$58 billion loss
The state-owned investment company’s (Temasek Holdings) assets were valued at S$127 billion ($85 billion), down from S$185 billion at the end of March last year.
Senior Minister of State for Finance, Lim Hwee Hua
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What an asstronomical loss ! Assuming we have 2.5M sporeans, that would have been $23K for each !
Now we know why Ho Ching left. The potato was too hot to handle.
and that sum is only to TM alone, we have not yet see the figure from GIC which handles even larger sums, and the losses are still continuing to dip further in the next 2 years to come, our nation reserve may already been depleted to the stage of bankruptcy in no time, should the crisis continues, after all the fund belongs to the people and not to the ruling party to play around with, and should the nation really goes into bankcruptcy, rest assured all those who are accountable for would have already packed up and fled, leaving behind the people to fend for themselves.
On a serious note, anyone kind enough to explain..
What is the actual cost to Temasek when our government ‘sell’ Singapore’s assets like the the 3 power plants, CAAS, Singtel (1992) etc..?
If Temasek cost to these sales are just nominal $1 (which i believe could be the case), then to achieve investment return of 13-14% p.a. as reported by Mdm. Lim Hwee Hua since inception (1976) may not be reflective of actual performance at all…
Please enlighten, anyone?
Anyone want to make a guess on what tomorrow’s Straits Times report will be? i am guessing it will be something along the lines of:
“Losses but government confident of long-term investments”
Or
“Investments in good shape despite losses”
Who wants to bet with me?
They can throw out whatever figures they like, since when are all those changing figures being justified? by who? so no point asking as there are no transparency, no accountability at all from this ruling party, who knows except MM himself and his own team.
Already out:
She said: “They do not have to sell in panic in a market downturn, and are in fact in an advantageous position to invest in good quality assets at prices that are attractive from a long-term perspective during a downturn. The government is confident that they will continue to deliver good long-term returns within the risk limits set.”
# Andrew
I’ve already heard the news this morning on the radio, exactly what you’ve mentioned. As usual the same old lines over and over again, are they trying to play their delaying game again? I don’t know but I’m having very negative feelings and ???????
Long term investment…
Shoot out an arrow, left right up down, anywhere. When the arrow hits, start painting red around the tip of the arrow.
Bulls Eye! Well done Temasek, you have hit your target.
Is this number significant? Well, if they do it another two more years, there will be no more Temasek.
more losses to come. GIC lose until dare not say a word.
I have a few questions for Minister Lim Hwee Hua
1) Why is the MSCI Singapore and MSCI Asia (ex-Japan) index used as the benchmark for comparsion, when clearly Temasek would have bonds and cash in its portfolio? Please compare Temasek’s performance to a PROPER benchmark that has bond and cash in it as well. Was Temasek trashed and therefore the comparison cannot be made?
2) Why is the MSCI Singapore and MSCI Asia (ex-Japan) index used when clearly Temasek has invested so much money in Europe and US?
3) Are Temasek’s investment properly marked to market. Eg Is investrment in Shin Corp still held at cost since a special purpose vehicle is used?
4) New assets like CAAS were injected into Temasek. How are this accounted for?
As the Minister of State of Finance, please treat Singaporeans’ concern carefully. There should be total transparency!
It is interesting to note that LimHH used to report to HC while she was working under her in Temasek. Now she has to be the “bad person” to report such astronomical loss. Guess the real culprit (i mean boss) is still pulling the puppet string and ensuring she’s as clean as a white sheet of paper.
S$58B would make a nice unemployment insurance fund for Singaporeans and PRs.
tiredsingaporean
i guess we are sick and tired of hearing the same shit…which bring me to ask, can they think of some new verse or idea? it is getting boring. the usual long term investment for donkey years, deliver good returns, trust etc.
I am also having a very bad feeling about all this, and i bet most of you feel it too, the worse has yet to hit us.
Was this the reason why we seemed to be in such a hurry to sell off our 3 power plants. Wonder how much profit Temasek booked from the sales? Profit from the sale of Singapore state assets should actually not be included in Temasek’s profit. Perhaps the lady minister may care to comment and enlighten us. Are we planning next to sell our ports, airport terminals …etc so that Temasek can look good?
I am not sure that HC resigned to take responsibility. But surely she could not be the only decision maker. What about the Chairman and the Board members?
$58 Billion is a mind-boggling sum…..would have gone a long way
to support 2 to 3 hundred thousand unemployed for a long time.
In an interview, Ho Ching was quoted saying ‘she has no regrets’
I suppose hubby and father-in-law also have no regrets…..
familee business as usual.
According to Noble Prize Wiinner in Economics, Joseph E. Stiglitz, in his book Globalisation and its Discontents. Chapter 3. Converting state-run industries and firms into private ones WILL have an inclination in destroying jobs and promote minimal job protection. Has any careful thoughts or precautionary measures been deliberated before this? Will citizens see another price hike in utilities costs soon?
Everybody please watch
http://www.cnbc.com/id/15840232?video=1021551579
the questions raised by the citizen is just the questions should be raised in Singapore. Sadly none so in Singapore parliament, in fact keeping silence of mistakes in Singapore is the best way to move forward to more good years !
Watch how USA government been grilled by the citizen for accountability and responsibility.
and contrast it with our pathetic state of Singapore government where the citizen is instead grilled by the government officials instead for its lack of accountability and responsibility.
The above video taken from a post in http://tankinlian.blogspot.com/ . Credit to the person who post it.
We need to engage GARY AKERMAN and his team to come over to Singapore to rip open the scandal of this country. If you think that Madoff is the mother of all frauds. Wait till you reveal TH and GIC books and you will realize that Madoff’s ponzi scheme pales to what the government has done to the people of Singapore. Period!
Aki ,
when US lost US$50billions, the whole of US is turned outside down by exposure of the Ponzi scheme and the government becomes the point of ridicule and angst by the citizen PUBLICLY AND IN COURT. But when Singapore lost US$74billions which is almost 50percent more than the US, the whole parliament of Singapore and general citizens keeps silence and lead life as usual ! What’s more the gov says we should be thankful to PAP ! Incredible government. So many years of oversea travelling, nothing fascinate me more than my own local government of Singapore ! Very out-of-this-world and surreal government. Indeed, Singaporean ought to be thankful to this “extraordinary” government because there is really none in this world that can match its extraordinariness. Nothing even comes close.
The US officials must be stupid not to tell the citizens that all the loss is just paper loss and can be recovered when economic boom again as like what Temasek tell Singaporean. Those US must have blow their losses out of proportions by Singapore standard !
Aki,
“On February 4, 2009, Gary Ackerman attacked SEC Officials over the handling of tips given to them about the Bernie Madoff scandal. Ackerman said ““I’m reflecting what the American public feels,”
he said. “How are they supposed to have confidence that if somebody goes to you with a complaint—gives it to you on a silver platter with all the investigations, with all the numbers, with all of the data, telling you exactly what he did, why he did it and how he knows that—and after a period after half a dozen or eight years, you don’t know anything?”” [8]
http://en.wikipedia.org/wiki/Gary_Ackerman”
Yes, we should pay millions to hire Gary Ackerman instead.
So applicable to MAS !
http://www.youtube.com/watch?v=FOKSkaQoF_I
View this too … related to the financial crisis
http://www.youtube.com/watch?v=j56qvOIY2E8
On Jan 30, Finance Minister Tharman Shanmugaratnam said, of Temasek and the GIC:
‘We would be worried if global banks comprise a large proportion of the portfolios of GIC and Temasek, or for that matter, any other highly vulnerable industry globally,’ he said. ‘But these are diversified portfolios, with not a large degree of concentration risk.‘
Temasek and GIC have performed ‘credibly by international standards’, he said. Temasek averages an annual 18 per cent return on investment; GIC averages 7.8 per cent in US dollar terms, compared with 6 per cent for the MSCI World Index.
GIC also said last year that it is boosting investments in emerging markets, private equity and other asset classes to raise returns after cutting back stocks and holdings in developed nations.
‘I’m comfortable with the actions both Temasek and GIC have taken early in this crisis to reduce risk, to move into more liquid asset allocation and to prepare for opportunities in this downturn,’ Mr Tharman said.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_332169.html
I wonder what he would say to a S$58 billion loss – “not a large degree of concentration risk”??
12) Peter Tan on February 11th, 2009 12.59 am I have a few questions for Minister Lim Hwee Hua
1) Why is the MSCI Singapore and MSCI Asia (ex-Japan) index used as the benchmark for comparsion, when clearly Temasek would have bonds and cash in its portfolio? Please compare Temasek’s performance to a PROPER benchmark that has bond and cash in it as well. Was Temasek trashed and therefore the comparison cannot be made?
2) Why is the MSCI Singapore and MSCI Asia (ex-Japan) index used when clearly Temasek has invested so much money in Europe and US?
3) Are Temasek’s investment properly marked to market. Eg Is investrment in Shin Corp still held at cost since a special purpose vehicle is used?
4) New assets like CAAS were injected into Temasek. How are this accounted for?
As the Minister of State of Finance, please treat Singaporeans’ concern carefully. There should be total transparency!
PETER TAN’S QUESTIONS ARE VALID. IN ADDITION,
5) how were unlisted companies such as PSA, Singapore Power and other power plants valued.
6) why GIC dare not disclose percentage decline in value.
7) THE PROPER BENCHMARK TO USE IS TO PEG AGAINST THE PERFORMANCE OF THE TOP 10% BEST PERFORMING STOCKS IN THE MSCI INDEX ….SINCE THE GOV PEGS MINISTERS SALARY TO THE TOP PRIVATE SECTOR WORKERS. We pay top dollars for you and we expect top performance not average, which the MSCI index measures!!!!
$20.5 Billions budget is extraordinary and unprecedented. It takes the whole nation, cabinet and government to debate on it. Yet losing $58 Billions in a short period of 6 months is absolutely OK and nothing to worry about. If performance of Temasek management is not key, then what measurement are we imposing on the Temasek management? Just their experience and nice academic results?
Taking a long term view should not be the excuse to brush it off. We need more accountability on why Temasek is losing $10 Billions a month between 31 March and 30 Nov 2009. We want more transparency!
Long term investment is good for us only if we can benefit from the fruit.
Long term investment is good for them because they can keep reaping the fruit from us months after months enjoying their sky high pay and at the same time don’y need to bear responsibility for any loss due to their lousy judgement.
They dare to equate themselves to any other big corp high profile CEOs in real business world, then they must behave with honour and guts to admit failure. Don’t hide behind the blooding curtain like kuniang. We want honest and honourable leaders. Not cowards that hide themselves when things screw up and stand in front rows when there’s credits to claim. Gee, what quality of leaders we have.
Why was the loss announced by the Minister of State for Finance – Lim Hwee Hwa?. Why is it that she has to answer to all the questions? A more appropriate person should be the Minister for Finance or PM since the amount is so big.
Aaron,
you don’t know mah ? , that all along that PM and senior statesmen are all fair-weather clowns ? When it is good news, the PM will chair and appear prominently in the mouthpiece (remember the youth olympics ?), and when it is shitty news, the scapegoat will take the rap (afterall they are paid high to take all the shit, and that is where their usefulness and talent are, which is take Shit)
Aaron, you want answers from the government? Have you forgotten what the Tar Man said?
Let’s continue to be a good citizen support the gouv bear this losses……
And remember the good return given to us in better years…………..
HEH WAIT
were there any at all to begin with.
So sad.
The result and consequences of dictatorship is what we see now. When the market is rising anybody with money will make more money. The clever one will know when to move on to safer investment when the bull market turned. Having a person with no track record in charge of our country wealth, simply because she or he is a member of famiLee is what we called nepotism. Corruption in a different form. It may 50 years to build SinKapore but it may only take 5 more years to bankrupt it. This time it will be the PAP regime who is going to acheive that distinction. The day when our mothers and sisters have to travel out of the country to work as maid is not a dream anymore. Men may have to travel out of the country to earn a living as well. With the Northeast Passage through the Russian arctic a possibility soon, Sinkapore will loose a big part of port businese. Please see link below.
http://news.bbc.co.uk/1/hi/world/europe/8264345.stm