State media tries to cover up GIC’s gigantic S$109 billion loss in two years
September 30th, 2009 | 
Author: From our Correspondent
In an article published on 29 September 2009 in the Straits Times with the misleading title – “GIC claws back loss”, Alvin Foo claimed that the sale of some shares before market crash had mitigated the fall of GIC’s portfolio. (read article here)
It quoted GIC Deputy Chairman Tony Tan saying that GIC has “weathered the financial crisis well” because it “had anticipated the crisis and taken precautionary action which mitigated losses in the ensuing bear markets.”
According to GIC’s latest annual report, its investments – valued at well over US$100 billion (S$141 billion) – slumped more than 20 per cent in Singapore dollar terms for the year ended March 31.
The loss dragged down its 20-year nominal annual rate of return in Singdollar terms from 5.8 per cent to 4.4 per cent.
Its real rate of return, after accounting for global inflation, tumbled from 4.5 per cent to just 2.6 per cent.
The article also claimed that GIC had reaped a handsome profit of USD$1.6 billion dollars by selling half its stake in Citigroup lately to give readers the impression that it had recouped much of its losses.
However, throughout the entire article, the most important figures are missing – the real loss suffered by GIC.
Alvin Foo had deliberately chosen not to report the real figures and use vague indicators such as annual rate of return to mask the extent of GIC’s loss.
The entire article was slanted in such a way to GIC to exonerate its executives from any blame for the decrease in its portfolio by attributing it to the global financial crisis and instead praised them for having the “foresight” to limit the loss.
The Wall Street Journal reported on the same day that GIC suffered a gigantic loss of USD$41.6 billion dollars or SGD$59 billion dollars in the fiscal year ended March! This was not reported in the Straits Times at all. (read article here)
It quoted a person familiar with the situation as saying that 2009 was one of the worst years ever for GIC.
Earlier in the year, people familiar with the situation told Dow Jones Newswires that in calendar year 2008, GIC had lost around S$50 billion. This means that GIC has lost an estimated total of SGD$109 billion dollars over the last two years!
Naturally, such staggering loss must be kept from the public in case Singaporeans start asking serious questions about the management of the fund.
A loss is a loss, period. It will take GIC a few years or even longer to recoup it. The state media has done Singaporeans a great disservice by hiding the truth from the public.
Posted in Editorial
I took note that some people were complaining why the gains from Citigroup were not reported online. But looking at it I still don’t see why they’re happy with a recoup of 1 billion after so much losses.
And the funniest part being, many thinks the economy is recovering, and the worst is over.
Let me just say, it REALLY did NOT feel like the worst, especially last year, it almost felt like every other normal year.
Like or Dislike:
0 
0
How did the reporter know?
Did he do an investigation or has access to information?
Who gave him the info?
Or he found the info himself?
Like or Dislike:
0 
1
See, thats the wonders of the Internet!
In the older times, anything published by teh Shitty Times is taken bait, hook and sinker without qualification.
With the Internet, Wayang Artist like Alvin can no longer get away with his lies and slants. He may be a so-called elite but there are much much more PhDs and Masters flying around in Sinkapore and also Cyberspace.
When will these Wayanist ever learn that times have changed?
Now back to the figure, Sinkapore has approximately $500b of Reserves. So when the Prataman opened the vault and allowed the investments, we now have:
RESERVES $500b – (GIC $100b + TH $40b) = NOW $360b
Wow, these elites lost almost 1/3 of what Sinkaporeans took 40 years to build up!
Bravo PaPies, tokong! Sibei Tokong!
Like or Dislike:
1 
0
Dog biscuits, where do dogs get their dog biscuits from?
GIC Deputy Chairman Tony Tan is ALSO the Chairman of SPH, if I am not mistaken.
The answer is plain obvious, right?
Like or Dislike:
0 
0
What?????….its 20-year nominal annual rate of return in Singdollar terms from 5.8 per cent to 4.4 per cent.
Are you sure Ah Beng and Ah Lian throwing darts could NOT do better?
This has got to be the BIGGEST JOKE in the investment world with those much-vaunted talents doing all those rigorous in-depth micro and superadded global-visonary macro analysis.
We are really hunting to make this country a city-state of smoke and mirror “talent”
Like or Dislike:
0 
0
Yes anonymous, its a freaking joke, Million Dollar millisters and ah lians making ‘20-year nominal annual rate of return in Singdollar terms from 5.8 per cent to 4.4 per cent’.
If used the money to buy 4D every year, kenna return also much higher than this. ROTFL
Like or Dislike:
1 
0
I read the article yesterday after lunch, after not reading papers from the MSM for some time. I looked at the report with suspicion.
Guess what, base on this article by TR, i wasnt thinking too much after all.
Like or Dislike:
0 
1
Friends unfortunately the reporter in question a friend of mine since primary school is only doing his job. He knows full well that his article are slanted better than anyone in fact. Every time we joke about it his answer in two letters explains it all. N S
Like or Dislike:
0 
1
One person said GIC’s portfolio stands at around S$265 billion after drops in equity investments and property valuations
GIC invests quite a lot in alternative investments like private equity,hedge fund,timber,art,wine etc. these alternative investments are suffering from the crisis and PE/hedge fund have tried to prevent investors from withdrawing money.some like PE have not come clean with their losses.
anyway 4.4% over 20 years is nothing to shout about, $1 compound to $2.37 over 20 years. buying S&P index over that 20 years would have yield a higher return.
Like or Dislike:
0 
0
GIC & Temasek have brought the saying “GETTING AWAY WITH MURDER” to a new high level. It may be true that Singapore owes MM, who is by the way the head of GIC and obviously also have at least an oversight over Temasek,a living and for its prosperity. Until now. That account he has with us has now turned from black into red, and he and his govt. now owes the people of Singapore one. We must from this day put history in its true perspective about the govt’s performance for ourselves, our children and our children’s children. No one is worthy of losing this kind of public money and still get glorified by its PR machinery. A broken vase is still a broken vase no matter how you try to glue it back. If GIC recovers some money back from Citibank investment, it is god we should thank for the charitable grace not any MAN.
Like or Dislike:
0 
1
“The loss dragged down its 20-year nominal annual rate of return in Singdollar terms from 5.8 per cent to 4.4 per cent.”
I knew GIC has a more conservative investment strategy compared to Temasek, but I didn’t know it is that conservative.
I agree, 4.4% over 20 frickin years is really a joke. Or to quote Drogba: “It’s a disgrace. It’s a f*kin disgrace!”
Like or Dislike:
1 
0
Local MSM never report real losses.
EXTRACTED -
http://www.temasekreview.com/2009/09/29/pm-lee-wants-singapore-to-be-a-home-for-talent/
WhereMyMoneyGo on Tue, 29th Sep 2009 7:57 pm
GIC LOST 59 BILLION IN FY 09
http://online.wsj.com/article/BT-CO-20090928-714100.html
TEMASEK LOST 50percent SELLING ENTIRE ‘FAME INDIA’ STAKES
- Buy HIGH sell LOW again.
http://singaporenewsalternative.blogspot.com/2009/09/temasek-suffers-50-loss-selling-stake.html
Like or Dislike:
0 
0
This is one of those rare time, the world is experiencing. These clown heads at GICs are still trying to hoodwink us with makeup feel good ratios. Man! They saying that they recovered from the previous shocked loss. Well I can say one thing folks, the bear market isn’t over. What we are going thru is a bear market rally and we are late in the rally. If one were to look at a Shanghai index, its has turned down. Just as when it rallied ahead and above the rest, it is leading the way down. Then the others follow. So for all the clever people it has employed, where is the “class” for us to see. Do tell us lies. Just stick to the facts.
Like or Dislike:
0 
0
YI, I know Alvin Foo as well – didn’t he use to cover sports?
Like or Dislike:
0 
0
A few months ago there was a ST/BT article comparing Temasek’s 10 years performance with Warren Buffet’s Berkshire Hathway. Instead of comparing with the same date range, ST deliberately used another date range for Berkshire to highlight that Temasek has a better fund performance.
As a shareholder of Berkshire Hathaway I was quite disgusted that ST/BT could mislead readers into thinking that Temasek is better than Berkshire.
If Temasek/GIC is really interested in long term investment why did they invest in Merril lynch or UBS which involved themselves in sub prime? If you are involved in the Ah Long business of loaning money to someone who can’t really pay back that is not a viable long term business. no??
Like or Dislike:
0 
0
//kny
That’s all these people know how to do except doing the real job: they only know how to pretend.
If only they could come up with a script and act and market it overseas like the taiwanese drama, at least we get something.
Like or Dislike:
0 
0
Do you guys still not get it? Singapore Inc. is a corporation that never goes out of business no matter how bad the results turn out to be from some decisions. No heads will roll, no apologies, no transparency and no black and white accountability. Meanwhile, more funds are siphoned off Singaporeans theough taxes, fines and fees of all kinds. The funds get pumped into the system, including but not limited to Temasek. Rinse and repeat as required.
It is the ultimate ‘iron rice bowl’.
The population in SG is now a cool 5 million. The sardine squeeze has just got tighter, all in the name of the economy. At what price?
A monopoly in politics, business, knowledge and even spirituality is a very bad thing.
Like or Dislike:
0 
0
MM and Ho Ching should resign from GIC and Temasek respectively for the big losses. Pm lee is trying to cover it?
Like or Dislike:
0 
0
No heads will roll, no apologies, no transparency and no black and white accountability.
Perfect and fitting summary of the present pathetic situation in Sinkapore.
Like or Dislike:
0 
0