Role of GIC is different from economic promotion agencies

Published on LHZB (14 Jan, Forum, Pg 17)

We thank Mr Xie Jun Kai for his views (“Re-assess GIC’s Strategy”, 5 Jan).

We would like to clarify that GIC’s role is to serve as a professional fund manager to achieve good long-term returns on our reserves. To ensure that GIC invests professionally, the Government neither directs nor influences decisions on the individual investments made by GIC. GIC’s management is responsible for making investments in individual companies.

Singaporeans, in turn, benefit from the investment returns of our reserves through the Net Investment Returns framework, which provides additional resources for the budget ($8.1 billion in FY2014). This enables the Government to spend more on long-term investments like education and healthcare.

However, the Government is committed to helping both local and foreign companies to grow and thereby contribute to our economy and wellbeing of Singaporeans. This is achieved through our economic development and industry promotion agencies. Through grant schemes and other development initiatives, economic agencies such as the Economic Development Board, SPRING Singapore and IE Singapore work closely with businesses to upgrade their technology and capabilities, build their brand, and access markets abroad. EDB also works very actively to encourage innovative foreign companies to grow high-value operations here, and create good jobs for Singaporeans.

Lim Yuin Chien (Mr)
Director, Corporate Communications
Ministry of Finance