NATIONAL RESERVES (Particulars)

Mr Yeo Toon Chia asked the Minister for Finance (a) what is the amount of Singapore's national reserves as at 31st December 1985; (b) what types of investments are the reserves put in; and (c) what were the returns from these investments for the past five years.

The Minister for Finance (Dr Hu Tsu Tau): Mr Speaker, Sir, Singapore's official foreign reserves on 31st December 1985, was S$27,080.1 million.

The reserves are invested in a diversified mix of asset classes, countries and currencies. The main assets would include gold, cash, Treasury bills and Government bonds. The distribution changes from time to time, depending on the expected yields of the various investment instruments.

It is not Government's policy to disclose the returns earned on the investments of our national reserves. Most countries have the same policy of not disclosing the returns on their reserves.

Mr Jeyaretnam: Would the Minister explain what is the reason for not disclosing the returns?

Dr Hu Tsu Tau: It is not customary practice.

Mr Jeyaretnam: Are there any reasons for it?

Dr Hu Tsu Tau: I understand the implication of what the Member for Anson says. This is his common practice. If he has any implication, I suggest he says it out loud.

Mr Jeyaretnam: What are the reasons?

Dr Hu Tsu Tau: There are no reasons that I need give you. If there are any aspersions you want to cast, I would like to hear them before I answer you.

Mr Jeyaretnam: I think that if the reserves belong to the people -

Mr Speaker: Your supplementary question, Mr Jeyaretnam.

Mr Jeyaretnam: - should they not be told what the returns are? This is my supplementary question.

Mr Speaker: Yes, carry on.

Mr Jeyaretnam: Should not the people be told what they are getting on their reserves? Does the Minister realize that it is a weak answer to say "it is the practice". The practice may be all wrong. And if it is wrong, does he not realize it should be discontinued?

Dr Hu Tsu Tau: Mr Speaker, Sir, we have absolutely nothing to hide. I can assure the Member for Anson that, in fact the returns on our assets are more than adequate and up to international standards. I am merely refusing to say anything because I want him to come out and say exactly what he means.

Mr Jeyaretnam: Why do you not disclose them?

Mr Yeo Toon Chia (Ang Mo Kio): May I know from the Minister whether we have invested some of our reserves in the Japanese Yen?

Dr Hu Tsu Tau: A significant proportion, Sir.

Mr Chiam See Tong: What percentage of these investments is abroad and what is the percentage locally?

Dr Hu Tsu Tau: By the nature of the reserves which are held by the Board of Currency Commissioners and by the MAS, they are entirely abroad.

Dr Augustine H.H. Tan (Whampoa): Would the Minister inform this House whether there are investments in stocks and in properties as well?

Dr Hu Tsu Tau: The properties and stocks are held by the GSIC, which exclude the reserves we are talking about here.