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.the Government will be able to tap for the next Budget.
“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 projections,” said Madam Halimah. 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.
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.