Singaporeans have been told by the PAP government that GIC and Temasek won’t take more risks to help fund govt spending. link
It appears either our ministers do not know the definition of ‘risks’ or they are spouting half-truths to fool citizens.
Singaporeans should be deeply concerned about Temasek’s exposure to China which has increased from 23% in FY2013 to 27% in FY2015.
China is no ordinary country: it is a country where corruption is especially rampant. The severity of corruption has been acknowledged by President Xi who said: “Corruption could lead to the collapse of the Party [Communist Party of China] and the downfall of the State [People’s
Republic of China].”
PAP seems to have underestimated the risks of investing in an extremely corrupt country by allowing Temasek to hold 27% of its $266 billion portfolio in Chinese assets.
Corruption in China has taken a turn for the worse: China’s ranking by Transparency International fell from 80th position in 2013 to 100th last year.
Does Temasek fully understand corruption in the real world? How does Temasek ensure that its Chinese employees are not in cahoots with their fellow citizens, helping themselves to billions from our reserves?
Since the Chinese government still has no control over corruption after decades, it is foolish for Temasek to assume it has.
Perhaps both non transparent governments understand each other very well?
The other country which has been receiving an increasing amount of our reserves is India. At number 85, its level of corruption should also be of concern to Temasek.
While China and India cannot be excluded from Temasek’s portfolio, Temasek should rebalance its portofolio to reduce its risk. If there are really no worthwhile investments in other developed countries, shouldn’t PAP invest in Singaporeans?
Investing in corrupt countries carries high risks but Singaporeans have been told otherwise by PAP. Have we all been hoodwinked? It’s about time parliament stops snoozing on our risky Chinese investments.