SINGAPORE - The Ministry of Finance (MOF) has revealed the sources of the $5 billion in fresh funds that it injected into Temasek Holdings in its latest financial year.
The additional capital came from proceeds from the Singapore Government Securities (SGS), as well as government budget surpluses and the proceeds from government land sales in Singapore, the Ministry told The Straits Times on Wednesday in response to queries.
The SGS are bonds that the Government issues to develop the domestic debt market, and are traded in public markets.
Temasek had disclosed on Tuesday that it received a $5 billion capital injection from the Finance Ministry during its latest financial year ended March 31. In the past 10 years, the Government has injected capital into Temasek only a few times.
The Ministry, which is Temasek's sole shareholder, also told The Straits Times that the capital injection did not include proceeds from the Special Singapore Government Securities (SSGS), which are instruments that the Central Provident Fund (CPF) Board uses to invest Singaporeans' CPF savings.
In other words, Temasek does not manage any CPF monies, an MOF spokesperson reiterated.
"As shareholder in Temasek, the Government injects capital into the company taking into account the long term, risk-adjusted returns that it can be expected to make," the spokesperson said.