‘Leaders must be able to take criticism, acknowledge mistakes’: PM Lee

[skyleon]

Netizens clamor for ministerial pay cut as Indranee Rajah defends GST hike

February 21, 2018

Senior Minister of State for Law Indranee Rajah has earned the ire of some Singaporeans after she commented on the impending Goods and Services Tax (GST) hike that Finance Minister Heng Swee Keat unveiled in his 2018 budget speech on Monday.

Speaking at a REACH dialogue on the Budget, Indranee said that tapping on more than the returns from investing Singapore’s reserves is a “slippery slope”.

Presently, the Government can tap on up to 50 per cent of the expected long-term investment returns generated by the Monetary Authority of Singapore, Temasek Holdings and GIC.

Indranee indicated that introducing an increase in GST to manage expenditures is a more secure fiscal plan than increasing spending of the Net Investment Returns (NIR) of the reserves to above 50 per cent:

“We think that 50 per cent is a fair figure. If you start going down the slippery slope then after a while you have to make your principal work a lot harder. And then you are also not assured that you will be able to get consistent returns all the time, you don’t know what the investment market will be like.

“The better thing to do if you want to ensure consistency, stability and sustainability…is to continue to tap, but keep it at 50 per cent and then also introduce the increase in GST.”

She added in a subsequent Facebook post:


“The greater the percentage of NIR we use, the more the risks are magnified.

“We take 50% to be fair and prudent – use half now, and leave half for the future. We should continue this for as long as we can, in order to both preserve and grow our inheritance.

“The NIR contribution from reserves is already the largest single source of revenue. Rather than over-relying on the yield from our reserves, we need to ensure a continuing and sustainable source of revenue to fund our future needs. Increasing the GST rate would achieve this.”

Indranee’s comments echo Heng Swee Keat’s explanation during Budget 2018, that the government has been tapping on the reserves over the last decade, but that we must dispense these resources “prudently” given the mature economy and aging population.

He proclaimed that relying too much on the reserves will deplete Singapore’s nest egg and stressed, “this is not the Singapore way.”

Netizens responding to Indranee’s explanation about the necessity for a GST increase appear to remain unconvinced.


continue reading here : http://www.theindependent.sg/netizen...ends-gst-hike/

[skyleon]

Tax the wealthy instead of burdening average Singaporeans with GST hike: Ex-NMP

February 21, 2018

Former Nominated Member of Parliament (NMP) Calvin Cheng has challenged the GST hike that Finance Minister Heng Swee Keat announced earlier this week during Budget 2018.

Taking to Facebook, Cheng criticised the “mixed messages” the Government seems to be giving, what with the two per cent GST hike and the one-off cash SG bonus that will be disbursed to Singaporeans this year.

Cheng questioned what exactly will happen during 2021-2025 that will absolutely necessitate a GST increase, and also asked the Government to release proof that show that not raising the GST will result in a deficit:


“What exactly happens in 2021 to 2025 and after that causes a gap in financing that needs an increase in GST? Can we have some projections in spending that shows that from that point on our budgets will go into deficit if taxes don’t increase ?

“Because right now, with the exception of global recession years, our budgets are so healthy, they are in surplus every year. I have no doubt that as our population ages, expenditures will increase, but why would those years be a tipping point, and by how much?

These questions were not addressed by the Finance Minister during his budget speech. Instead, the Minister identified key areas of expenditure growth (such as healthcare and infrastructure) and explained that “even after exploring various options to manage our future expenditures through prudent spending, saving and borrowing for infrastructure, there is still a gap”.

He had added: “…in the next decade, between 2021 to 2030, if we do not take measures early, we will not have enough revenues to meet our growing needs.”

The Minister also noted that the government has been tapping on the reserves over the last decade, but that we must dispense these resources “prudently” given the mature economy and aging population. He proclaimed that relying too much on the reserves will deplete Singapore’s nest egg and stressed, “this is not the Singapore way.”

Cheng compared the Minister’s cautionary remarks on managing the nation’s fiscal resources prudently, to the $700 million payout the Government will be giving out to all Singaporeans aged 21 and up this year, that comes from the exceptional budget surplus of $9.6 billion from FY 2017.

The Minister had declared that eligible Singaporeans will receive an “hongbao” of $300, $200, or $100 depending on their income and that this one-off bonus “reflects the Government’s longstanding commitment to share fruits of Singapore’s development with Singaporeans.”

Cheng questioned, however, that if Singapore will be in a poorer fiscal position if we do not dispense resources “prudently,” wouldn’t it make more sense to save the $700 million too?


“In fact, the surplus this year is so wonderful that the Government is giving away 700m dollars to Singaporeans.

“On a separate note, if things are going to be so dire from 2021, perhaps we should save the 700m to be used then rather than giving it away now?

“Talk about mixed messages : “In a few years things will be bad enough that we need to increase taxes. But right now it’s amazing so here is a present for everyone !” Huh???”

The former NMP opined that the Government should tax the wealthy and put off taxing the average Singaporean for as long as possible. To this end, he welcomed the additional stamp duty on properties over $1 million which he called a “wealth tax”.



continue reading here : http://www.theindependent.sg/tax-the...t-hike-ex-nmp/

[skyleon]

Top 10 shocking spendings of Budget: Halimah Yacob spent S$9.4 million


February 22, 2018



Budget 2018 is prudent and responsible? An outright lie, if one even bother to read into the balance sheet. I have a shock of my life reading how much the PAP government spent in a SINGLE year:

1) S$9.4 million on a useless puppet President (what does Halimah Yacob even need to spend on)

2) S$13 billion on Pension Funds for Ministers (considering that the pension scheme has been scrapped, why is this fund higher than the Healthcare budget)

3) 20% increase in spending to a S$182 million by the Attorney General Chambers (well done Lucien Wong)

4) S$555 million in increased spending by Defence Ministry to a record S$14.7 Defence Budget (this is 2.7 times above Malaysia’s $5.3 billion Defence spending)

5) 14.7% jump in Ministry of Finance spending (the second largest year-to-year increase in all ministries, the first being Transport)

6) 2.4% reduction of Ministry of Health spending (now you have concrete proof they are lying when they said healthcare expenditures are rising over the roof)

7) S$1 billion propaganda budget for Ministry of Communications and Information

8) 95.4% increase in spending on Lee Hsien Loong’s Prime Minister Office from S$414 million in FY2016 to S$809 million in FY2017

9) 52.6% increase in spending to S$13.7 billion for the Transport Ministry due to legal corruption scheme i.e. New Rail Financing Framework

10) 90.6% reduction in statutory board’s contribution to tax revenue (S$4.4 billion is missing, wtf happened?!)



continue reading here : http://statestimesreview.com/2018/02...-s9-4-million/


Don't forget the PAP overspent on the Youth Olympics and PA as well .

[KelongPresident]

Good luck to all the Singaporeans.

[skyleon]

Trust between “millionaire ministers” and the people “has never been so low”: SDP video trends online

February 23, 2018


The Singapore Democratic Party (SDP) has released a video questioning Government spending on social media, yesterday. The video, which comes just a few days after Finance Minister Heng Swee Keat delivered Budget 2018, has been trending online with over 32,000 views, and over 1,000 shares.

The video highlights Deputy Prime Minister Tharman Shanmugaratnam’s remarks in 2015 to Heng Swee Keat’s tax plan. Tharman had said, “We have prepared ourselves in advance. We will be in a good position for at least the rest of this decade.”

The SDP then asks why the government increased carpark fees, ERP rates, gas and electricity charges and hiked water prices by a whopping 30 per cent in the past two years, before asserting that the impending GST hike will further burden the people.

This has eroded the trust between “millionaire ministers” – who “cannot understand” the difficulties the common man faces – and the people according to the SDP:

“In 2015, DPM Tharman said that the “revenue measures the government had already undertaken will provide sufficiently for the increased spending planned for the rest of this decade.”

“So why did the govt increase water prices, carpark fees, ERP rates and gas & electricity charges, etc, in 2016 and 2017?

“Last year, it collected so much taxes that after all the govt expenses, it ended up with a $9.6 billion surplus!

“The government promises one thing but does another.

“Our millionaire ministers – the highest paid politicians in the world – cannot understand that the people have difficulty making ends meet.

“To make matters worse, the PAP will increase the GST from 7% to 9%. All this in a city that is already the most expensive in the world, with increasing retrenchments, a shrinking job market, and burgeoning household debt.

“The trust between the people and the government has never been so low.”


continue reading here : http://www.theindependent.sg/trust-b...trends-online/

[skyleon]

‘Severe implications’ if Singapore does not have sufficient reserves as buffer: Chan Chun Sing


How much the country spends and saves is a signal to currency markets on the strength of the Sing dollar, says the Minister in the Prime Minister’s Office.

24 Feb 2018 07:57PM (Updated: 24 Feb 2018 09:10PM)


SINGAPORE: The use of Singapore’s reserves should not be taken lightly as there are “severe implications” if the country does not have sufficient reserves as buffer, said Minister in the Prime Minister’s Office Chan Chun Sing on Saturday (Feb 24).

Apart from the need to grow the reserves for the increasing needs of the next generation, Mr Chan said Singapore’s fiscal policy impacts the strength of its currency as well.

“How much we spend and how much we save will also signal to the currency markets what they can expect the strength of the Sing dollar to be,” said Mr Chan at a Chinese New Year dinner attended by grassroots advisers and residents of Tanjong Pagar and Radin Mas constituencies.

“If the world thinks we are running an irresponsible or unsustainable fiscal policy, you can well imagine what they will do to the Sing dollar,” he added.

“There are severe implications on what it means to not have a strong Sing dollar or not have sufficient reserves as our buffer.”

Mr Chan’s comments come after the Finance Minister’s Budget 2018 speech on Monday, when it was announced that the goods and services tax (GST) will be raised from 7 to 9 per cent sometime between 2021 and 2025. It is to help fund growing expenditure in areas like security, healthcare and other social spending.

Finance Minister Heng Swee Keat had explained in his Budget speech why the Government will not tap more of the reserves, a point reiterated by Senior Minister of State for Finance and Law Indranee Rajah at a dialogue on the Budget earlier this week.

Said Mr Chan: “The budget surplus (last year) was not a structural surplus but largely attributed to currency fluctuation ... hence, very much like our approach to restructure the economy for long-term growth, we too can’t afford to be short-sighted in the way we manage our finances. We have to be prepared for the long term.”

Read more at https://www.channelnewsasia.com/news...n-sing-9988352



Cut Ministers' pay . Does Singapore need 2 education ministers ? Overspent on Youth Olympics . Overspend on PA .

[skyleon]

“Your budget makes no sense at all” – Open letter to PM Lee challenging Budget 2018 trends online

February 22, 2018

An open letter to Prime Minister Lee Hsien Loong on Budget 2018 has been trending on social media. It is unknown who originally wrote and circulated the letter but the letter has been making its rounds on Facebook and WhatsApp from yesterday.

The letter lists six criticisms of the budget that was unveiled by Finance Minister Heng Swee Keat on Monday. Besides questioning the mixed messages the Government appears to be giving, with the GST hike and the SG Bonus, the letter criticises the Government’s spending on defence and education.

It also calls on the head of government to further tax the wealthy instead of pushing the financial burden to average Singaporeans.

Read the letter in full here:


Dear Prime Minister.

Your budget makes no sense at all. I am not like one of these many lemmings on here that praise it and don’t know what its about. Can you care to explain the following:

1) If you have a budget surplus of almost $10 billion from last year, why are u still raising the GST?

2) Isn’t giving u $300 on one hand (bribing one with one’s own money) and taking it away on the other hand with a GST increase, rather meaningless?

3) Why are we spending billions $ on infrastructure like rail and roads when we have a zero population growth and almost negative birthrate? Who are we building these infrastructure for? To accommodate your target of 6.9 million population? So, we are spending Singaporean taxpayer money on infrastructure for foreigners?

4) Why is our defence budget 40% larger then our healthcare budget, more then $4 billion more. To buy weapons and equipment to fight who? Name our enemy, Mr. Prime Minister. With an aging population, healthcare should far surpass the defence budget, not the other way round

5) Increasing the education budget by giving more edusave bursaries to our student is like giving crumbs to us. Your govt is giving full scholarships to foreign students, why can’t we get that deal instead?

6) If u need more money, instead of taxing the poor with a GST increase, why don’t u raise the tax rate for the high earners (those earning over $1 million a year). I am sure there are thousands of such people, including all your Cabinet Ministers and many MPs. If you tax them more, u surely can avoid the GST.


continue reading here : http://www.theindependent.sg/your-bu...trends-online/


I wonder why the PAP government don't tax the rich more ?

[skyleon]

Minister Chan Chun Sing threaten Singaporeans with “severe implications”


February 24, 2018



Dissatisfied with criticisms over the government’s arbitrary “50%-rule” on the use of investment returns, former army general Minister Chan Chun Sing threatened Singaporeans that there are “severe implications” and that this “should not be taken lightly”.

Speaking figuratively without providing any statistics, Minister Chan Chun Sing said:

“How much we spend and how much we save will also signal to the currency markets what they can expect the strength of the Sing dollar to be. If the world thinks we are running an irresponsible or unsustainable fiscal policy, you can well imagine what they will do to the Sing dollar. There are severe implications on what it means to not have a strong Sing dollar or not have sufficient reserves as our buffer.”

The PAP Minister who has zero financial training also commented that the S$9.6 billion surplus in Budget 2018 was due to currency fluctuation, but did not go into the details:


“The budget surplus was not a structural surplus but largely attributed to currency fluctuation … hence, very much like our approach to restructure the economy for long-term growth, we too can’t afford to be short-sighted in the way we manage our finances. We have to be prepared for the long term.”


continue reading here : http://statestimesreview.com/2018/02...-implications/

[skyleon]

GST: Don’t tax the poor

Sense And Nonsense by Tan Bah Bah

February 25, 2018




Do we need to raise the GST?

Ah, you may be asking the wrong question. Or are we? “We are not raising the GST now but we are giving you notice that we will be raising it by two percentage points from 7 to 9 between 2021 and 2025 – with the final decision depending on the prevailing economic conditions”. So, what is the right question? Frankly, I am a bit stymied though I suspect it has everything to do with the next General Election.

Basically, Finance Minister Heng Swee Keat is saying: “We have done well economically. We have a $9.6 billion surplus. But a number of near-tectonic changes are already upon us, so we have to position ourselves well to deal with them. An ageing society is the most impactful of these and we have to find the money to take care of this very serious problem. We will do everything to stretch the dollar and be frugal so that we spend only what we earn and not burden the next and future generations with bills not incurred by them.”

Yes, indeed. And, as if on cue, up came Infrastructure cum Transport Minister Khaw Boon Wan with his Facebook declaration on Friday that the East Coast Integrated Depot, incorporating three MRT depots and one for buses, will save $2 billion of taxpayers’ money. That’s a lot of saving. If you ask me, whatever is spent on transport would be money well spent anyway as it helps Singaporeans get around for leisure or work without burning their pockets. Transport is also part of the social contract between government and people. Hence, kudos to Khaw. That was a smart taiji move.

Add to all this Prime Minister Lee Hsien Loong’s own Facebook description earlier on Tuesday of the budget as “a strategic and integrated financial plan to build us a better future together”.

While Singapore is on sound fiscal footing, the hike will allow the Government to plan ahead to ensure that “we can always afford to spend what we need”, he said, pointing out that government spending will rise, especially in healthcare, infrastructure and security.

Singaporeans can totally understand financial frugality as well as the soundness of having a whole-of-government approach to solving future problems.

The question is: With cast-iron commonsense logic on its side, why has the government been so cautious, almost hedging, in announcing the GST hike?



continue reading here : http://www.theindependent.sg/gst-dont-tax-the-poor/


Why don't cut the million dollar minister pay ? Why don't cut MP's allowance especially those who don't perform 100% of their duties . Why must government get involved in transportation industry ? Why don't the PAP government tax the rich people instead ? Your local Singaporean voters are already having a gard time to earn a decent living and you are adding extra burden to them.

[KelongPresident]

Singaporeans will certainly be in for a harder time .

[MichPound]

Originally Posted by KelongPresident

Singaporeans will certainly be in for a harder time .

That's for sure .

[Tai_zi21]

Originally Posted by KelongPresident

Singaporeans will certainly be in for a harder time .

As always under this Son of a gun

[skyleon]

As Singapore’s population ages, can the Lion City continue to roar?



Most see a hike in the goods and services tax – the first in over a decade – as a necessary move, but some think it is a sign the city state has no long-term answers for its ‘demographic time bomb’


PUBLISHED : Sunday, 25 February, 2018, 12:23pm

UPDATED : Monday, 26 February, 2018, 3:49am


Aaron Low

The Chinese believe that during Lunar New Year, rice jars should not be left empty, lest this should lead to barren and starving days ahead.

Singapore seems to be following this notion, at least in regards to its government coffers. The country’s Finance Minister Heng Swee Keat made it clear during the annual budget that he has no intention of allowing funds to run out any time soon.

On the fourth day of the Lunar New Year, he gave advance notice that the goods and services tax (GST) will most likely rise from 7 per cent to 9 per cent from 2021 onwards. This is the first time in more a decade that the GST will be raised, and also the first time that the hike was announced so early.

In defending the need to raise taxes in a time of surplus, Heng rattled off a list of things that Singapore has to spend more on, from security to education, and particularly on health care and infrastructure.

He also told Singapore’s Straits Times that the government had looked at all other options before concluding that there was no choice but to raise the consumption tax. “Revenue will not be enough,” he put it bluntly.

So far, criticism of the tax hike has been muted, while economists, tax experts and even business leaders have supported it.

Oil, bribes, politicians: what happened to ‘clean’ Singapore?(

Singaporeans have voiced complaints online, but the tax has not sparked an outcry like that seen in Hong Kong in 2006, when thousands took to the streets in protest when the government proposed introducing the GST.



continue reading here : http://www.scmp.com/news/asia/southe...opulation-ages


An article which I think it is worth reading .

[skyleon]

Parliament: Workers' Party does not support GST hike, says Pritam Singh

The Workers' Party assistant secretary-general Pritam Singh asked the Government to consider using proceeds from land sales to raise revenue.

PUBLISHED 4 HOURS AGO


Ng Jun Sen Political Correspondent

SINGAPORE - The Workers' Party does not support the plan to raise Goods and Services Tax (GST), said the party's assistant secretary-general Pritam Singh, suggesting that proceeds from land sales should be used to boost revenue instead.

Stating the WP's position in Parliament on Tuesday (Feb 27), he said: "GST may well have to rise, but Singaporeans could be more likely to accept it if the Government considers the pros and cons of moving from the establishing orthodoxy, and consider new approaches that improve social protection thresholds for all."

GST is set to rise from 7 per cent to 9 per cent some time from 2021 to 2025 to support growing public spending.

Mr Singh, who was the first opposition MP to speak during the Budget debate on Tuesday, asked the Government to consider what he described as a "novel" and "relatively radical" approach to raising revenue: the use of the proceeds from land sales.

Under the Constitution, revenue from land sales is not available for budgetary spending, as land forms part of Singapore's past reserves.

The Government has said that this prevents each term of government from unnecessarily selling land to meet expenditure needs, which could drive up property prices.

It has also said that part of the income from land sales, which is invested as part of the past reserves, is already available for spending through the Net Investment Returns Contribution (NIRC) framework. The framework allows up to half of the returns from investing the reserves to be spent.

Mr Singh, noting these reasons, said the issue of unnecessary land sales can be addresed with a cap on the amount of earnings that can be used, such as "not more than 20 per cent of the value of average land sales over 20 years, or 20 per cent of land sales for that year, whichever is lower".

"This would give no good reason for an ill-advised government to ramp up land sales when in government to increase its own income," said the Aljunied GRC MP.

He added that while part of the proceeds from land sales can already be used through the NIRC framework, there will be greater transparency if there is no "co-mingling" of the income from land sales with other reserves for investment.

In his 20-minute speech, Mr Singh also said the Government had not made clear what its projected expenditure will be in future when GST is slated to go up by 2 per cent.

Intiatives under the Smart Nation push, such as moving to become a cashless society, could also make Singapore more efficient in tax collection and "is likely to have a positive impact on tax revenues", he suggested.



continue reading here : http://www.straitstimes.com/politics...s-pritam-singh


Well done WP for opposing the GST hike. How about the other opposing parties ?

[skyleon]

GST hike aimed at helping Singapore remain competitive while staying inclusive: DPM Tharman

PUBLISHED 3 HOURS AGO

Francis ChanIndonesia Bureau Chief


JAKARTA - The planned increase in the goods and services tax (GST) in Singapore is aimed at helping the country remain competitive, while ensuring sustainable and inclusive growth, said Deputy Prime Minister Tharman Shanmugaratnam.

"The Budget announcement of a future increase in GST from 7 to 9 per cent is a part of the balance that we are striking," said Mr Tharman at a forum in Jakarta on Tuesday (Feb 27).

"That balance between staying competitive, ensuring that we can grow at a sustainable pace, but at the same time staying inclusive, and in particular, being able to afford the quality healthcare that an ageing population needs - that's foremost on our minds."

Singapore's Finance Minister Heng Swee Keat announced on Feb 19 at the release of Budget 2018 that the GST will be increased for the first time in more than a decade, from 7 per cent to 9 per cent, and that the hike will be implemented some time from 2021 to 2025.

Mr Tharman added that Singapore can do so in a way that is fair both to the poor and the middle class, and those who are better off will "one way or another have to pay more over time. But we want to do it in a way that doesn't hurt our competitiveness".

Mr Tharman was speaking at a panel discussion at a conference organised by Bank Indonesia and the International Monetary Fund (IMF).

Other panellists included IMF managing director Christine Lagarde, Indonesia's Finance Minister Sri Mulyani Indrawati and former Australian deputy prime minister and federal treasurer Wayne Swan.


continue reading here : http://www.straitstimes.com/asia/se-...-inclusive-dpm