Govt introduced Net Investment Returns in 2009

We thank A/P Tan Khee Giap and Mr Tan Yan Yi for their views on "Why a Forward Looking Budget is Needed", published on 13 February 2019. Budget 2019 is indeed part of the Government's long-term strategic plan for Singapore's Future. The Minister for Finance will deliver the Budget Statement on Monday, 18 February 2019.

The authors referenced the role of Net Investment Income (NII) in Singapore's fiscal system. The Government has introduced the Net Investment Returns (NIR) framework from Financial Year (FY) 2009. Under the NIR framework, the Government is allowed to spend up to 50% of the expected long-term real rate of returns on its relevant assets. GIC and MAS was first included in this framework from FY2009, followed by Temasek from FY2016.

Lim Yuin Chien

Director (Corporate Communications)

Ministry of Finance