' speeches if we can securitise these ppp assets, we can help free up capital and diversify funding sources. we can make these securitised assets available to long term investors such as insurance companies and sovereign wealth funds, or even retail investors through a listing. as the largest hub in asia ex - japan for real estate investment trusts and business trusts, singapore is well - placed to partner china to help securitise or list chinese assets into the singapore market. singapore investors are familiar with china ’ s industrial real estate assets. singapore ’ s financial institutions also have a long history of experience with china - based assets and infrastructure assets. nine of the 32 reits listed on the singapore exchange1 invest in mainland china properties. there are several advantages a listing in singapore can bring. first, singapore has a more diversified pool of investors compared to the local markets in the western region. this helps to ensure adequate liquidity for the securities. second, the reits listed in singapore tend to fetch higher yields than those listed in other developed markets. third, the singapore market has a reputation for high quality assets and strong governance. this will help raise the profile of reits listed in singapore. i am pleased to note that currently, we have an ongoing demonstrative project where shanghai pudong development bank is looking to securitise a portion of its client ’ s assets as a reit in singapore. this innovation could inspire similar deals under the cci. developing risk management solutions to support investment third, we can work together to develop risk management solutions to support cci investments. infrastructure projects are often exposed to large risks like natural catastrophes. just last year, chongqing experienced disruptions due to floods and heavy rain. more recently, in june 2017, sichuan province ’ s mao county experienced a tragic landslide. about 12 % of the western region ’ s gdp in 2016 was contributed by agriculture, this is no small number. when natural catastrophes occur, crops, homes and public infrastructure are destroyed or damaged. financial markets can play an important role in mitigating such risks. an innovative example of this is an orange index product developed by the changshou district government here in chongqing just four months ago. this product compensates farmers if the price of the blood orange index is lower than the price stated in the sales contract. in singapore too, we are developing mechanisms to assess, manage, and transfer disaster risks. allow me to share one example which utilis

to a substantial accumulation of ofr, well in excess of what was required for mas ’ central banking operations. so, in 1981, the gic was set up – in today ’ s parlance, a sovereign wealth fund – to manage part of the reserves for higher returns without the central bank constraints of liquidity. part of the ofr was transferred from mas to gic, which was tasked to invest the reserves in a globally diversified portfolio of asset classes with a higher risk profile to deliver good long - term returns. the third pot of reserves is managed by temasek holdings, an investment company wholly owned by the government. 3 / 7 bis central bankers'speeches temasek ’ s history also dates back to the early years of singapore ’ s development. there was little private capital in those days but a rapidly industrialising economy needed key infrastructure – in aviation, in shipping, in telecommunications, in banking, and so on. the government therefore set up enterprises in these areas. temasek was formed as a holding company in 1974 for these enterprises so that the government could focus on its roles of policy making and regulation without conflict, while temasek would own and manage these investments on a commercial basis. today, temasek is an active, equity investor that aims to deliver sustainable long - term shareholder value. more than a quarter of temasek ’ s portfolio is invested in singapore, with the rest invested in asia and global markets. the initial portfolio was provided by the government, but since then, temasek ’ s funds have come mainly from the investment growth of its own portfolio. compared to mas and gic, temasek is further out on the risk - return spectrum. how are the ofr managed? let me now move to the third question : how are the ofr managed? this is the portion of the reserves that mas is responsible for. there are three prongs to mas ’ approach to managing the ofr robust risk management ; balanced asset allocation ; and efficient investment process robust risk management the starting point to mas ’ approach to managing the ofr is its risk management framework, which sets out the liquidity and risk tolerance levels of the ofr. these relate to : the ability of the portfolio to meet liquidity needs under stress conditions ; and the maximum loss of the portfolio under tail risk scenarios. these liquidity and risk tolerance levels are determined on the basis of what is minimally required to meet the objectives of the ofr in supporting