[Niubee]

I have to say that underestimate our Govt and forefathers. They are absolutely money printers helping sg build that wealth.

[sgbuffett]

I have to say that underestimate our Govt and forefathers. They are absolutely money printers helping sg build that wealth.

Money always has to be printed(created)....otherwise there is no money.

The issue is what is backing what you print and whether you over print.

[p1acebo]

He did what MPs should do to provide the check and balance and potential flaws in what govt tries to do.

My main concern is the close ties between the PAP and the GIC that will result in policies friendly to GIC but not good for Singaporeans.

The Financial crisis of 2009 exposes certain risks and none were addressed by policy makers.

Even our local bourse screwed sgreans up big time over the past two decades but they don’t care.  AMDK only

[sgbuffett]

Even our local bourse screwed sgreans up big time over the past two decades but they don’t care.  AMDK only

After watching and waiting for them to fix so many issues related to this starting with CLOB, S chips, oil exploration stocks, hyflux, mini bonds....

Most of it under the watch of Tharman who actually did very little bit is just good at presenting himself.

I find he is one of the most overrated people around.

[SGSeniorCitizen1952]

Foreign Reserves are created by MAS buying foreign currencies and selling Singapore dollars.

The Singapore dollars come from MAS issuance of treasury bills which are bought by banks, government bodies and CPF (that happens to be the biggest buyer). MAS also can print money. When the Currency Board was in existence, they were the only authority to issue cash and it had to be back by foreign reserves and gold. There was a stipulated backing required.

MAS uses money market operations to control liquidity and interest rates. Foreign exchange operation is used as an additional tool when there is too much of foreign capital inflows  or outflows. If there is zero capital flow, then no foreign exchange operations is required and hence no foreign reserves accumulation or disposal.

Essentially, all Singapore dollars supply is within the ambit and control of MAS. Likewise, foreign reserves accumulation and disposal also within the MAS's mandate.

GIC was the beneficiary of MAS' foreign reserves accumulation, when in 1981 a large portion of MAS' foreign reserves was transferred to GIC. 

MAS' role is that of a central bank, which includes issuance of currency (money) which technically must be backed by its foreign reserves and gold.