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Singapore Budget 2014: Govt spending needs won't drive GIC and Temasek's investments

Published on Mar 7, 2014 1:26 PM
 

The Government's spending needs will increase over time, but that should not drive the investment strategies of GIC and Temasek Holdings or lead them to take on higher risks, Senior Minister of State for Finance Mrs Josephine Teo said on Friday.

She was responding to Ang Mo Kio GRC MP Inderjit Singh, who had raised concerns that the Government may be spending too much from its investment returns.

The Net Investment Returns (NIR) framework allows the Goverment to spend up to 50 per cent of the long-term expected real return from the net assets managed by GIC and the Monetary Authority of Singapore.

And so half of the expected real returns are retained in the reserves, Ms Teo noted.

The Government's spending needs will increase over time, but that should not drive the investment strategies of GIC and Temasek Holdings or lead them to take on higher risks, Senior Minister of State for Finance Mrs Josephine Teo said on March 7, 2014. -- ST FILE PHOTO: KUA CHEE SIONG
 
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