| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: Government investment firms like GIC and Temasek Holdings will not be part of plans to support local firms through co-investment. This was announced by Second Minister for Finance Lim Hwee Hua in parliament on Tuesday.
But she noted that with more small Singapore firms looking overseas, it will be a priority to set up an export-import body to assist cross border finance.
The government is setting aside S$1.5 billion of growth capital to help support local firms through co-investment.
But investment bodies like GIC and Temasek will not be part of the plan.
Mrs Lim said: "For GIC and Temasek, the government's position remains that they should continue to operate on a purely commercial basis in order to provide good long-term gains. Requiring Temasek or GIC to invest so as to fulfil other objectives would distract them from their respective mandates."
The minister was responding to calls by members of parliament for the setting up of a government investment body targeted at Singapore companies.
As for the issue of setting up an export-import type of bank, she said the need is now greater than before given the rapidly changing nature of Singapore's corporate landscape.
Mrs Lim said: "It is the right time to consider this because the number of Singapore companies internationalising has increased and besides large companies, SMEs are internationalising more actively than before."
Members have said that such a bank will help Singapore firms expanding overseas with their financing needs.
Nominated Member of Parliament Teo Siong Seng said: "To expand overseas or take part in overseas projects, SMEs need the necessary financial resources. However financing through traditional banking channels is not forthcoming as SMEs are constrained by their size and lack of collateral."
But Minister Lim also added that an export import bank would need to be kept independent to avoid political interference affecting its function.
As a result, it should remain commercially-run.
Feasibility studies on an EX-IM bank are expected to be complete in a few months. - CNA/vm
|
