Budget 2018: Courage to do the right thing and not make narrow personal calculations

Doing the responsible and right thing. 

Some political observers said that the PAP is taking a political risk by announcing the GST increase before the upcoming General Election — which must be called by January 2021.

Asked if the Government was concerned that opposition parties would use the GST hike against the PAP, Finance Minister Heng Swee Keat says the Government cannot make narrow personal calculations.

Those in position of responsibility must act responsibly and therefore the Government must have the courage to do what is right because "that's how we can serve Singaporeans better", he said.

Lee Kuan Yew once said:
Popular government does not mean that you do popular things all the time. We do not want to be unpopular or to do unpopular things. But when they are necessary, they will be done.

Healthcare: It's about you and your future self

Healthcare infrastructure is not just about those who are going to turn 65 in 2030. 

It's about YOU and your Future selves. Everyone will grow old one day and need healthcare. 

If the government does not prepare now, and build the infrastructure for the future, it will cost even more to build later. 

Reason? The number of working people supporting each elderly has been falling and will continue to fall. And fewer working people means? Less revenue. 

So take the long term view. Because it is about you.

Academic Donald Low asked: what or who are we saving for

SHORT-SIGHTED, POPULIST, IRRESPONSIBLE AND MISCHIEVOUS

That just about describe the status on GST and NIRC by academic Donald Low. 

(1) One year ago, Donald Low accused the AVA of being populist for culling chickens in response to complaints. 

At that time he wrote:
"The road to populism starts with ignorance and inertia on the part of citizens."

Donald Low understands very well how populism works. 

One year later, Donald Low appeals to populism, playing on the ignorance of citizens as he argues for more NIRC in place of a 2% GST hike.

(2) "Why can’t we tap more of the net investment returns to finance increasing needs, instead of resorting to a GST increase?" Donald Low asks. 

"After all, what or who are we saving for, considering that future generations of Singaporeans are likely to be better off than the current generation of Singaporeans entering retirement," he continued.

WOW! WHO OR WHAT ARE WE SAVING FOR? 

Pity the young Singaporeans. Donald Low thinks they don't need the reserves as much as their parents and grandparents because they are likely to be better off. 

Here's an academic who thinks that reserves are for helping people in their retirement. 

Does he know that our reserves are our one and only strategic resource? 

Of course he does! Donald Low is just PLAYING ON THE IGNORANCE OF CITIZENS.

For all our reserves, we in fact have nothing.

To quote former minister George Yeo. 
"We are only a small island. We have no natural endowments. And what we have .... even if you double it, what is that, compared to what others have, in the ground, in land, underwater? And in a crisis, if we have nothing, how do you sustain a diaspora?" 

During the Asian Financial Crisis when currencies came under speculative attacks, the crisis hit Thailand first in 1997 and then spread to many other countries including Malaysia, Indonesia, the Philippines, S Korea, Hong Kong and China and subsequently to Russia and Brazil as well. 

Singapore's official foreign reserves (OFR) helped to maintain confidence in the Singapore dollar at that time and defended the currency against speculative attacks.

The global financial meltdown of 2008 shows how crucial financial reserves were to a small nation without natural resources, that is heavily dependent on international trade and finance 

The first time the government had to dip into the past reserves was during this crisis. 

To shore up confidence in Singapore's financial institutions, the government used $150 billion from our reserves to guarantee all bank deposits from October 2008 till the end of 2010.

The guarantee covered all Singapore dollar and foreign currency deposits of individuals and non-bank customers in banks, finance companies and merchant banks licensed by the Monetary Authority of Singapore (MAS). 

Then in January 2009, because of a fast deteriorating global economic environment and facing the prospect of a deep and prolonged recession, the government sought the President's approval to take out S$4.9 billion from past reserves to fund two one-off measures to boost the economy, namely, the Jobs Credit scheme and the Special Risk-Sharing Initiative (SRI).

(3) "There’s nothing scientific about spending just 50 percent of the investment returns. Why not 60 percent, or even 70 percent? We’d still be adding to the principal of the reserves." - Donald Low

If there is nothing scientific about spending just 50%, then there is nothing scientific about 60% or 70%, or for that matter, 80% or 90%. 

So why does Donald Low stop at 70%? Why not carry on that argument and ask: "why not 80% or 90%" and just stop short of 100%? 

Is Donald Low parroting a popular line often heard on the internet?

Ignorance is not bliss and Donald does not tell you that the principal needs to be hedged against inflation in addition to making sure that it does not stagnate. 

Let's do some simple math. If GIC's returns is 6% and half of that is used for budget spending, then there is only 3% left to save and to hedge against inflation. You want to reduce that further? 

Think again. Don't be ignorant. . 

(4) Donald Low also assumes a rosy picture in perpetuity for GIC and Temasek. In a downturn, in a crisis, in every circumstance, in every market conditions, GIC and Temasek will be generating the billions we need for spending - like a fairy tale. 

Guess we shouldn't be hearing - in perpetuity - anyone talking about the 'billion-dollar' losses iby GIC and Temasek, and how our reserves have disappeared. LOL

What does it take to be an academic in the @Lee Kuan Yew School of Public Policy?

Defence Minister Ng Eng Hen conferred the title of Officer in the Order of Légion d'Honneur (Legion of Honour) by the President of France Emmanuel Macron.

Defence Minister Ng Eng Hen was conferred the title of Officer in the Order of Légion d'Honneur (Legion of Honour) by the President of France Emmanuel Macron. 

French Minister for the Armed Forces Florence Parly presented the award earlier today (Singapore time) at an investiture ceremony held at the Ministry of the Armed Forces. 

The Legion of Honour is the highest decoration in France, and honours outstanding service by civilians or military personnel, French or foreigner. Past Singaporean recipients include former Chiefs of Defence Force and Service Chiefs.

Prior to the investiture, Dr Ng reviewed a French Honour Guard and met with Ms Parly.

Both ministers reaffirmed their commitment to strengthening bilateral defence cooperation and discussed security developments of mutual interest.

Dr Ng's visit underscores the strong and broad-based defence relationship between Singapore and France. 

Both armed forces and defence establishments have regular high-level interactions, which include policy dialogues, professional exchanges, joint military exercises, and cross-attendance of courses.

The Republic of Singapore Air Force's Advanced Jet Training has also been conducted in Cazaux, France since 1998.

Additionally, Singapore and France also have a range of bilateral defence technology interactions and exchanges, including the Singapore and France Advanced Research Initiative (SAFARI) meetings.

These wide-ranging interactions have strengthened the friendship and mutual understanding between both countries.

Source: Mindef

Creating a Better Singapore and a Brighter Future for our Children: PM Lee's CNY's message

Chinese New Year is about family.

The many Chinese New Year traditions passed down from generation to generation are steeped in family values.

Families gather on Chinese New Year’s eve for reunion dinners (团圆饭). Even those who are abroad will make an effort to connect with their families back home, and celebrate this special occasion together.

We stay up through the night to see the year in (守岁) for our parents’ longevity, and give our children red packets (压岁钱) for good fortune.

These customs reflect the enduring hopes of every generation, that our aging parents live well in their silver years, and our children grow up happy and successful, in a peaceful and prosperous world.

Honouring our seniors and nurturing the young are not just limited to individual families; they are values and attitudes which hold our society together.

As a people too, we should look after the elderly as we are the beneficiaries of their labours, and care for the young who carry our hopes for the future.

Our population is aging.

We are working to enable Singaporeans to lead active and meaningful lives in their silver years.

This means creating strong social support and community networks, keeping elders socially engaged, and building up healthcare systems and services.

It is not just younger generations taking care of their elderly parents, but today’s generation looking ahead and providing for our older selves of tomorrow.

At the same time, we strive to give our children the best chances in life.

We are fortunate to live in Asia – a dynamic and fast growing region.

We should prepare ourselves to seize the many economic opportunities around us. We should make full use of new technologies, to progress with our partners and neighbours.

We will help our young to uncover their diverse talents, and invest heavily in them through education and training, so that when they grow up they can strike out on their own, build their own families and careers, and fulfil their aspirations and dreams.

We will invest in Singapore, to build our city and infrastructure, and upgrade our living environment and economy, so that the next generation can continue to create new possibilities, prosper and flourish. 

We should uphold our time-tested Asian values of thrift, self-reliance, and leaving something more for our children, instead of burdening them with their parents’ debts. 

We must always think beyond the immediate and beyond ourselves, to look and plan over the horizon on behalf of future generations.

I hope you will reflect on these issues in quieter moments over the festive season, in between celebrating with friends and family.

The Government too will not stop thinking about what it needs to do, to ready our society for these challenges.

Minister Heng Swee Keat will deliver his Budget speech on Monday, immediately after the holiday weekend. These issues guide the thinking behind the Budget.

Let us build our shared future together, so that generations of Singaporeans can look forward to more prosperous and joyous Chinese New Years.

As we usher in the year of the Dog, let us be dogged in our efforts to create a better Singapore and a brighter future for our children. Let us also cherish the blessings of kinship, thank our elders for what they have done for us, shower our children with love, and create more shared happy memories with our families.

Happy Chinese New Year! 祝大家狗年兴旺，万事如意!

What Total Defence is all about..

How much help is enough? A hypothetical example

The Government is sometimes accused of not helping enough. Is that true? 

By way of illustration, let's take the hypothetical example of Mr Sng, a senior citizen in our midst who is 66, unable to work and lives alone in a one-room rental flat with little or no financial support. 

Given his circumstances, Mr Sng would be on the public assistance scheme receiving $500 monthly allowance. He would also receive in total $3000 a year in Silver support. 

In addition he would also receive GST Voucher (cash, U-save and Medisave). He also receives free medical treatment in all public hospitals and polyclinics. 

Taken together, these schemes provide Mr Sng with an annual financial assistance of at least $10k. 

That's $10k to help one person. 

So how much help is enough help? There is a limit to how much the Government can give to help every needy person. 

How much help needy people can receive also depend on the generosity of Singaporeans, how much tax Singaporeans are willing to pay to fund social welfare. 

So while it is easy to criticize or call for more help, let's also put our money where our mouth is. 

The community can also do their part to COMPLEMENT what the Government is doing by chipping in to help in whatever way we can. 

Sadly though, there are some who will help and at the same time, make use of the circumstances of the needy to throw stones at government agencies for 'not helping'. 

If the common interest and primary goal is the well-being of the needy elderly, then it is possible to work with social welfare agencies to improve the quality of life of the elderly instead of throwing stones.