We are known that sometimes politicians have to say stupid things to talk things up. This happen the world over and it seems Singapore's politicians are no different.
That’s the only reason I can think of for our Junior Minister for Finance, Mr. Lim Hwee Hua, to say that Singapore national reserves will not be depleted by the losses suffered by Singapore’s two sovereign wealth funds, Temasek and GIC (Government of Singapore Investment Corp).
As I had said before, Temasek Holdings and GIC have been badly hit by the global credit crisis and losses have been made by both. Investments in global banks such as Merrill Lynch, UBS and Citigroup have all soured and things are so bad that Temasek CEO Ho Ching, who happens to be the wife of Singapore's Prime Minister Lee Hsien Loong, has to step down from her post. In Singapore dollars term, Temasek has loss about $58 billion already.
So to say that Singapore national reserve will not be depleted by the losses suffered by Temasek and GIC is plain stupid especially when everyone knows that the kitty of Singapore’s two sovereign wealth funds is from the national reserve.
Singapore has been badly hurt by the credit crisis and the losses of both Temasek Holdings and GIC. Those are facts. As such, it stands to reason that our national reserves will be hit as well. For a Minister for Finance (even a junior one) to say otherwise is crazy.