State-owned investment firm Temasek Holdings will contribute to the Singapore government’s income for the first time, according to Channel News Asia.
Singapore amended its Constitution that will include Temasek as a contributor to the Net Investment Returns (NIR), whose share in the budget accounts for around 2% of GDP at present. With the inclusion of Temasek, NIR’s share is expected to rise to around 3% of GDP on average in the next five years, the news report said.
Temasek has yet to issue its reaction to the news item.
Singapore wants to boost spending on health care, human capital and transportation, Channel News Asia said.
The news came a week after Temasek reported it’s net income for the fiscal year ended March 31, 2015 rose 33% to 14.5 billion Singapore dollars ($10.7 billion), lifted by its Singapore and China portfolios, as reported earlier by NexChange.
Singapore on Monday announced its second-quarter GDP contracted from the first three months of the year as manufacturing shrank, putting the country on the verge of a technical recession.
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