: 行动党是如何操纵我们的公积金资金?为什么他们不让新加坡人民知道公积金的历史真相?《第一部分》 | The Heart Truths
  13. Pingback: How PAP Created Inequality in Singapore: Will Singapore Collapse? | The Heart Truths
  14. teoenming

    Singapore Minister Mentor Lee Kuan Yew and Prime Minister Lee Hsien Loong Want Teo En Ming Dead

    Singapore Minister Mentor Lee Kuan Yew and Prime Minister Lee Hsien Loong want Teo En Ming dead. Lee Kuan Yew and Lee Hsien Loong want Teo En Ming to die young. I am only 36 years old. I do not want to die young. I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!!

    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!

    Teo En Ming has filed an official complaint against the Singapore Government at the United Nations Human Rights Council Branch and the International Criminal Court. Read the letter here:


    Teo En Ming’s Open Letter (Plea for Medical Help/Assistance) to World Leaders dated 27 Aug 2010. Read the letter here:

    Mr. Teo En Ming (Zhang Enming)
    Singapore Citizen
    Republic of Singapore
    14 Jan 2015 Wednesday

  15. Pingback: This is How the PAP is Not Taking Care of Singaporeans | The Heart Truths
  16. Pingback: Thoughts on CPF and Update Thirteen of Defamation Funds | The Heart Truths

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s