http://www.businessinsider.com/debt-gdp-world-rankings-2011-04#9-singapore-7
It list the 15 countries with the most debt as a percentage of GDP. Singapore is listed as #7. The worst is #1 - Japan. Debt is only one side of the picture. The other side is the assets. The Singapore Government has assets that cover the debts a few times over.
For example, a large part of the debt of $300 billion (100% of GDP) represents the Government bonds issued to the CPF for the savings of Singaporeans. But these bonds are used to build HDB flats that are sold to the owners at many times of the cost price. The assets of the government includes the amounts owing by the HDB flat owners.We also have to add the assets held by Temasek, GIC and other government agencies.
Tan Kin Lian
I would like to add that the large bulk of the debt is held by Singaporeans via CPF, it can be paid of by using Singapore dollars and that the government can pass laws to affect the payout of said debt (i.e. raising/lowering of retirement age, the introduction of CPF Life, etc).
ReplyDeleteYes, we citizens are the biggest creditors, how much of our moneys are lost overseas, when we think about our retirement funds held in CPF Board, we get sleepless nights, especially when we hear from internet news abroad, that Temasek again lost money in some overseas ventures, such news is never ending. Temasek's investment record abroad is so bad, that a Canadian Economic organisation asked whether Temasek is jinxed whenever they venture abroad.
ReplyDeleteMore likely they don't have the talent and skills and aptitude in
investment mamagement and strategy, as compared to the Norwegians and the Communist China.