SINGAPORE'S GIC INCREASES INVESTMENT IN EMERGING ECONOMIES

SINGAPORE, July 26 (Bernama) -- Singapore's Government Investment
Corporation (GIC) has further increased its investments in the emerging market
economies following uncertainties over the recovery particularly in the United
States and Europe.

Disclosing this in its annual report released here Tuesday, Group Chief
Investment Officer Ng Kok Song said the future economic and investment
environment remained challenging.

"The developed economies, in particular the United States and Europe are
recovering from the global financial crisis. However their longer term
outlook is still uncertain and carries considerable macro financial and economic
risks," he said.

He said GIC had increased its investments in the emerging market economies
on the strength of their potentially higher returns and improved macroeconomic
fundamentals.

However, he said that while the emerging economies in Asia and Latin America
were growing strongly, their policy makers faced challenges in restraining
inflationary pressure and currency appreciation.