SINGAPORE - President Halimah Yacob was briefed on Wednesday by Deputy Prime Minister and Finance Minister Lawrence Wong and other officials on the expected real rates of return on Singapore’s investment assets over the long-term.
These projections are used to determine how much of the nation’s past reserves the Government will be able to tap for the next Budget.
In a Facebook post on Wednesday evening, Madam Halimah said the Council of Presidential Advisors (CPA) was also at the meeting, as were officials from the Ministry of Finance (MOF) and senior representatives from GIC, the Monetary Authority of Singapore, and Temasek.
“We had an extensive discussion on the global economic outlook, major structural risks such as heightened geopolitical tension and the impact of climate change, and the methodologies adopted to derive (these) projections,” said Madam Halimah.
GIC is the Republic’s sovereign wealth fund and one of the three investment entities in Singapore that manage the Government’s reserves, alongside the Monetary Authority of Singapore (MAS) and Temasek.
The briefing is an important part of the annual Budget cycle, Madam Halimah has said previously, as this is when the President, in consultation with the CPA, examines the assumptions used in the projections on expected returns.
These rates are used to derive the amount the Government can spend under the Net Investment Returns framework.
Under the framework, the Government is allowed to take into the Budget up to 50 per cent of the expected long-term real returns on net assets invested by GIC, MAS and Temasek, after deducting liabilities such as government bonds.
The Budget is traditionally presented in Parliame...