Senior Minister Jeffrey Siow stated that the government finds the returns from GIC and Temasek reasonable and in line with their mandates and risk profiles. The government will regularly review their mandates and performance, adapting to changes in the global economic and investment landscape.
Government’s Assessment of GIC and Tomasics
The government evaluates GIC and Tomasics’ performance based on their specific mandates and risk profiles, rather than comparing them to other funds. The focus remains on their long-term performance, avoiding emphasis on short-term or yearly fluctuations. GIC, as the government’s fund manager, aims to preserve and enhance the international purchasing power of its managed assets.
Performance Evaluation and Market Challenges
The government believes that the returns from GIC and Tomasics are reasonable and align with expectations given their mandates and risk levels. Regular reviews are planned to adapt to changes in the global economic and investment environment. Due to market volatility, GIC’s returns over shorter periods may fluctuate or turn negative.
Financial Stability and Risk Absorption
Despite short-term market risks, the government can absorb fluctuations thanks to its strong balance sheet and substantial net assets. This financial cushion ensures the government can meet its obligations, maintaining a robust fiscal position even amid uncertain investment conditions.
