Implication of Pound's Recent Decline on Government's Foreign Asset Holdings

Parliamentary Question by Mr Saktiandi Supaat:

To ask the Deputy Prime Minister and Minister for Finance in light of the recent collapse in the pound sterling and surge in the United Kingdom’s (UK) borrowing costs (a) what proportion of Singapore’s foreign asset holdings is exposed to UK gilts and pension-linked funds; and (b) whether our agencies have sufficiently diversified their UK-linked assets and pound holdings.

Parliamentary Reply by Senior Minister of State, Mr Chee Hong Tat:

1. The Government assesses the performance of our investment entities on an overall portfolio basis over the long term, rather than that of specific investments in the short term. The Government’s mandate to our investment entities is to achieve good, long-term returns, and we do not influence their specific investment decisions and exposures.

2. Our investment entities’ portfolios may be impacted by changes in the operating environment from time to time. They are monitoring the situation in the UK closely, just as they monitor the situations in other countries they invest in. To manage investment risks, our investment entities have globally diversified portfolios, with investment exposures across geographies, asset classes, and sectors. More information can be found in their annual reports.