<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Temasek, GIC losses won't drain reserves
</TR><!-- headline one : end --><TR>They are long-term investors and Govt is confident they will deliver: Lim Hwee Hua </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Mavis Toh
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->The questions came thick and fast, but Senior Minister of State for Finance Lim Hwee Hua responded assuringly (with a CB face?).
Singapore's reserves will not be depleted by losses incurred by Temasek Holdings and the Government of Singapore Investment Corporation (GIC), she said.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Back on track
'We're working very closely with the banks and the Government is taking on greater risks to give assurance to banks. From anecdotal evidence, the lines are flowing again.'
MRS LIM HWEE HUA, Senior Minister of State for Finance
</TD></TR></TBODY></TABLE>Fixed deposits, urged by some, may be safe but will not provide income growth which is crucial to building up reserves.
=> Sure, but if the Papayas and their scholars are worth their salt, they would know when to enter and when to exit from the market!
These and other key issues were addressed by Mrs Lim in a 90-minute dialogue titled 'Youth's Role for Budget 2009' with members of the People's Action Party's (PAP) youth wing yesterday.
Young PAP chairman Teo Ser Luck and vice-chairman Christopher de Souza were present.
In Parliament last week, Mrs Lim revealed that Temasek's net portfolio value dropped 31 per cent between March 31 and Nov 30 last year, from $185 billion to $127 billion.
GIC also saw a decline in the value of its investments last year but the numbers were not disclosed.
[COLOR=_______]Yesterday, Mrs Lim explained that GIC's investment in 'dangerous asset classes' was not a sudden move but a slowly evolving strategy. [/COLOR]
[COLOR=_______]She added: 'Income from reserves is crucial. We cannot have income growth if we just leave the money in fixed deposits.'[/COLOR]
=> If capital is also gone leh?
The key now is to make returns by putting reserves in good long-term positions, using a balanced portfolio to diversify risks, she said.
=> Now? So what have they been doing for the last 12 months when indicators are already showing a major downtrend? SLEEPING? Fcuking around with their awesome bonuses?
She reiterated that the two state-owned companies are long-term investors and the Government is confident they will continue to deliver good long-term returns.
She said both have also weathered similar downturn cycles and come out strong.
In response to a question on banks' reluctance to give loans to businesses, she was confident that 'real evidence of flow' will be seen in the next few weeks.
In last month's Budget, a Special Risk-sharing Initiative, with the Government taking on more of the risk in bridging loans and trade financing, was revealed.
'We're working very closely with the banks and the Government is taking on greater risks to give assurance to banks,' she said. 'From anecdotal evidence, the lines are flowing again.'
On a personal note, she said that she found this year's Budget, her fifth, the most exciting because 'there was no shortage of challenges'.
Singapore's strength is in its adaptable, honest, competent and hard-working people, she said, adding: 'We're better equipped than anyone to cope with this downturn, so don't give up.' [email protected]
</TR><!-- headline one : end --><TR>They are long-term investors and Govt is confident they will deliver: Lim Hwee Hua </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Mavis Toh
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->The questions came thick and fast, but Senior Minister of State for Finance Lim Hwee Hua responded assuringly (with a CB face?).
Singapore's reserves will not be depleted by losses incurred by Temasek Holdings and the Government of Singapore Investment Corporation (GIC), she said.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Back on track
'We're working very closely with the banks and the Government is taking on greater risks to give assurance to banks. From anecdotal evidence, the lines are flowing again.'
MRS LIM HWEE HUA, Senior Minister of State for Finance
</TD></TR></TBODY></TABLE>Fixed deposits, urged by some, may be safe but will not provide income growth which is crucial to building up reserves.
=> Sure, but if the Papayas and their scholars are worth their salt, they would know when to enter and when to exit from the market!
These and other key issues were addressed by Mrs Lim in a 90-minute dialogue titled 'Youth's Role for Budget 2009' with members of the People's Action Party's (PAP) youth wing yesterday.
Young PAP chairman Teo Ser Luck and vice-chairman Christopher de Souza were present.
In Parliament last week, Mrs Lim revealed that Temasek's net portfolio value dropped 31 per cent between March 31 and Nov 30 last year, from $185 billion to $127 billion.
GIC also saw a decline in the value of its investments last year but the numbers were not disclosed.
[COLOR=_______]Yesterday, Mrs Lim explained that GIC's investment in 'dangerous asset classes' was not a sudden move but a slowly evolving strategy. [/COLOR]
[COLOR=_______]She added: 'Income from reserves is crucial. We cannot have income growth if we just leave the money in fixed deposits.'[/COLOR]
=> If capital is also gone leh?
The key now is to make returns by putting reserves in good long-term positions, using a balanced portfolio to diversify risks, she said.
=> Now? So what have they been doing for the last 12 months when indicators are already showing a major downtrend? SLEEPING? Fcuking around with their awesome bonuses?
She reiterated that the two state-owned companies are long-term investors and the Government is confident they will continue to deliver good long-term returns.
She said both have also weathered similar downturn cycles and come out strong.
In response to a question on banks' reluctance to give loans to businesses, she was confident that 'real evidence of flow' will be seen in the next few weeks.
In last month's Budget, a Special Risk-sharing Initiative, with the Government taking on more of the risk in bridging loans and trade financing, was revealed.
'We're working very closely with the banks and the Government is taking on greater risks to give assurance to banks,' she said. 'From anecdotal evidence, the lines are flowing again.'
On a personal note, she said that she found this year's Budget, her fifth, the most exciting because 'there was no shortage of challenges'.
Singapore's strength is in its adaptable, honest, competent and hard-working people, she said, adding: 'We're better equipped than anyone to cope with this downturn, so don't give up.' [email protected]
