Find ways to let S'poreans reap Temasek's excess gains
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Jul 16, 2010 - ST Forum
GOVT'S NEXT CHALLENGEFind ways to let S'poreans reap Temasek's excess gains
I AM certain that Singaporeans want Temasek's investment performance to outperform all long-term benchmarks adopted by its management and the Government ('Temasek's assets hit record $186b'; last Friday).
However, there is the question as to how Temasek uses any excess returns. Currently, it reinvests these returns back into its investment portfolio. Hence, through Temasek's growing domestic portfolio, some of these funds find their way back into the Singapore economy. Temasek's role in fostering aspects of the domestic corporate sector is well known.
Having been constructed over many years, Temasek's investment portfolio is now mature, that is, it is self-sustaining. Therefore, the portfolio is now satisfactorily able to absorb payouts to its ultimate beneficiaries: Singaporeans.
The Government should explore alternative mechanisms to share Temasek's investment successes with the population at large.
One recommendation is to distribute a small percentage of excess returns directly to Singaporeans. For example, the
Government could consider reinvesting 80 per cent of excess investment returns into Temasek's portfolio, while the remaining 20 per cent is paid out to citizens in the form of annual 'Temasek Bonus Shares'.
A high watermark may be implemented to ensure that payouts are sensible and do not eat into Temasek's long-term portfolio.
Temasek is a fiduciary tasked with generating investment returns on behalf of Singapore and Singaporeans. Thus, any excess returns over its rolling five-year benchmarks should accrue to the Singaporean population. As with any prudent portfolio, much of the returns should be ploughed back into the investment account while a limited portion may be used for current consumption.
Sovereign wealth funds like Temasek clearly have a role in managing a nation's wealth. However, in the economic context of modern Singapore, transforming their role into delivering additional concrete benefits for Singaporeans is the Government's next challenge.
Imran Ahmed
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I saw this letter in the forum's paper this morning. He must have been high on drugs when that letter was written.
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LKY and sonny and their lackies must have laughed their heads off.............
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i saw this article......the answer is Neh......!!!
You CPF 3% is your returned already.....after tax.
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Originally posted by ditzy:
I saw this letter in the forum's paper this morning. He must have been high on drugs when that letter was written.
I also LOL.
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election coming also dun need to dream till like that right?
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i think the forum editor must have LOL too when he saw the letter.
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Originally posted by Rock^Star:
i think the forum editor must have LOL too when he saw the letter.
He wanted Singaporeans to have a good laugh today.
So he allowed it appear in forum.
TGIF.
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If the letter was published in April, I might have bought it.
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Originally posted by ditzy:
If the letter was published in April, I might have bought it.
Somebody will write into forums in the next few days saying that the money TH makes are for rainy days.
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temasek is a privately owned company
like mrt
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Originally posted by laurence82:
temasek is a privately owned company
like mrt
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those making money are because of good management and foresight...
those not making money are due to the current market sentimentals...
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Move this thread to joke forum
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Jul 17, 2010 - ST Forum
Sharing excess gains: Temasek replies
WE THANK Mr Imran Ahmed for his proposal yesterday ('Find ways to let S'poreans reap Temasek's excess gains').
Temasek invests for the long term, by focusing on value creation and growth. Far from managing a 'mature' portfolio, we have been actively reshaping our portfolio to increase our exposure to various growth economies in Asia and elsewhere.
As a result, excluding Singapore and Japan, our underlying exposure to Asia is nearly half of our $186 billion portfolio compared to less than one-fifth of a much smaller portfolio six years ago. Post-2002 investments constitute just over half of our portfolio today.
There are inherent investment risks. Our portfolio value fell as equity markets plunged the year before, and rebounded $56 billion as markets recovered and our continued investments paid off. Although markets are calmer, there remains a one-in-six risk of losing 14 per cent or more of our portfolio value during this financial year.
We recognise there may be some interest to co-invest with Temasek. We are exploring such possibilities, particularly for co-investors who have a long-term investment horizon and the ability to tolerate the volatility. We will share these ideas when we are ready.
As for sharing returns with the wider community, Temasek has committed more than $1 billion since inception to community, philanthropic and public good causes.
We have, since 2003, formalised our commitment to set aside a share of our returns for community contributions whenever we deliver returns above our risk-adjusted hurdles.
Our most recent contributions were three philanthropic endowments for Singaporeans totalling $170 million last year, with
$70 million specifically for supporting health-care and special needs programmes in Singapore.
Myrna Thomas (Ms)
Managing Director
Corporate Affairs
Temasek Holdings -
wow lah, it take them 1 days to reply and publish
they are really fast
really
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You dunno they have dept specially just for handling PR?
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i only know, they have 1 dept that read every day newspaper
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Then again, it could be that the letter was deliberate.
So that TH can come out to say they are doing this and that community service.
After all, this is election year.
Peopl don't want to be reminded of the billion dollar losses and mega disaster investments.
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Originally posted by charlize:
Then again, it could be that the letter was deliberate.
So that TH can come out to say they are doing this and that community service.
After all, this is election year.
Peopl don't want to be reminded of the billion dollar losses and mega disaster investments.
Propaganda?
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Originally posted by ditzy:
I saw this letter in the forum's paper this morning. He must have been high on drugs when that letter was written.
lol... i tink the govt will lock him away - charge him for terrorist act, put him into Mas Selemat's previous cell. ( terror on temasek's piggy bank). -
Originally posted by Just_do_it_lah:
lol... i tink the govt will lock him away - charge him for terrorist act, put him into Mas Selemat's previous cell. ( terror on temasek's piggy bank).it's a easy excuse nowadays.
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Yes, there is a possibility the letter is fake. I'm not surprised, this is Singapore after all.
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yeah... as long as somebody is a nation-threat... ( threatening temasek's piggy bank included ? )
under ISA .. one can lock away for a long time w/o trial....
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Originally posted by Just_do_it_lah:
yeah... as long as somebody is a nation-threat... ( threatening temasek's piggy bank included ? )
under ISA .. one can lock away for a long time w/o trial....
who else can threaten the TH piggy banks?