SINGAPORE: Both GIC and Temasek are fully supportive of zero-burning policies for land clearance, said Finance Minister Heng Swee Keat on Thursday (Jan 28).

"GIC has informed the Government that the palm oil companies in Indonesia that GIC invests in have confirmed that they observe zero-burning policies for their plantations," said Mr Heng.

"GIC’s investment teams engage actively with the companies’ management and highlight that such responsible actions are important for maintaining the long-term value of the companies," Mr Heng added, in a written answer to queries by Non-Constituency Member of Parliament (NCMP) Leon Perera of the opposition Workers’ Party, who asked if GIC and Temasek have investments in haze-linked companies.

Mr Heng also said that Temasek has stated that it fully supports zero-burning policies for land clearance, and would urge palm oil companies and plantation owners to do the same.

However, the Finance Minister pointed out that the individual investments of GIC and Temasek are the responsibility of their respective management teams, while the Government monitors the performance of their overall portfolio. 

"GIC and Temasek operate on a purely commercial basis in order to maximise long-term risk-adjusted returns, and the individual investment decisions are fully independent of any Government interference or influence," Mr Heng said. "This is an important governance principle that we seek to maintain."

Mr Heng also noted that with GIC and Temasek’s investment activities seeking long-term, sustainable returns, investing in companies with environmentally unsustainable practices could negatively impact the commercial value of the investments over the long term.

“The individual investments of GIC and Temasek are the responsibility of their respective management teams, while the Government monitors the performance of their overall portfolio,” said Mr Heng.