Parliamentary Replies
Published Date: 21 July 2008

Reply to PQ on GIC's Investment Into UBS

Question No. 1
Order Paper No. 52 of 2008
For Written Answer

Date: For Parliament Sitting on 21 July 2008

Name and Constituency of Member of Parliament
Mr Siew Kum Hong, Nominated Member

Q1: To ask the Senior Minister whether the ongoing investigations in the US into allegations that UBS’ private bank helped clients evade taxes and that UBS had defrauded its clients who had purchased auction rate securities have any implications for the investment by the Government of Singapore Investment Corporation in UBS and for Singapore’s aspiration to be a global financial centre and a private banking hub.

Mr Tharman Shanmugaratnam, Minister for Finance:

1. Singapore's success as an international financial centre is built on a track record and reputation for integrity, high standards of financial regulation and rigorous supervision and strict enforcement.  MAS requires all financial institutions operating in Singapore to abide by the relevant laws and regulations in Singapore and their home jurisdiction.

2. The investment in UBS has nothing to do with our effort in building Singapore as an international financial centre.  This investment is made by GIC and Government does not influence or intervene in GIC’s specific investment decisions.  GIC makes these decisions on its own, and has explained the reasons for its investments in UBS.