Valuation of Unlisted Assets in GIC and Temasek Holdings

Parliamentary Question by Mr Leon Perera:

To ask the Minister for Finance (a) whether the valuation of unlisted assets in the portfolios of GIC and Temasek is taken into account when the Government reviews the overall risks of its whole portfolio of assets; and (b) if so, what approaches are taken by the Government to ensure that unlisted assets are valued realistically by GIC and Temasek at the time of injection and in each subsequent year. 

Parliamentary Reply by Second Minister for Finance Mr Lawrence Wong:

In reviewing the overall risks of the Government’s portfolio, the Government does take into account the valuation of unlisted assets in GIC and Temasek.

These unlisted assets include private equity, infrastructure, and real estate.  They are valued at the time of investment, and then regularly updated.  Both GIC and Temasek adopt valuation methods that are in line with industry practices and in accordance with international accounting standards.  This includes independent valuation from a valuation firm and testing for any potential impairment. 

In addition, the entities are subject to an annual independent audit. As part of the audit, their auditors assess the reasonableness of the methodology used to value the entities’ assets, including unlisted assets.  To date, the auditors have not raised any issues about GIC and Temasek’s valuation practices.