DPM Lee's Reply to Parliamentary Question on Progress in Engaging a Private Fund Manager to Manage Public Funds

Issues Raised in Parliament

ANSWER TO PARLIAMENTARY QUESTION ON:
Progress in Engaging a Private Fund Manager to Manage Public Funds

For Parliament Sitting on 11 Feb 1999


Question:

To ask the Deputy Prime Minister what is the progress in engaging a private fund manager to manage public funds.

Answer:

1 The outplacement of public funds to external private fund managers is part of the Government's effort to develop Singapore into a premier asset management hub. It is a catalyst to encourage leading international fund management companies to locate or expand their operations in Singapore. Asset management companies receiving public funds to manage are committed to increasing headcount and funds under management, including non-resident funds, in Singapore. They are also expected to introduce new investment capabilities and activities in Singapore. This will expand the breadth and depth of our asset management industry.

2 In Feb 98, the Government of Singapore Investment Corporation (GIC) announced that it would place out S$25 billion over the next three years to external fund managers who have offices in Singapore. As at end-98, GIC had placed out a total of $16.9 bn to fund management companies with offices in Singapore. Of this amount, $6.8 bn was placed out in 1998 as a whole.

3 In Nov 98, MAS announced that it would place out S$10 billion over the next three years to external fund managers with offices in Singapore. MAS then followed up to meet 36 fund management companies to brief them on details of the outplacement and application procedure. Of the $10 bn, MAS expects to place out $2.5 bn this year.

4 The Government has also encouraged statutory boards and government-linked companies to place out their excess funds to external fund managers. According to an MAS survey of 28 statutory boards and GLCs last year, these statutory boards and GLCs (excluding MAS and GIC) had placed out a total of $4.1 bn as at 30 June 1998 to external fund managers with offices in Singapore.

Last Modified on 26/11/2016