Freer to choose: Singapore opens retirement fund for stock investment
Article Abstract:
Contributors to the Central Provident Fund (CPF), Singapore's social security program, will now be able to invest up to 80% of the funds on the Singapore stock exchange. This percentage is up from 40% in 1986. CPF funds are accumulating rapidly as the proportion of younger people grows. Analysts say the move should encourage much needed investment in Singaporean companies, including government-owned companies slated for privatization in the near future, while reducing pressure for higher interest rates on government bonds. Most CPF funds are invested in these bonds at a 2.6% annual interest rate.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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Changing the old order
Article Abstract:
Singapore occupies a unique niche in international financial circles. It is an economy that boasts of a thriving capital market with a foreign exchange that is not considered international currency. Singapore's financial market had been built by Goh Keng Swee who had stubbornly opposed its expansion into international circles. Goh's formula had proven successful for years. However, with the country wallowing in excess bank savings, reforms are needed to stimulate the productive investment of those funds.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Back across the causeway
Article Abstract:
Malaysian and Singaporean investors are cashing in on the higher yields offered on the Malaysian ringgit. Investors who had previously kept their savings in Singapore dollars are shifting to the Malaysian currency to avail of the higher deposit yields. The Malaysian one-month interbank rate has climbed to 8%, while the Singapore interbank rate remains at 3.25%. The absence of exchange controls between the two countries has facilitated the movement of money between them.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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