WP Boy WOnder PHd Kpkb on SG Parliament approves raise in issuance limits for securities and T-bills to S$1.5 trillion

[k1976]

PARLIAMENTSingapore Parliament approves raise in issuance limits for securities and T-bills to S$1.5 trillion

Following the passing of a motion in Parliament on Tuesday (12 November), the government can raise additional funds through government securities and Treasury bills (T-bills).

The increase of S$450 billion brings the new limit to S$1.515 trillion until 2029. WP MP Jamus Lim raised concerns, questioning the fiscal impact of higher interest repayments and whether the debt issuance has provided usable funds for businesses.

Published 11 hours ago on 12 November 2024 By The Online Citizen

SINGAPORE: Following the passing of a motion in Parliament on Tuesday (12 November), the government will be able to raise additional funds through government securities and Treasury bills (T-bills).

The Parliament approved an increase of S$450 billion (US$337 billion), raising the new issuance limit for these securities to S$1.515 trillion.

This cap is expected to remain in place until 2029.

Over 60 per cent of the increase will come from the issuance of Special Singapore Government Securities (SSGS), which are government bonds issued to the Central Provident Fund (CPF) Board.

CPF funds are invested in these special securities, which are fully guaranteed by the government and offer a coupon rate tied to the interest rates CPF members receive.

The Ministry of Finance (MOF) stated that this move ensures the CPF Board can meet its obligations to members.

 

[k1976]

Singapore's gross domestic product (GDP) is the total value of goods and services produced in the country during a year. Here are some recent GDP statistics for Singapore:

2022
The nominal GDP was $466,789,000,000, and the real GDP was $333,593,000,000. The GDP growth rate was 3.65%.

2023
The GDP reached an all-time high of $501.43 billion. The GDP per capita was $65,422.46, which is 518% of the world's average.

2029
The GDP is projected to reach $670.94 billion, a 26.42% increase from 2024.

The GDP is calculated by adding the gross value added by all resident producers in the economy, plus any product taxes, and subtracting any subsidies.

 

[k1976]

SGD Bond is really valuable around the world

 

[k1976]

Singapore's debt to GDP ratio is expected to be 175.19% in 2024. This is based on the following data:

• 2024: 175.19%
• 2023: 174.84%
• 2022: 158.25%
• 2021: 142.91%
  

The debt to GDP ratio is a common metric used to measure a country's ability to pay back its debt in the future. However, Singapore's financial position is not fully reflected by its debt to GDP ratio because the country has a large amount of assets. In fact, Singapore has a net asset position, meaning its assets are greater than its debts.


Singapore's government has a constitutional requirement to have a balanced budget over each five-year term. This means that the government's spending is always equal to or less than its earnings. The government also saves surpluses in good years to use as a buffer during bad years.

 

[k1976]

Singapore seeks to raise issuance of govt securities to $1.5 trillion to grow CPF, local debt market​

The limit was last raised in 2021, when Parliament authorised the increase from $690 billion to $1.065 trillion. ST PHOTO: KUA CHEE SIONG

Angela Tan
Senior Business Correspondent
UPDATED

NOV 13, 2024, 10:44 AM

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SINGAPORE - The Republic is seeking to raise the issuance limit for more government securities to fund specific, non-spending purposes such as market development and meeting the investment needs of the Central Provident Fund (CPF).
Second Minister for Finance Chee Hong Tat on Nov 12 asked Parliament to approve a motion to raise the issuance limit for government securities and Treasury bills under the Government Securities (Debt Market and Investment) Act (GSA) to $1.515 trillion.
The issuance limit for Singapore Government Securities (SGS) (Market Development), Treasury bills (T-bills), Singapore Savings Bonds (SSB) and Special Singapore Government Securities (SSGS) is now at $1.065 trillion.

 

[k1976]

It was last raised in 2021 when Parliament authorised the increase from $690 billion to $1.065 trillion, which was intended to last till 2025.

With the additional $450 billion now being proposed, the increase is intended to last till 2029.

More than 60 per cent of the increase is expected to be issued as SSGS. These are non-marketable securities, primarily issued for CPF investments.

 

[k1976]

In the five years between 2018 and 2023, the median gross monthly income from employment grew by 3.2 per cent a year.

Mr Chee cited examples of CPF policy enhancements including the higher CPF contribution rates for senior workers and CPF bonuses under the Majulah Package.

“These measures will enhance the retirement adequacy for our seniors and also increase CPF’s investment needs in the coming years. These in turn will require more issuance of SSGS,” he said.

The remaining 40 per cent is for projected issuances of SGS, T-bills and SSB to support the continued development of a vibrant SGS market.

The SGS market enables the growth of the corporate and retail debt market, and meets demand for high-quality liquid assets from financial institutions as the financial sector grows.

“We will continue to monitor the market demand for such publicly held debt instruments and will adjust the rate of issuance to meet this demand, if necessary,” Mr Chee said.

 

[k1976]

Singapore Gov also getting ready its financial Basooka ?

 

[Loofydralb]

The Ministry of Finance (MOF) stated that this move ensures the CPF Board can meet its obligations to members.

Told you CPF no money left you don't believe.

 

[mahjongking]

Told you CPF no money left you don't believe.

anyone with an average IQ will figure this one out..........cpf was introduced as an honest scheme, gradually morphed into a con job over the years......

 

[winnipegjets]

Looks like PAP has no money ...got to use more CPF money. Reminds me of President Reagan raiding the Social Security fund to pay for generous tax cuts. The consequence of that on Social Security sustainability is now well known.

 

[Loofydralb]

Looks like PAP has no money ...got to use more CPF money. Reminds me of President Reagan raiding the Social Security fund to pay for generous tax cuts. The consequence of that on Social Security sustainability is now well known.

But the difference here is that they've raided CPF buy yet increased taxes, fees, duties, charges, etc.

Only the stupid will want to retain PAP in govt.