SINGAPORE : Acting Second Minister for Finance, Raymond Lim, has refuted MPs' claims that Temasek Holdings uses Singapore's reserves to fuel overseas expansion.
Speaking in Parliament on Wednesday, he said: "It is not the government's policy to inject Singapore's surpluses into Temasek."
Mr Lim also assured the House that the government is committed to keeping public spending down - public spending here is at about 17 percent compared to the OECD average of 30 to 40 percent of GDP.
He added that investment income from Singapore's reserves have given the country latitude and space to lower taxes aggressively and also meet spending needs.
He said: "It is not the government's policy to inject surpluses into Temasek to invest abroad. Temasek's expansion abroad has not been fuelled by an injection of government funds. In fact on a net basis, Temasek injects, in the form of dividends, funds to the government each year."
He also said the government is determined to ensure there are funds for start-ups.
He refuted Bukit Timah MP Wang Kai Yuen's comments that Government-linked companies crowd out local companies.
He said: "It is not an ownership issue - but an issue of size. The GLCs within the domestic market are big and provide strong competition to the SMEs. If today we were to change the ownership for the GLCs - the competition for the SMEs will still remain - the larger issue in today's context - is whether you are a GLC or an SME - the competition you face is not just local not just regional but global."
Mr Lim also agreed with MPs who feel it is not the business of statutory boards to generate surpluses for the government.
He said the government is committed to lowering the tax burden on businesses. - CNA