Singapore’s sovereign wealth fund GIC has announced its 20-year annualised real rate of return of 4.6% — an improvement from the 4.2% the year before. GIC said its diversified portfolio and cautious investment stance helped tide it through persistent inflation and geopolitical uncertainties. To hedge against rising prices, GIC increased its holdings of real estate to 13% from 10% the year before. Economist Song Seng Wun shared more about GIC’s results, in comparison with Temasek’s and the Monetary Authority of Singapore’s.
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As global economies face increasing headwinds due to the ongoing pandemic, investing in infrastructure and real estate has emerged as a viable solution for many countries to stimulate economic growth. Sovereign wealth funds, such as Singapore’s GIC (Government Investment Corporation), are recognizing the long-term benefits of allocating more resources to these sectors.
Infrastructure and real estate investments have historically proven to be resilient and stable, even during times of economic uncertainty. These sectors provide essential services and assets that are in demand regardless of market conditions. As the world starts to recover from the impact of the pandemic, the need for well-built infrastructure and safe housing becomes even more apparent.
GIC, with its vast experience and expertise in managing global investments, understands the potential gains that can be made by prioritizing infrastructure and real estate. The corporation has already been actively investing in these sectors, recognizing the opportunities they provide for long-term growth and stable returns.
Investing in infrastructure has a dual advantage: it boosts economic activity and creates jobs, while also providing necessary facilities for the future. The development of transportation networks, communication systems, and energy infrastructure not only facilitates trade and connectivity but also sets the stage for future growth. GIC’s increased investment in infrastructure can help drive economic activity in Singapore and beyond, laying the foundation for robust economic recovery.
Similarly, investing in real estate can have a positive ripple effect on the economy. The demand for housing, both residential and commercial, persists regardless of economic fluctuations. By allocating more resources to the real estate sector, GIC can help create a stable housing market, driving construction activity and employment opportunities. Moreover, well-managed real estate investments generate rental income and capital appreciation, contributing to GIC’s long-term returns.
Furthermore, infrastructure and real estate investments align with GIC’s commitment to sustainable growth and responsible investing. The corporation has been actively pursuing environmental, social, and governance (ESG) initiatives, recognizing the importance of building a sustainable future. Investing in green infrastructure projects, energy-efficient buildings, and sustainable urban development can not only provide attractive returns but also contribute to a cleaner and more sustainable world.
As GIC increases its investments in infrastructure and real estate, it is crucial for the corporation to adopt a strategic and diversified approach. While these sectors offer tremendous potential, careful evaluation of each investment opportunity is essential. GIC’s extensive global network, deep industry knowledge, and rigorous due diligence process enable it to make informed investment decisions that will benefit the corporation, its stakeholders, and the broader economy.
In conclusion, as the world faces economic headwinds, investing in infrastructure and real estate emerges as a countermeasure to stimulate growth. GIC’s decision to allocate more resources to these sectors showcases its understanding of the long-term benefits they offer. By investing in infrastructure, GIC can drive economic activity and lay the groundwork for future growth. Simultaneously, investing in real estate can create stability in the housing market, generate income and appreciation, and contribute to sustainable development. As GIC continues to prioritize these sectors, it will play a critical role in fueling economic recovery and building a resilient future.
Hats off to GIC for boosting the economy
90%+ of Electricity Generated Still NOT GREEN
NO Investment ?
All the Talk About Going GREEN
HOW Much has GIC LOSS to date ?
With reference to CECA and FTs can we trust this government
My simple advice to gic, glc and temasek is get our tax payer money out of prc now.
HDB BTO HDB BTO HDB BTO HDB BTO HDB BTO
CASINOS CASINOS CASINOS CASINOS CASINOS
CPF CPF CPF CPF CPF
It is dangerous because, in a time where financial scandals can bring down giants in the industry, and with no political accountability in the system, those who are responsible for such losses remain at the helm, and indeed seem to enjoy the support of those in government.
Singaporeans must realize that it is dangerous for an organizations such as Temasek and the GISC to be in charge of half a trillion dollars of their money, make huge losses and remain secretive.
So, where do we go from here? Singaporeans seem powerless to hold Temasek, and for that matter, the GISC as well, to account. Our Members of Parliament too are either inept in questioning the government or are just as helpless. The mainstream media, being a state-controlled propaganda apparatus, cannot be counted on to provide any meaningful role in this.
Temasek Holdings seems to be caught in a cycle of bad and inept decision making. In a country which brooks no failure, it is a wonder that despite the failings of the past few years, no one – at all – in the sovereign wealth fund has been held responsible.
The idea that Mr Heng Swee Keat helped Singapore's economy "come through safely" from disaster during the 2008 financial is but a fairy-tale. The GIC and Temasek Holdings were on the brink of losing hundreds of billions of dollars invested in Western banks
While the biggest and most profitable Norwegian’s fund is only paying its CEO $1.1M; how much we are paying the CEO (wife) and the husband (Chairman)?
Why state secret?
PAP wants to wipe out competition in parliament.
Astronomical bonuses in parliament for ministers and also astronomical salary and bonuses at Temasek/GIC.
GIC losses in UBS
The GIC's loss of nearly $6 billion this year in its investment in UBS despite the SDP's repeated warningsabout the problems with the Swiss bank, and the subsequent refusal of the Government to account for the loss.