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1.
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What is the heritage
of Temasek Holdings? Why was it established?
Temasek Holdings was created in 1974 to hold and manage
investments and assets previously held by our shareholder,
the Minister for Finance (Incorporated). The objective
was to find a way to better manage the portfolio of
companies and investments accumulated by the Ministry
of Finance in the first decade of nation building since
1965. The intent was for the Ministry to focus on its
core role of policy making and government administration.
Governed by the Singapore Companies Act and later designated
as a Fifth Schedule entity1 as well, under the Singapore
Constitution, Temasek operates as an autonomous and
professional investment house, guided by an independent
board. Endowed with an initial portfolio of S$354 million
transferred from the Ministry of Finance, the market
value of our portfolio has grown some 34 years later
to S$185 billion (US$134 billion) as at 31 March 2008.
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2. |
Is Temasek Holdings a statutory
board or a government agency?
Temasek Holdings is neither a statutory board nor a
government agency. We are an investment holding company
incorporated under the Singapore Companies Act and we
operate strictly as a commercial entity. We are run
independently by a board of directors and a management
team, with the key objective of maximising shareholder
returns from our investments. As a shareholder, we expect
our portfolio companies to make their decisions based
on commercial and economic grounds. Temasek's own decisions
are also based strictly on commercial considerations.
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Who is Temasek's shareholder?
Temasek Holdings' shareholder is the Singapore Ministry of Finance (MOF).
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4. |
What is the role of
the Singapore Government in the running of the firm?
Temasek is accountable to the Singapore Government,
as its shareholder, for the overall performance of the
group. As shareholder, the Government’s role is
to ensure that a competent board is in place to guide
Temasek’s investments and to ensure rigour in
the investment process. However, investment, business
or commercial decisions are the responsibility of Temasek’s
Board and management. Neither the President nor the
Singapore Government is involved in directing Temasek’s
investment, divestment or other business decisions.
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5. |
Are Temasek Holdings
and the Government of Singapore Investment Corp (GIC)
the same organisation?
Temasek and GIC are completely separate entities, with
separate boards and management teams.
Temasek is an investment firm with a global portfolio.
As an active shareholder, Temasek encourages a culture
of excellence and meritocracy, thoughtful leadership
and sound governance in our portfolio companies. We
have flexible investment horizons and our aim is to
maximise long-term returns from our investments.
You can obtain more information about GIC at www.gic.com.sg
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6. |
What are the companies
in Temasek’s portfolio? How many are listed and
what is the market capitalisation of these companies?
A list of 32 major portfolio companies as at 31 March
2008 is provided in the Temasek Review 2008, including
market capitalisation for the 24 companies which are
listed.
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7. |
How does Temasek work with its
portfolio companies?
Where necessary and appropriate, Temasek actively engages
its various stakeholders, including the boards and managements
of our portfolio companies. Over the years, this engagement
has widened to include both informal networking opportunities
and organised forums.
We do not direct the commercial or operational decisions
of our portfolio companies. Companies in our portfolio
are managed by their respective management and guided
and supervised by their respective board of directors.
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8. |
Does Temasek request
for representation on the boards of companies it invests
in?
For the vast majority of companies in our portfolio,
we are not represented on the board. Overall, we promote
sound corporate governance in our portfolio companies
by supporting high calibre, commercially experienced
and diverse boards to complement management leadership.
By leveraging our wide network of contacts, we can suggest
qualified individuals for consideration by the respective
boards
As a shareholder, we will exercise our rights to protect
our commercial interests.
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9. |
Does Temasek disclose its financial
results? Where can I get a copy of its financial statements?
Temasek has been granted the status of an exempt private
company. As an exempt private company, we are not required
to disclose financial information. However, for five years
now, we have published our annual Temasek Review, which
provides the group financial summary and highlights based
on the audited financial statements.
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10. |
What is Temasek's
divestment schedule?
We do not have a divestment schedule. We are an active
investor and rebalancing our portfolio is part of the
process of maximising shareholder value. New investments
are made or existing ones divested, as part of our overall
portfolio rebalancing for sustainable returns.
Footnote:
1Under the Singapore Constitution, the concurrence
of the elected President of Singapore is required over
certain governance matters concerning Fifth Schedule
entities. These include the appointment and removal
of board members and the CEO, and the drawdown of past
reserves built up by the entity before the term of the
current Government. Other Fifth Schedule entities include
the Central Provident Fund Board, Government of Singapore
Investment Corporation Pte Ltd, and the Monetary Authority
of Singapore.
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