<h1>GIC, Temasek, and the Reserves</h1> <p>Singapore's reserves are not a single disclosed fund, and GIC, Temasek, and the Monetary Authority of Singapore (MAS) are not interchangeable sovereign wealth managers. In constitutional terms, reserves are the assets minus liabilities of the Government and specified Fifth Schedule entities. The Government's assets are mainly managed by GIC, MAS holds official foreign reserves on its own balance sheet and as central bank, and the Government owns Temasek as its sole shareholder while Temasek owns the investments on Temasek's balance sheet (<a href="https://www.mof.gov.sg/policies/reserves/who-manages-the-reserves/">MOF, accessed Aug 2026</a>; dated performance and NIRC anchors in <a href="/en/knowledge/dataset/sgkb.data.reserves-sovereign-wealth-anchors">reserves sovereign wealth anchors</a>). This separation of ownership, mandate, liquidity, and performance measurement is essential to answering questions about the reserves correctly.</p> <h2>What the reserves include and why the total is not published</h2> <p>The constitutional concept is broader than the portfolios of three investment entities. Singapore's reserves are the net assets of the Government and the Fifth Schedule entities, which include bodies such as MAS, HDB, the CPF Board, GIC, and Temasek. <strong>Current reserves</strong> are accumulated during the present government's term; at a change of government, unspent current reserves become <strong>Past Reserves</strong>, protected by the elected President's custodial powers (see <a href="/en/knowledge/article/sgkb.government-politics.presidency">presidency</a>). Singapore does not publish the full reserves total. MOF argues that disclosing GIC's assets under management, when combined with the public balance-sheet figures for MAS and Temasek, would reveal the aggregate and weaken a strategic financial asset (<a href="https://www.mof.gov.sg/policies/reserves/what-are-singapores-reserves/">MOF, accessed Aug 2026</a>). Published MAS reserves or Temasek portfolio value therefore must not be added and presented as Singapore's complete reserves, and estimates of GIC's portfolio are not official totals.</p> <h2>GIC, MAS, and Temasek have different mandates</h2> <p>MAS manages the official foreign reserves needed for monetary and financial stability, so its portfolio is comparatively liquid and conservative. GIC is a professional fund manager for Government assets. Its mandate is to preserve and enhance their international purchasing power through good long-term returns above global inflation, using a diversified global portfolio. Temasek is a Singapore-incorporated investment company that owns its portfolio and makes commercial investment and divestment decisions; the Government is its shareholder but has no representatives on Temasek's board. MOF sets broad mandates, appoints or ensures competent boards, and reviews whole-portfolio risk, but states that it does not direct individual investment decisions (<a href="https://www.mof.gov.sg/policies/reserves/who-manages-the-reserves/">MOF, accessed Aug 2026</a>). Temasek is consequently neither a ministry nor a <a href="/en/knowledge/article/sgkb.government-politics.statutory-boards">statutory board</a>, and GIC does not own the Government funds it manages.</p> <h2>Performance figures are not directly comparable</h2> <p>GIC's primary performance measure is a rolling 20-year annualised <strong>real</strong> return, meaning after global inflation, because its mandate is long-term preservation of purchasing power. For the year ended 31 March 2026 GIC reported 3.4% on that measure; it also reported annualised nominal US-dollar returns of <strong>5.6% over 20 years, 6.2% over 10 years, and 3.6% over 5 years</strong>. The rolling window changes each year, so movement can reflect both the newest year entering and the oldest year leaving (<a href="https://www.gic.com.sg/newsroom/all/gic-delivers-steady-long-term-returns-within-its-mandate-and-stays-focused-on-portfolio-resilience-in-a-structurally-changed-world/">GIC, accessed Aug 2026</a>). Temasek reports Net Portfolio Value and Total Shareholder Return in Singapore-dollar <strong>nominal</strong> terms. At 31 March 2026, it reported S$518 billion of net portfolio value on a fully mark-to-market basis, with 20-year TSR of 6.8% (<a href="https://www.temasek.com.sg/en/news-and-resources/news-room/news/2026/temasek-net-portfolio-value-grows-to-518b-up-49b-from-last-year">Temasek, accessed Aug 2026</a>). Temasek also restated figures from 2016 under the new valuation basis. Comparing these headline percentages without aligning inflation, currency, risk, cash flows, valuation method, and time window produces a false league table.</p> <h2>How investment returns fund the Budget</h2> <p>The Net Investment Returns Contribution (NIRC) is the bridge from the reserves to annual public spending. Under the constitutional framework, the Government may spend up to 50% of the expected long-term real return on relevant net assets invested by GIC, MAS, and Temasek, while retaining the rest for future generations. The formula is based on expected sustainable long-term returns, not the entities' profit or loss in a single market year. For FY2026, MOF estimated NIRC at S$28.48 billion, about one-fifth of annual Government spending (<a href="https://www.mof.gov.sg/policies/reserves/what-are-the-reserves-used-for/">MOF, accessed Aug 2026</a>). NIRC is government revenue generated by returns; it is not the same thing as withdrawing the reserves principal, taking all of Temasek's dividends, or transferring GIC's reported annual performance directly into the Budget.</p> <h2>CPF savings and government debt</h2> <p>CPF balances are liabilities of the CPF Board to members, backed by Special Singapore Government Securities issued to the Board. The Government pools the proceeds with its other funds rather than directing a matching pot of CPF money to GIC, and it remains obligated to pay the securities' promised interest regardless of short-term investment performance. Temasek has never managed CPF money or the proceeds of those securities (<a href="https://www.mof.gov.sg/policies/reserves/what-are-the-reserves-used-for/">MOF, accessed Aug 2026</a>). It is therefore misleading to describe an individual's <a href="/en/knowledge/article/sgkb.cpf-social-security.cpf-overview">CPF account</a> as invested in particular GIC or Temasek assets. The accurate chain is: CPF Board invests members' balances in special government securities; the Government assumes the liability and manages its pooled balance sheet; GIC manages a large share of Government assets under a long-term mandate.</p>