Singapore - GIC, Temasek & MAS 02 (Sep 09 - Jul 11)

[kennynah]

this is the first ever that i am seeing our reserves openly stated by MAS...

have you ever seen such a publication before?

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Strong currency puts Singapore central bank in red
AFP NewsBy Roslan Rahman | AFP News – Thu, Jul 21, 2011


Singapore's central bank Thursday announced an annual net loss of Sg$10.9 billion ($8.9 billion) as the strong local dollar sent it into the red for just the second time in its 40-year history.

The net loss for the year to March came as the city's currency hit record highs against the greenback and also jumped against the euro, driving down the value of the Monetary Authority of Singapore's foreign asset holdings.

The central bank made a profit of Sg$10 billion in the previous year.

If the impact from a stronger Singapore dollar was excluded, the MAS said it would have recorded income and net capital gains of Sg$12.3 during the recently concluded fiscal year.

"Over the FY (financial year), the Sing (Singapore) dollar strengthened considerably against most currencies," MAS managing director Ravi Menon said in remarks posted on the central bank's website.

"In short, we made good investment gains, but when measured in Sing (Singapore) dollars, these gains were more than offset by the strength of the currency," he said.

According to Menon, in the year the March the local currency strengthened almost 10 percent against the US dollar. In early Thursday trade the greenback sank to an all-time low Sg$1.2114.

Against the euro the Singapore dollar gained 5.5 percent, he added.

The local unit has soared, along with the currencies of other Asian nations, as traders sink cash into the region in a quest for better returns on their investments than they would get in the West.

Assets held by the MAS was worth Sg$299.75 billion dollars in the year to March and most of these comprised of official foreign reserves, the central bank said in its annual report released Thursday.

The central bank said the reserves were for the conduct of monetary policy and also to safeguard the local currency.

[kennynah]

TKL's response on his FB on this MAS loss of SGD10.9billion..

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I have studied the figures reported by CNA. Based on the assets under management, the currency loss amounted to about 7.8% of the assets. It was reported that the USD depreciated by 10% and the Euro and GBP by about 5%. So the average loss of these currencies is about 7.5%. The JYP appreciated. I am not sure if the basket of well diversified curriences would give a loss of 7.8% or slightly higher or lower. This is a job for the President to ask the question, get the answers and form a judgement.

[iam802]

they want to tell u they have losses FIRST; in case their preferred candidate did not win the President election.

[LenaHuat]

TKL's response on his FB on this MAS loss of SGD10.9billion..

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I have studied the figures reported by CNA. Based on the assets under management, the currency loss amounted to about 7.8% of the assets. It was reported that the USD depreciated by 10% and the Euro and GBP by about 5%. So the average loss of these currencies is about 7.5%. The JYP appreciated. I am not sure if the basket of well diversified curriences would give a loss of 7.8% or slightly higher or lower. This is a job for the President to ask the question, get the answers and form a judgement.

I must jump in and respond to this. TKL's response is weak. He is not asking the right questions about the losses. And I am not going to give him an education on this. Even if he was given the answers to HIS questions, would he be able to share it with the public under the Constitution. I have little regard to what he had said he would so if he was elected. What he plans to do is ultra vires the Constitution. He should have stood for the GE2011 but I guess he is no workhorse

[LenaHuat]

I had gone searching for what TJS had to say about the MAS losses. TJS was a fund manager and would ask pretty good questions. Has anyone read something?

[kennynah]

hi L

please share whatever you discover about TJS's response to MAS losses, if any. thanks.

[iam802]

If I am TJS...I will hold back the comments until it's closer to the elections.

[LenaHuat]

Hi K and im802
Yes, I will reserve my comments only after TSJ has submitted his COE. I doubt he will because I don't think he qualifies under the rules. Much as we dislike the rules, only Parliament can change them and so TKL should have stood in the GE2011 if he had worthy intentions. This might well be the last PE2011 because I think the MIW will change the Constitution.

[winston]

GOVERNMENT OF SINGAPORE INVESTMENT CORP - Singapore wealth fund GIC plans to invest more money in emerging markets and less in developed markets due to the long-term challenges facing the United States and Europe.

GIC achieved a nominal annualised rate of return of 6.3 percent in the five years to March 31.


Source: Reuters

[kennynah]

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