Are CPF members paid low returns due to massive GIC investment losses?

The day transparency sees daylight will be the day CPF members discover the massive investment losses concealed for decades.

Although PAP has refused to come clean with the actual returns earned by GIC, some worrying estimates by reputable firms have in a way confirmed our greatest fear.

According to a Reuters article, Morgan Stanley had estimated GIC’s AUM to be US$330 in 2008. This was entirely possible as LKY had claimed GIC’s 25-year rate of return in US$ was 9.5%, ie a US$10 billion investment would have increased almost 1000% in 25 years to US$96.68 billion. Calculator

GIC had also disclosed its 20-year rate of return in US$ to be between 8.3 and 9.8%, from 2001 to 2006. A 20-year investment would have increased in value by 500% to 650%.

Since net CPF contributions and land sales revenue amounted to more than S$150 billion before 2008, together with LKY’s high return claims, GIC’s estimated AUM of US$350 billion by Morgan Stanley shouldn’t be way off the mark.

Problem is, GIC’s latest AUM has been estimated by SWFI – a very reputable institution – to be er … only US$359 billion. How could GIC’s AUM increased by only US$9 billion from 2008 to 2017? GIC’s AUM should have increased by S$228 billion at least because the government had injected CPF and land sales during this period into GIC.

According to official data, land sales revenue + CPF net contributions amounted to S$228 billion from 2008 to 2016 (table below).

If SWFI is correct, then Morgan Stanley must have employed some interns in arriving arriving at its US$350 billion estimate: it was way off the mark by about US$200 billion. This would also imply that GIC and LKY had earlier made fictitious return claims.

If Morgan Stanley had professionals monitoring GIC’s AUM, then SWFI’s estimate of US$359 billion should be closer to US$550 billion. But GIC clearly does not manage US$550 billion because this is not reflected in our Statement of Assets and Liabilities.

Something is amiss at GIC and in all likelihood, massive losses are concealed. This appears to be the reason why CPF members have been paid low long-term returns and our retirement funds perpetually trapped.

Parliament, if indeed it serves citizens’ interests, should get to the bottom of this and not allow PAP to conceal material information from the public.


Phillip Ang

* The author blogs at LikeDatOsoCanMeh.



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11 Responses to “Are CPF members paid low returns due to massive GIC investment losses?”

  • Cronies must be skinned:

    Every local bank is somehow paying extremely low interest such that it’snot worth putting inside banks anymore. This has gone on for over a decade if not mistaken.

    Coincidentally it makes the cpf interest look good.

    GD Star Rating

    The Nature of Sheep is a) grass to feed on not necessary ORGANIC but toxic also can b) a pen where you eat shit and die ‘asso’ can c) calling a Grand Master of Con “Father” as ascribed by a Minister in Parliament until a Lion Roared and say that “that ain’t my father but yours” definitely can IF you are that STOOPID!!!

    So…what is there that is written said and ascribed cannot be accepted by these silly Sheep??? 0000000000000000000 that is why they are sheep and need an evil eye sheep dog to take charge of them

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  • Trust only myself:

    The candidates for EP must promise to find out and disclose whether indeed there is a lost of about $200 billions by GIC, in not what is the use of having second key? More like cheats in high places….

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  • Bystander:

    If so, Malaysia’s MPF is the better Fund manager than our CPF.
    Told you already, politicians are bad at managing retirement funds.
    yet these idiots think they are better than their peers across the causeway, and yet dun know they are so lousy.
    Who was the first GIC Chairmen? First it was LKY, now the son LHL, and the most scary part, even someone closely related with PM Lee, wife Ho Ching is CEO of the other wealth Fund Temasek Holdings. Both bleeding our CPF savings abroad with reckless investments like nobody’s business.

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  • oxygen:

    OUR CPF IS A BIG BLACK HOLE of financial imprisonment of peasants yet 70% daft continue to vote for this rubbish enigma.

    If the next GFC knock them into dire begging desperation on the street – BETTER IGNORE THEM WHEN YOU WALK PAST.

    There is 70% chance that these beggars are undeserving of help.

    They have to face the consequences of their voting choices – YOU GET WHAT YOU VOTE FOR. It is fair.

    GD Star Rating
  • LIONS:

    $eriously,not just the low profitability that has been affecting the low returns given to cpf ac holders, mire so the WHATS WRONG WITH COLLECTING MORE MONEY thinking of the PAP.
    Regardless of our economic conditions n our individual’s finanicial situations,even for jobless sgs,the PAP is bent on sucking our money!

    Look,take CPF,the forced early ” retirees” caused by FT s cannot even take out their CPF to tide them over despite the glaring lack of public assistances?

    Look, when you buy a car,you pay COE to the LTA but when u want to sell your car, you cannot claim a REFUND OF YOUR BALANCE COE portion that is unused; you must go through agent n pay a fee to sell thatCOE?

    Take money at LIGHTNING $peed, RETURN MONEY like tortise?
    This is the same for returns to your CPF funds.
    They will try n give you PEANUTS.
    This is the PAP LEE ga$y.

    GD Star Rating
  • asd:

    diam diam say say say

    GD Star Rating
  • NotMyProblem:

    As long as Madam President is elected into Istana, we will never know what happens to our CPF.

    Madam President “cannot wait” for 56 man-years to know, so it will be better not to know. She is not worry anyway!

    GD Star Rating
  • Anonymous incognito:

    I agree but the low returns are so that the govt would have a really cheap source of credit to fuel its pharohonic infrastructure programs. If the govt didn’t force CFP contributions There’s no way the country would’ve never skyrocketed past the other countries. So citizens have been paying for the govt’s ambitious white elephants. And the Deplorables should be grateful for the 2,5% returns.

    GD Star Rating
  • Shortchanged citizens:

    We had all been shortchanged. For decades to be sure!

    GD Star Rating
  • She does not qualify:

    Managing your own $500 millions is completely different from managing state monies. If this is the case, any Malay who manages the jewel project ( est 1.5 billions) or the sport complex (est at 1 billion) qualify.

    There is a different where u allocate state monies with plenty civil servants managing the expenditure versus managing your own $500 millions. Tell singaporean where is the $500 million HAlimah manages ? We think she does not qualify at all.

    GD Star Rating
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