Singapore follows closely the International Accounting Standards Board's standards. Statutory boards publish audited accounts. So do most major government-linked companies, which are publicly listed and subject to market scrutiny and the Singapore Exchange's rules. The fiscal position is published annually in the Budget Book and Government Financial Statements. These fully account for all revenues, including from land leases and investment income, without obfuscation. Capital revenues are prudently excluded as land sales are an unreliable source of revenue.

The article claimed "overly stringent fiscal policies sap Singapore's competitiveness" when the World Competitiveness Yearbook puts Singapore in second place. And if excess savings depress the cost of capital, why should this make companies less competitive?

The article said Singapore's "high-surplus strategy lowers [its] standard of living." Singaporeans enjoy one of the world's highest standards of living. They may consume a smaller share of GDP than Hong Kong residents, but Hong Kong's fiscal deficits are a major problem, and it acknowledges its people must save more through its Mandatory Provident Fund.

The article criticized the Central Provident Fund, or CPF, for paying artificially low interest rates. In fact, the rates currently exceed comparable short- and long-term market interest rates. CPF members who want higher returns are free to invest their CPF balances themselves, but they choose to leave most of their funds with the CPF.

The assertion that the government pays ministers and civil servants very well because it is "unconstrained by tight finances" is disingenuous. The total pay of all ministers and permanent secretaries is under 0.2% of total expenditure. The government's policy to pay competitive public-sector salaries to attract able Singaporeans to serve the nation is envied by many countries.

These factual inaccuracies and wilful distortions raise the question whether the REVIEW published the article to improve Singapore's public finances, or to shake confidence in the Singapore government and system.

FRANCIS CHONG Press Secretary to Deputy Prime Minister Lee Hsien Loong Singapore

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