Singapore defends financial secrecy
Lee Kuan Yew, Singapore's elder statesman, has defended the secrecy of the government's powerful investment agencies in spite of demands that they become more accountable in the wake of Temasek Holdings' troubled takeover of Shin Corp, the Thai telecoms group.
“To the outside world, curious to know the inner workings of Temasek, of the Government Investment Corporation of Singapore, it's unnecessary secrecy. But we have reasons for that. Some we're prepared to disclose, some we're not,” he said.
Temasek and GIC are estimated to control more than $200bn (�157bn, ￡105bn) in assets and they have emerged among the biggest investors in Asia.
Temasek owns most of Singapore's leading companies and has bought stakes in regional banks and telecom companies, while GIC invests the city-state's foreign reserves in overseas equities, bonds and property.
The agencies have encountered resistance in some markets because of their state affiliation, underscored by the recent controversy over the Shin Corp deal.
Thai authorities are investigating whether Temasek breached foreign shareholding limits in the takeover, which has caused Shin Corp's share price to fall and resulted in a $1.3bn paper loss for Temasek.
“This system exists on the basis of integrity. Starting from the top right through, there are checks and balances
