GOVERNANCE OF INVESTMENT ENTITIES
The Deputy Prime Minister said that the Government does not prescribe guidelines on the allocation of specific assets or asset classes, including cryptocurrencies.
This applies to statutory boards as well as the three investment entities managing whole-of-Government assets, namely Temasek, GIC and the Monetary Authority of Singapore (MAS).
For the investment entities, the Government sets out risk tolerance limits, monitors for appropriate diversification in asset classes, sectors and geographies, and ensures that downside risks are not excessive.
The Government also does not prescribe an exclusion list for specific assets, but expects the entities to incorporate environmental, social and governance considerations into their investment processes, said Mr Wong.
“Ultimately, the Government holds the boards and management teams responsible for formulating investment strategies in accordance with the Government’s overall risk tolerance,” said Mr Wong.
He added that governance structures currently in place for Temasek and GIC are already “more extensive than those of a typical company”.
Mr Wong said Temasek, an investment holding company, is audited by commercial auditors, while GIC, which manages public funds, is audited by the Auditor-General.
The budgets and key appointments of both are also subject to the President’s oversight, and the Ministry of Finance will respond to parliamentary questions about the performance of the entities, he added.
“There is therefore no need for additional audit requirements or parliamentary committees. Instead, we should insulate the boards from political pressures,” said Mr Wong.
“Let them do their work, carry out their responsibilities, and fulfil their investment mandates commercially and professionally.”
He added that the Government evaluates the entities based on their long-term performance, and their track records show that they have performed “creditably, even in challenging environments”.
