Once again, the 4% floor rate is being extended for another year. To understand the background of the SMRA interest rate, in 1 January 2008, savings in the Special, Medisave and Retirement Account (SMRA) were being invested in Special Government Securities (SGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. For the purpose of transition, the minimum interest the SMRA would earn was 4% for two years ending 31 December 2009. However, the floor rate was extended to 31 December 2010 citing ‘economic climate’. Subsequently, it was extended again to 31 December 2011 citing ‘global economic conditions and exceptionally low interest rate environment’. Again, it was extended to 31 December 2012 citing the same reasons. Yesterday, it was announced that the floor 4% will be extended to 31 December 2013 citing the same reasons again. I’ve many questions. Why ...