INVESTMENTS OF THE GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD

Mr J.B. Jeyaretnam asked the Minister for Finance whether he will: (i) outline the overall investment policy of the Government of Singapore Investment Corporation Pte Ltd; (ii) state the percentages of funds invested abroad and locally; and (iii) of the funds invested abroad, name the countries where they are invested and the dates of the investments.

Dr Hu Tsu Tau: (i) Overall Investment Policy of the Government of Singapore Investment Corporation Pte. Ltd (GIC)

The primary objective of GIC is to maximise the real rate of return on the assets under management, consistent with the need to ensure safety of principal and liquidity. The investment orientation is long term and capital appreciation is given priority over current income. As an important element in risk control, investments are to be diversified by asset classes, countries and currencies.

(ii) Percentage of Funds Invested Abroad and Locally

All the funds under GIC's management are invested abroad.

(iii) Countries and Dates of Investment

Since its inception in May 1981, the bulk of GIC's assets have been held in the United States, Japan and West Germany. (As at 30 September 1985, 93.6% of GIC's assets are in these three countries). The balance of assets are distributed amongst a number of other countries and this distribution changes from time to time, depending on judgements on the yields from these investments.