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How does the President of Singapore safeguard its national reserves?
Singapore's President was granted custodial powers to protect the nation's past reserves in 1991.
SINGAPORE — How does the President of Singapore protect the nation's past reserves (reserves which were not accumulated during the present term of government), and what is the scope of power that he or she can exercise in order to carry out this crucial responsibility?
When Singapore amended its constitution in 1991, the role of the President – which had until then been largely symbolic and ceremonial – was expanded to include some discretionary powers, particularly in matters concerning the use of the nation's past reserves.
This meant that the President now has a custodial role with some executive powers over the government.
As guardian of the nation's past reserves, the President will also have oversight of the reserves of key statutory boards and government companies listed in the fifth schedule under the constitution. The fifth schedule entities include GIC, Temasek Holdings, the Housing and Development Board (HDB), the Monetary Authority of Singapore (MAS), Central Provident Fund Board (CPFB) and Jurong Town Corporation (JTC).
Here are the key functions of the President in helping to safeguard the nation's past reserves and that of the fifth schedule entities:
1. Approval of budgets and expenditure
The President has the authority to veto any budget or specific transaction – such as the giving of guarantees or raising of loans – if he or she is of the opinion that the budgets or transactions are likely to draw from the country's or entities' reserves. The government can only draw on past reserves with the approval of the President.
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2. Approval of appointment and removal of key positions
The President has veto power over the appointment and removal of board members or directors in the fifth schedule entities and key public officers, such as the Chief Justice, Accountant-General and Auditor-General.
Council of Presidential Advisers (CPA)
When exercising custodial powers related to all fiscal and appointment-related matters, the President must consult the Council of Presidential Advisers (CPA). Under the constitution, the CPA is mandated to provide independent advice on matters related to the reserves.
The CPA consists of 10 members – four appointed at the discretion of the President, and the others appointed by the President under the advice of the prime minister, chief justice, and the chairman of the Public Service Commission. The CPA, whose proceedings are private, help to ensure that the President's decisions are well-informed and based on a thorough understanding of the economic and financial implications.
If the President exercises a veto contrary to the recommendation of the CPA, Parliament can vote to overrule the President. A motion to overrule the President must be supported by no less than two-thirds of the total number of Members of Parliament (MPs) (excluding nominated MPs).
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