By MP for Aljunied GRC, Pritam Singh
[Delivered in Parliament on 13 Jul 2015]
The inclusion of Temasek to our Net Investment Returns (NIR) framework first announced at this year’s budget, envisages additional monies comprising the Net Investment Returns Contribution (NIRC) to be set aside for healthcare, transport, the new Changi terminal 5, domestic security and SkillsFuture, amongst others, all of which are aimed at improving the quality of life of Singaporeans.
Including Temasek in the NIR framework allows the Government to use expand the NIR for the benefit of Singaporeans. Including Temasek in the NIR framework is the right thing to do by our people who have to face a more challenging and competitive workplace, and fast changing world where the iron rice bowl has become a relic of the past. Our social safety nets require constant strengthening, improvement and upgrading. A more crowded Singapore has also stressed our infrastructure. We also need to plan for new engines of growth to power the economy and to create and take advantage of opportunities in future.
In the same breath, the Workers’ Party acknowledges that fiscal prudence must represent a fundamental aspect of the Singapore system, simply because Singapore does not have any natural resources. While self-sufficiency is virtue, we must be careful not to make this too much of a mantra which risks seeing Singaporeans deserving of assistance falling through the cracks. In fact, the unpredictable market place of jobs and the reality of looking after loved ones – one’s parents in their old age and not to mention children – is more likely to make it difficult to elegantly pigeon hole individuals who truly ought to qualify for the different types of assistance currently available.
I have two questions for the Minister. The first pertains to his reply at the budget round-up speech on liquidity management should Temasek’s expected real returns not match up with its actual returns. The Minister informed the House in the 2008 debate on the NIR framework that with the inclusion of GIC and MAS, the Government does not foresee a shortage of liquid funds should this eventuality come to pass. Does the Minister foresee this prospect with the introduction of Temasek, given its different investment strategies, and are there specific contingencies that have been drawn up for this purpose beyond those highlighted by the Minister in his 2008 speech?
Secondly, has the government projected the percentage of NIR it has earmarked for the next 5 years in view of inclusion of Temasek in the NIR framework? Specifically, how close or far is the projection from the 50% threshold?
Mdm Speaker, the Workers’ Party supports this Amendment to the Constitution.
Thank you.