Transport Minister Chee Hong Tat's Stance on GIC Investment

In a recent statement, Transport Minister Chee Hong Tat addressed the suggestion of directing the Singapore sovereign wealth fund GIC to invest in locally-listed firms as a means to boost the local equity market. Minister Chee emphasized that such a strategy would not align with GIC's objectives and would not be advantageous for Singapore and its citizens. The government is actively seeking sustainable solutions to address this issue.

GIC, responsible for managing Singapore's reserves, traditionally avoids investing in Singapore-listed assets. While industry experts have proposed diversifying GIC's portfolio to include the local market, the government is cautious about deviating from GIC's primary goal of safeguarding and growing Singapore's reserves for long-term financial stability.

Instead of mandating GIC to invest locally, the government is focusing on initiatives to nurture a pipeline of robust companies for listing on the Singapore Exchange (SGX). Programs like the Anchor Fund @ 65 have been launched to support emerging enterprises and prepare them for IPOs on the SGX. Furthermore, various schemes are in place to aid SGX-listed companies in expanding globally and attracting international investors.

Minister Chee stressed the importance of collaboration between the government and industry stakeholders to strengthen the local stock market while maintaining Singapore's reputation as a premier financial center. The government remains receptive to innovative ideas and measures to foster business growth and enhance the equity market.

The Singapore government's commitment to partnering with industry players to fortify the local stock market underscores its dedication to preserving Singapore's position as a leading financial hub. Minister Chee's emphasis on sustainable strategies highlights the government's long-term vision for the prosperity of Singapore's financial sector.