Singapore GE2020: SDP says it'll tap unused part of S'pore's net investment returns for social programmes

Singapore Democratic Party chairman Paul Tambyah during the Pre-GE Forum at NUSS Kent Ridge Guild House on July 3, 2020. ST PHOTO: DESMOND WEE

The Singapore Democratic Party (SDP) will not raid the reserves to pay for its social programmes, said party chairman Paul Tambyah during an online rally yesterday.

Instead, Professor Tambyah proposed tapping the unused portion of Singapore's net investment returns (NIR) to pay for the SDP's social programmes.

Quoting his fellow candidate and the party's "economics guru" Tan Jee Say, Prof Tambyah said: "The investment returns from our reserves will yield more than $37 billion in the financial year 2020."

He added: "The government has put aside 50 per cent of it, $18.6 billion for the 2020 budget. And there's still at least another $18.6 billion left of the investment returns from our reserves."

Noting that many had asked the party how it would fund its policies, Prof Tambyah said it would be done by increasing the contribution from the income raised by investing the reserves.

He explained that it is "like using only the interest income from a fixed deposit, without touching the principal sum of the fixed deposits".

Prof Tambyah said that the sum required to pay for both initiatives, as well as the GST suspension is $13.3 billion.

A sum which is below the unused net balance investment income of $18.6 billion, he added.

The SDP is calling for the suspension of the GST till end-2021.

It has also called for retrenched workers to be paid 50 per cent of their last drawn salary for 18 months, and for a $500 monthly retirement income for lower-income seniors aged above 65.

Prof Tambyah gave a breakdown of the cost of each programme - $2.8 billion for the income for seniors, $2 billion for the retrenchment benefit scheme, and the suspension of GST, which he said is $11 billion in 2020.

He added that there will still be a balance of $2.6 billion.

He said: "(The sum) will be added to the reserves, together with land sales revenue, which is an average of $16 billion a year for the past 10 years."

Prof Tambyah, also stressed that having the money in the hands of Singaporeans will benefit our economy, as it will likely be spent locally.

The party chairman said: "The reserves we have were built up by the sacrifices of our parents and grandparents who gave up their pensions, gave up cheap healthcare and housing, just so that we would have the funds for a rainy day," he said.

"The bottom line is, although there are only 11 of us, put us into Parliament, and we can demand that the money our parents and grandparents have saved for us, can be used for the future of our children and grandchildren."

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A version of this article appeared in the print edition of The Sunday Times on July 05, 2020, with the headline SDP says it'll tap unused part of S'pore's net investment returns for social programmes. Subscribe