We refer to the article “Sources of $5b funds to Temasek revealed” (Straits Times, Jul 9).
Alas! We know exactly where the $5b injection into Temasek came from?
It states that “Temasek had disclosed on Tuesday that it received a $5 billion capital injection from the Finance Ministry during its latest financial year ended March 31. In the past 10 years, the Government has injected capital into Temasek only a few times.
The Ministry, which is Temasek’s sole shareholder, also told The Straits Times that the capital injection did not include proceeds from the Special Singapore Government Securities (SSGS), which are instruments that the Central Provident Fund (CPF) Board uses to invest Singaporeans’ CPF savings.
In other words, Temasek does not manage any CPF monies, an MOF spokesperson reiterated.”
Virgin disclosure?
- We understand that this is the first time that we have a disclosure as to where exactly did the capital injection into Temasek came from.
If this is the case – why?
Transparency sometimes only?
As to “In the past 10 years, the Government has injected capital into Temasek a few times.
In Temasek’s 2007-2008 financial year, the MOF pumped $10 billion into the company. In 2011, the Government put in a further undisclosed amount to fund the joint venture between Temasek and Malaysian state investment firm Khazanah Nasional”
- Why is it that sometimes there is transparency (how much was the capital injection) and sometimes there isn’t (don’t tell you how much was the capital injection)?
Also, did any of the capital injections from the past say exactly where the money came from – like now – that it came from the “proceeds of the Singapore Government Securities (SGS), proceeds from government land sales in Singapore and government budget surpluses”, and ”did not include proceeds from the Special Singapore Government Securities (SSGS), which are instruments that the Central Provident Fund (CPF) Board uses to invest Singaporeans’ CPF savings”?
Before GIC was born – Temasek got CPF funds or not?
Since Temasek started about 7 years before the GIC was formed – how do we know for sure that Temasek’s capital injections before GIC was formed – did not come from CPF funds?
CPF funds were first co-mingled with the rest of Government’s funds?
According to the article “CPF gives fair and safe returns” (Straits Times, Jul 9) – “What does the Government do with the proceeds from SSGS issuance? It pools them with the rest of the Government’s funds, such as proceeds from the tradable Singapore Government Securities (SGS), any government surpluses as well as the proceeds from land sales which under our Constitutional rules have to be accounted for as Past Reserves.
“The comingled funds are first deposited with MAS as Government deposits. MAS converts these funds into foreign assets through the foreign exchange market. A major portion of these assets are however of a longer term nature, and are hence transferred over to be managed by GIC.
More than $35b injections into Temasek – You sure none from CPF funds?
“The SSGS proceeds are not passed to Temasek for management. Temasek manages its own assets, and does not manage any CPF monies.”"
- Since “it pools them with the rest of the Government’s funds” – how do we know for sure, especially in the early years, as to whether the Government’s injections into Temasek ($35 billion todate, plus an undisclosed sum in 2011 (“Why did MOF inject more funds into Temasek?, Straits Times, Jul 9)) – did or did not come from CPF funds?
After 49 years, then you know (for sure or not?)?
Finally, why did it take 49 years for Singaporeans to be told exactly where or where not, their CPF funds have gone to, and was managed by whom?
S Y Lee and Leong Sze Hian