Government’s Financial Statements for FY 2021

On 22 July 2022, the Government’s financial statements for the financial year 2021/2022 were presented to Parliament. The 271-page document was prepared by the accountant-general, Mr Ow Fook Chuen, who has served as accountant-general since 23 March 2015.

The document may be accessed at the following link – https://www.parliament.gov.sg/docs/default-source/default-document-library/cmd-17of2022.pdf

The report was also audited by the accountant-general, Mr Goh Soon Poh, on 24 June 2022.

NCMP Leong Mun Wai’s analysis

In a Facebook post dated 25 July 2022, NCMP Leong Mun Wai zoned in on page 88 of the report, which sets out a statement of assets and liabilities. The statement of assets and liabilities reflects how the cash and investment balances of the Government are accounted for in deposit accounts and funds that are established in accordance with the laws governing them.

Assets include moneys raised from Government borrowings such as the Special Singapore Government Securities  issued pursuant to the Government Securities (Debt Market and Investment) Act 1992. These moneys are reflected as assets (either as cash or investments), and also as liabilities (within the Government Securities Fund balance), under the Statement of Assets and Liabilities. However, Assets and liabilities of statutory boards and government-owned companies are not included in this statement.

Leong Mun Wai observed that the Government’s total financial assets have increased by approximately $170 billion (from 1.40 trillion on 31 March 2021 to $1.57 trillion on 31 March 2022).

Leong, who served as a Managing Director of OCBC Securities, a Director of Merrill Lynch HK and an
Investment Officer of Government of Singapore Investment Corporation, noted that the $170 billion increase was the “net of the approximately $40 billion drawdown earmarked for Covid-19 spending”.

Where’s the necessity to raise GST?

In light of these figures, Leong argued that there was no necessity to replenish the reserves, and no need to raise GST. In his view, the Government’s data shows that Singapore continues to be in good financial shape.

He made it clear that he was not suggesting that Singapore’s reserves ought to be raided. Rather, he called upon the Government to exercise compassion and empathy by offering more help to Singaporeans who are struggling financially.

No handouts or short-term dribs and drabs

Highlighting that the Government is fond of giving out “short-term drips and drabs”, Leong made the case that the help should come not in the form of handouts, but through “long-term incentives to improve the performance of the Singaporean Core and allow each Singaporean to realize his or her full potential.”

There should be more help to reduce the inflation pressure, GST hike should be rescinded, targeted skills training that leads to jobs with higher wages, minimum living wage to guarantee a decent standard of living, shorter waiting time for HDB flats at affordable prices for young Singaporeans to form families, cheap and effective healthcare as well as comfortable retirement for all Singaporeans in a sustainable society.

The crux of Leong’s argument is a simple – Singaporeans deserve better, and we have the resources to make things better. However, in his own words, we will need to “change our fiscal objective from maximising and hoarding profit to maximising social benefits and happiness.”

In the comments section of his post, Leong clarified that what he was asking for is not for the Government to touch the reserves, but simply for the Net Investment Returns (which is not the principal sum) to be used more proactively.

“Just remember the number 1.57 Trillion Dollars” – NCMP Leong

Leong’s post was well-received on Facebook. It was shared almost a 100 times within a span of 10 hours. Many users thanked him for his analysis.

Leong asked a Facebook user who confessed that he did not have any financial background, to just remember the number 1.57 trillion dollars.

Does anyone know how many zeros there are in a trillion?

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