Clarification by Minister for National Development
Ministry of National DevelopmentSpeakers
Summary
This clarification concerns a remark made by Minister for National Development Chee Hong Tat during a closed-door dialogue regarding the Workers’ Party’s position on domestic equity investments. Minister for National Development Chee Hong Tat explained that his earlier impression was based on a speech by Mr Louis Chua comparing Singapore's investment approach to Malaysia’s Employees' Provident Fund. Mr Kenneth Tiong clarified that the Workers' Party does not advocate for mandating GIC and Temasek to pump-prime the local market through directed investments. While Mr Kenneth Tiong requested a formal withdrawal of the comments, Minister for National Development Chee Hong Tat noted the remarks were not made in Parliament but at a private event. Ultimately, Minister for National Development Chee Hong Tat concluded that both sides share the same view that GIC and Temasek should not be mandated to invest in local equities for market support.
Transcript
3.40 pm
The Minister for National Development (Mr Chee Hong Tat): Sir, earlier, Mr Kenneth Tiong asked if I could clarify that remark that he mentioned. I believe it was a DBS closed-door dialogue.
I would like to refer to the following excerpts from Hansard, referring to what Mr Louis Chua said at the Committee of Supply earlier this year. This is what Mr Chua said: “On the launch of the $5 billion Equity Market Development Programme, addressing demand issues, it is a case of better than nothing. As we all know, the Government has long held that directing GIC to invest in locally listed firms is not the solution to improve the attractiveness of the local equity market, and its mandate specifically includes the Singapore market. This is unlike Malaysia's Employees' Provident Fund, EPF, which is the largest investor in its domestic market, supporting Malaysian companies, capital needs and the economy as a whole”. Unquote.
Sir, I had that impression about the remarks that Mr Chua made. But after hearing what Mr Tiong clarified earlier, that the Workers' Party is also of the same view that we should not be pump-priming the market by asking GIC and Temasek, to mandate them to invest in local equities, then, I think we are on the same page.
So, I would like to thank Mr Tiong for the clarification. Thank you, Sir.
Mr Deputy Speaker: Mr Kenneth Tiong.
Mr Kenneth Tiong Boon Kiat (Aljunied): : I thank Minister Chee for his clarification and I appreciate it. So, could I just ask him to please formally withdraw those comments so that it is clear for the record?
Mr Deputy Speaker: Minister Chee.
Mr Chee Hong Tat: Sir, I believe I did not say those remarks in Parliament. That was, as I mentioned, a closed-door session organised by DBS. And I also explained why I formed the impression, based on what Mr Louis Chua said earlier. So, I may have misunderstood what Mr Chua said, but I read out what Mr Chua said. Because he put the two side by side, I had the impression that that was what he was advocating.
But as I said, if that is not the case – I think that is the important point – if that is not the case, if the Workers' Party’s position is the same as ours, that is, we should not be asking Temasek, GIC to be pump-priming the market, to mandate them to invest in local equities as a way of pump-priming, then, we are on the same page. And I hope that clarifies. Thank you.
Mr Deputy Speaker: Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 4.05 pm. Order. Order.
Sitting accordingly suspended
at 3.43 pm until 4.05 pm.
Sitting resumed at 4.05 pm.
[Deputy Speaker (Mr Xie Yao Quan) in the Chair]