Not inaccurate, but too simplistic model. For start properties can be a risky "investment", think negative equity. Or interest rate hike to make your mortgage payment worst. You could also increase the credit card bill to help you pay for repairs of your house to increase its value and when sold off pay back your credit card loan. Or buy a car to get a higher paying job.
Let me get this straight : Singapore borrows money to invest in assets (anything that helps to make more money), whereas the US borrows money to pay liabilities (anything that takes money away from you). So Singapore is smart and responsible with the money they borrow vs the US which is totally irresponsible !
No, it's more of type of items spent on, and the methods of debt management in general?! Meaning, the spending of borrowed money on projects that could generate more current or future returns than on things that have little or no values at all - but sometimes might be of essential services i.e. the emergency services. In turn, the returns are then being re-invested, and/or used to repay the debts made earlier?!
@peanut0brain No?! I focused on what the benefits, both tangible, and intangible, could be brought to both the US, and SG, and its peoples in the future, via the investment of borrowed money, and proper debt management?! Through the construction of public housing, and community facilities, for instance, it could say, significantly improve the overall housing affordability, and standard of living of peoples rather than on those "white elephant" projects or excessive welfare benefits for its people?! Moreover, I explained on how the "borrowing" works in reality, and what the benefits are through the borrowing by the US, and SG in general, in which they differ both in terms of methods, and attitudes? On the other, you only (briefly) discussed the nature, and the attitudes of borrowing by the US, and SG?! So, it's entirely in different perspective?!
@peanut0brain Not that simple. Investment could go sour too. Don't forget Singapore investment includes US treasury bonds too. So effectively holding US debt. Often people use the term "investment" to sound nice as if investment equals guarantee income. That's not always the case. The US uses the money to fund defense so you could say it invests in the long term ensuring that no one can invade it. And because of this money flows to the US when other countries are in trouble.
The US is the only country with 'exorbitant privilege' so it can print money to honour debt obligatiios. No other country can do that, especially China whose debts are mounting at a frightening rate as theur property sector implodes and their Belt & Road Initiative has ground to a halt, leaving serveral third world countries in a debt trap.
@@chincheong7341 Did u view the audited statement of investments of Sg reserve acct? All presumptuous guessing n not transparent under the pretext of national security. 2.7 trillion $ of external debt n debt to GDP 200,% plus. Do the maths
The biggest problem is that most of the projects financed can only reap profits by jacking up and inflating prices. Which does not solve the issue of inflation.
I think , Singapore regulates their own money domestically from many sources , without needing to borrow from abroad. They’ve calculated very carefully to always have profits since the founding of the country 👍
This is the secret they don't share with developing nations, how were asian tiger nations able to fund their development without imf and outside debt... That's the secret.
Singapore can only plan long term if the Government remains more or less the same. If the Government keep changing like the USA, planning will be short term for quick wins to please voters.
Yup, this is a massive downside of democracies, unfortunately. Social benefits programs are crowd pleasers, so they are a tool for politicians to quickly garner supports. I'm not from the US btw, but I'm starting to worry that my country is heading to the similar direction, while we are not even nearly as wealthy as the US.
@coolfer2 not a downside of democracies necessarily, moreover of majoritarian ones. Most of the countries with a AAA credit rating (end of video) are consensus democracies, in which all sides (or most) are involved in decision-making processes which inhibits this opportunistic political behaviour.
Misleading title - Singapore issues debt and does not BORROW to finance buying more assets to make more money. Debt-to-GDP ratio is very misleading, because if you look at the full balance sheet, Singapore has over $5 Trillion in assets and $600 Billion in reserves plus more. Bro our country was built on learning from the world's mistakes and implementing the solutions on ourselves.
@@jzk2020while we don't suffer directly thru corruption... It's actually pretty expensive to live here unless you plan excessively and willing to live simple lives
@@Cinnamonmon139Only people who lead a minimalistic life can survive for long in Singapore. For citizens govt offers lots of benefits, but foreigners living in Singapore doesn't make any sense if they aren't paid well.
@@kspradeep8397 definitely. Us as citizens are still struggling but not as bad as most foreign workers... City of cleanliness but some work conditioned houses are just terrible...
@@Cinnamonmon139 Singapore govt must buy some land from Indonesia to accomodate retirees. Living in the core of Singapore in old age makes things very difficult.
For boomers and senior citizens, the current market and economy are unnecessarily harder. I'm used to simply purchasing and holding assets, which doesn't seem applicable to the current volatile market, and inflation is catching up with my portfolio. My biggest concern is whether I'll survive after retirement.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
singapore debt is investment debt ie. tie to assets. which generate revenue or sold for cash. usa debt its for consumption which future generations has to pay
In naive term !!! All ventures, including all investments are risks. In the simplest meaning, risks = gamble, bet, wager, speculation, stake. The higher the risks, the higher the potential return. No risks no gain. Simply, ???
@@jameschalkwig787 Consumption? Doesn't it mean external sources of funds are channelled into some sort of investment portfolio??? Risks involved, you wouldn't know exactly how much is the realizable value at any given time. Meanwhile, more importantly, you need to maintain cash flow, and also service the external fund. These are rudimentary procedures and no Nobel is required.
US debt are paid to US companies which provide healthcare/technology etc, so private corporations get the revenue rather than the government. While essential funds and corporations in Singapore are mostly government owned.
If Singapore issued non tradeable bonds to CPF, then what did they do with the fund they received from CPF which bought the Government non-tradeable bonds.
And which is best to stay this way. Be it in war or business, you wouldn't want your enemy or competitors to know how much and how far you can stretch your resources, do you?
Why did they stonewalled former President Ong Teng Cheong telling him they need 59 man years to collate the info? You mean they don't audit their accounts annually? Oh.....in case you aren't aware, Ong Teng Cheong wasn't given a state funeral!
I think one of Singapore's minister did touch on this, saying that for the obvious reason of national security, the exact amount shouldn't be made publicly available.
Fun Facts: Currently, both the Temask, and GIC, have a combined value of close to 1 trillion USD, and maintain different investment approaches to achieve investment returns, on the various projects in different fields, for the Government of Singapore (and, in turn, Singaporeans too).
Have you checked how the value of USD$1 trillion has been derived? Most likely it is based on unrealised gains. And what are the 'different' investment approach which you know? I bet they are all investment on market derivatives
How to pay off? Or you mean write off? How to write off? Simple, no CPF payouts at all... HDB reaching zero years, just mandate it as zero dollars COE basic price should start at 1mil dollars
@bryancapri1558 Singapore does not have debt even close to a US34 trillion. If there is, go ahead and provide your article and evidence. If we are talking about singapore's external debt it's still under 2 trillion.
@bryancapri1558 And by writing 'Don't worry about singapore', it suggest that the next line/sentence is not directed towards Singapore but another country.
What?! Investing in the long term benefit of your people is a good idea?! Naw, that can't be true! Short term profit for the few is the premium economic model!
As a Singaporean. I myself am amazed how Singapore has become very rich and very expensive. I'm just a normal guy who has very very limited financial knowledge about how my country handles it's money. I do understand that it's much easier to manage an island sized country rather than a country the size and complexity of the US
Singapore has no other natural resources or facilities to allow the space to spend like other countries do. So one of the methods to manage and govern well is to spend differently from other countries. It comes down to the needs and profile of the countries and governments.
Also because foreign investor's bank deposits in singapore are simply written in the balance sheet as "debt", the bank owes u money because u deposit with them, therefore technically you lend the bank money, so in P&L it's written as debt.
Thats why they are stoopid to remove Najib because "he make malaysia alot of debt"😂 When actually during Najib, he bring in alot of FDI and he use national debt luke how Singapore did but yeah, Malaysia too stoopid and think every debt is bad when in reality EVERY country have national debt😂 And now, Malaysia have one of the slowest economic growth in ASEAN😂😂😂 They vote in current people just because if empty promise and populism🤣🤣🤣
If the debt is 174.1% of GDP, but we assume the assets are 300% of GDP, then the net debt is 0, and assets exceed the debt by 125.9% - theoretically implying zero risk. Moreover, these assets generate massive returns every year, with 50% of the returns channeled as income to Singapore. This income constitutes 20% of Singapore's government income. Thus, the debt can be seen as a generator of massive income for the government rather than a liability.
@@jeffreyho6314 That why Singapore become very expensive. Also due to huge debt they own lol. It is mean Car in here+CoE you can buy 4-5 car, So they required things to paid upfront to the goverment even such as CPF they called?
Singapore has seemingly high gross debt, but in reality it has ZERO 0️⃣ nett debt. They borrow to earn even more profit 💵, not because lack of budget / fiscal room
if zero debt why increase gst, water tax, electricity cost. Debt is debt it have to be paid by someone which is the citizen. Pls dun give brainwash reason such as to pay back country reserved.
@@shukriramlee looks like you don't understand the nett debt situation, you poor boi. It's very simple: Debt value minus asset value = nett debt. Singapore actually has negative nett debt.
For example. If one borrows money at 4% annual interest rate to fund projects that grow 10% or more in the long term. This is sound borrowing. Using other's money to generate income while using your own money for other money making channel that will be higher then what you pay in interest, this is the fundamentals of sound financial planning. Unlike US, they borrowed to cover the hole.
Temasek is actually not a sovereign wealth fund although it is state owned. It's constitution is commercial hence it can take risks in its investments portfolio whereas GIC is more in risk averse investments.
@@CCLow-jr7umthanks you. you have managed to explain the analogy of "don't put all your eggs in one basket" so it seems Singapore has not indeed - GIC and Temasek isn't that amazing? 😂
My country able to handle financial well.no need anybody to estimate for us.singapore people are united to protect ourselves. Thank for comment and advice and we stand up for country
Real state can be very, very, hard to sell. That is the same trap China fell into but in Singapore 's case the properties are spread throughout the world in other real state markets that are also weak.
sg debts are mostly debts to cpf pension n foreigner deposits. hence the higher the debts the better as it means sg has more pension cash n also more foreign deposit.
ssb and sgs bonds and T-Bills. COE is also considered a tax. Certificate of entitlement to drive in Singapore. (luxury). ERP is also traffic tax only in certain areas
Why worry about debt ??? , where assets are more than visible !!! Hidden and intangible alone . With their prudence for over 50 years in managing financial handling, To WORRY, you are just ignorant, they don't need foreign funds for their infrastructure . Got it, that's. 😄👋🏼
Perhaps Spore borrow due to its costly land reclamation project for Tuas mega port and changi avition hub. Anyway, spore govt is stable and has full political support from its citizens.
No matter how you explain it, a debt is always a debt.And with the debt stood at 170% of it's GDP, it's scary to see how it can pay its debt at times of extended crisis.Chances of Sing Dollar collapsing in extremely high and when it happens, it will shoot straight down like a falling knife.
Correction high debt does not exactly mean great concern. More appropriately a low credit rating can be a more alarming concern. But again in practice it likely does present imbalance somewhere in in-between during otherwise peace time.
am i right to say ... on top of all the taxes collected, our govt has a steady stream of funds from our CPF contributions (even though this is never considered officially as the govt income/revenue source) for govt expenditure/investment ...
USD is the reserve currency of the world, it is in US's interest for other Countries, people, institutes to hold US debts. When you are holding US's debts (even if you don't directly hold any, almost everyone holds some US debts indirectly), would you want US to default on those debts? US can just borrow as much as the world can lend it, until another currency becomes a potential new reserve currency. ;)
Sometimes, you need to borrow money to make money. If you put money into the right things, then you gain. Average Singapore salary is $46K US a year. However, everything is cheaper in Singapore.
Of course it is a cause for concern. At the moment, CPF debt is supported by the interest that home owners pay every month on their HDB loans. But when there is a natural disaster or war, HDB loans would produce zero interest income, and Singapore would be bankrupt and go back to stone age.
The Singapore Government has a strong balance sheet with no net debt. Its financial assets are well in excess of its debt. This net asset position is reflected in the net investment returns generated on its reserves, which is made available for Government spending via the Net Investment Returns Contribution. In addition, its strong balance sheet explains why Singapore receives the top credit rating of AAA from the three leading international credit-rating agencies (S&P, Moody’s, and Fitch). The Singapore Government does not borrow for recurrent spending needs. Instead, the Government issues debt to meet specific long-term objectives
Singapore in coming 25 or 30 year , will be in difficult position in ekonomy , housing one of the major problem the cost of living is very high. Which keep rising each years. Which income of the majority working forces cannot keep pace. Yes , Singapore have a trenmedeous high tech human resources , high speed intenet, and other excellent point till present day. In coming future , singapore can only rely its ekonomy in mainly from Tourist revenue . Teknology AI , Harbour port is being bulid in Thailand. Asean country like Thai , Indonesia especially Vietam ekonomy , banking sytem , human resoursecs , infratructure will be great as singapore in coming soon .But the living cost will be much more cheaper , property will also be much more cheaper too.That will attract a lot of foreigners.. keep note , a country which preserve high cost of living especially does not have any raw natures, and have to Import everything to sustain the daily basic need ,defintely a minus point .
True; their Monetary overly stringent check on clean and hard-earned money that takes long time is huge opportunity cost to the rich ones. Many have diverted funds to other countries that are more efficient in handling funds check.
Yes, but as 2008 showed properties can be very hard to well and lead to great economic crisis, hidden by the letter soup they use to hide indebtedness. I think this is a massive myopia financial markets ARE displaying, not the first and not the last.
If you don't borrow money, you are limited by your initial capital which is $0, which means your investment return is $0, because you have no investment. If the interest payment is $5 but the investment return is $20, that's $15 of pure profit. If the interest payment is $50 but the investment return is $20, pay it off immediately and you'll never make a loss. Singapore takes on loans when it has money. You take on loans when you have no money. 😂
Singapore government has always given the impression that the country has a high reserve and has always been very generous with handouts when there is an economic crisis. Now you are saying that the net debt is zero. Essentially, you are saying that it has as high a debt as its reserve. So after financing all the development, there is actually no money in the bank and everything is into assets? Who has been blowing smoke? Puzzled... And I have studied economics.
How did you come to the conclusion that all the debt is equal to reserves. The size of the reserves is a national secret so it’s not publicly known. Even if you consider Temasek Holdings and GIC, you need to consider 1. Debt for investment is not zero value. It usually has a value unto itself (can be sold off for less than initial projected value). 2. SG reserves also include gold, foreign currencies held, and land.
OMG. Paying million $$ to highest paid cabinet in the world plus feeding a bunch of million $$ retired pension ministers & MPs will naturally bankrupt a resourceless country. PM Wong said low wages salaried workers pay increase will push higher cost of living. Looks like it he does not know what he is talking. Feeding a bunch of million $$ push high cost of living instead of otherwise. First generation leaders are capable of bringing investment into the country. Country depends on selling HDB flats to citizens to earn $$. Property & foreigners business is lucrative trade. Raise the minimium wage to $2500 to $3000 and annual leave 14 days with 2 days eldercare leave as mandatory law. Lip svc is useless. We are promised Swiss std aft more than 20 years but it seems like shit std. Seems like we are behaved better than some elite children breaking the law. We are not moving forward but backward unless 2025 hopefully would change & reform. There is now a need for a change which in the past I don't see it but now is completely different. I remembered the saying outside China is now a republic. Inside the forbidden city is feudalistic.
When the debt can generate income and growth, then you can see the wise leader with wisdom is working for the country. While others borrow money for other reasons.
Yet Temasek 20 year annualized return is 3.9% only while Norway’s GIC is 20++% and 1.5 million of Singaporean workforce is earning under $34k/ year in 2023….. the Sg gov does not reveal their total reserves. This is fact. Hence this video is plucking reserve numbers from the sky. The truth is it’s the gov that has locked up the local people’s CPF funds and keep increasing the draw down age hence piling more liquidity in their hands…. This video doesn’t give you all the facts. It’s not as rosey as one thinks although American is indeed way worse
Im singaporean, remember rule no 1. Never pay full cash to buy property. Singapore is the number 1 in the world in managing finance. Try again, "Behind Asia"
Temasek is accounted and reports its value annually. Assets are currently valued at 382 billion SGD in 2023. while less transparent, has a reported asset of 770 billion USD in 2023. Both are available on Wikipedia. Combined, these are just some of Singapore's reserves that can be counted. There are some that are less clear - e.g. total weight of gold held, foreign currencies, etc.
Hello admin, I was also making videos about Singapore recently when I accidentally saw this video.... thank you admin for providing some useful information!!!
The Gov of Singapore did not borrow (i.e get into debt) during the 2019-2021 pandemic, but instead simply drew from savings. I’d imagine they’ll do the same in another crisis.
wrong info singapore is on number 18 of world's Debt, top 5 is United States 34.6 trillion, United Kingdom 3.24 trillion, Japan 4.34 trillion, Netherlands 3.79 trillion & France 3.79 trillion.
What do you think about Singapore's massive debt? Let us know down below!
best country in the world😇
Who cares? Singapore is one of the cleanest, safest, beautiful country in the world, objectively, that is.
You mixed up United States with Singapore. Get your facts straight
Nice explanation! Thank you. It's a good debt, not bad debt. Singapore has a prudent and forward thinking approach to manage its financial position.
The most debt ve USA, soon they ll be bancrupt cause the powerfull BRICS want GOLD only!
In simple term, think of Singapore as someone who borrow to buy properties vs US as someone who borrow to pay for its increasing credit card bills.
Not inaccurate, but too simplistic model.
For start properties can be a risky "investment", think negative equity. Or interest rate hike to make your mortgage payment worst.
You could also increase the credit card bill to help you pay for repairs of your house to increase its value and when sold off pay back your credit card loan. Or buy a car to get a higher paying job.
Leveraging
Towkay, have extra money invest in export based manufacturing in Malaysialah and hire Malaysianslah...sorry to disturb....
😂 in short, Singapore is badly managed by current govt
@@deschan2246 sorry what?
Let me get this straight : Singapore borrows money to invest in assets (anything that helps to make more money), whereas the US borrows money to pay liabilities (anything that takes money away from you). So Singapore is smart and responsible with the money they borrow vs the US which is totally irresponsible !
No, it's more of type of items spent on, and the methods of debt management in general?!
Meaning, the spending of borrowed money on projects that could generate more current or future returns than on things that have little or no values at all - but sometimes might be of essential services i.e. the emergency services.
In turn, the returns are then being re-invested, and/or used to repay the debts made earlier?!
@@tenglim4406 dude you are saying exactly the same as what I'm saying...spend money on things that brings more money in...lol
@peanut0brain No?!
I focused on what the benefits, both tangible, and intangible, could be brought to both the US, and SG, and its peoples in the future, via the investment of borrowed money, and proper debt management?!
Through the construction of public housing, and community facilities, for instance, it could say, significantly improve the overall housing affordability, and standard of living of peoples rather than on those "white elephant" projects or excessive welfare benefits for its people?!
Moreover, I explained on how the "borrowing" works in reality, and what the benefits are through the borrowing by the US, and SG in general, in which they differ both in terms of methods, and attitudes?
On the other, you only (briefly) discussed the nature, and the attitudes of borrowing by the US, and SG?!
So, it's entirely in different perspective?!
@peanut0brain Not that simple.
Investment could go sour too.
Don't forget Singapore investment includes US treasury bonds too. So effectively holding US debt.
Often people use the term "investment" to sound nice as if investment equals guarantee income. That's not always the case.
The US uses the money to fund defense so you could say it invests in the long term ensuring that no one can invade it. And because of this money flows to the US when other countries are in trouble.
The US is the only country with 'exorbitant privilege' so it can print money to honour debt obligatiios. No other country can do that, especially China whose debts are mounting at a frightening rate as theur property sector implodes and their Belt & Road Initiative has ground to a halt, leaving serveral third world countries in a debt trap.
Borrowing to earn more in the future is smart .
Borrowing to pay off more n more increasing debts n consumption is unsustainable.
Singapore is being charged with shipping fraud.
singapore can afford ALL its losses!
Anybody saw the statement of acct on Sg investments?
@@chincheong7341 Did u view the audited statement of investments of Sg reserve acct? All presumptuous guessing n not transparent under the pretext of national security. 2.7 trillion $ of external debt n debt to GDP 200,% plus. Do the maths
Singapore operates like a bank which borrows money from the savers to obtain profits.
The biggest problem is that most of the projects financed can only reap profits by jacking up and inflating prices. Which does not solve the issue of inflation.
regulatory arbitrageur
@@gavinlew8273 ， No project, no progress.
@@gavinlew8273 ，Inflation is common in most countries. It hit harder in poor countries.
@@gavinlew8273 Inflation is necessary to stimulate the economy. Prevention of hyperinflation is the main goal.
I think , Singapore regulates their own money domestically
from many sources , without needing to borrow from abroad. They’ve calculated very carefully to always have profits since the founding of the country 👍
😅
Warren Buffet and Karen crossover
Lies again? MILF Division USD SGD
@taipangwong356 😂😂😂
This is the secret they don't share with developing nations, how were asian tiger nations able to fund their development without imf and outside debt... That's the secret.
Singapore can only plan long term if the Government remains more or less the same. If the Government keep changing like the USA, planning will be short term for quick wins to please voters.
Yup, this is a massive downside of democracies, unfortunately. Social benefits programs are crowd pleasers, so they are a tool for politicians to quickly garner supports. I'm not from the US btw, but I'm starting to worry that my country is heading to the similar direction, while we are not even nearly as wealthy as the US.
@@coolfer2 democracy is starting to look like a sham
@coolfer2 not a downside of democracies necessarily, moreover of majoritarian ones. Most of the countries with a AAA credit rating (end of video) are consensus democracies, in which all sides (or most) are involved in decision-making processes which inhibits this opportunistic political behaviour.
Misleading title - Singapore issues debt and does not BORROW to finance buying more assets to make more money.
Debt-to-GDP ratio is very misleading, because if you look at the full balance sheet, Singapore has over $5 Trillion in assets and $600 Billion in reserves plus more.
Bro our country was built on learning from the world's mistakes and implementing the solutions on ourselves.
Show us your ways, respect from Kenya. 🤴🏾✊🏾
@@jzk2020while we don't suffer directly thru corruption... It's actually pretty expensive to live here unless you plan excessively and willing to live simple lives
@@Cinnamonmon139Only people who lead a minimalistic life can survive for long in Singapore. For citizens govt offers lots of benefits, but foreigners living in Singapore doesn't make any sense if they aren't paid well.
@@kspradeep8397 definitely. Us as citizens are still struggling but not as bad as most foreign workers... City of cleanliness but some work conditioned houses are just terrible...
@@Cinnamonmon139 Singapore govt must buy some land from Indonesia to accomodate retirees. Living in the core of Singapore in old age makes things very difficult.
For boomers and senior citizens, the current market and economy are unnecessarily harder. I'm used to simply purchasing and holding assets, which doesn't seem applicable to the current volatile market, and inflation is catching up with my portfolio. My biggest concern is whether I'll survive after retirement.
Just buy and invest in Gold or other reliable stock , the government has failed us and we cant keep living like this.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Title should change to Good Debts vs Bad Debts
like Good Cholesterols & Bad Cholesterols.
Lol not a good click bait name
singapore debt is investment debt ie. tie to assets. which generate revenue or sold for cash. usa debt its for consumption which future generations has to pay
In naive term !!!
All ventures, including all investments are risks.
In the simplest meaning, risks = gamble, bet, wager, speculation, stake.
The higher the risks, the higher the potential return. No risks no gain.
Simply, ???
@@jameschalkwig787
Consumption?
Doesn't it mean external sources of funds are channelled into some sort of investment portfolio???
Risks involved, you wouldn't know exactly how much is the realizable
value at any given time. Meanwhile, more importantly, you need to maintain cash flow, and also service the external fund.
These are rudimentary procedures and no Nobel is required.
US debt are paid to US companies which provide healthcare/technology etc, so private corporations get the revenue rather than the government. While essential funds and corporations in Singapore are mostly government owned.
😂
Hi @BehindAsia , how did you get all the figures and data?
I think if I am not wrong, Singapore consider foreign deposit as external debt
Technically yes.
@@pjs20thetube that's basic accounting entry.
absolutely right
Main character yarn? You think you saw you conquer yarn?
If Singapore issued non tradeable bonds to CPF, then what did they do with the fund they received from CPF which bought the Government non-tradeable bonds.
Most likely, the money is invested elsewhere for a higher return than what they pay out in interest.
Invest in higher yield assets to pay for the endowments
No one knows how Temasek and GIC invest Singapore's reserves. Hence, exactly how much reserves the country has.
I think they know but it's state secret - to prevent the dituation of the likes of Soros exploiting GBP then.
Only God knows.
And which is best to stay this way. Be it in war or business, you wouldn't want your enemy or competitors to know how much and how far you can stretch your resources, do you?
Why did they stonewalled former President Ong Teng Cheong telling him they need 59 man years to collate the info?
You mean they don't audit their accounts annually?
Oh.....in case you aren't aware, Ong Teng Cheong wasn't given a state funeral!
I think one of Singapore's minister did touch on this, saying that for the obvious reason of national security, the exact amount shouldn't be made publicly available.
Fun Facts: Currently, both the Temask, and GIC, have a combined value of close to 1 trillion USD, and maintain different investment approaches to achieve investment returns, on the various projects in different fields, for the Government of Singapore (and, in turn, Singaporeans too).
Have you checked how the value of USD$1 trillion has been derived? Most likely it is based on unrealised gains. And what are the 'different' investment approach which you know? I bet they are all investment on market derivatives
Does it include the MAS gold and forex holdings
@@jogo798yes
1 trillion dollars is more than enough to repay 850 billion
It's actually $2.2t as of end 2023
Don't you worry about Singapore 😅😂
Just pay off the US$34trillion debt 🙄
How to pay off? Or you mean write off?
How to write off? Simple, no CPF payouts at all...
HDB reaching zero years, just mandate it as zero dollars
COE basic price should start at 1mil dollars
@yong9613 What are you even talking about? The US 34 trillion debt refers to the US, not singapore.
@@joash_c.5693 Duh.....
@bryancapri1558 Singapore does not have debt even close to a US34 trillion. If there is, go ahead and provide your article and evidence. If we are talking about singapore's external debt it's still under 2 trillion.
@bryancapri1558 And by writing 'Don't worry about singapore', it suggest that the next line/sentence is not directed towards Singapore but another country.
What?! Investing in the long term benefit of your people is a good idea?! Naw, that can't be true! Short term profit for the few is the premium economic model!
"Short term profit for the few" got many empires and dynasties overthrown.
I think he’s being sarcastic
Do you have any idea how much assets it has?
As a Singaporean. I myself am amazed how Singapore has become very rich and very expensive. I'm just a normal guy who has very very limited financial knowledge about how my country handles it's money. I do understand that it's much easier to manage an island sized country rather than a country the size and complexity of the US
Singapore has no other natural resources or facilities to allow the space to spend like other countries do. So one of the methods to manage and govern well is to spend differently from other countries. It comes down to the needs and profile of the countries and governments.
Also because foreign investor's bank deposits in singapore are simply written in the balance sheet as "debt", the bank owes u money because u deposit with them, therefore technically you lend the bank money, so in P&L it's written as debt.
present in percentage. Can give actual value ?
It's funny how some Malaysians who don't understand the economy always poke fun at Singapore's high debt.
They know nuts???
Because it's funny 😂 No matter what nationality you are 😂
They r correct. The funny thing is lots of people are still ignorants.
Thats why they are stoopid to remove Najib because "he make malaysia alot of debt"😂
When actually during Najib, he bring in alot of FDI and he use national debt luke how Singapore did but yeah, Malaysia too stoopid and think every debt is bad when in reality EVERY country have national debt😂
And now, Malaysia have one of the slowest economic growth in ASEAN😂😂😂
They vote in current people just because if empty promise and populism🤣🤣🤣
That is why they are working for us lol
Jun 2024 Sg debt to GDP 174.1% . Highest in the world
Nobody pay attention or discuss this important issue. Don't worry be happy crowd. DANGER
Yes, don't follow majority sheeper follow minority sheeper of following truth!
If the debt is 174.1% of GDP, but we assume the assets are 300% of GDP, then the net debt is 0, and assets exceed the debt by 125.9% - theoretically implying zero risk.
Moreover, these assets generate massive returns every year, with 50% of the returns channeled as income to Singapore. This income constitutes 20% of Singapore's government income.
Thus, the debt can be seen as a generator of massive income for the government rather than a liability.
@@jeffreyho6314 That why Singapore become very expensive. Also due to huge debt they own lol. It is mean Car in here+CoE you can buy 4-5 car, So they required things to paid upfront to the goverment even such as CPF they called?
Singapore has seemingly high gross debt, but in reality it has ZERO 0️⃣ nett debt.
They borrow to earn even more profit 💵, not because lack of budget / fiscal room
Liar 😂
@@shukriramleesingapore considers foreign investment as debt. So yes the debt will look high on paper. We have no issues with money.
@@Patroclus27 No, debt is debt and fdi is fdi.
if zero debt why increase gst, water tax, electricity cost. Debt is debt it have to be paid by someone which is the citizen. Pls dun give brainwash reason such as to pay back country reserved.
@@shukriramlee looks like you don't understand the nett debt situation, you poor boi. It's very simple: Debt value minus asset value = nett debt. Singapore actually has negative nett debt.
For example. If one borrows money at 4% annual interest rate to fund projects that grow 10% or more in the long term. This is sound borrowing. Using other's money to generate income while using your own money for other money making channel that will be higher then what you pay in interest, this is the fundamentals of sound financial planning. Unlike US, they borrowed to cover the hole.
Did they know out of the Top 10 Sovereign Wealth Funds in the world. Singapore has not 1 but 2 in the Top 10? GIC and Temasek
Temasek is actually not a sovereign wealth fund although it is state owned. It's constitution is commercial hence it can take risks in its investments portfolio whereas GIC is more in risk averse investments.
@@CCLow-jr7umthanks you. you have managed to explain the analogy of "don't put all your eggs in one basket"
so it seems Singapore has not indeed - GIC and Temasek
isn't that amazing? 😂
Other wealth funds might be transparent. Not Sg. U saw any audited balance sheet of reserves? Naive silly boy
Useless knowledge
My country able to handle financial well.no need anybody to estimate for us.singapore people are united to protect ourselves. Thank for comment and advice and we stand up for country
Real state can be very, very, hard to sell. That is the same trap China fell into but in Singapore 's case the properties are spread throughout the world in other real state markets that are also weak.
sg debts are mostly debts to cpf pension n foreigner deposits. hence the higher the debts the better as it means sg has more pension cash n also more foreign deposit.
Higher the debts the better???😂🤣😂🤣😂
ssb and sgs bonds and T-Bills.
COE is also considered a tax. Certificate of entitlement to drive in Singapore. (luxury).
ERP is also traffic tax only in certain areas
plus alcohol & tobacco tax...
Nope.. SSB and SGS are not considered as tax ..
The 800B debt shall necessitate the payment of how much interests?
Why worry about debt ??? , where assets are more than visible !!! Hidden and intangible alone .
With their prudence for over 50 years in managing financial handling, To WORRY, you are just ignorant, they don't need foreign funds for their infrastructure . Got it, that's. 😄👋🏼
7:51 My grandad got flashbacks of WW2. Nice job editing 😂
Maybe they keep reserves offshore and borrow agains the offshore assets. Like Most large companies do.
What will happen to those countries,who are with high debt ,if there will be financial crises like 2008....
Perhaps Spore borrow due to its costly land reclamation project for Tuas mega port and changi avition hub. Anyway, spore govt is stable and has full political support from its citizens.
What does this mean for Singaporeans ?
No matter how you explain it, a debt is always a debt.And with the debt stood at 170% of it's GDP, it's scary to see how it can pay its debt at times of extended crisis.Chances of Sing Dollar collapsing in extremely high and when it happens, it will shoot straight down like a falling knife.
Singapore had survived a few financial crisis without IMF and World Bank help.
Yup,nothing lasts forever
Correction high debt does not exactly mean great concern.
More appropriately a low credit rating can be a more alarming concern. But again in practice it likely does present imbalance somewhere in in-between during otherwise peace time.
am i right to say ... on top of all the taxes collected, our govt has a steady stream of funds from our CPF contributions (even though this is never considered officially as the govt income/revenue source) for govt expenditure/investment ...
USD is the reserve currency of the world, it is in US's interest for other Countries, people, institutes to hold US debts.
When you are holding US's debts (even if you don't directly hold any, almost everyone holds some US debts indirectly), would you want US to default on those debts?
US can just borrow as much as the world can lend it, until another currency becomes a potential new reserve currency. ;)
Sometimes, you need to borrow money to make money. If you put money into the right things, then you gain. Average Singapore salary is $46K US a year. However, everything is cheaper in Singapore.
but what is your investments make losses?
Good debt helps you to build future wealth and financial strength. Bad debt is an evil cycle to bring you down.
Of course it is a cause for concern. At the moment, CPF debt is supported by the interest that home owners pay every month on their HDB loans. But when there is a natural disaster or war, HDB loans would produce zero interest income, and Singapore would be bankrupt and go back to stone age.
The Singapore Government has a strong balance sheet with no net debt. Its financial assets are well in excess of its debt. This net asset position is reflected in the net investment returns generated on its reserves, which is made available for Government spending via the Net Investment Returns Contribution. In addition, its strong balance sheet explains why Singapore receives the top credit rating of AAA from the three leading international credit-rating agencies (S&P, Moody’s, and Fitch). The Singapore Government does not borrow for recurrent spending needs. Instead, the Government issues debt to meet specific long-term objectives
Still, one of the smallest country with the highest debt in the world.. mind-blowing
Not really, its more of SG is a bank
Most People believe Sg is the richest country in the world. Yet cost of living is so high burden by taxes
It's only 1.8% of usa debt. With a 2.5% of usa population
Singapore in coming 25 or 30 year , will be in difficult position in ekonomy , housing one of the major problem the cost of living is very high. Which keep rising each years. Which income of the majority working forces cannot keep pace.
Yes , Singapore have a trenmedeous high tech human resources , high speed intenet, and other excellent point till present day. In coming future , singapore can only rely its ekonomy in mainly from Tourist revenue . Teknology AI , Harbour port is being bulid in Thailand. Asean country like Thai , Indonesia especially Vietam ekonomy , banking sytem , human resoursecs , infratructure will be great as singapore in coming soon .But the living cost will be much more cheaper , property will also be much more cheaper too.That will attract a lot of foreigners.. keep note , a country which preserve high cost of living especially does not have any raw natures, and have to Import everything to sustain the daily basic need ,defintely a minus point .
True; their Monetary overly stringent check on clean and hard-earned money that takes long time is huge opportunity cost to the rich ones. Many have diverted funds to other countries that are more efficient in handling funds check.
Has it collapsed ?
Debt matters, if it didn't these countries with high debt would be alot cheaper to live in.
If it were cheap, then how would those investments by the government reap a profit ! Greedy Corporate Singapore!
think Dubai UAE is also like that..., but anyway...as long as you owe somebody money, you're not really independent
If USD is going down then there will be problem for Singapore.
Singapore worlds highest paid part time ministers in the world eith super high tax profiteering targets to lead singaporeans into poverty .
Man u are not brain dead
You must be quite poor to say such thing
@melvinlee3060 , its not a natter of poor or rich , its a matter if truth and fact .
debt that dont generate income is bad... most government debt are bad the only way to pay this off is by legal theft called money printing
All citizen of singapore are the biggest SSGS funding. I'm one of them
No Nett Debt is brilliant. Most companies have No Nett Debt - from a certain point-of-view.
Random thought; If every country is in debt, who owes who money?
High Gross Debt + High Net Debt + Low Investment Return=Worrisome。 Singapore is not at that stage。🥳
Yes, but as 2008 showed properties can be very hard to well and lead to great economic crisis, hidden by the letter soup they use to hide indebtedness. I think this is a massive myopia financial markets ARE displaying, not the first and not the last.
"'...it's not SGP., it's the PAP govt.!!!"'☝️😳😵💫🙄😬🤨
Wow. I did not know that.
This is nuclear physics simply
incomprehensible🤔
cos its rubbish propaganda thats why make shit sense
@@miadelle528 Only works until it crashes.
If I take a loan to buy a house, it's a debt and if I can't repay the loan and the interests on it, I'm in big trouble, no matter what. 🎉
If you don't borrow money, you are limited by your initial capital which is $0, which means your investment return is $0, because you have no investment.
If the interest payment is $5 but the investment return is $20, that's $15 of pure profit.
If the interest payment is $50 but the investment return is $20, pay it off immediately and you'll never make a loss.
Singapore takes on loans when it has money.
You take on loans when you have no money. 😂
@@HaziqRosli-d6v
I don't know what is it about my comment that you cannot understand! 🤦♂️🤦♂️🤦♂️
@@HaziqRosli-d6v
🤦♂️🤦♂️🤦♂️
@@HaziqRosli-d6v but what if your investment loses money? Ever thought of that? If every investment is a sure win, everybody will be rich aldy
US debt 34 trillions and 1 trillions every 100 days , Singapore 800 Billions is small in comparison.
Singapore government has always given the impression that the country has a high reserve and has always been very generous with handouts when there is an economic crisis. Now you are saying that the net debt is zero. Essentially, you are saying that it has as high a debt as its reserve. So after financing all the development, there is actually no money in the bank and everything is into assets? Who has been blowing smoke? Puzzled... And I have studied economics.
Does Impression equate to reality? 😂
Generous with handout? 😂 R u sure? 😂
In a wealth driven society like Singapore, people are considered capital assets. 😒
How did you come to the conclusion that all the debt is equal to reserves. The size of the reserves is a national secret so it’s not publicly known. Even if you consider Temasek Holdings and GIC, you need to consider
1. Debt for investment is not zero value. It usually has a value unto itself (can be sold off for less than initial projected value).
2. SG reserves also include gold, foreign currencies held, and land.
Singapore is "built different", in every sense of the term. It has to be. Otherwise she wouldn't have survived this long, much less thrive.
OMG. Paying million $$ to highest paid cabinet in the world plus feeding a bunch of million $$ retired pension ministers & MPs will naturally bankrupt a resourceless country.
PM Wong said low wages salaried workers pay increase will push higher cost of living. Looks like it he does not know what he is talking. Feeding a bunch of million $$ push high cost of living instead of otherwise.
First generation leaders are capable of bringing investment into the country. Country depends on selling HDB flats to citizens to earn $$. Property & foreigners business is lucrative trade.
Raise the minimium wage to $2500 to $3000 and annual leave 14 days with 2 days eldercare leave as mandatory law. Lip svc is useless.
We are promised Swiss std aft more than 20 years but it seems like shit std. Seems like we are behaved better than some elite children breaking the law.
We are not moving forward but backward unless 2025 hopefully would change & reform. There is now a need for a change which in the past I don't see it but now is completely different. I remembered the saying outside China is now a republic. Inside the forbidden city is feudalistic.
Sorry to hear that you have moved backward
When the debt can generate income and growth, then you can see the wise leader with wisdom is working for the country. While others borrow money for other reasons.
Debts problem in Singapore Government..in my Country Papua New Guinea also has more debts...then where did the money goes to?
It's far better managed fiscally than many countries around the world.
So basically the entire countey was playing rhe investment charty
High quality people come out with high quality methods
High quality your ass! 😂
Only thing high quality about Singapore is the cost of living and increasing retirement age 😂
SGS or SGX??
Uncle Sam is a very wealthy counterfeiter. He welcomes the poor into his mansion. What could possibly go wrong? Please answer.
The first thing that was mentioned in US spending is military expenses. ☠️
Explanation not entirely correct. What he left out is the aspect of money creation which is very complicated.
Yet Temasek 20 year annualized return is 3.9% only while Norway’s GIC is 20++% and 1.5 million of Singaporean workforce is earning under $34k/ year in 2023….. the Sg gov does not reveal their total reserves. This is fact. Hence this video is plucking reserve numbers from the sky. The truth is it’s the gov that has locked up the local people’s CPF funds and keep increasing the draw down age hence piling more liquidity in their hands…. This video doesn’t give you all the facts. It’s not as rosey as one thinks although American is indeed way worse
Im singaporean,
remember rule no 1.
Never pay full cash to buy property.
Singapore is the number 1 in the world in managing finance.
Try again, "Behind Asia"
Yeah, you can't even enjoy your CPF money since the government pegs it with national debt. 😂
Will singapore currency depreciate to pap of usd soon???Or appreciate it to equal value of an USD note soon.
Temasek n GIC r opaque, only a handful of people knows if the reserves r still there !!!!
Temasek is accounted and reports its value annually. Assets are currently valued at 382 billion SGD in 2023. while less transparent, has a reported asset of 770 billion USD in 2023. Both are available on Wikipedia. Combined, these are just some of Singapore's reserves that can be counted. There are some that are less clear - e.g. total weight of gold held, foreign currencies, etc.
@@rebootmyth8753 reported by who? your govt dont even dare tell you how much left in the kitty, sounds like my parents when we were broke lol
They follow Rich Dad poor dad concept
This is absurd.
Japan was 261% by 2022, should be lot higher now.
Hello admin, I was also making videos about Singapore recently when I accidentally saw this video.... thank you admin for providing some useful information!!!
That's mean ok for some government bebt they pay back more long term stragic
Malaysia with mysterious money missing.
Singapore has no debts, i just goggle, so which is correct?
If the reserves n investment figures are transparent u see the true picture. It's mission impossible
Its still risk if thres another outbreak.morr debt definitely.
The Gov of Singapore did not borrow (i.e get into debt) during the 2019-2021 pandemic, but instead simply drew from savings. I’d imagine they’ll do the same in another crisis.
Sounds like $800B debts will becomes $800B credits in the future, si beh hor 💪
Borrowing money to invest to earn money actually makes money.
if the investment makes money, what if it makes a loss?
@@miadelle528 That's the risk that you take, nobody said that it was easy.
wrong info singapore is on number 18 of world's Debt, top 5 is United States 34.6 trillion, United Kingdom 3.24 trillion, Japan 4.34 trillion, Netherlands 3.79 trillion & France 3.79 trillion.
the video talks about debt to gdp ratio..
I don't know about this video bro. Our govt is looking at this video.
Philippines bloggers.???
Singapore reserves reads as US$434 billions. Remind me again, what debts?
Its foreign money not singapore
your garmen dont even dare tell you much left in their kitty..lol
O god, it's a tax haven?
S.Pore overall philosophy..."to look good"
That's the US defense budget figure!
hmmm.
high local taxes,,squeeze out,,,ANYBODY.