Last Saturday's Straits Times was filled with articles telling us why 2.5% for CPF is "as good as it gets" and how GIC can borrow money cheaply by issuing treasuries and does not need our CPF money. Indeed, GIC is reluctantly using our money as a favor to us, it does not need our CPF money, so we should all be happy and not begrudge the GIC earning far higher returns with our money. ......
I read those articles in the Straits Times again and again. I finally understood that the GIC is making a painful sacrifice for Singaporeans..... since they have cheaper sources of money, the opportunity cost to them is enormous. It is so ridiculous so many Singaporeans don't appreciate what our govt has done for their CPF minimum sum and are clamoring for more options and transparency. Ordinary Singaporeans must be stupid....however, I found another group of people dumber than Singaporeans....
W. Malaysians working in Singapore get to enjoy the CPF scheme as much as Singaporeans. Yet, they fail to appreciate this wonderfully designed scheme constantly demanding their money be returned. This has been the cause of many diplomatic spats between us & Malaysia.
Since it is so expensive to pay the high interest on CPF, our govt should return this money to the Malaysians and raise this money issuing treasuries. Why are they so kind to Malaysians to pay them a return that is "as good as it gets" risk free and guaranteed? Why is our govt showing its kindness to these ungrateful West Malaysians with high returns, they must surely remember that they are to serve Singaporeans' interest first? Why hang on to this expensive CPF money of Malaysians when the GIC can borrow cheaper? The opportunity cost is so staggering not to mention what the cost to us in terms of relationship with Malaysia.
I know our govt is kind even towards W. Malaysians but it should give priority to Singaporeans. Give the W. Malaysians back their CPF money and deprive them of this wonderful 3.5% return, I'm sure many of these Malaysians will be begging to leave their money with CPF. Although the Malaysian EPF consistently earns higher returns compared with CPF, it does so by taking unacceptable risk. These Malaysians are not citizens of Singapore and should not be allowed to benefit from our wonderful CPF system!!!!