Presidential candidates lay out their considerations for unlocking Singapore's past reserves

SINGAPORE: The considerations for unlocking Singapore's past reserves include how the funds will be used to benefit the people and the nature of the crisis at hand, the three presidential candidates said on Monday (Aug 28) night.

In a presidential forum broadcast live on CNA, Mr Ng Kok Song, Mr Tharman Shanmugaratnam and Mr Tan Kin Lian were asked about the factors they would consider "beyond what the government tells you" before unlocking the reserves.

Singapore's President is the guardian of the past reserves, with veto powers over any budget or specific transaction if it is likely to lead to a draw on the past reserves. He or she must consult the Council of Presidential Advisers in this area.

All three candidates emphasised the need to make sure that the reserves are used properly to benefit Singaporeans.

Former Senior Minister Tharman, who was invited to answer first, said that the money must be spent "wisely". This means not just helping people and businesses to survive, "but to build strength in a crisis so that we emerge even stronger".

He stressed fair distribution, saying: "If you're saving jobs, you've got to make sure we help low-income Singaporeans, middle-income Singaporeans. Build up strength for the recovery, build up new skills, new capabilities for recovery. Don't just favour the big firms, don't just favour those who already have it good. Be fair."

Mr Tan, the 75-year-old former NTUC Income chief, said he would consider whether the use of the reserves is in the interests of the people, and whether it is a "proper" use of the money.

"For example, our biggest use of past reserves was during the COVID (pandemic). Large sums of money were set aside and there was some part of the money that went into banks that were making huge profits. And they were given a subsidy by the government. I consider that to be a not suitable use of the reserves," said Mr Tan.

"I think the President should have the ability to understand what is proper use and what is wrong use of the reserves. So I will certainly want to examine carefully. Is this good for the people? And is this the proper use of the reserves?"

The government drew on the reserves on three separate occasions during the COVID-19 pandemic between 2020 and 2022, using S$40 billion (US$30 billion) in all.

Mr Ng, former chief investment officer of GIC, said it was critical to understand that the past reserves "should benefit present generations of Singaporeans as well as future generations".

"So how much to save and how much to spend is a very important decision," he said.

Mr Ng said that he would want to know the total size of the reserves and how much the government is asking to spend, as well as the government's assumptions about the expected future returns on the reserves and how that compares with historical rates of return.

He would ask if the government has "exhausted the possibility of raising revenues from other areas" before asking to draw on the past reserves.

Mr Ng, 75, said he would also want to know the government's assumptions about the crisis that the country is facing: "Is it an international crisis? A domestic crisis? How long do you expect the crisis to last?"

Mr Tharman, 66, similarly said that Singapore will face crises from time to time, and that the first thing the President must do is understand the nature of the crisis.

"Is this for the short term, or is this a crisis where we can't actually see the end of the crisis?" he said. "The second key to allow for the reserves to be used is useful only where you cannot see the end of the crisis and you can't see the bottom to the crisis."

MORE INCLUSIVE, COMPASSIONATE SOCIETY

The candidates were asked what role they would play as President to build a more inclusive and compassionate society. All three stressed the importance of volunteering and charity, and the need to support marginalised groups of people.

Mr Ng said that as President, he would like to be known as the "chief volunteer" who inspires and encourages other volunteers, and that he would like more support to be given to volunteers and caregivers.

"The role that I would play is to encourage Singaporeans to understand that our most fundamental identity is that we are all Singaporeans, and therefore we should be helping one another," he said.

"I would also like to see a more inclusive society as embracing everyone who lives in Singapore, for example migrant workers, our domestic helpers."

Mr Tan said that he would continue "the wonderful tradition of the President's charity", reiterating what he had previously said on the campaign trail.

During the forum, Mr Tan said one of his focus areas would be looking after the elderly above the age of 80, who require more care.

"It's not only looking after them. It's also relieving the burden on their children," he said, adding that this cause "will not be just a charity" but "part of a government effort" to care for the elderly.

Mr Tharman said that building a fairer and more inclusive society has been his "whole life purpose" since he was a student activist through his time in public service.

He said that he intends to be an "active President" supporting ground-up initiatives by civil society and non-government organisations. "It's not just about charity. It's got to be about upliftment," he added.

Mr Tharman said this would extend to disadvantaged children in the early stages of their lives, those experiencing mental stress, and building "second chances and third chances for those who have made a mistake and want to get back up".

"And as we get to be an older society, never lose sight of the fact that it's easy to be lonely as you get older. Help the elderly, particularly those living alone," he said.

APPEAL TO VOTERS

Asked what they would tell voters before polls open on Friday, each candidate stressed what he can do to offer Singaporeans a better future.

Mr Tan said he would have "an independent mind" and critically examine each recommendation from the government on the use of past reserves and appointment of key public office holders.

"I will also use the power of the President to call a commission of inquiry when needed, to ensure there is transparency and accountability in the government and the public service," he said.

He said his main concern was Singapore's young people, who face challenges: "They have to compete for jobs against foreigners, and good jobs are difficult to get. Yet our males have to do National Service, which sets them back two years or more in the competition for jobs.

"We all have to live with high costs of living and (the) cost of housing is getting to be unaffordable. I understand these concerns and will convey them to the government so that our young people can look forward with confidence to the future."

Mr Tan added that he shares a similar goal with the government to make life better for Singaporeans, and that he will work with the government to this end.

After he spoke, the forum's moderator reminded the candidates that the President cannot express public views on legislation or government policy without being advised to do so by the government.

Mr Ng said that he was running for the presidency because Singapore needs a competent, experienced and trustworthy President.

"Above all", Singapore needs "a President who is non-partisan, so that the President does not serve the political agenda of any political party", he stressed.

He asked voters to examine his motives for stepping forward, adding: "I'm not motivated by the desire for money, for power, or for fame. I truly want to serve my country because I'm very concerned about our future well-being.

"I'm willing to make the sacrifice necessary so that what we have built up can be safeguarded."

Mr Tharman said that a vote for him was "a vote for an optimistic future", saying that "it is very easy to be pessimistic" when looking at developments in Singapore and around the world.

"But when we look at Singaporeans, we become optimistic, when we look at what they're capable of doing," he said.

He pointed to national sprinter Shanti Pereira, commending the "guts and persistence" of the athlete who has had a stellar year in sporting achievement. He also cited Stephanie Esther Fam, a writer with cerebral palsy, for "inspiring us to look at disabilities differently".

Mr Tharman ended by reiterating his message on the campaign trail that his life is an "open book".

"I've been serving Singapore my entire life through public service and even before. There are no surprises with me," he said. "What you see is what you get."