SINGAPORE: In a TikTok video, presidential hopeful Ng Kok Song explained how CPF savings work for Singaporeans and added that the “President, as the custodian of the reserves, plays an important role in keeping these savings safe.”

In the video, he says, “The Government is able to pay a good interest rate on Singapore savings, encourage Singaporeans to save and then pay a good interest rate. So as you know, the Government pays a minimum of 2.5 percent for ordinary accounts, 4 percent for special accounts, Medisave, retirement accounts.”

He added that not only is this a good interest rate, but the Government also saves Singaporeans “the headache of investing the money” and guarantees a risk-free interest rate by combining CPF and Government savings and investing these worldwide.

@ngkoksongofficial

Through CPF savings, Singaporeans earn a good risk-free interest rate for their retirement. The Government invests our CPF savings alongside its budget surpluses for the future. The President, as the custodian of the reserves, plays an important role in keeping these savings safe. #ngkoksong2023 #unitedforourfuture #finance #adulting #lifehacks

♬ original sound – Ng Kok Song – Ng Kok Song

“So that is how, the president, by safeguarding the reserves, spend(s) on what is necessary to help people.

But we must try to save. Because the more money we save, the more investment income we can use for the budget,” he added.

Mr. Ng was with the Government of Singapore Investment Corporation (GIC) for 42 years, serving as Group Chief Investment Officer from 2007 until his retirement in 2013. Before working at GIC, he was with the Monetary Authority of Singapore from 1972 to 1986 and began his career at the Ministry of Finance in 1970.

The video has gotten over 117,000 views since it was posted on August 16, but not everyone appears to be convinced about what Mr. Ng Kok Song is saying. Reactions to his video on r/Singapore, where it was shared on Sunday (Aug 20), have been mixed.

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