To revive interest in stocks, shift onus to companies and not GIC

AMONG suggestions to revive interest in the Singapore stock market, some industry players have proposed getting sovereign wealth fund GIC, which manages the city-state’s S$500 billion plus in Central Provident Fund (CPF) money, to invest in the local market.

This is not a feasible option. First, any surge in interest would likely prove short-lived and, in the long term, unsustainable without the introduction of fresh, attractive investment-grade companies.

Second, putting GIC-managed CPF money into SGX stocks could result in an over-concentration of retirement funds in one place, since individuals can already invest a portion of their CPF savings in local stocks under the CPF Investment Scheme.