At a conference for Asian government pension funds held in Tokyo this week, a senior government official from Singapore's $100 billion-plus Government Investment Corporation GIC expressed his concern about the sustainability of the United States' macroeconomic policy, outlining how this posed a major risk for Asian investors.
Teh Kok-Peng, president of GIC Special Investments, says the need for diversification and superior investment returns has driven Asian institutions to invest heavily in US securities. This is because Asian capital markets remain poor allocators of capital.
He cites a famous article penned by the economist Paul Krugman in Foreign Affairs magazine in the mid-1990s, which argued that Asia's economic...
