SWFs urged to be mindful of concerns of countries they invest in - Singapore
By Channel NewsAsia’s Dominique Loh in Dubai
DUBAI : Singapore’s Minister Mentor Lee Kuan Yew has said sovereign wealth funds (SWFs) must be mindful of concerns of the countries they invest in.
Speaking to an audience of government officials and business leaders in Dubai, Mr Lee said developed countries need assurance that SWFs are commercially-focused investors.
The Gulf state of Dubai is also establishing its own Investment Corporation, similar to the Singapore’s Temasek Holdings.
Presenting awards to some of Dubai’s most promising companies, Minister Mentor Lee also told his audience that small states like Dubai and Singapore remain vulnerable to global changes.
He said that in a climate of uncertainty, corporations like Temasek and the Investment Corporation of Dubai are able to overcome volatility through their long-term investment horizon. And the accumulated reserves can help tide over unexpected contingencies.
Mr Lee said that without government interference, Temasek, for example, was able to maximise their returns.
He said, “The Singapore Government does not direct or influence individual investment decisions. Similarly, Temasek does not interfere with the individual investment decisions of the companies it has invested in or direct their commercial and operational decisions. As a shareholder, it is focused on value creation, and seeks to foster good corporate governance and business excellence.”
Minister Mentor Lee also told his audience about Singapore’s basic strategies to grow its economy.
The first is plugging into a global network with an open economy; the second is optimising Singapore’s limited manpower resources; and the third is being flexible in restructuring the economy in a changing global environment.
Mr Lee also saw how Dubai is changing its physical environment by building mega property developments along its coastline.
The Palm Jumeirah residential project has spurred other even more ambitious property developments in the waters of the Arabian Gulf.
Meanwhile, Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the United Arab Emirates, and the ruler of Dubai also presented Mr Lee with an award for Global Economic Value Creation.
Before leaving Dubai, Minister Mentor Lee got an update on the construction of the Burj Dubai.
With a height of over 500 metres, it is the world’s tallest building.
The ultra-modern skyscraper is just another iconic addition to Dubai’s skyline.
While construction is still going on, the Burj Dubai is already 141 storeys high.
That is a few more storeys than the next tallest building, the Taipei 101.
The Burj Dubai is on schedule to be completed sometime this year.
It is also the centrepiece of Downtown Burj Dubai, a US$20 billion development in the heart of Dubai. - CNA/ms
Source : Channel NewsAsia - 03 March 2008
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