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Parliamentary Replies

GIC and Temasek Holdings' Investments in Haze-Linked Companies

28 Jan 2016

Parliamentary Question by Mr Leon Perera:

To ask the Minister for Finance (a) whether the Government monitors if GIC and Temasek Holdings (TH) have investments in haze-linked companies; (b) if so, how much are the total investments of GIC and TH in these companies; and (c) how will GIC and TH ensure that their investment monies do not support haze activities. 

Reply by Minister for Finance Heng Swee Keat:

The individual investments of GIC and Temasek are the responsibility of their respective management teams, while the Government monitors the performance of their overall portfolio. GIC and Temasek operate on a purely commercial basis in order to maximise long-term risk-adjusted returns, and the individual investment decisions are fully independent of any Government interference or influence. This is an important governance principle that we seek to maintain.

2. The investment activities of GIC and Temasek are oriented towards generating long-term returns on a sustainable basis. Investing in companies with environmentally unsustainable practices could negatively impact the commercial value of the investments over the long term. 

3. Temasek has stated[1] that it fully supports zero-burning policies for land clearance, and would urge palm oil companies and plantation owners to do the same. GIC has also informed the Government that the palm oil companies in Indonesia that GIC invests in have confirmed that they observe zero-burning policies for their plantations. GIC’s investment teams engage actively with the companies’ management and highlight that such responsible actions are important for maintaining the long-term value of the companies.


[1] Temasek takes concrete action for the well-being of our communities, Lianhe Zaobao, 28 September 2015. Available at