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Government of Singapore Investment Corporation is formed 22nd May 1981

The Government of Singapore Investment Corporation (originally known as GSIC and now simply as GIC) is a private investment company wholly owned by the government of Singapore. Incorporated on 22 May 1981 under the Companies Act, GIC was set up to manage Singapore’s foreign reserves.[1]

GIC was the brainchild of Goh Keng Swee, who was then first deputy prime minister and chairman of the Monetary Authority of Singapore (MAS). He observed the rapid growth of Singapore’s foreign reserves and concluded that the trend would continue. The government then embarked on a change in investment policy by investing the bulk of its foreign reserves in longer-term, high-yielding assets rather than in liquid but low-yielding assets.[2] GIC thus acts as a fund manager  to oversee the  investment of Singapore’s foreign reserves in a diversified, multi-asset class portfolio.[3] Then Prime Minister Lee Kuan Yew became the chairman of GIC’s first board of directors, with Goh as deputy chairman. Other founding board members included Lim Kim San, Hon Sui Sen, Goh Chok Tong, Tony Tan, S. Dhanabalan and Tan Teck Chwee.[4]

Besides its headquarters in Singapore, GIC has nine overseas offices located in key financial capitals around the world. These are based in New York, San Francisco, London, Mumbai, Beijing, Shanghai, Tokyo, Seoul and Sao Paulo.[5] GIC manages assets in excess of  US$100 billion, making the company one of the world’s largest sovereign wealth funds.[6] As at 31 March 2013, GIC’s portfolio comprised assets and investments in the Americas (44 percent), Asia (28 percent), Europe (25 percent) and Australasia (3 percent).[7]

References
1. Koh, T., et al. (Eds.). (2006). Singapore: The encyclopedia (p. 220). Singapore: Editions Didier Millet in association with the National Heritage Board. Call no.: RSING 959.57003 SIN-[HIS]; GIC Private Limited. (2013). Report on the Management of the Government’s Portfolio for the Year 2012/13 (p. 28). Retrieved October 3, 2013, from GIC website: http://www.gic.com.sg/images/pdf/GIC_Report_2013.pdf
2. Government of Singapore Investment Corporation. (2001). Year book (p. 12). Singapore: G.I.C. Call no.: RSING q332.6735957 GSICYB.
3. Koh, 2006, p. 220; GIC Private Limited (2013). GIC Portfolio. Retrieved October 3, 2013, from GIC website: http://www.gic.com.sg/en/our-business/gic-portfolio
4. Government of Singapore Investment Corporation, 2001, p. 13.
5. GIC Private Limited. (2013). Report on the Management of the Government’s Portfolio for the Year 2012/13(p. 54–55). Retrieved October 3, 2013, from GIC website: http://www.gic.com.sg/images/pdf/GIC_Report_2013.pdf; Zhuo, T. (2014, April 4). GIC opens office in Sao Paulo. The Straits Times. Retrieved from Factiva.
6. GIC Private Limited. (2013). Report on the Management of the Government’s Portfolio for the Year 2012/13 (p. 28). Retrieved October 3, 2013, from GIC website: http://www.gic.com.sg/images/pdf/GIC_Report_2013.pdf
7. GIC Private Limited. (2013). Report on the Management of the Government’s Portfolio for the Year 2012/13 (p. 12). Retrieved October 3, 2013, from GIC website: http://www.gic.com.sg/images/pdf/GIC_Report_2013.pdf

 

The information in this article is valid as at 2014 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.

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