Both GIC and Temasek Holdings have made reasonable returns that are within expectations, given their respective mandates and risk profiles.
"Our focus has always been on long-term performance, rather than on short-term or year-to-year fluctuations," Jeffrey Siow, speaking as senior minister of state for finance, in Parliament on Jan 12.
In a Financial Times report last month, returns generated by both entities were deemed "poor" relative to global peers.
GIC's 20-year annualised real return was 3.8% for the year to March 31, 2025, below the 3.9% it posted a year earlier. This marked its weakest showing since 2020.
For the same year to March 31 2025, Temasek reported a 10-year total shareholder return of 5%.
In line with bouyant equities markets, Temasek is expected to report a higher portfolio value for this current year.
See also: Heng Swee Keat steps down as director of MAS
Just like how Temasek has previously long maintained that it leaves the running of its portfolio companies to their respective boards and management, the government does not intervene in Temasek’s individual investment decisions, says Siow.
He adds that GIC is able to make active decisions to manage assets and generate high returns over the years.
“I think we have to leave the professionals to do the work that they do,” he says.
