Finance

President Tharman Explains How S’pore Govt Decides To Spend Reserves, System Ensures Every Generation Benefits

President Tharman Explains Importance Of Returns From Reserves In Singapore’s Finances

Mr Tharman Shanmugaratnam has long been known for his ability to explain seemingly complex concepts in layman’s terms. Now that he’s the President of Singapore, it seems that skill remains one of his strongest assets.

In a recent Facebook post, Mr Tharman expounded on the concept of return from reserves, or Net Investment Returns Contribution (NIRC).

Source: Tharman Shanmugaratnam on Facebook

Even though the financial jargon might appear daunting to most, Mr Tharman broke the concept down in a digestible manner and explained how it benefits Singaporeans.

President Tharman explains importance of returns from reserves

On Monday (8 Jan), Mr Tharman penned a Facebook post explaining NIRC and how it benefits Singapore.

For context, he shared that he had attended a meeting regarding Singapore’s returns from reserves that morning.

The team that briefed him comprised Finance Minister Lawrence Wong and officials from other investment entities.

Source: Tharman Shanmugaratnam on Facebook

To help Singaporeans understand the subject of their discussion, Mr Tharman explained that the NIRC is a significant amount of money Singapore gets from its reserves annually.

But for the Government to spend the sum, they have to seek the President’s agreement — which was likely the reason for their meeting earlier in the day.

Explaining the importance of such a revenue stream, Mr Tharman said that about 20% of Singapore’s spending comes from the country’s reserves.

The President added that Singapore’s system is designed to ensure that every generation of Singaporeans benefits from this source of revenue.

 

This is in contrast to other countries plagued by rising debts. Mr Tharman noted that such countries have to increasingly use more and more tax dollars to pay for their debts.

Singaporeans thank Mr Tharman for simple layman’s explanation

Singaporeans were impressed by Mr Tharman’s attempt to educate the public, which came on top of his duty as guardian of Singapore’s reserves.

This Facebook user thanked the President for his candid sharing, shedding more light on the management of the reserves.

Source: Facebook

Another commenter found the simple and uncomplicated manner of Mr Tharman’s explanation to be the most impressive.

Source: Facebook

In addition to his duties as guardian of Singapore’s reserves, it seems Mr Tharman is also wearing the hat of an educator. Whatever the case, we hope Singaporeans learned a thing or two about this important source of revenue through his post.

Have news you must share? Get in touch with us via email at news@mustsharenews.com.

Featured image by MS News and adapted from the Monetary Authority of Singapore

Jay Lo

Jay has an unhealthy obsession with Pokemon. He thinks he's qualified enough to be a member of the Elite 4.

Recent Posts

Underage teen in S’pore buries stillborn in house yard, police digs up bones during investigation

The coroner said this was the first case of its kind he had encountered in…

23 Dec 2024, 7:05 pm

M’sia Airlines grounds new Airbus just days after maiden flight, cites technical issues

The brand-new jet suffered a series of technical issues since its first-ever flight on 19…

23 Dec 2024, 6:17 pm

Family in S’pore finds snake on side view mirror mid-drive, netizens quip ‘Snake Year is coming’

The Paradise Tree Snake may have misjudged its landing and ended up on the car.

23 Dec 2024, 4:48 pm

69-year-old man dies after fight with 71-year-old neighbour over bumping into each other

The 69-year-old was reportedly upset over his neighbour's refusal to apologise.

23 Dec 2024, 4:33 pm

Bloomberg issued POFMA order over S’pore GCB transactions article, Govt addresses ‘falsehoods’

False claims include that GCB transactions occur without government checks on beneficial owners' identities.

23 Dec 2024, 3:35 pm

Woman set on fire aboard New York subway train, suspect allegedly watches her burn

The suspect casually watched as the woman became consumed by flames.

23 Dec 2024, 3:14 pm