Temasek Holdings Guide, Meaning , Facts, Information and Description
Temasek Holdings is the investment arm of the Singapore government.
| Table of contents |
|
2 Investments 3 Earnings 4 Controversy 5 External links |
History
In the early 1960s, the Singapore government took stakes in a variety of local companies, in sectors like manufacturing and shipbuilding. Prior to the incorporation of Temasek Holdings in 1974, these stakes were held at first by the Minister for Finance (Incorporated). Minister for Finance (Incorporated) is Temasek Holding's single shareholder today.
In addition to Temasek, the government of Singapore has one other investment arm, the Government of Singapore Investment Corp. (GIC), which invests primarily the governments foreign reserves.
Ho Ching was appointed executive director of Temasek Holdings in 2002. She is the second wife of Lee Hsien Loong, who became Prime Minister of Singapore in 2004.
Investments
As of 2004, it owns stakes in many of Singapore's largest companies, such as SingTel, DBS Bank, SIA, PSA Corp, SMRT Corporation, Singapore Power and Neptune Orient Lines. It also holds investments in public icons like the Raffles Hotel and the Singapore Zoological Gardens. It also holds a stake in Singapore Pools, the only legal betting company in Singapore. On October 14, 2004, it announced that it was closing the operational headquarters of Singapore Technologies and transferring the latter's assets to itself.
About half of its managed assets are external to Singapore and this includes stakes in telecommunication companies such as Telekom Malaysia. It has also taken up stakes in foreign financial institutions such as PT Bank Danamon in Indonesia. Temasek-linked companies (TLCs) also hold an extensive global portfolio, such as Singtel's ownership of Australian telco Optus.
Although 75% of Temasek's holdings is in Singapore, it has set a target of eventually reducing this to only one-third. One-third will be in developed markets and the final third is planned for investment in developing economies.
| Finance & Banking | Telecom & Media | Multi-Industry | Transport & Logistics |
|---|---|---|---|
| |||
| Property | Infrastructure & Engineering | Utilities | Others |
| Pharmaceuticals | |||
|
Source: Temasek Holdings
The 2004 report states that Temasek manages S$90 billion in assets. This represents an average total shareholder return of 18% year-on-year since 1974. As soon as the report was published, Standard and Poor's assigned Temasek Holdings with a AAA rating for "exceptionally strong". At the time of this report, the various Temasek holdings held one-third of Singapore's stock market capitalization between them.
This is an Article on Temasek Holdings. Page Contains Information, Facts Details or Explanation Guide About Temasek Holdings Earnings
2004
Temasek reported its accounts to the public for the first time in its 30-year history on October 12. Net profit was S$77.4 billion (US$44.4 billion) on revenues of S$56.5 billion for the financial year closing on March 2004. Its 2003 profit was S$241 million on revenues of S$49.65 billion in the previous financial year, while its 2002 profit was S$4.92 billion on revenues of S$42.56 billion.Controversy
There is a perception that Temasek is an arm of the Singapore government and owned 100% by the Ministry of Finance. When ST Telmedia, a TLC, took a significant stake in Indonesian Indosat, workers went on strike to protest working for Singapore. In 2003, when ST Telemedia acquired a two-third share of Global Crossing, the acquisition had to be approved by the U.S. government for fear that the local government would gain control of the extensive network.External links