- Singapore rejects GIC’s local investment.
- Government prioritizes global focus for wealth fund.
- Plans alternative strategies to boost domestic market.
No local love from sovereign wealth fund
Singapore’s government has rebuffed calls to direct its sovereign wealth fund, GIC, towards investing in locally listed companies.
Chee Hong Tat, the country’s second minister for finance, stated that such a move would compromise GIC’s mandate to preserve and enhance Singapore’s international purchasing power.
Global gains vs. home turf Boost
The debate resurfaces amid suggestions from industry players to allocate part of GIC’s investments to securities listed on the Singapore Exchange (SGX).
This proposal aims to revitalize the local bourse, following similar strategies employed by Japan and Australia. However, Chee emphasized that GIC must continue making professional investment decisions without government interference.
Instead of relying on GIC, the government plans to foster a more vibrant equity market by grooming local companies and helping SGX-listed firms expand globally.
Chee highlighted Singapore’s strengths in foreign exchange and bond listings, acknowledging the need for growth in the equity segment.
The government remains open to new ideas, working closely with industry stakeholders to bolster Singapore’s position as a premier financial center.
To read the original article: https://www.techinasia.com/investing-gic-funds-not-solution-sg-equity-market-attractive-minister
