The Economy of Singapore
Temasek and GIC: The State as Investor
Two state investment firms manage huge portfolios at home and abroad, and are among the world's most-watched sovereign investors.
The state holds wealth on behalf of citizens.
Temasek
Set up in 1974, it holds stakes in major Singapore companies and invests globally.
GIC
Founded in 1981, it invests the country’s foreign reserves for long-term returns.
Budget link
A portion of investment returns supports the national budget under a rule that limits spending.
Governance
Both are commercially run, though questions of transparency arise.
Returns for the budget
Investment income helps pay for public services without heavier taxes.
Assuming state investors are always safe
Their portfolios rise and fall with markets.
Key takeaways
- Temasek and GIC are state investors.
- They hold large global portfolios.
- Returns help the budget.
- Transparency questions exist.
No recording for this one yet - EconReader can read it aloud for you.