Tharman Shanmugaratnam
Singapore
“EDB conducts regular reviews to GIP to ensure its effectiveness in attracting only top-tier business leaders who are interested to drive the growth of their businesses and investments from Singapore.”
“MAS may vary the size of the additional capital requirement imposed on the bank and take other regulatory actions depending on the outcome of ongoing reviews. MAS requires all retail banks in Singapore to ensure that their mission critical systems supporting digital banking are resilient.”
“This question will be answered in the reply to Dr Tan Wu Meng's Parliamentary Question filed for tomorrow's Sitting. [Please refer to "Probe into Recent Disruptions of DBS' Digital Bank and Physical ATM Services and Preventive Measures Implemented", Official Report, 5 July 2023, Vol 95, Issue 107, Written Answers to Questions for Oral Ans…”
“Borrowing from the banks is one of the ways in which MAS carries out MMOs to soak up such excess liquidity. Like other central banks, MAS does this daily through an auction system, enabling MAS to withdraw liquidity through the Primary Dealers that submit the most competitive prices.”
“To mitigate consumer over-indebtedness, the Monetary Authority of Singapore (MAS) requires financial institutions (FIs) to implement a range of safeguards when extending mortgage loans and unsecured credit.”
“The Monetary Authority of Singapore imposes on external asset managers the same stringent regulatory standards for anti-money laundering and countering the financing of terrorism that it imposes on banks.”
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Every one of 2,416 lines we hold for Tharman Shanmugaratnam, in date order, each linked to its source. Free to read, in full, without an account. Page 12 of 49.
“First, let me explain that GIC is managing Government assets. It is not GIC's assets. GIC is a fund manager, so the assets are assets on the Government's balance sheet, rather than on the GIC's balance sheet. When the GIC reported that it has earned a real return over 20 years of 4.1% on an annualised basis, it is referring to the return on the total assets that it is managing for the Government. The NIRC which enters the Government's budget is computed after netting off what is payable on the Government's liabilities, SSGS and SGS. That is already netted off. So, what enters the Government's budget, which is up to 50% of the expected investment returns, is Page: 29 after the Government has paid what is necessary on the liabilities. And as for the eight years within the last 20 years, which was what I had stated in response to Mr Gerald Giam's question at the previous Sitting – just to reiterate, that is, eight years in the previous 20 years ending 2013 – that is when, in fact, the GIC's returns on the total assets that it is managing fell below the SSGS rates. That, by definition, would have meant that net assets would have been lower than otherwise because the Government has fixed obligations on its liabilities and because of the fluctuations in returns on its assets.”
“However, this will mean accepting low returns over the long term, and indeed returns that would likely Page: 28 fall below the interest rates on SSGS and even SGS over the long term. To summarise the point, what the Constitution guards against are actions that lead to a systematic erosion of reserves, not the investment of reserves in order to gain long-term returns, which must involve investment risk and fluctuations in market value. Let me return to the basic features of the system. The Government's strong balance sheet enables it to take investment risks and ride out the market cycles that are inherent in investing for the long term. It has a significant buffer of net assets, with important benefits for Singapore. These net assets enable the Government to guarantee CPF savings and pay fair interest rates on CPF savings despite financial market cycles. The Government's significant net assets, on which we expect to earn long-term returns, are also why we have a significant stream of investment income in the form of NIRC (Net Investment Returns Contribution) on our Budget each year, which can be used to meet important spending priorities.”
“5% in USD terms, or 5.3% in SGD terms, it has experienced several years where its returns were low or negative – several years during that 20-year period. To take the most recent episode, the Global Financial Crisis led to a significant reduction in GIC's annualised five-year return ending March 2013 – that is, as of a year ago – to just 0.5% in nominal SGD terms. But moving just a year forward to March 2014, its five-year annualised return rebounded strongly. This volatility is part of the market. It was also seen in comparable market portfolios. The President and the Council of Presidential Advisers (CPA) have full information about the size of the reserves and all of the Government's financial assets and liabilities. What matters in determining if there will be a likely draw on Past Reserves is whether Government has entered into liabilities that are sustainable and will not result in a systematic erosion in the reserves. It is not the short-term fluctuations in investment returns due to market risks that matter here – even if these ups and downs in investment returns, taken together with the Government's SSGS and SGS obligations, imply fluctuations in the value of net assets. A decline in investment returns or a drop in the market value of assets in the course of market cycles is not considered a draw on Past Reserves that the Constitution seeks to guard against, because any strategy of investing the reserves for long-term returns must mean taking investment risk and will involve ups and downs in market value of the portfolio, not just from one year to another but very frequently within the year. The only way to avoid fluctuations in the value of our reserves is to avoid taking investment risk, for example, by investing all of our assets in cash-like instruments.”
“In particular, the Constitution guards against profligate spending, which can draw down Past Reserves. The President can withhold his assent for the Supply Bill if the Government intends on its annual Budget to spend more than its Current Reserves, in other words, reserves accumulated during the current term of Government. The Constitution also enables the President to state and gazette his opinion if he considers that the Government has entered into liabilities that will likely draw down Past Reserves. This scenario could, for example, arise if the Government were to set interest rates on SSGS at artificially high levels, without reference to market interest rates, and above what Page: 27 can reasonably be expected to be earned in investment returns on the Government's funds over the long term. This would run down the reserves systematically and deliberately. The President has not been put in a position where he has had to state such an opinion. CPF and SSGS interest rates are set with reference to returns on similar market instruments, and are both fair and sustainable. The scenario of entering into liabilities that will lead to a systematic and deliberate drawdown of reserves should not be confused with the fluctuations in the value of the reserves due to market volatility and cycles that happen all the time. Volatility and cycles are part and parcel of the investment world. Indeed, the GIC's mandate is to take risks aimed at achieving long-term returns, in full knowledge that the Government's portfolio will be exposed to market risks that could mean weak returns or even declines in value on a mark-to-market basis for a time, before cycles reverse and values rebound. Hence, although GIC's returns over the last 20 years – ending March 2014 – have averaged 6.”
“MAS continued to manage a good part of the monies, especially during the first decade after GIC was formed, while GIC built up its capabilities for long-term global investment in diverse asset classes. Currently, GIC manages a major part of the Government's funds, including those derived from long-term liabilities, such as SSGS. Importantly, GIC is not managing SSGS or CPF monies on their own, but a combined pool of Government funds, including a significant sum of unencumbered assets. This is why the GIC's mandate is to take calculated investment risks aimed at achieving good, long-term returns on the Government's funds, without regard to the Government's liabilities. It is precisely because the GIC is managing a combined pool, which includes a significant amount of unencumbered assets, that it is able to invest for the long term, take risk in expectation of long-term returns, without regard to the Government's specific liabilities. GIC has achieved good long-term returns to date. However, as investment markets are uncertain and volatile, GIC's returns over shorter periods could be low or even negative. The Government is able to absorb these short-term market risks because it has a strong balance sheet. It has a substantial buffer of net assets that enables it to meet the obligations on its liabilities, including its SSGS commitments. The Government's net assets, or its assets in excess of its liabilities, are the Government's reserves, as defined under the Constitution. The bulk of the Government's reserves are those accumulated during previous terms of Government, also known as its Past Reserves. It is the Past Reserves that the Constitution seeks to safeguard, especially through the powers vested in the President.”
“Mdm Speaker, I thank Mr Gerald Giam for his question. Let me first reiterate the basic framework that enables the Government to ensure that Special Singapore Government Securities (SSGS) obligations are met. The Central Provident Fund (CPF) Board invests CPF members' savings in Special Singapore Government Securities (SSGS), which are guaranteed by the Government. This assures that CPF savings are safe, regardless of financial market conditions. The interest rates on SSGS also match those on CPF savings, so that CPF members will receive the annual interest rates that they are promised, including the minimum 4% to 5% interest on Special Account, Medisave Account, Retirement Account (SMRA) balances and the 2.5 % to 3.5% interest on the Ordinary Account balances, that they receive this even when market interest rates fall to low levels. So, the interest rates on SSGS match these interest rates on CPF savings regardless of financial market circumstances. The Government pools the SSGS monies with the rest of its funds, such as proceeds from issuing Singapore Government Securities (SGS) in the markets, that is, the tradable securities in the markets, as well as unencumbered assets that reflect past Government Page: 26 surpluses and receipts from land sales. These co-mingled Government funds are first deposited with MAS as Government deposits. A major part of these funds, being of a longer term nature, are then periodically transferred to the GIC to be managed over a long investment horizon. Before GIC was formed in 1981, the Government's monies, including those derived from SSGS, were managed by MAS.”
“That is what would happen and it does not matter whether it is GIC or anyone else. If you are managing this unique set of obligations – guaranteed capital with high minimum interest rates – you will need a very conservative portfolio. To begin with, it will be hard to achieve, and it will be a conservative portfolio. That is the reason why our real strength is that the Government has net assets, including unencumbered assets – proceeds from land sales over many years, proceeds from Government surpluses, especially in the earlier years, and the investment returns on those funds. Those give us unencumbered assets. By pooling the SSGS proceeds together with those unencumbered assets, we are able to invest for the long term and aim for higher returns over the long term that will beat the SSGS. But if we are only managing SSGS by itself, this would not be possible. So, basically our net assets and the strong Government balance sheet are the real strengths of the system. The Government balance sheet is taking the risk, and we can absorb that risk, protect CPF members from any risks, and retain our triple-A credit rating.”
“If I can handle Mr Low's second question first. It is a very important question and, in fact, many of my grassroots leaders and others have asked that question: why not just get GIC to manage the CPF money directly? If the GIC had to manage the CPF money and ensure that we are able to meet our full obligations in CPF every year – that the capital is guaranteed, the interest rates are guaranteed and when market interest rates go down, we do not bring the CPF interest rate down but we keep it at the floor, a high floor, 3.5% on the Ordinary Account and 5% on SMRA for most accounts. If those were the obligations that were required, first, there is no private sector fund manager who will take on that task because it is very difficult to meet. The GIC, because it has a large diversified portfolio, aims to invest for the long term and do better than the SSGS obligations imply. However, that is only possible because the GIC is Page: 37 not just managing SSGS obligations. It is not just managing CPF liabilities. If it is only managing CPF liabilities or SSGS obligations, where you must meet that obligation every year, it will need a very conservative portfolio. This means a portfolio that does not invest much in equities, certainly not in real estate and alternative assets. It will aim to just minimise the chance of failing to meet annual obligations, not maximise long-term returns. That is what would happen. It would not be able to aim to invest over the long term and ride out the market cycles: take big losses when the markets go down, knowing that as a long-term investor, you are the one who ultimately stands to gain. It will instead have to be conservative, avoid losses and make sure that it can meet the obligations every year.”
“GIC's investment performance over five, 10 and 20 years is also made public through its Annual Reports. To conclude briefly, let me just reiterate that our CPF system is sound and provides a solid foundation for Singapore's future. It is not a static system. Over the years, we have adjusted the system, such as to reduce the scope for housing withdrawals and focus Page: 28 increasingly on retirement and medical needs in old age. As the Prime Minister has said, we intend to make important future improvements to the CPF to strengthen retirement security. Minister Tan has assured Members that we are open to different views and suggestions. Whatever we do to improve the system, we must provide fair returns to the ordinary member who is unable to take on much risk and ensure that the CPF remains sustainable over the long term. The Government should continue to subsidise CPF members, especially those with lower income, but these subsidies should be provided through the Budget, so as to ensure the CPF is sustainable.”
“A standalone fund would have to be managed much more conservatively, to avoid the risk of failing to meet CPF obligations. It would not be aimed at accepting risks that enable good long-term returns, but at avoiding any short-term shortfalls. Consequently, the returns it would earn over time will be lower than what the GIC can achieve in its current role. Finally, I should emphasise that the investment returns in excess of the SSGS rates that the GIC expects to make as a long-term investor are not simply hoarded away in the reserves. Fifty percent of the returns from our reserves flow back to our annual Budget through the Net Investment Returns Contribution (NIRC). This currently adds about $8 billion to our Budget annually. The NIRC has provided the Government valuable resources that have allowed us to embark on new priorities for Singapore, including enhancing our social safety nets. Mr Gan Thiam Poh asked about independent audits and other measures to safeguard CPF investments and funds. As I have explained, CPF monies are invested in SSGS that are guaranteed by the Singapore Government. The Singapore Government's guarantee is a key safeguard. CPF Board, besides its own internal auditors, is externally audited by professional audit firms approved by the Auditor-General. As for the Government's investments, I can assure Members that GIC is audited on a regular basis. GIC's financial statements are independently audited by the Auditor-General every year. Its audited financial statements are submitted to the President and the Council of Presidential advisors annually. The President also has full information about the size of the reserves and the performance of GIC's investments.”
“The Government, through GIC, expects to earn good returns over the long term, but the volatility can be substantial from year to year. The Government has been absorbing that volatility and protecting CPF members. This is also the reason why no market player, other than the Government, is able to take on the CPF obligations. The guarantor is not merely playing the role of a long-term investor. It also must have significant capital that provides a buffer when the markets are down. Our CPF system is, hence, sustainable, so long as the Government continues to run prudent budgets and invest the reserves wisely. Then the Government's balance sheet will remain strong and investment returns over the long term can continue to meet our debt costs. However, the GIC's good long-term returns also reflect the fact that it is managing the Government's assets as a pool, which includes the Government's unencumbered assets – in other words, assets that are not matched by liabilities. This is a critical feature of our system. The GIC is managing Government assets as a pool, and the pool comprises not just assets Page: 27 that are backing the SGS and SSGS but also the Government's unencumbered assets – past Government surpluses, proceeds from land sales, which under our constitutional rules have to be accounted for in, past reserves, these are unencumbered assets – and the GIC manages the whole pool of assets as one pool. This allows the GIC to invest for the long term, including investing in riskier assets such as equities, real estate and private equity. It would be quite different if the GIC, instead of managing the Government's pooled assets, were to manage a separate, standalone fund to provide backing for CPF liabilities.”
“Even over the five years following the crisis, ending 31 March 2013, GIC earned an annualised return of just 2.6% in US dollar terms, which translates into a mere 0.5% in Singapore dollar terms. GIC's Annual Report explains the reasons for this weak recovery from the crisis, especially in illiquid asset classes that it was holding, like real estate. Its five-year Page: 26 annualised returns are expected to improve significantly going forward. Hence, while the Government expects to earn returns through the GIC over the long term that exceed what it pays on SSGS and has done so in the past, there is no assurance of GIC's returns exceeding SSGS interest rates over shorter periods, much less every year. This is also because of the guaranteed floor on CPF interest rates, which do not follow declines in market interest rates. How then is the Government able to meet its SSGS obligations in the years when the markets are weak and GIC's returns fall below what the Government has to pay SSGS? The reason is that the Government has a substantial buffer of net assets – net assets meaning assets in excess of liabilities – which ensures that it can meet its obligations. In years when investment returns are poor, the net assets have helped to absorb any losses and ensure that the Government can meet its obligations on the SSGS as well as its market-traded SGS. Correspondingly, when investment returns are strong, the net assets grow. To address Mr Gerald Giam's further question, therefore, no extraordinary measures have been necessary to enable the Government to meet its SSGS obligations in the years when GIC's returns fall short. It is this role of the Government, with its significant net assets, that ultimately allows the CPF Board and CPF members to be shielded from risk.”
“The risk is wholly borne by the Government, on its own balance sheet. The Government pools the proceeds from SSGS with its other assets and invests long-term funds through the GIC. The GIC does not, in fact, manage SSGS monies on their own, separate from the Government's other assets. This is an important distinction, which I will come to later. GIC is the fund manager for the Government, not owner of the assets and liabilities. It seeks to achieve the Government's mandate of achieving good long-term returns, without regard to the sources of the funds that the Government places with it – for example, whether they are proceeds from SGS, SSGS or Government surpluses. Over the long term, our investments in GIC have earned a creditable return. For example, over the last 20 years, GIC earned 6.5% per annum in US dollar terms, which translates to 5.0% per annum when expressed in Singapore dollar terms. But that is not the whole story. The average long-term return masks wide fluctuations in returns from year to year. You can have good average, long-term returns but what it disguises is variations which can be very significant from year to year. To answer Mr Gerald Giam's question, over the last 20 years, there were eight years where GIC's investment returns were below what the Government pays on SSGS. A good example was the Global Financial Crisis. As I stated in Parliament at the time, GIC's portfolio value in US dollar terms declined by about 25% during the 14 months from October 2007. October 2007 was a peak and from then to December 2008, GIC's portfolio value declined by 25%. GIC's performance was similar to that of other funds with a similar mix of asset classes, but it illustrated the market volatilities faced by every long-term investor.”
“The payout from the SSGS is pegged to the interest rates that the CPF Board is committed to pay its members. The Government guarantees these SSGS bonds, so that CPF Board faces no risk of being unable to meet its obligations to its members. This is a solid guarantee, from a triple-A credit-rated Government. The triple-A credit rating reflects Singapore's very strong financial position, with the Government's assets comfortably exceeding its liabilities. Both Standard and Poor's and Moody's recently reaffirmed our triple-A credit rating, noting that our strong net asset position provides ample cushion against shocks. What does the Government do with the proceeds from SSGS issuance? It pools them with the rest of the Government's funds, such as the 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. So, the Government pools the SSGS proceeds with the rest of the Government's funds. 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 Page: 25 portion of these assets are, however, of a longer-term nature and are, hence, transferred over to be managed by GIC. The SSGS proceeds are not passed to Temasek for management. Temasek manages its own assets and does not manage any CPF monies. What these investment arrangements mean is that CPF members bear no investment risk at all in their CPF balances. Their monies are safe and the returns they have been promised are guaranteed. Neither does the CPF Board bear any risk, regardless of whether the GIC's investments earn or lose money in any particular year.”
“The best peg would have been a 30-year Government bond, because 30 years is the typical duration for which SMRA monies are held. However, as we had not started issuing 30-year SGS in 2007, SMRA rates were pegged to the yield on 10Y SGS plus 1%, to approximate the 30-year rate. 10Y SGS plus 1% was an approximation of what a 30-year Page: 24 Government bond would have paid. As I told the House then, when we debated the changes to the CPF, the 1% spread on top of the 10-year Government bonds was, in fact, a little generous, as it was higher than what had been observed for 30-year bonds in international markets. However, it was fair and reasonable, giving allowance for future economic and market uncertainties, such as if inflation picks up sharply over the long term. Going by the formula for SMRA rates, we would be paying about 3.4% today on SMRA. This is higher than the actual yield of 3% on the 30Y SGS, which we now have but is not widely traded. So, 3.4% is what the formula would dictate for SMRA. However, we have maintained a floor of 4% on SMRA, or 5% on balances of up to $60,000. We have renewed this floor each year since 2008. Two-thirds of CPF members in fact earn the full 5% on SMRA. This is a fair system of returns for the SMRA. The CPF in essence pegs SMRA returns to long-term SGS, but it has also been paying a floor of 4% to 5% that is well above market rates in the current environment. As I explained earlier, we have shielded members from the risk of low market interest rates. I will next explain how CPF monies are invested, as asked by Er Dr Lee Bee Wah and Mr Gan Thiam Poh. The CPF Board invests CPF members' monies in Special Singapore Government Securities (SSGS). These are issued specially by the Government to CPF Board. They are not traded instruments.”
“As Minister Tan explained, his home is an important retirement asset and, based on its value, he can withdraw monies from his CPF balances at age 55. The OECD highlighted this critical role of homeownership in its recent analysis of pension systems in the advanced countries. Homeownership "can make a big difference for many pensioners, both reducing the need for cash and providing a way to generate income later in life." Mr Lim Biow Chuan asked if CPF interest rates could be pegged to those on 10-year Singapore Government Securities (10Y SGS). The OA interest rate, pegged to market deposits that can be withdrawn at any time, is fair. However, for several years now, the OA has earned the floor rate of 2.5% to 3.5%, well above the market rates. It also means that the OA has in fact been earning more than what 10Y SGS earns. The average yield on 10Y SGS over the past 10 years has been 2.4% and it is currently about 2.3%. So, the floor rate of the OA at 2.5% to 3.5%, depending on the size of your balances, has in fact been higher than even the 10Y SGS. The SMRA, on the other hand, is pegged at 1% above the 10Y SGS, which I will now explain. The Special Account and Retirement Account are as we all know held for retirement. It is long-term savings. As Medisave (MA) balances are also mainly used as Singaporeans get older, we have treated them like the SA for purpose of determining interest rates. The returns on the SMRA have been enhanced over the years. When we set the new basis for SMRA rates in 2007, our aim was to peg it to the rates for similar long-term, risk-free investment. This was what the Economic Review Committee (ERC) had recommended in 2002.”
“However, unlike market interest rates, it pays a guaranteed floor rate of 2.5%, or 3.5% for OA balances of up to $20,000. More than half of all members enjoy the full 3.5% on their OA. Members also have options to earn more than these OA interest rates. They can transfer OA savings to the SA so that these become long-term savings, earning higher returns. That is an option that members have. It is a useful option for those who have paid up their housing loans. Those who want to take on market risks in the hope of earning better returns can also invest part of their OA balances through the CPFIS. Furthermore, the CPF interest rates are not the only help that members get to build up their savings. As I had just mentioned, the Government also provides subsidies through the Budget to CPF members, targeted especially at lower- and middle-income members. These subsidies, in effect, amount to a significant boost to what a typical lower-income member earns on his balances. Page: 23 If we look at his OA, in particular, on top of the 3.5% interest rate on his OA, he gets Workfare payments and housing grants. When he sells his home to upgrade or downgrade later, the housing grant is returned to his OA as part of his savings for retirement. Based on current policies, these grants, amortised over his working life, will, in effect, grow his savings by at least 2.5% per year over a 30-40 years of working life. So, in effect, his savings "earn" 6% per annum through the combination of CPF interest rates and Government subsidies. This does not include the OA savings used to purchase the housing asset, which benefits separately from appreciation in housing value.”
“Page: 22 Taken as a whole, our CPF system prepares Singaporeans well for the future. Based on current policies, a new entrant into the workforce today can expect to draw a retirement income of about two thirds of his last-drawn pay if he is a median income earner. This is around the OECD average. He gets a much higher ratio of his previous pay if he is a lower-income earner, chiefly because of Government subsidies. As Minister Tan has said, our key concern is to help the current generation of older Singaporeans who have lower balances, often very low balances, due to their much lower wages in the past and the more liberal withdrawal rules then. Let me now address the specific questions on how CPF interest rates are determined. The current CPF interest rate structure was implemented in 2008. It was an enhancement, especially for members with smaller balances. We debated the changes in Parliament in 2007, as part of the broader package of reforms to strengthen retirement security. The fundamental principle is to peg CPF interest rates to returns on investments of comparable risk and duration in the market. We also structured the interest rates to provide greater benefit to members with small and medium-sized balances, by paying Extra Interest (EI) on the first $60,000 of balances. Let me start with the OA rate. In determining the interest rates, we have to recognise the fundamental difference in the purpose of the OA compared to the longer term SA, MA and RA, or SMRA. OA savings can be withdrawn at any time for home purchases, servicing mortgage loans, or education. It is a liquid account. The interest rate on OA has therefore been pegged to the 12-month fixed deposit and month-end savings rates of the major local banks.”
“Second, the CPF offers some flexibility for members to withdraw savings, indeed more so than many other social security systems. In particular, by tapping on their Ordinary Account (OA) savings, the vast majority of Singaporeans have been able to own their homes and service their mortgages with little or no out-of-pocket cash, which Minister Tan has just emphasised. Third, while the CPF scheme does not provide the highest returns, it gives fair returns and certainly one of the safest in the world. Whilst the CPF does not provide the highest returns, it provides one of the safest in the world. These are fair returns. Few systems offer the guaranteed floors on interest rates – 3.5% of the OA and currently 5% on the SMRA (Special, Medisave and Retirement Accounts) for those with smaller balances, who comprise the majority of members. And for those with larger balances, it is 1% less. The interest rates are guaranteed by one of the few remaining triple-A rated governments in the world. The CPF also offers the option to members who wish to place more money in their Special Account (SA) account, so that they can earn a higher interest rate than on their OA Account and it allows them the option of taking higher risks through the CPF Investment Scheme (CPFIS) in the hope of higher returns. So, that is the third strength – fair returns and safe returns. Fourth, on top of the guaranteed interest rates, the Government subsidises CPF members through the Budget in a targeted and sustainable manner. We provide significant help to lower-income members to build up retirement assets, by giving them housing grants in their OA and CPF contributions through the Workfare Income Supplement (WIS). Members of the Pioneer Generation also now get top-ups for life in their Medisave accounts.”
“So, when market interest rates go down, the member has to buy an annuity that is either more expensive or he gets a smaller stream of income in retirement for the same pot of money that he has. Even if individuals are relieved of the requirement to buy an annuity that pays out for life, which some governments have been tempted to do, it does not solve the problem. Low market interest rates mean that retirees will receive less income even if they invest on their own in suitable retirement portfolios. I have provided this background, Mdm Speaker, to explain why our CPF system has worked well and provides a strong foundation for the future. It has protected members from risk. The scheme is aimed at meeting basic retirement needs. As many members have had relatively small balances, it has been right to shield them from risk. The CPF has also avoided imposing risk on taxpayers, unlike many countries where ordinary citizens face a much larger Page: 21 tax burden in future, on account of under-funded social security schemes. The CPF is not a perfect retirement savings scheme, but it is amongst the better regarded internationally. As the Prime Minister has stated, we want to improve the CPF to provide greater security in retirement, especially for those with lower wages and to help retirees cope with inflation. We also want to give those who are "asset-rich and cash-poor" more convenient options to get cash from their homes. But as we seek to improve the CPF or to add any flexibility, we must retain its basic strengths and avoid the huge problems seen elsewhere. First, our CPF system is sustainable. There are no unfunded or sudden liabilities that will burden our children's generation.”
“As a result, in the US, for example, individual investors in equity funds earned only one-third of what the market index earned over the last 30 years; one-third of what the S&P Index earned over the last 30 years. Fees charged by private pension funds eat into the returns earned by individuals. In Europe, this is another reason why returns on private pension funds have been low in the last decade. A second risk is that you may retire when the financial markets are down. A recent article in The Economist magazine described the typical retirement scheme as a lottery, because the individuals' pot of money at the time they retire will depend on the state of the markets at the time. For example, an individual who retired just before the Global Financial Crisis will have much more income in retirement compared to an individual who retired during the crisis. One year can make a big difference. A third risk is that you retire when interest rates are low. The current prolonged low-interest rate environment is in fact a major challenge in many countries, because the pot of money that you have upon retiring now gives you a smaller stream of annuity income for the rest of your years. This is the consequence of low interest rates, either the annuity becomes more expensive to buy or for the same pot of money, you get a smaller stream of income for the rest of your years. Many retirement schemes require or encourage members to convert their capital into an annuity or monthly payout. However, interest rates matter greatly when buying an annuity, and unlike CPF LIFE, these schemes do not provide a floor on interest rates.”
“In the US, for example, most public pension funds still over-estimate their future investment returns and understate their liabilities. With more realistic assumptions, it is estimated that about 85% of US public pensions will go bankrupt within the next 30 years. So, this is the first challenge – financial sustainability. The second challenge is to give individuals a fair return on their retirement savings but avoid exposing them to more risk than they can bear. As both governments and employers face increasing difficulty in funding "pay-as-you-go" pension schemes, more risk is being shifted to the individual in many countries. The shift is to pension plans where the worker's savings go into his own account and he eventually draws on his own account in retirement. The 401(K) schemes in the US are an example. These schemes which are called "defined contribution schemes", are like the CPF, in that the eventual payouts are funded by the contributions by the worker and employer into his account, not payouts funded by future workers. But in many such schemes, unlike the CPF, the worker has to choose his own investment plan and bears the risk on his investments. In theory, individuals can expect to earn higher returns over the long term by taking more risk on investments, such as investing more in equities or equity-heavy funds. In Page: 20 practice, there are three problems. First, the evidence from the advanced economies shows that most individuals underperform the market, even when they invest in funds rather than do their own stock-picking. Some individuals do well, but most face daunting and unfamiliar investment choices, and are swayed by sentiment. They tend to buy into the funds after gains have been made, and sell after losses.”
“Thank you, Mdm Speaker. Minister Tan Chuan-Jin has explained the basic features of the Central Provident Fund (CPF) system, the reasons for the Minimum Sum scheme and the areas which can be improved. Dr Lee Bee Wah, Mr Gan Thiam Poh, Mr Lim Biow Chuan, Ms Tin Pei Ling and Mr Gerald Giam have asked further questions on whether higher returns can be paid without changing the risk-free nature of CPF accounts and how CPF funds Page: 19 are invested and safeguarded. They have also asked about the GIC's investment returns. Before I get into the details on these questions, it will be useful to provide some perspective on the challenges faced by retirement savings schemes around the world. There is a looming pensions crisis in most of the advanced countries and the challenges remain largely unresolved. The first challenge is financial sustainability. In many advanced countries, the "pay-as-you-go" social security system has become unsustainable. As more of their citizens are retiring, the pensions they have been promised are becoming unaffordable to those who have to pay for the system, in other words, the younger citizens who are working and contributing through social security taxes. Some of these countries have responded with politically difficult but necessary reforms, such as postponing the retirement age or cutting retirement benefits for younger workers. Most recently, the Australian government has proposed major reforms to its Age Pension scheme, which is the primary source of income for the majority of Australian pensioners today. These reforms include raising the age at which pensions can be withdrawn from 65 to 70 years old. But in many cases, the severity of the problem has not been acknowledged and reforms have been postponed.”
“Mdm Speaker, may I take Question Nos 11 to 14 together?”
“Earlier this year, ACRA investigated a company which had sent out letters in November 2013 asking companies to lodge their information with its "Singapore Company Register" database. ACRA's investigations revealed that the company had failed to display the company name and registration number in its letters. ACRA has brought 104 charges against the company under the Companies Act and the case is now before the State Courts. Concurrently, ACRA has referred the matter to the Commercial Affairs Department for further investigations. If in doubt of the identity of any business entity, the public can make use of the free business entity search function on ACRA's website to verify its identity.”
“There is no Government agency that manages a database known as the "Singapore Company Register", or that asks companies to verify and provide company information for such a database. Under the Companies Act, the Accounting and Corporate Regulatory Authority (ACRA) is the only statutory body that requires companies to file and provide business information (for example, the principal place of business, company address and identity of the directors and their addresses) upon incorporation. ACRA may request companies to update their information if it is aware of discrepancies between the information filed and those obtained from credible third-party sources. ACRA will notify companies via registered letters that bear ACRA's letterhead. It will cite the relevant legal provisions and advise companies how they can update their details. In these letters, ACRA will not threaten to delete the information Page: 141 already filed with ACRA or to strike off the companies from its register. While non-government organisations can collect business information from companies through private arrangements, there are safeguards against such organisations trying to pass themselves off as Government entities. Companies and other business entities are required to state their name and registration number in all business correspondences, so that members of the public know the identity of the business entity that they are interacting with. ACRA takes any breach of this requirement seriously. Such a breach can be liable for a maximum fine of S$1,000. In the past four years, ACRA has investigated 10 business entities for failing to properly state their name and/or registration number.”
“Banks decide on the denomination of the currency notes they stock in the ATMs based on customers' demand and currency note withdrawal patterns. 85% of the approximately 2,700 ATMs in Singapore dispense $10 denomination currency notes. Banks also have in place processes to monitor and replenish currency notes in their ATMs in a timely manner. ATMs that dispense only larger denomination currency notes are generally located in areas where there is a general preference towards larger withdrawals, for example, ATMs in shopping centres. Besides ATMs and bank branches, some banks have also set up additional channels to facilitate cash withdrawals. For example, DBS/POSB, OCBC and HSBC have partnered with merchants with prominent presence across Singapore, such as 7-Eleven, NTUC and Cold Storage, to enable cash withdrawals in various denominations, including $10 notes, at their payment counters. MAS will continue to monitor the situation to ensure adequate access to smaller denomination currency notes.”
“The Personal Data Protection Act (PDPA) operates as a baseline legislation to safeguard consumers' personal data from being misused by businesses. In instances where other written laws permit the collection, use or disclosure of personal data for sector-specific operational requirements, these laws will take precedence over the PDPA. One such law is the ACRA Act, which specifies that a key function of ACRA is to make publicly available all information and documents filed with ACRA, including the particulars of company directors. Availability of such information helps to promote transparency and Page: 130 accountability in the corporate sector, and is consistent with international norms. However, MOF reviewed the current practice of disclosing the residential addresses of directors and other individuals, such as partners and sole proprietors. We intend to amend the Companies Act and other ACRA-administered Acts this year to allow alternate addresses to be reflected in public records. Safeguards will be put in place to minimise fraudulent reporting and filing of invalid addresses. The Government will continue to regularly review the extent of company information that ought to be made available in the public interest.”
“Singapore's strong performance in international competitiveness and business perception surveys, such as the 2014 IMD World Competitiveness Survey, attests to the fundamentals that have been built up over the years: an open and business-friendly environment; good governance; a hard-working and skilled people; a sound infrastructure; and the willingness to keep improving in each of these areas. These factors have made Singapore an attractive place for multinational and local companies to invest in and operate from. We continue to support our companies' efforts to build new capabilities and help Singaporeans develop higher skills and expertise needed for the future. Besides formal training by the educational institutes, the Government is also working with companies to develop their employees through on-the-job training, internship programmes, as well as leadership development programmes. We are also supporting our companies' efforts to capitalise on growth opportunities overseas through our network of Free Trade Agreements with other countries. These initiatives have been set out during the Budget and Committee of Supply debates. They will enable Singapore to maintain its position as a vibrant business hub in Asia and enable workers' incomes to improve further. Page: 86”
“In 2012, the stock exchanges of Thailand, Malaysia, and Singapore launched the ASEAN Trading Link, which allows investors in these countries to trade securities in one another's markets through a single trading account. Earlier this year, ASEAN Finance Ministers' Meeting set up a task force to look at strengthening trading and post-trade linkages amongst the exchanges, building on the ASEAN Trading Link. Page: 85 Third, SGX recently announced new incentives to boost liquidity on the exchange, including reducing clearing fees by about 20% from 1 June 2014, which will benefit retail investors. Transfers and onward settlement fees will also be revised to encourage stocks to be traded via the exchange, thereby increasing transparency and liquidity. Fourth, to position itself for new sources of growth, SGX recently signed a direct listing framework agreement with the Chinese Securities Regulatory Commission that facilitates the direct listing in Singapore of Chinese companies that meet Singapore’s regulatory and governance standards. SGX recently launched six Asian foreign exchange futures contracts and plans to launch RMB futures in the second half of 2014 alongside other currencies. In addition, it will launch nine commodity derivative contracts over the next two months subject to approval. SGX is also looking at enhancing its post-trade capabilities. It has recently announced a collaboration with Clearstream, an international securities depository, to develop services which would help SGX members better allocate their collateral resources. Mrs Chiam also asked about maintaining Singapore's edge in scores in business activity and the economic value of employee skillsets.”
“The Singapore Exchange (SGX) has done well to help our companies raise capital and investors to buy and trade securities in a well-functioning market. SGX continues to be the largest stock exchange in Southeast Asia with a market capitalisation of US$744 billion (S$940 billion) at the end of 2013, a 38% increase from end-2007. The trading volume at SGX for 2013 stood at US$279 billion – up 10% since end-2008 but still about 27% lower than pre-crisis levels at end-2007.1 This puts Singapore in second place for the Southeast Asia region behind Thailand, which has grown rapidly over the last five years. We must ensure that SGX continues to be soundly regulated, facilitates fair, orderly and transparent trading, and is well-positioned for growth. MAS has been working closely with SGX on four key initiatives to develop the securities market (a) strengthen market rules and practices; (b) enhance regional integration and market infrastructure; (c) boost trading liquidity; and (d) open up new sources of growth. First, with regard to market rules and practices, MAS and SGX issued a joint consultation paper in February 2014 containing several proposals to (a) promote orderly trading and responsible investing; (b) improve transparency of market intervention measures; and (c) strengthen the process for admitting new listings and enforcing against listing rule breaches. MAS and SGX are currently studying the feedback received during the consultation. Second, with regard to regional integration and markets infrastructure, Singapore is working closely with other ASEAN regulators and exchanges to promote cross-border collaboration and integrate our capital markets.”
“Against a backdrop of low interest rates and growing leverage, MAS has also introduced a series of measures to encourage financial prudence among borrowers. MAS will step up efforts to raise the financial literacy of Singaporeans and empower investors to make informed decisions. Page: 64 To remain a valued partner on the international economic and financial front, MAS will continue to participate actively in organisations, such as the International Monetary Fund, the Financial Stability Board, as well as policy committees under the Bank for International Settlements, the International Association of Insurance Supervisors and the International Organisation of Securities Commissions. Singapore is fully committed to international efforts to combat money laundering and tax evasion, and has taken a series of measures to ensure that we remain a clean and trusted financial centre. Laundering proceeds from tax evasion and tax fraud is now a crime in Singapore. MAS has stepped up to meet enhanced global standards on information exchange and has intensified its supervision of financial institutions to keep illicit money out of our financial centre. Singapore has built a diverse financial ecosystem, strong in foreign exchange, capital markets, reinsurance and wealth management. In the coming years, MAS will build on these strengths and promote new capabilities and initiatives, such as fostering greater use of technology and innovation in financial services, developing an offshore RMB hub, as well as enhancing trade, infrastructure and SME financing. In addition, MAS will continue efforts to enhance the capabilities of our financial sector workforce and develop a strong core of Singaporean financial specialists and leaders. Page: 65”
“In an environment of increasingly complex financial group structures, MAS is strengthening its oversight of financial holding companies and their financial groups. We are also enhancing the regulatory framework for the resolution of financial institutions; this includes drawing up recovery and resolution plans for systemically important banks in Singapore. To enhance depositor protection, MAS is requiring foreign banks important to the domestic market to locally incorporate their retail banking business. On the capital markets front, MAS has implemented a number of internationally mandated regulatory reforms in the trading of OTC derivatives. We will also introduce a regulatory framework for the setting of financial benchmarks. In addition, we will implement measures to strengthen the securities market in Singapore, to promote orderly trading and responsible investing. Proposals currently considered include a minimum trading price for issuers listed on SGX Mainboard, collateral requirements for securities trading, and short position reporting requirements. To better safeguard the interests of retail investors, MAS is working with the industry to improve the quality of financial advice, foster a culture of fair dealing, as well as achieve greater efficiency in the distribution of life insurance and investment products. A web aggregator will be introduced to enhance comparability of life insurance products, while consumers will have direct access to basic insurance products without paying commissions. MAS is also reviewing its regulation of collective investment schemes to ensure that consumers are better informed and protected where necessary from new investment schemes.”
“Growth would be capped by the tight labour market, before more significant and sustained gains in productivity are realised. Following two years of elevated inflation (mostly due to imputed rentals on owner-occupied accommodation and car prices), the rate of increase in prices moderated in 2013, closer to Singapore's historical experience. Although inflation is expected to rise gradually due to strong wage pressures, it is unlikely to increase to the high levels seen during 2011-2012. MAS will continue to remain vigilant against a resurgence of cost and price pressures. Continued judicious management of the exchange rate of the Singapore dollar will ensure medium-term price stability and anchor inflation expectations, while supporting the economy's transition to productivity-led growth. Page: 63 Singapore's financial markets have remained resilient in the face of global financial volatilities. The expected tightening of global financial conditions can lead to stresses for financial markets and institutions, shifts in investor sentiment, and volatile capital flows. MAS will stay vigilant and guard against these risks. We will build on our earlier efforts to fortify the resilience of financial institutions in Singapore and ensure the proper functioning of our capital markets and financial market infrastructures. Singapore has fully implemented the Basel III minimum capital requirements for the local banks, two years ahead of the international timeline prescribed. A risk-based capital framework has been introduced for capital market services licensees, while the capital framework for insurers is being enhanced. MAS is also reviewing the Basel III global liquidity rules for local implementation.”
“The Singapore economy is going through an important phase of restructuring at a time when the external environment faces challenges. Economic growth is expected to remain sub-par in many developed economies. The tapering of asset purchases by the US Federal Reserve could lead to higher borrowing costs and falling asset prices, with potential spillover effects on the broader global economy and financial system. Singapore has weathered the global volatility of the last few years well, but there will be new risks. MAS monitors these risks closely as we seek to safeguard Singapore's economic stability and financial resilience. Monetary policy will continue to aim at stabilising inflation. We will take into account the transitional challenge of an economy undergoing restructuring, with price pressures due to rising wages in a tight labour market while the shift to higher productivity is still underway. MAS will also ensure that macroprudential policies remain appropriate to maintain stability in the property market and ensure financial prudence. The international regulatory landscape continues to see significant change. Changes in the structure of global banks and new regulations that have cross-border implications will have implications for Singapore's financial centre. MAS will position Singapore in the new regulatory landscape in a way that make sense for Singapore's financial sector, while ensuring a robust and trusted financial centre. We will at the same time foster a financial centre that plays a growing role in Asia and supports inclusive growth in Singapore. The external environment will support continued moderate growth of the Singapore economy, but bouts of volatility can be expected.”
“In healthcare, we will strike an equitable and sustainable balance of funding, including greater pooling of risks through MediShield Life, enhancing Government subsidies and looking into effective ways to avoid an upward spiral of costs. For the Pioneer Generation, the $8 billion Pioneer Generation Fund will provide strong assurance of support for the rest of their lives. We will also strengthen retirement adequacy for other Singaporeans. We are making major moves to enhance Singapore's living environment, with very significant investments in the public transport system to better meet commuters' needs. We will also rejuvenate and upgrade our housing estates and introduce more innovative urban design and greenery. We will build more facilities for citizens to enjoy sports, the arts and heritage, and engage in community activities. Finally, we will push for more widespread online and mobile e-services for the convenience of citizens and businesses. We will make more data available to the public so that more people can make use of the data to create useful applications for Singaporeans. We will also strengthen internal controls and bolster capabilities in procurement and internal audit. Page: 32”
“We are providing comprehensive support for businesses and industries to innovate and improve productivity. We are also boosting incentives for SMEs to adopt proven ICT solutions and pilot emerging technologies. We will continue to develop strong R&D capabilities through the next phase of Research, Innovation and Enterprise Plan. We will also invest further in every worker, to help Singaporeans prepare for the jobs of the future. We will continue to enhance the ease of doing business in Singapore, by amending the Companies Act and Business Registration Act to keep regulatory burdens low, and streamline Page: 31 registration and filing processes. On the international front, we will advance Singapore's economic interests through our active participation in major regional and global financial fora, and enhancements to our network of double taxation agreements. We will also contribute to global initiatives on Base Erosion and Profit Shifting, while maintaining a conducive business environment. Our most important social strategy is to provide opportunities for all Singaporeans to do well and contribute to a strong society. We will sustain social mobility by investing in early childhood education, strengthening support for weaker students, widening cohort participation rates at the tertiary level, strengthening applied pathways at the Polytechnics and ITEs, and building a first-rate system to support lifelong learning. However, we will also provide Singaporeans greater assurance of housing and healthcare affordability, and retirement adequacy.”
“Our fiscal policies will aim to ensure a vibrant economy and a fair and equitable society, so as to enable a higher quality of life for all Singaporeans. They will continue to be anchored in a system of sound and sustainable finances, especially as our society gets older and Government spending needs to go up. Our economy is in the midst of transformation. This is a critical journey to build deeper capabilities, bring about pervasive innovation and uplift productivity. This is the only way to ensure that Singaporeans have good jobs and to sustain rising incomes. We are also building an inclusive society. We are doing more to preserve social mobility and help every citizen share in our nation's progress. We are providing the Pioneer Generation with special healthcare support for life, and providing the vulnerable with a stronger sense of assurance. A healthy fiscal position has enabled us to set aside funds for the Pioneer Generation Package and other future needs. But our fiscal position will tighten in the coming years, driven by rising expenditures, especially in healthcare and infrastructure. We must ensure that spending is sustainable, through judicious allocation of resources, maximising outcomes for every dollar and keeping a lean and efficient public sector. Over the longer term, we must, nevertheless, build up our revenues to anticipate and meet higher spending needs. We will do so in a way that will sustain a dynamic economy, and a fair and progressive system of taxes and benefits. We will continue to tap on the Net Investment Returns Contribution that provides a significant supplement to the annual Budget. This is enabled by a framework that allows GIC and Temasek to pursue investment strategies that generate sustainable portfolio returns for the long term.”
“The Net Investment Returns (NIR) framework allows the Government to tap the investment returns of our reserves for budgetary spending in a sustainable way. Under the framework, the Government can spend up to 50% of the long-term expected real return from the net assets managed by GIC and MAS, and up to 50% of the net investment income from Temasek and other assets. The Government generally budgets to take in 50% of Net Investment Return Contribution (NIRC) at the start of each Financial Year (FY). The actual NIRC taken in at the end of the FY may vary due to changes in the fiscal position and to differences in the actual outturn for the maximum NIRC compared to what Page: 113 was budgeted at the estimates stage. From FY2009 to FY2013, the actual NIRC taken in has been close to the maximum 50%, with the Government taking in, on average, slightly above 47% of the NIRC. We expect to take in the maximum 50% of NIRC in FY2014, in view of an expected overall budget deficit. The NIRC has been able to supplement the Budget by $7 billion to $8 billion annually. Our approach to taking in NIRC reflects a prudent approach to fiscal spending. We should spend to achieve desired outcomes, rather than spend to the last dollar available. Further, our Government spending needs will increase over time and the NIRC will remain an important source of revenue over the long term. It is therefore vital that we spend in a disciplined way and ensure sustained benefits from the returns on our reserves.”
“The Productivity and Innovation Credit (PIC) was set up as a broad-based scheme to support a wide range of activities that can help businesses, and SMEs in particular, improve their productivity and foster innovation. The Government does not have a preferred distribution of the PIC claims. Instead, we monitor the claims and feedback from businesses, and make adjustments to enhance support where necessary. For example, in response to feedback that SMEs tend to license IP rights rather than acquire the IP for innovation, we allowed costs incurred to in-license IPRs to qualify for PIC benefits. The information on claims from Year of Assessment 2013 onwards will help to ascertain how many firms benefit from the liberalisation of the scheme. Besides PIC, there are other schemes that support innovation by businesses. In particular, SMEs can tap SPRING Singapore's grant schemes, such as the Innovation & Capability Voucher (ICV), to get help from consultants to upgrade their capabilities. The Capability Development Grant (CDG) provides additional financial support for innovation projects. The Centres of Innovation, set up by SPRING Singapore, in partnership with selected Polytechnics and research institutes, provide laboratory facilities, technology consultancy, training courses and assistance for SMEs to test and develop new technology projects. SMEs can also leverage on the technical assistance and expert secondment from A*STAR Research Institutes to upgrade their in-house R&D or technical capabilities to develop new products or processes. Page: 89 For design projects, DesignSingapore Council provides grant support for businesses working with consultants to build innovative design solutions and develop design capabilities.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Third time." Page: 55 [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Third time and passed. (proc text)]”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to make provision in accordance with Articles 148(2) and 148C(2) of the Constitution for additional expenditure in excess of the provisions authorised by the Supply Act 2013. The additional sums have been presented as Supplementary Estimates, which have been considered and approved by the House as Command Paper No 2 of 2014. Madam, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time. (proc text)]”
“Mdm Speaker, I beg to move, "That the Bill be now read a Third time." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Third time and passed. (proc text)]”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." In accordance with Article 148(1) of the Constitution, Heads of Expenditure to be met from the Consolidated Fund and Development Fund, other than statutory expenditure, have to be included in the Bill to be known as the Supply Bill. The purpose of the Supply Bill before Members is therefore to give legislative approval for the appropriations from the Consolidated Fund and Development Fund to meet the expenditure in the Financial Year 1 April 2014 to 31 March 2015. The Heads of Expenditure and the sums that may be incurred in respect of each Head are shown in the Schedule to the Bill. These have been approved by the House in the Main and Development Estimates of Expenditure for the Financial Year 1 April 2014 to 31 March 2015, as contained in Command Page: 54 Paper No 1 of 2014. The Supply Bill, when approved, will empower me to issue warrants authorising expenditure up to the amount for each Head as shown in the Bill to be paid out from the Consolidated Fund and Development Fund. Madam, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time. (proc text)]”
“Mdm Speaker, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Resolutions accordingly agreed to. (proc text)]”
“Mdm Speaker, I beg to report that the Committee of Supply have come to certain resolutions. [(proc text) First Resolution reported – (proc text)] Page: 53 [(proc text) "That the sum of $64,374,642,700 shall be supplied to the Government under the Heads of Expenditure for the Public Services shown in the Main Estimates for the Financial Year 1 April 2014 to 31 March 2015, contained in Paper Cmd 1 of 2014." (proc text)] [(proc text) Second Resolution reported – (proc text)] [(proc text) "That the sum of $24,780,828,700 shall be supplied to the Government under the Heads of Expenditure for the Public Services shown in the Development Estimates for the Financial Year 1 April 2014 to 31 March 2015, contained in Paper Cmd 1 of 2014." (proc text)]”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2013/2014, and ask leave to sit again tomorrow.”
“Sir, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?”
“Mdm Speaker, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Resolutions accordingly agreed to. (proc text)]”
“Mdm Speaker, I beg to report that the Committee of Supply has come to certain resolutions. [(proc text) First resolution reported, (proc text)] "That the sum of $318,452,700 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014, contained in Paper Cmd 2 of 2014." Second resolution reported, "That the sum of $1,674,209,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014, contained in Paper Cmd 2 of 2014."”