MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Finance minister and deputy prime minister, Surapong Suebwonglee, says ThailandÆs international reserves, which are valued at $109 billion, are not enough to support a sovereign wealth fund and should be used instead to support the countryÆs financial stability. Surapong made the comments in a sovereign wealth funds seminar in Thailand.
Surapong notes that ThailandÆs international reserves have grown by around 40% over the past two years, mainly due to the countryÆs current account surplus.
It was reported that, in December, ThailandÆs Prime Minister's Council on Trade and Industry suggested the setting up of a sovereign wealth fund of around $5 billion to be used to finance the acquisition of companies abroad.
Elsewhere in Asia, India is considering setting up a sovereign wealth fund, with a slightly different structure considering the country has fiscal and current account deficits. In general, sovereign wealth funds are started with excess reserves from central banks and monetary authorities.
Taiwan is also mulling its options. It could set up a sovereign wealth fund using part of the central bankÆs $277 billion in foreign exchange reserves and could use SingaporeÆs Temasek or Government Investment Corporation (GIC) as its model. Based on the upper range of the IMFÆs estimate of the GICÆs assets at between $100 billion to $300 billion, the Singapore entity is the third largest sovereign wealth fund worldwide.
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.
The recent focus on greenwashing has put bond issues under greater scrutiny. However, some market participants believe this risks paralysis by analysis.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.