After Temasek comes the GIC tsunami
GIC started the crisis with roughly Singapore $550 billion in reserves. My estimate is that it has lost about $190-$200 billion of that, leaving it with about $350 billion left. This amount is equivalent to 200 per cent of Singapore’s gross domestic product.
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While there is no denial that the global market is in a meltdown, it cannot be the excuse for making the massive losses. The two agencies costs the People a lot of money to run. Many bad decisions could have been avoided (certainly not with hindsight).
There must be a Parliamentary Commission to look into the details of the investments and the systemic issues which led to the massive losses. This is to ensure that the same mistakes are not repeated.
The legislature in many other countries (e.g. US, UK) have already started the same process. If Singapore wants to be world class, then it needs to operate like one.
aiyoyo
so much $$$ loss!!!???
why not use these $$$ help commoners???
aiyoyo
If the citizens still allow the present govt to continue doing what they like, be prepared to see worst things to singapore. With the enormously hugh sums of the taxpapers $$$ continuing being dumped into ocean floors, the next thing they will do is targeting into the state reserve fund, infact, they just did and there will be more to come. Soon, we will also be the first asian country to go bankrupt.
aiyoyo
see news saying help roll out in millions,
but what about the billions that’s loss???
why no solutions or actions on these ‘good investments’ by ELITEs???
now getting worry if this country reserve will be lesser or not as days go by
aiyoyo
we have THE A-TEAM!!! DIV ONE!!! THE BEST OF THE BEST!!! CREAME DE LA CREAME!!!
Why worry?
In the long run we are all dead….of course, we don’t need to accelerate the process by progress at ANY COST (literally).
Geez.
They always talk about talent and elite, how come they can’t forsee the future market, they are not intelligent people but still want to collect millions of dollars pay. I worry they will change the rule, and our Cpf money will never be withdrawn by us til 70s year old.
I would be careful when reading any articles from The Nation and take it with a tonne of salt.
GIC is more conservative and, in my view, more risk averse. In good times, they will under-perform Temasek. In bad times, they will out-perform Temasek. I don’t think GIC’s portfolio has gone down as much as Temasek’s.
I feel very sick after reading the losses. It is mind-boggling. They should slash their own pay by the same percentage and like what happened in Statschip – retrench.
aiyoyo
it’s really mind-boggling!
why commoners work so hard, earn $, put inside the cpf account,
and have to wait & wait & wait… for withdrawal? why? why? why?
hey, it’s commoners own $ leh, something here do not make much sense leh!
or is it the education that we went thru wrong?
very mind-boggling indeed…
aiyoyo
When Barrings went down, the rogue trader went to jail.
Now the loss reported by temasek is much more than Barrings. Surely the rogue CEO and his board must be held accountable? Perhaps a long jail-term for all of them?
I think, in my heart, silently, that we just witnessed the beginning of a terrible devastation by our rogue government.
Pray hard for our savings and future.
10) noname
Ehh…what savings? and what future? i thought there is none left for us lesser mortal?
6) tew pu ki on February 11th, 2009 12.46 pm
our Cpf money will never be withdrawn by us til 70s year old.
What “our cpf” are we talking about here? they are all long gone, nothing will be left to withdraw anymore with the rate of losses these irresponsible elites threw away our savings. Mind you, more than $100billions are loss as at end 2008 and the dips are continuing through 2009 and 2010 at least.
I am very impressed by our honorable HC based on news media reporting about her Track Record and endorsement by our Revered Dhana.
Based on the above impression, I hope she takes over the helm of GIC and continue to spread her talent into this bigger than T SWF.
Like this I am sure singaporeans would benefit even more than what they have gotten from her by way of the excellent , talented , high calibre performance by our dear HC.
There will be 1 Good Year every year in future, I hope.
Such a rare genius!
#13,
I second your opinion and have such a towering regard for HC. Her astute talent and gift in the management of money is as astounding as her choice of cheongsam and hairdo. And oh, her remarble ability in squandering billions & billiions far exceeds that of Houdini’s disappearing act.
Since the Shin Corp debacle, many experts have been cautioning Temasek and GIC not to enter into investments recklessly.
However, those warnings were simply pushed aside without any qualms, probably because of their own over-confident, self-praised, arrogant attitude and mentality.
Can we sincerely touch our hearts and trust a mere ex-lawyer and ex-politician to have sufficient professional knowledge and experiences about global investments?
Can we truly and blindly put such a huge amount of our hardearned taxpayers’ money in the hands of a mere electrical engineer (without engineering practical experience) simply because interested parties tell us that she is “by merit a talent” without knowing what exactly is her type of talent?
By keeping everything in the dark, refusing to be accountable and transparent, only aggravate the matter further. It simply shows all of us that the people responsible for the huge losses are trying to cover up something that cannot see daylight and must be concealed at all costs.
The day will come and must come when the ordinary will have to take the extraordinary to task no matter what.
We are looking forward to that day!
aiyoyo
those ELITEs can earn back billions in 8months?
like what they did when they loss billions in 8months!!??
aiyoyo
Why in the first place allow the State reserves to turn into a Fund Management
company where greed and risks taking is the essence of such institution. It should
be reverted back to its original form and only in secured assets.
I notice that over the last six years or so since 2003 when the equity market
and in particular the Dow Jones and S&P500 took off from its 2003 low
Temasek and the GIC also follow suit with very aggressive investment adventure.
Even with so much cash Temasek even went out to raise billions of dollars to leverage on its investments. This is no different to big time gambling and all guaranteed by the State. Using The Elliott Wave terminology the “B” Wave
bull market since March 2003 is a haven for the big time speculators ready to be slaughtered when the “C” Wave bear market hits. This is exactly what is happening.
The “C” Wave started from October 2007. So if we were to recount the losses by Temasek and GIC from the peak of October 2007 till end of Dec08 I am not surprise
the losses could even be close to 50%!!!
All said I think Temasek and GIC should get out of the investment fund portforlio
business and only invest conservatively. It should be made law!
I hope Mdam Ho Ching has registered herself in some anti-gambling association to help cure her gambling streak.
Her losses are as legendary as her talents.
I worry for GIC now … with talent like Ho and we can still lose billions … GIC must be an empty shell by now.
“GIC started the crisis with roughly Singapore $550 billion in reserves. My estimate is that it has lost about $190-$200 billion of that, leaving it with about $350 billion left. This amount is equivalent to 200 per cent of Singapore’s gross domestic product.”
Don’t anyhow say ok. I trust them to protect our reserves ok. This 200% over gross domestic product is still performing better than some personal index of those average Joe like minibomb investors who clocked much more % loss over their monthly / annual income.
Seeing all these unbelievable and unaccountable losses surfacing one by one as the days passed tells me we may yet to uncover one of the world’s most shocking political history is about to take place. Never mind what one may think, as long as the whole system is still a total cover up, and the people still allows this kind of backdoor activities to continue in our country, there will no difference from taking the money by forced from the citizens and putting them into their own pocket to spend whatever they like.
“Never mind what one may think, as long as the whole system is still a total cover up, and the people still allows this kind of backdoor activities to continue in our country, there will no difference from taking the money by forced from the citizens and putting them into their own pocket to spend whatever they like.”
Don’t you know that all of this is all lawfully done (at least they can surely claim that it is so) just like the financial mess that has happened and that is costing nations billions and billions of dollars.
in other 3rd world countries, it’s the prevailing corruption of siphoning money into the hands of the ruling elites. Over here, we have exactly the same situation, except that the corruption has been legitimised.
#1, “There must be a Parliamentary Commission to look into the details of the investments and the systemic issues which led to the massive losses. This is to ensure that the same mistakes are not repeated.”
You must be joking! Since when has LKY submitted himself to questioning from lesser mortals??
Joke:
When the Old Man died, he went up to Heaven. And all the past world leaders were queued up to shake the hand of God at the Heavenly Peace Hall. As each one came up, God would stand up and shake his hand. As LKY approached, God sat down before offering his hand to him. After he has filed past, St.Peter who was standing on God’s right, asked God why he made an exception and did not stand. To which God said, “Do you know who that is? He is Lee Kuan Yew! If I stand up, he will take my seat!”
The garment requires the wayang president to turn on the 2nd key in order to plough into the reserve for national interest. Just wonder who is holding the duplicate 2nd key that enable the TH and GIC to exploit the reserve for investment purposes? Or there is simply no such thing as 2nd key? LOL
that’s why our dear govt is giving away little candies to commoners now, hoping to quench our anger
damn sick!
#24) whiteraven on February 12th, 2009 12.30 pm
Joke:
When the Old Man died, he went up to Heaven. And all the past world leaders were queued up to shake the hand of God at the Heavenly Peace Hall. As each one came up, God would stand up and shake his hand. As LKY approached, God sat down before offering his hand to him. After he has filed past, St.Peter who was standing on God’s right, asked God why he made an exception and did not stand. To which God said, “Do you know who that is? He is Lee Kuan Yew! If I stand up, he will take my seat!”
——————————–
THAT WAS THE JOKE ACTUALLY SAID IN THE MALAYSIAN PARLIAMENT WHEN LKY WAS A MEMBER OF THE MALAYSIAN PARLIAMENT from 1963-1965.