In a commentary, SMU School of Economics Associate Dean and Professor of Economics Hoon Hian Teck explained why, in the current circumstances, CPF-style social security systems generally work better than systems that are fully funded by the government. Prof Hoon added that the CPF system has important macroeconomic effects. Together with a generally prudent fiscal policy over the years, Singapore has built up a net creditor position relative to the rest of the world. Its strong reserves position gives it an advantage during international financial crises. He concluded by saying that the Government can absorb the risk of investing CPF funds because of its greater financial depth and capacity to tax. But the provision of adequate funds to finance an ageing population of Singaporeans depends more fundamentally on the ability of the country to maintain its economic dynamism, as the economy transits from an era of catch-up growth to being a mature economy.