STATUS OF FOREIGN RESERVES

Dr Lily Neo asked the Minister for Finance if he will indicate the present status of our foreign reserves and a summary of the resultant effect on them arising from the economic turmoil and currency crisis.

Dr Richard Hu Tsu Tau: Nothwithstanding the Asian economic crisis, and the turmoil in world financial markets, our reserves are earning satisfactory returns. This is because our foreign reserves are well diversified in terms of currency distribution, and asset classes such as bonds, equities and cash. Moreover, the bulk of our reserves are invested in the G-7 countries.