Chee Hong Tat on allocating part of GIC’s investments to locally listed companies
The Government will continue to find ways to improve the attractiveness of the local equity market, but directing GIC to invest in locally listed companies is not the solution. Second Minister for Finance Chee Hong Tat said this in Parliament on Tuesday (Jul 2) in response to an MP’s question. Mr Chee said doing so would compromise the objectives of setting up GIC, which are to preserve and enhance the international purchasing power of Singapore's reserves. This means GIC must make professional investment decisions that aim to achieve good long-term returns for Singapore. To preserve the international purchasing power of the reserves, especially for crisis needs, GIC also invests in a globally diversified portfolio. Mr Chee told the House that a more sustainable way to develop the local equity market is to have a pipeline of good companies to list on the Singapore Exchange (SGX). To that end, the Government is continuing to groom and develop local companies, such as by establishing funds to support growth enterprises and prepare them for IPOs in Singapore, as well as supporting companies listed on SGX to grow and expand abroad so that they become more attractive to global investors.
The Government will continue to find ways to improve the attractiveness of the local equity market, but directing GIC to invest in locally listed companies is not the solution. Second Minister for Finance Chee Hong Tat said this in Parliament on Tuesday (Jul 2) in response to an MP’s question. Mr Chee said doing so would compromise the objectives of setting up GIC, which are to preserve and enhance the international purchasing power of Singapore's reserves. This means GIC must make professional investment decisions that aim to achieve good long-term returns for Singapore. To preserve the international purchasing power of the reserves, especially for crisis needs, GIC also invests in a globally diversified portfolio. Mr Chee told the House that a more sustainable way to develop the local equity market is to have a pipeline of good companies to list on the Singapore Exchange (SGX). To that end, the Government is continuing to groom and develop local companies, such as by establishing funds to support growth enterprises and prepare them for IPOs in Singapore, as well as supporting companies listed on SGX to grow and expand abroad so that they become more attractive to global investors.