Singapore’s GIC Set to Manage Extra $137 Billion in Reserves
- Parliament passes bill to ease reserve transfers to GIC
- Singapore looks to boost returns by shifting funds from MAS
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Singapore’s sovereign wealth fund GIC Pte. is poised to get a massive influx of new funds to manage after the city-state changed the way the central bank transfers excess foreign currency reserves to the firm.
Parliament on Tuesday passed a bill allowing the Monetary Authority of Singapore to buy a new type of non-marketable security issued by the government, known as Reserves Management Government Securities. The new mechanism will be used to bring down the level of foreign reserves held by the central bank -- currently about S$566 billion ($419 billion) -- to a rate equal to 65% to 75% of gross domestic product. The rest would be run by GIC.