GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION (Disclosure of annual accounts)

Mr J. B. Jeyaretnam asked the Senior Minister if he will explain his recent statement that it is not in the people's interests to disclose to the electorate the annual accounts of the Government of Singapore Investment Corporation when they are the ultimate shareholders.

BG Lee Hsien Loong (for the Senior Minister): Mr Speaker, Sir, the Senior Minister said, in an interview with the Asian Wall Street Journal, that "We are managing over US$100 billion. The assets have steadily increased in value over the years. The returns are adequate. We are a special investment fund. The ultimate shareholders are the electorate. It is not in the people's interests and the nation's interests to detail our assets and their yearly returns. The accounts of GIC are checked by the Accountant-General, Auditor-General and examined by the Council of Presidential Advisors. There is total accountability."

There are proper control and monitoring systems in place for reserves managed by GIC.

Moreover, the reserves of the Government, including reserves managed by GIC, are an important factor in maintaining confidence in the Singapore dollar. They enable MAS to manage and stabilise the Singapore dollar against other currencies, and discourage market players from attacking the currency. Market players do not doubt that the Government has substantial resources to defend the Singapore dollar. But they do not know the exact amounts that we have invested abroad and in what assets. Publishing this information would make it easier for would-be speculators to assess their chances and plan their attacks. And this is not in the public interest.

Mr Jeyaretnam: First of all, may I ask why is the Senior Minister not here? After all, it is his statement, and it is for him to defend his statement in this House. But I suppose I cannot compel him to come here. Having said that, if you accept, as he accepted, that the shareholders are the electorate, that accountability must be to them. Do you accept that the Government is accountable to the shareholders, and not just the Accountant-General, Auditor-General, or to somebody else, but to the shareholders?

BG Lee Hsien Loong: Mr Speaker, Sir, we operate not direct democracy in a fashion of Asian ways.

Mr Jeyaretnam: What is "not direct democracy"?

BG Lee Hsien Loong: We operate a representative democracy in which the people elect the Government and the Government governs on behalf of the people. And here, the Government has decided that, as a matter of policy, the reserves are a matter which is best not published and discussed every year, and we have good reasons for that, which I have given.

Mr Jeyaretnam: Do I then take it that the Deputy Prime Minister is admitting in this House that the Government is behaving in a totally undemocractic way in not accounting to the shareholders?

BG Lee Hsien Loong: Mr Speaker, Sir, I have just explained that we are a representative democracy. The Government governs as it judges wise and best, and it has to stand up and defend its judgement. It does not stand up and say, "Here are all the things, here are all the data, here are my national secrets, here are my defence secrets, here are my foreign policy moves, and here are my inner most reserves." No government in the world does that.