Warning: Conspiracy Theory below
Not much of a numbers person here, but as I understand it, Singapore's indebtedness comes from its CPF liabilities to its citizens and residents (a GOS euphemism for "migrant workers") in Singapore. i.e. we do not borrow extensively from financial institutions locally and abroad, nor do we activate the printing press. This is the hallmark of prudent governance and public financial management but this is where the praise ends.
Using citizen/resident capital and growing tax base as collateral, GOS can borrow cheaply from financial institutions at its purported AAA rating. Therefore in order to continue doing that after debacle following the GFC, the GOS needs to grow the tax base and cover their losses by 1) importing more migrant workers and 2) delaying payout to citizens.
We can see the consequence of the former as the deluge is much discussed everywhere, but it is really the latter that truly incensed me. There is a major difference in rights between a citizen and a resident debtor to the GOS. Residents (or migrants if you prefer) can cash out anytime they cease to work in Singapore. Citizens cannot. That is the equivalent of a different class of securities, one with more rights but yet the same returns, being extended to Residents in Singapore. So to you, citizens of Singapore, you are shortchanged not once, but TRICE and yet you still vote in the perpetuators. Yes THREE times since you now have to compete for jobs with these new migrants we welcome with open arms onto our shores. Because from the GOS perspective, the more the merrier since CPF contribution is capped at S$4500.
So, who's your daddy?