NEWS RELEASE

TEMASEK HOLDINGS' RESPONSE TO FINANCIAL TIMES ARTICLE OF 29 OCT 03

       Singapore, 31 October 03 - We refer to the Financial Times article "Temasek pursues aim to become global player - Singapore's investment arm looks to expand beyond the island's shores" dated 29 Oct 03, and the Business Times article "Temasek consortium all but bags BII with higher price" of 30 Oct 03.

       The Financial Times article claims that Temasek's Executive Director, Ho Ching, has been "frustrated by the slow pace of overseas expansion" of DBS Bank, as well as other local banks UOB and OCBC, and hence she has decided that Temasek "must play a more direct role by setting up its own banking network." It attributes this observation to an unnamed person who is supposedly close to Temasek.

       The above claim is not only incorrect, but also represents mischievous speculation by an external party, as Ms Ho has not made such observations to anyone inside or outside of Temasek. Nor is there any pressure from Temasek at any time for DBS to expand willy-nilly overseas.

       Temasek's investments in financial institutions in Asia reflect our belief in the region's potential, and our interest to both benefit from and contribute to Asia's growth and success within a sound risk-reward framework. Our investment in Bank Danamon, and our participation in the bid for Bank Internasional Indonesia (BII), represent our confidence in the recovery and potential of the Indonesian economy and a welcome opportunity to participate in and contribute to its growth.

       DBS remains a key financial institution within the Temasek Holdings group, representing our long term investment into the economic prospects of Singapore and Hong Kong, as the two major business and financial hubs of Asia, as well as Thailand. We will continue to seek interesting opportunities in the Asian financial sector, as they arise.

       Temasek will strive to enhance value to maximise returns for our assets as an active, responsive and responsible shareholder. As a shareholder, Temasek expects its investee banks, whether DBS, Danamon or other new investments, to be measured and prudent in their business directions and delivery, with a clear view and commitment to deliver strong shareholder returns, underpinned by a strong culture of integrity, service and excellence.

For media enquiries, please contact:

Temasek Holdings
Rachel Lin
Associate Director, Corporate Communications
Temasek Holdings (Pte) Ltd
DID: (65) 6828 6766
Fax: (65) 6828 6266
Mobile: (65) 9666 1855
Email: rachellin@temasek.com.sg