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1.
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What are the investment mandates of Singapore’s investment entities?
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The Government of Singapore Investment Corporation (GIC) is an investment management company responsible for the global management of assets belonging to the Singapore Government, and is responsible for delivering good, long-term returns on the Government’s foreign reserves.
Temasek Holdings is an investment holding company which owns and manages a diversified portfolio with the objective of delivering long-term returns to its shareholder, the Singapore Government.
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2.
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What is the definition of budget surplus?
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The government’s budget surplus/deficit in the FY2009 Budget is defined and presented as follows:
Operating Revenue (collections from taxes, fees and charges and others)
(Less) Total Expenditure
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Primary Surplus/(Deficit)
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(Less) Special Transfers excluding Top-Ups to Endowment and Trust Funds
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Basic Surplus/(Deficit)
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(Less) Top-Ups to Endowment and Trust Funds
(Add)Net Investment Returns Contribution (NIRC)
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Overall Budget Surplus/(Deficit)
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NII Contribution has been previously reclassified as a separate item to derive the Primary Budget Surplus/Deficit position since FY2004. There is a limit to the amount of NII that can be used as operating revenues by the current government because the Constitution requires the government to protect at least 50% of the NII earned from past reserves. This protected amount is safeguarded together with the accumulated reserves earned over the previous terms of government. These reserves can only be used with the approval of the President.
On 1st January 2009, revisions to the Constitution to implement the new spending rule for the investment returns on reserves came into effect. Under the revised Constitution, the Government is allowed to spend up to 50% of the expected long-term real returns on reserves invested by GIC and MAS; the existing NII framework applies for the remaining reserves. Effective from FY2009, the Net Investment Returns Contribution (NIRC) will reflect the total amount of net investment returns that is taken into the Budget for spending.
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3.
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How do I apply for a career position with MOF?
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You can submit your application through the VOG website (http://www.vog.gov.sg) after you have looked through the vacancies within MOF. Alternatively, you can email your updated resume to MOF_HR@mof.gov.sg. We will review your application and contact you if you are shortlisted for an interview.
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4.
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Why is there a need for the Government to accumulate reserves?
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As a country without natural resources and with a high dependency on imports, our reserves are a strategic asset. They provide a key defence for Singapore in times of crisis and contribute to a stable Singapore dollar, which in turn bolsters the confidence of investors as well as citizens. Further, our reserves provide for a continual stream of income that can be tapped for the annual Government Budget.
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5.
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How does the President monitor the protection of past reserves?
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The Government provides the President with regular, detailed accounts to enable him to monitor the past reserves. If there is a need, the President has the right under Article 22F of the Constitution to request for additional information.
The Minister for Finance, Accountant-General and Auditor-General are all obliged under the Constitution to inform the President of any proposed transaction by the Government which to their knowledge is likely to draw on past reserves.
As for the SBGCs, their annual budgets must be presented to the President for his approval, together with a declaration as to whether the budget is likely to draw on the SBGC’s past reserves. If the President is of the opinion that the budget as implemented is likely to draw on the SBGC’s past reserves, he may disapprove the budget.
It is also the duty of SGBCs to inform the President whether any proposed transaction of the SBGC is likely to draw on past reserves; the President has the discretion to disapprove such proposed transactions.
The appointment and removal of (i) a director or CEO of a Government Company and (ii) chairman, member or CEO of a statutory board requires the approval of the President.
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