Although the government had made it very clear years ago that GIC invests in only foreign assets, there appears to be a change of heart recently.
‘No better player’ than GIC to help revitalise fortunes of Singapore stock market: observers
This suggestion is not new; the MOF was studying the recommendation … 8 years ago.
bt_call-for-gic-to-invest-cpf-in-local-stocks-stirs-debate_080116.pdf (nus.edu.sg)
The issue with low valuations cannot be resolved by any investor throwing additional billions at the stock market. Low valuations could be due to corporate governance issues, highlighted frequently by Professor Mak Yuen Teen.
Investor protection has not improved in Singapore: Mak Yuen Teen (businesstimes.com.sg)
The government should tackle this and other issues head on, instead of engaging in the manipulation of stock prices.
BT: “MORE than two decades after the Singapore stock exchange was corporatised and listed as the Singapore Exchange in 1999, investor protection in the financial hub remains low, said corporate governance advocate Professor Mak Yuen Teen.”
Judging from Temasek’s poor track record at picking SGX-listed stocks, the involvement of GIC may mean doubling of our reserves losses. In GIC’s case, CPF monies will be lost.
Below are some of Temasek’s recent investments:
AEM Holdings
Nanofilm Technologies
Mindchamps Preschool
GIC’s participation is likely to provide only a temporary boost to valuations, akin to manipulation.
Should its performance mirror Temasek’s, this will mean doubling state reserves losses, including CPF monies.
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