By Alvin Foo

DAVOS: Long-term institutional investors like the Government of Singapore Investment Corporation (GIC) have a key role to play in the reform of the global financial system post-crisis.

That was the message that Dr Tony Tan, GIC's deputy chairman and executive director, delivered to the high-powered annual meeting of the World Economic Forum (WEF) in Davos yesterday.

He said that such investors, which include the world's sovereign wealth funds (SWFs), are important in two ways.

Reforms can go wrong: Three potential risks

REFORMING the global financial system will be a challenging enterprise that can easily go wrong, according Dr Tony Tan, deputy chairman and executive director of the Government of Singapore Investment Corporation (GIC).

That is because the reform has to be international if it is to be effective, as many key financial institutions are globally interconnected, large and highly complex.

Citing three risks, Dr Tan added that they could be minimised if the views of global institutional investors are taken into account during the process of redesigning the new financial landscape.

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