Temasek 'a company like no other'

President Tony Tan hails investment firm at 40th anniversary dinner
By Chia Yan Min, The Straits Times, 23 Sep 2014

ITS beginnings were modest and fraught with risk but when Temasek Holdings held its 40th anniversary dinner last night, it had become, in the words of President Tony Tan Keng Yam, "a company like no other".

In his keynote speech, Dr Tan said the investment firm was an "experiment born out of necessity" and had transformed itself into a Singapore institution that "epitomises a culture of constant hard work and ceaseless innovation to build for the future".

Last night, plenty of well-wishers gathered to mark that singular achievement over the past 40 ground-breaking years.

The dinner, held under a marquee on the Istana grounds, was attended by about 500 guests, including Temasek employees and directors, representatives from its portfolio companies, and international guests. Prime Minister Lee Hsien Loong and other Cabinet ministers also attended.

Temasek turned 40 in June, but held the anniversary dinner last night in conjunction with a slew of other high-profile events over the weekend, including The Singapore Summit conference and the Formula One race.

Temasek's success, said Dr Tan, was far from assured, partly because Singapore was flying in the face of conventional wisdom. The company was set up in 1974 to take over about 35 companies and miscellaneous investments previously owned by the Government.

These were a "motley collection of companies", from detergent manufacturers to chicken essence producers, from newly converted shipyards to a start-up airline, said Dr Tan.

Many state-owned companies around the world are protected from competition and used as instruments to achieve political gains, but "Singapore saw all these scenarios as unacceptable", he added. It was "clearly not the business of government to run such enterprises", Dr Tan said.

The creation of Temasek - nearly a decade after Singapore became independent - separated the roles of government as a policymaker and regulator, and a shareholder and commercial owner of companies.

Temasek was born in a "fluid milieu of early nationhood, of self-reliance and fiscal prudence, of the imperative to strive for survival while fostering unity amid the diversity of race, language and religion in Singapore", added Dr Tan.

Even as Temasek grew and evolved over the past four decades into a major global investor, many companies in its portfolio have also expanded to become international players.

"Government did not make them champions. Temasek did not make them champions. They competed freely against the best in the world for a customer base far larger than our home market," said Dr Tan.

Temasek chairman Lim Boon Heng, who also spoke at last night's event, said Temasek's ethos was that of a long-term investor, with the "spirit of doing things today, with tomorrow very clearly in our minds".

Growth should not come at the expense of sustainability - "protection of our environment can and should go hand in hand with development, jobs and prosperity", added Mr Lim.

In addition to acknowledging Temasek staff and partners past and present for their contributions, Mr Lim also thanked the people of Singapore for their "interest and ideas, trust and concern".

Temasek's net portfolio value climbed to a record $223 billion as at March 31 this year.

Temasek’s success down to separation of its role from Govt’s
Distinction allowed S’pore firms to be free of political patronage and compete on level playing field, says President Tony Tan
By Lee Yen Nee, TODAY, 23 Sep 2014

The clear separation between the Government’s role as a policymaker and regulator and that of Temasek Holdings as a shareholder and commercial owner of companies has driven the steady growth of the investment giant and helped Singapore thrive as a nation, President Tony Tan said yesterday.

“Even today, 40 years later, it is a distinction that remains unclear to some,” he said at Temasek’s 40th anniversary dinner held at the Istana, attended by about 500 guests, including Prime Minister Lee Hsien Loong, other members of the Cabinet, business leaders such as Parkway Pantai chief executive Tan See Leng and international guests such as World Bank managing director Sri Mulyani Indrawati and former US Treasury Secretary Timothy Geithner.

Mr Lee’s wife Ho Ching, who attended in her official capacity as Temasek executive director and chief executive, was also among the audience who enjoyed a vocal performance by Temasek Voices and a recital from 10-year-old award-winning pipa soloist Chen Xinyu.

Temasek, a corporate entity fully owned by the Ministry of Finance, turned 40 in June. However, it timed its anniversary celebration for last night as part of a 4-in-1 series, coming after its inaugural Ecosperity Conference last Friday, the Singapore Summit on Saturday, and the Singapore Airlines Singapore Grand Prix on Sunday.

The shared commitment to meritocracy, commercial discipline and accountability among the Temasek portfolio companies also helped these firms become regional and global champions in their own right, Dr Tony Tan said.

“Government didn’t make them champions. Temasek didn’t make them champions. They competed freely against the best in the world for a customer base far larger than our home market. They earned the support and trust of their customers in a globally competitive marketplace,” he added.

Harking back to Singapore’s early years as an independent country, Dr Tan said that as British forces carried out plans to leave Singapore by 1971, the Government had to convert military and naval bases to other facilities to keep jobs.

“Naval yards became ship repair yards, and naval workshops became engineering companies. By 1974, the Singapore Government owned shares in a motley collection of companies, from detergent manufacturers to chicken essence producers, from newly converted shipyards to a start-up airline.”

But “it was clearly not the business of Government to run such enterprises” and Temasek was set up to take over the companies. That separation allowed Singapore companies to be free of political patronage and compete on a level playing field, he said.

This is unlike many state-owned enterprises (SOEs) around the world that are protected from competition and cushioned from corporate realities through subsidies, he said. Some of these SOEs may also become instruments to achieve politically-driven agendas, he added.

“Singapore saw all these scenarios as unacceptable,” Dr Tan said.

He noted that Temasek is one of the many Singapore institutions which epitomises a culture of hard work and ceaseless innovation to build for the future.

“We kept an eye on our nation’s future. Just as our people have a strong culture of savings, Government also set out to live within its means from day one. Thus, Temasek was born in this fluid milieu of early nationhood, of self-reliance and fiscal prudence, of the imperative to strive for survival while fostering unity amidst the diversity of race, language and religion.”

As many of its portfolio companies have flourished domestically and globally, Temasek, too, has grown and expanded beyond Singapore and its journey has helped the country to grow its wealth. “From a humble beginning 40 years ago in a tiny office at the mouth of the Singapore River, Temasek has come to be regarded as one of the foremost global equities investment companies today.”

Temasek grew its portfolio over the four decades from just S$354 million in 1974 to S$223 billion this year, and reported a 16 per cent total shareholder return compounded annually since inception, its website showed.

In terms of the geographical distribution of Temasek’s portfolio assets, 31 per cent are in Singapore, 41 per cent are in Asia ex-Singapore, 24 per cent are in North America, Europe, Australia and New Zealand, and 4 per cent are in Latin America, Africa, the Middle East and elsewhere.

Temasek takes on sustainability challenge
Chairman cites spirit of doing things today with tomorrow in mind
By Kenneth Lim, The Business Times, 23 Sep 2014

A long-term investor with a strong public service sensibility and a massive portfolio must inevitably confront the issue of sustainability.

For Singapore government-owned investment company Temasek Holdings, that time has begun in earnest, chairman Lim Boon Heng hinted on Monday at a dinner to mark Temasek's 40th anniversary.

"This spirit of doing things today, with tomorrow very clearly in our minds also describes the ethos of Temasek," Mr Lim said. "It forms our values and culture as a long-term investor, as a forward-looking institution and most of all, as a trusted steward."

Singapore President Tony Tan Keng Yam recalled that Temasek was created as a way to keep government from overly influencing its commercial interests.

"Many state-owned companies, or SOEs, around the world are protected from competition and cushioned from corporate realities through subsidies in various guises. This leads to an unlevel playing field."

He especially noted how many Temasek-linked companies became regional and global champions on their own. "Temasek didn't make them champions. They competed fiercely and freely against the best in the world for a customer base far larger than our home market."

But Temasek is also distinctive as an investor with a horizon that is longer than most funds. That gives the fund the imperative to consider the issue of sustainability.

Mr Lim spent significant time discussing Temasek's recent focus on environmental sustainability. The firm on Sept 19 organised an "Ecosperity" conference with Goldman Sachs and the National University of Singapore to explore the issue of sustainable growth.

Temasek is also in talks with Singapore's JTC Corp regarding the potential merger of their infrastructure and development units.

Accounting for the environment does not take away from economic development, Mr Lim stressed.

He recounted Singapore's experience, from simple initiatives such as the annual Tree Planting days to the Clean Air Act, which has been strictly enforced even in the face of the potential loss of foreign investments.

"Looking after our environment is not something reserved only for the more prosperous or more developed nations," Mr Lim said. "Growth does not mean sacrificing a sustainable environment for our people."

Mr Lim said that the concept of sustainability extends beyond the environment. Temasek had also seeded 16 non-profit endowments, and is a champion of corporate governance.

"This is also why we actively promote good governance, and sound and fair regulations - we are always looking at the need to ensure long-term sustainability, be it financial, environmental, organisational or people."