In earlier Singapore financial news, GIC has stated that their investment structure provides “appropriate downside protection” which will see long term expected lower returns despite the risk. Interestingly it raises GIC’s holding in Citigroup to 4 per cent, and GIC has stated that it does not have plans for a board seat at Citi. This no doubt comes after criticism leveled at other American financial institutions’ moves to seek investment funds from Asian and Middle Eastern sources.

This could simply be a move by GIC to strengthen its investment portfolio and provide a broader management of investing Singapore’s reserves. With the threat of 20,000 Citi jobs at risk, it might or might not have vested interest in ensuring that this does not have greater downstream impact to Singapore’s economy, which is enjoying satisfactory growth against the gloomy global economic outlook, as reported frequently in Singapore financial news. GIC has also sunk US$300 million with US property hedge Rosen Real Estate Securities to take advantage of falling values in the US property market and real estate.