Publication of Projected Investment and Interest Income of Pioneer and Merdeka Generation Funds
Ministry of FinanceSpeakers
Summary
This question concerns the projected investment income, fund balances, and liabilities of the Pioneer Generation (PG) and Merdeka Generation (MG) Funds. Mr Leong Mun Wai enquired about the projected lifetime income of these funds and whether such figures would be published annually to show if they exceed estimated liabilities. Second Minister for Finance Chee Hong Tat stated that as of March 2024, PG and MG liabilities were $6.11 billion and $5.78 billion respectively, while balances stood at $5.52 billion and $5.55 billion. He noted that the Government tops up these funds when necessary to meet commitments and that return rates are already disclosed in annual statements. However, he explained that projected income is not published as it remains contingent on future fund utilization and fluctuating balances.
Transcript
2 Mr Leong Mun Wai asked the Prime Minister and Minister for Finance (a) what is the dollar value of the projected investment and interest income over the remaining lifetime of the Pioneer Generation Fund and Merdeka Generation Fund, respectively; (b) whether the sum total of the projected investment and interest income and current fund balances are currently projected to exceed the estimated liabilities of both funds; and (c) whether these figures can be published in the Government Financial Statements annually and, if not, why not.
Mr Chee Hong Tat: The Government reviews the estimated liabilities and the utilisation trends of the Pioneer Generation (PG) and Merdeka Generation (MG) Funds to ensure the sufficiency of the Funds. Due to the long-term nature of the Funds, we do not seek to exactly match liabilities each year, but will top up these Funds, where necessary, to honour the commitments to our PG and MG seniors. As at 31 March 2024, the estimated liabilities of the PG Fund and MG Fund are $6.11 billion and $5.78 billion respectively. The fund balances of the PG Fund and MG Fund are at $5.52 billion and $5.55 billion respectively.
The rate of return of the PG and MG Funds is pegged to the weighted average tenor of the monies in the respective funds. This information is published in the annual financial statements of the PG and MG Funds. The dollar value of the projected investment and interest income of the PG and MG Funds, over their remaining lifetimes, are not published as they are dependent on the utilisation of the funds and the remaining fund balances.