Following the bankruptcy filing of cryptocurrency exchange FTX earlier this month, Workers’ Party (WP) Members of Parliament (MPs) have raised concern
Following the bankruptcy filing of cryptocurrency exchange FTX earlier this month, Workers’ Party (WP) Members of Parliament (MPs) have raised concerns and posed questions in Parliament regarding the incident. Several WP MPs have submitted questions for the Ministry of Finance and the Prime Minister’s Office for the upcoming parliamentary sittings from Nov 28 to 30.
Assoc Prof Jamus Lim shared in a Facebook post on Tuesday (Nov 23) that MPs have historically faced limitations when questioning sovereign wealth fund investments. However, due to the significant public interest in the matter, the Workers’ Party believed it was essential to address the FTX collapse in Parliament, while acknowledging the constraints around Parliamentary Questions (PQs).
Lim noted that MPs are required to follow Standing Order 19(1), which limits questions to ministers’ official functions. As the government has consistently emphasized the independence of GIC and Temasek Holdings from the government, questions about their investment strategies or decision-making processes cannot typically be asked. Nevertheless, WP MPs felt compelled to raise concerns within these restrictions.
Among the MPs submitting questions are:
Mr. Leon Perera (Aljunied GRC)
Mr. Gerald Giam (Aljunied GRC)
Assoc Prof Jamus Lim (Sengkang GRC)
Ms. He Ting Ru (Sengkang GRC)
FTX, once the third-largest crypto exchange globally, filed for bankruptcy in the United States on Nov 11, leaving an estimated one million customers and investors, including Singapore’s Temasek Holdings, potentially facing significant losses. Forbes reported that Temasek, which holds a one per cent stake in FTX, could lose around US$205 million (S$281 million) if the firm cannot be salvaged.
On Nov 17, Temasek announced it would write down its US$275 million (S$377 million) investment in FTX, regardless of the bankruptcy outcome. Temasek clarified in its statement, “The cost of our investment in FTX was 0.09% of our net portfolio value of S$403 billion as of 31 March 2022.” It also emphasized that Temasek does not have direct exposure to cryptocurrencies, addressing concerns that its investment in FTX was linked to the cryptocurrency market.
The Workers’ Party is pushing for greater transparency and accountability in light of the financial implications for national investments. /TISG
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