CPF used to finance other government obligations before 2001?

The PAP government has refused to be transparent on CPF issues.

Members have been told our CPF has been invested in Special Singapore Government Securities (SSGS) issued by the Singapore government with a guaranteed low rate of return.

But according to MAS data, it appears a high percentage of our CPF was not invested in SSGS for a substantial period of time prior to 2001.

CPF members’ balance and amount invested in SSGS from 1989 to 2001 (in millions)

MAS Annual Report 1997/1998 (page 129) provides data since 1989 only. Subsequent data can be found in 2004/2005 annual report (page 146).

From the above table:

1 – CPF members’ balance increased by $10 billion from 1989 to 1991 to $46 billion. However the amount invested in SSGS was unchanged at $32 billion ie 12 % to 30% of CPF was not invested in SSGS for 3 years.

2 – This narrowed to $6 billion in 1992 but suddenly widened to $21 billion in 1996 ie 29% of CPF not invested in SSGS.

3 – The amount invested in SSGS decreased from $45.6 billion in 1992 to $45.1 billion in 1995 despite members’ balance increasing by $14 billion.

4 – The difference kept increasing and by 2000, about $30 billion of our CPF was not invested in SSGS ie33% was not managed by GIC.

5 – In 2001, the difference between CPF members’ balance and the amount invested in SSGS narrowed sharply to less than $3 billion.

Chart showing the difference in CPF balance and amount invested in SSGS

The amount of CPF invested in SSGS was consistently lower than the total members’ balance.

Strangely, since 2001, only a small percentage of all CPF members’ funds was not invested in SSGS. (see chart below)

Members’ balance and amount invested in SSGS from 2002 to 2013 (in millions)