Golf clubs & the Reserves?

I refer to the article “Golf clubs to meet govt agencies over leases” (Straits Times, Feb 6).

All golf clubs on short lease?

It states that “Golf clubs here with 10 years or less left on their leases look set to find out on Feb 16 if these will be renewed and for how long.

Thirteen of the 18 clubs here have 30-year lease tenures.”

So, what has “golf club leases” got to do with the Reserves?

Well, we have been consistently told that we have very little land which are finite, and thus revenue from land sales which I understand is typically over $10 billion a year (how much of which comes from the land cost priced into new HDB flats is unknown?) – is not counted as revenue in the Budget.

Surplus was $3.9 or $36.1b?

This is one of the reasons why according to the Department of Statistics – our surplus for 2012 was $36.1 billion (using IMF fiscal reporting standards) against the $3.9 billion reported as the Budget surplus in Parliament.

Why don’t we report in Parliament both the “IMF standards” surplus as well as the “Singapore standards” surplus?

Most land are on “lease”? 

Since as I understand it much of the land in Singapore are on a “lease” basis (including all the HDB flats) and not freehold – are land sales really finite and limited by our small size – and therefore should not be counted?

But, we can extend the lease and charge arguably any amount we deem fit – right?

Acquire land at will?

Also, we can acquire land under the land acquisition act.

Moreover, by converting the use of land – a lot of revenue may also be derived.

Land is finite and limited?

Therefore, are our land sales really finite and limited?

Spend more to help the poor?

The significance of the subject issue, may be that we are consistently being told that we can only spend more to help the poor if we raise taxes – kind of like conveniently ignoring the land sales revenue.

55 times Reserves used but not really?

Anyway, its not just the land sales. We also say that the 55 times that the Reserves were used to convert the Reserves to land reclamation and SERS, and then having the sales revenue returned to the reserves – was not really using the Reserves.

QE?

With such a unique concept of fiscal accounting and some may say arguably, like QE (quantitative easing) in the United States where money is injected into the economy – are our land sales finite and limited, and therefore should or should not be counted?

Uniquely Singapore!

“Mother” of all our problems?

Perhaps here lies the “mother” of all our problems. That from a cashflow perspective – we pay the highest taxes, but get the least benefits back – and yet we keep saying we don’t have the money to help Singaporeans more!

In this connection, come to the following public forum for a better understanding of the issues pertaining to our Budgetary processes:

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  • Organised by Empowering Singaporeans, and supported by MARUAH, Function 8 and WorkfairAmidst worries of contracting global demand and rising prices at home, Empowering Singaporeans, a group of concerned Singaporeans will host a forum prior to the government’s third Budget Statement widely thought to be at the midpoint before the next General Elections which must be held at the latest by January 2017.Finance Minister Mr Tharman Shanmugaratnam, in a wide-ranging interview, recently disclosed his thoughts …See More

   

   

  TKP Conference Center Raffles Place

  55 Market Place #03-01, Singapore, Singapore 048941
   

Leong Sze Hian

*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, columnist for Malaysiakini, executive producer of the movie Ilo Ilo (24 international awards). He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors and 13 professional qualifications.