International Business & Economy How can anyone trust GIC to manage CPF when it can't even...

How can anyone trust GIC to manage CPF when it can’t even grasp significance of Brexit?




- Advertisement -

By: Phillip Ang

GIC’s comments on “GIC’s UK property exposure faces test after Brexit shock” has confirmed it is unfit to manage our CPF.

According to the Sovereign Wealth Fund Institute, GIC:
– manages US$344 billion in assets (S$300 billion CPF/S$160 billion govt reserves)
– size of UK portfolio estimated to be US$24 billion.

GIC has also been aggressively snapping up property post 2008, especially in UK, while our investments have taken an average 25% forex hit in the last decade.

- Advertisement -

At 25% of US$24 billion, we are talking about US$6 billion in forex losses. Even if this is not the exact figure, it’s still losses in the billions!

And along comes this GIC chief economist, Dr Leslie Teo, with his Brexit-no-big-deal-la pearls of wisdom.

So when markets start to “push things down”, what will happen to our existing investments while we look for opportunities? Just ignore them?

Perhaps his “modestly long horizon” is similar to LKY’s 20 to 30 years. Or Tony Tan’s “for many years to come”?

Talk is cheap when GIC directors are not putting their money where their mouth is. Anyway they should not even bother since GIC has an endless stream of funds from our reserves and CPF. Rain or shine, their million dollar salaries and bonuses are assured. And so will more talking cock be assured.

Long term = higher risks = higher interest rates. If the elites can’t even predict what will happenin 2 to 3 years, how the hell are they to predict something that’s 20 to 30 years down the road? So CPF members should cease believing in rubbish spouted by the elites including Mr Chief Economist.

What our jiak-liao-bee elites want us to believe is this: what goes down must eventually come up. And they deliberately ignore the fact that many investments could also go belly up.

Based on historical data, it appears GBP’s depreciation has some way to go, no thanks to Brexit. One thing for certain, our UK investments will be hammered along with the British pound.

A S$1 million investment in UK is worth only $203,000 today.

Can anyone trust GIC to manage S$300 billion of our CPF when it can’t even grasp the economic significance of a historic event like Brexit?

Republished from ‘likedatosocanmeh‘.Follow us on Social Media

Send in your scoops to 

No tags for this post.
- Advertisement -

Cap of 5 people for social gatherings and household visits; Lawrence Wong warns of possibility of another circuit breaker

Singapore -- Octets out, quintets in. Social gatherings will be limited to five people, no more groups of eight. New restrictions are coming into place from May 8 to May 30 to curb the Covid-19 spike in Singapore. The new restrictions will take...

MOH asks hospitals to delay non-urgent surgeries to conserve resources for Covid patients

Singapore— With Covid-19 cases rising, the Ministry of Health (MOH) asked hospitals on Monday (May 3) to delay non-urgent surgeries and give priority to the treatment of Covid patients. In a statement, MOH said it is "working closely with all public and...

5 KTPH staff disciplined for ‘error’ that led to unnecessary treatment of breast cancer patients 

Singapore—Five staff members of Khoo Teck Puat Hospital (KTPH) have been disciplined for a laboratory incident that led to inaccurate test results and unnecessary treatment for some breast cancer patients. The staff members were disciplined for "not adequately performing their duties and...
Follow us on Social Media

Send in your scoops to 

No tags for this post.