Temasek’s evasiveness is only going to fuel speculation and ire.
The tide of Temasek-related bad news seems almost interminable.
Weeks after reports that the government’s main holding company had to endure a huge write-down after selling its stake in Bank of America, an article in Reuters surfaced on 3rd June 2009 saying that Temasek may have suffered another sizeable loss on its stake in British bank Barclays, which it supposedly sold off at the beginning of this year.
Temasek responded to the Reuters report in a statement carried by the Today newspaper on 5th June.
Its spokesperson questioned the accuracy of the sources, saying that “a number of such reports are inaccurate and misleading” and “advise[d] the public to take steps to verify the information independently”.
He added that it was “not Temasek’s policy to respond” to such reports, which might explain why the spokesperson was only quoted on Today and why no statement has been officially issued by Temasek.
Unfortunately, Temasek’s response is likely to stoke just the kind of speculation that it was supposed to allay in the first place. Far from assuaging the concerns of citizens, whose confidence in the country’s sovereign wealth funds have been battered over the past months, it will probably trigger a fresh round of public ire over the funds’ unaccountability and seemingly poor performance.
Furthermore, it would not have escaped notice that Temasek has fallen short of explicitly contradicting the Reuters report. “Advising” the public to verify the report independently is disingenuous – the public can hardly do much if Temasek itself refuses to confirm the report.
What Temasek seems to have failed to recognise is that it is precisely its lack of disclosure which has created a void that is being filled by frenzied speculation. The situation seems to have been mishandled from the start by Temasek and its political masters, who appeared to have thought at first that they could get away with surreptitiously unloading Temasek’s loss-making stakes.
When this was blown by the subsequent disclosure about the sale of the stake in Bank of America, the government gave an unconvincing explanation that was completely at variance with its confident assertion just months earlier that its long-term investing horizon would be immune to short-term fluctuations. Such episodes only served to fuel rumours and public ire.
Temasek and the government need to change their attitudes about transparency. The problem is that Temasek thinks it is being transparent enough. It likes to point to positive reviews about itself: the latest Linaburg-Maduell Transparency Index on sovereign wealth funds gave it a perfect score for the first quarter of 2009.
However, this masks the huge gap between Temasek and the index’s leading fund – Norway’s Government Pension Fund (PGF). For example, the latter makes quarterly reports, while Temasek’s last report (released in August 2008) used data from March 2008. The PGF discloses how much it pays its managers, Temasek’s report carried a length discourse about how it compensated its staff but did not actually reveal the amount.
Clearly such gaps are no longer tenable, given the heighten levels of public scrutiny and the unspoken but clear demand for more accountability. Public ire hinges less on the losses made than with the perceived unaccountability of Temasek and the government.
But it is unlikely that the government, so used to believing in its mastery over the management of the country’s reserves, will oblige. It will probably hope for an up-tick in the markets to dampen the political heat. A Business Times report on 1st June, for example, calculated that Temasek might have recouped half of its paper losses in Singapore equities after the recent rally. (Apparently Temasek didn’t feel that such a report warranted a response.)
In the meantime, though, the government should be prepared for more uncomfortable questions, such as whether the President was aware of the losses incurred by Temasek when he made his decision to unlock the reserves. Or a more pertinent one: whether that other fund, the Government Investment Corporation, holds other similarly inconvenient truths.
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I feel that the REPUTATION of these people are at stake.
Why don’t they immediately come out and officially say the reports by World Renowned and Recognized 1st world standard free press are all False?
Its simple to say its complete rubbish IF it is complete Rubbish. And I would even not be surprised if these world class press get sued IF their reports are LIES.
Even in this blog alone, Countless questions have been posed.
The fact is I did not see ANY response from them on this blog.
What are they thinking?
What are they waiting for?
I suspect someone out there has access to investment info and so the REALITY cannot be kept for long.
regards
the 3 Humtinizer Erected on Standby ready to be used
“today event at HLP”
The Government should sue Reuters fore damaging Singapore’s reputation. Is there an avenue of international judicial processes with our judges sitting to pass judgement?
and yet, temasek was voted the most transparent swf? what gives? maybe they know the parameters they will be measured for the most transparent swf and tweaked their reports etc to meet the criteria. cannot imagine they got 10 out of 10! but i guess thats how good we are, like question spotting for exams. and fail when we go out into the real world!
and we have our finance minister singing praises of how well temasek has performed! twisting stats to suit our purpose!
Non-Answer.
And What you gonna DO about it????
regards
bao jia, D24 Durian
Same modus operandi in action:
Temasek wants you to verify the facts before writing when they are not forthcoming with the facts.
A typical example where an answer that leads you to a dead end.
This is just a fractal of the bigger system.
Temasek has been designed to be accountable only to Ministry of Finance.
What concerns me most is that the Minister of Finance has not expressed any unhappiness with Temasek’s current performance. In fact, Tharman’s speeches in parliament defends Temasek’s performance as he throws up various indices that tries to smooth out the performance over ‘the long term’.
Another striking issue is that Tharman did not mention anything about the approx S$1 billion losses that has arisen from the Barclay’s bank sale. Was he not informed by Temasek of the huge losses or was he withholding material information relevant to the speech regarding Temasek’s performance or lackof?
Someone should do research to see if most of the poorly-timed purchases (AIG, Barclays Bank, Merrill Lynch. etc) and lopsided over-allocation of portfolio (up to 40% on financials at the peak of the market) were made before Tharman took over from LHL as the Finance Minister in Sept 2008.
If LHL had not relinquished his position 9 months ago as Finance Minister, imagine how he would have to face the public now to account for the billions of dollars lost by his wife, Ho Ching, within such a short period of time.
The current protocol is to raise the issue in parliament, and if the current Finance Minister is not-unhappy with Temasek’s performance, there is not really much the people can do about it.
No wonder many S’poreans feel that : “Every answer leads to a dead end.”
I remember so many defending the appointment of the hojinx, brushing aside claims of nepotism and conflict of interest, let alone the total lack of investment experience. what have they got to say now. So she quit, but what is the damage.Its the people’s money but yet they behave like its thiers. we deserve this for being politically ignorant. we need to take back the power. they need to answer not quit or commit suicide like the teh,o, guy
Temasek does not need to account to the people, since it is accountable to the Govt only. What right does the people have to demand for transparency?
Over their dead bodies la
When the votes drop drasically, we’ll see WHO they are accountable to then…
Mr. Tan where r u?
You can have thousands of Mr Tan talking sense and logic and serving up sound suggestions, and THEY will just turn a deaf ear.
They are in power and holding on to it for a reason… and I need not mention what it is.
men of honour will take the blame and step down. and yet we are paying millions to keep dad around , and others veterans to justify dad’ s appointment. Are we not one big happy familee
Which is why the gahmen as an organization has become learning disabled…
I can not tah han if people refuse to admit the mistake, and keep covering the problem, what is this man?
What! The CPF min sum to increase?
What! No mid-year bonus?
What! COE prices gone up?
And when she resigned from TH, she got a dont know what award for her “outstanding” performance. What!
Its spokesperson questioned the accuracy of the sources, saying that “a number of such reports are inaccurate and misleading” and “advise[d] the public to take steps to verify the information independently”.
Thomson Reuters provides information for the financial industry. TH is implying that the information provided by Thomson Reuters is inaccurate and misleading.
TH advise the public to take steps to verify the information independently. How when the two direct parties, TH and Barclays, refused to comment? Hokkien LPPL.
If the first key to our reserve remains quiet and unaccountable for the fund wasted by the govt, the 2nd key holder (our president) should exercise his utmost authority to question the govt on behalf of the people. Otherwise, the credibility of our president is questionable too.
Please be informed that this year national day is about celebrating PAP 50th anniversary day. As such, this year national day is not meant for the nation but the ruling party. Because of such high level of grandstanding themselves in the coming national day, we can all be assured of less accountability and transparency when complete authority will be displayed to tell citizens who is in power. Similar to the march of arm forces and artilleries to deter potential aggressors and protestors.
“The world’s main Sovereign Wealth Funds agreed to a voluntary code of conduct first drafted by IMF” (source wiki)
The resultant revelation (or the lack of it) has lead to the almost interminable
tide of Temasek-related bad news, if I may plagiarise the author’s words.
With more revelation, perhap one day we will be wiser knowing the following:
1. The yearly asset balance for the past umpteen years since GIC and TH was in existence.
2. How much of it was from our CPF
3. How much of it was from asset transferred from corporatised statutory boards.
4. How much of it as from investment gains/losses.
Country/Asset in US $ billions/Approx wealth per citizen US$ (source wiki)
United Arab Emirates / 875 /1,000,000
Norway / 391/81,500
Singapore GIC /330 /100,000
Kuwait / 169/80,000
Canada /214.4/28,500 China /200/151
Singapore Temasek Holdings /159.2/35,400
Australia / 81.3 /3,900
Qatar/ 58
Dear ironman, take your blinkers off, maybe you’ll see why.
TOC, I think you let the Finance Minister off lightly by failing to mention his lapdog defence of Temasek’s performance.
“Temasek has made a net gain of $56 b since March 2003”. The unspoken implication was it is OK that it has lost $ 58 b over the past year, or more than the amount gained over the past six years.
Is the glass half full or half empty?
Why was the FM speaking up on behalf of Temasek anyway, when it has all along maintained that it (Temasek) operates at arm’s length from the government? And doing such a poor job of defending the people’s interests while at it?
Is correct that why FM will have to speak on behalf of Temasek. Get Ho Ching to explain to us if she got the guts. Don’t hide behind anybody.Speak up!!
if the govt lost big and gave big to its citizens, im sure the ‘noises’ would not be so loud.
most people just have problem with the fact that they lost billions w/o regret while handling out millions must make u beg and be grateful to them.
i am glad mm scolded everyone to have a sense of proportion.
else more would be in a state of slumber on how stingy and no sense of proportion the govt is.
I guess this issue will be the bugbear of the govt especially when election looms.
These two years they have done enough to oust out any other govt in the world.
The govt is now so entrenched that nothing short of a major disaster will cause it to topple.
Some of us have spoke about how many skeletons will be hiding in the closet when such a time will hopefully be presented in future.
Non disclosure to me is tantamount to corruption as it means that there are things to hide from the public who elect the govt and thus given the mandate to rule the people and the billions.
Hopefully, Temasek will now come up with a statement and clarify the losses upfront instead of evading and waiting for the investment to rise before answering the public.
Good job Reuters!
Why the non-answer or silence from Temasek?
Coz LKY is not in Singapore, so simple you all don’t know meh?
14) beoy tah han on June 6th, 2009 3.27 pm
// I can not tah han if people refuse to admit the mistake, and keep covering the problem, what is this man?
What! The CPF min sum to increase?//
CPF min sum increase is only for those turned/turning 55 year old.
If you Younger than this, then good luck. Wonder can it be adjusted again in a few years time? I learnt from them, I use the term ‘adjust’. See how smart I am?
The CPF min sum ‘hike’ is it just a coincidence? should say so lah hor?
nothing to do with anything.
24) Evilosesum
///CPF min sum scheme increases … Wonder can it be adjusted again in a few years time…Wonder can it be adjusted again in a few years time///
It is not a coincidence, it been planned and announced long time back and we are all seeing the amount of CPF we can touch when we are 55 shrinking year by year
55th birthday on or after Minimum Sum
(in 2003 dollars) / Minimum Sum (after adjustment for inflation)
1 July 2003 $80,000/ $80,000
1 July 2004 $84,000 /$84,500
1 July 2005 $88,000 /$90,000
1 July 2006 $92,000 / $94,600
1 July 2007 $96,000/ $99,600
1 July 2008 $100,000 /$106,000
1 July 2009 $104,000 /$117,000
1 July 2010 $108,000 } To be
1 July 2011 $112,000 } announced
1 July 2012 $116,000 }
1 July 2013 $120,000 }
If the reports are inaccuate, then ask them to retract.
If not, they are true as reported.
Do not advise us, go after the sources to prove that TH has been wronged.
Do not tell us, you are accusing Reuters of lying.
Prove them wrong.
If not, you are lying instead.
Increasing the min sum for CPF is not necessary with people now drawing less every year and on every crisis. Upping the min CPF is telling Singaporeans that Temasek needs more money to gamble. Don’t expect your hard-earned stake to be returned in due course. Having the minium sum increased is as good as squeezing more out of Singaporean mediocre salary. Totally unacceptable, I am voting for alternative party to reverse the trend.
27) David
Many elections back, voters send a resounding signal showing their dissatisfaction on the planned raising of age for CPF withdrawal from 55 to 60 (not sure if it is 60).
The raising of withdrawal age was never ever raised again, but evil never dies, it retuturned to haunch us by a different name – the CPF minimum sum scheme which has the same effect of raising your CPF withdrawal age, I think it is actually worse.
The logic is not there :
(a) Audit :
When the noise level for NKF was high, we sent a team
of ‘independent’ auditors in to screen and dig stuff. It’s history what we have
found. When the noise level for TH is (to me) just as high (if not worse), we
didn’t hear of independent auditing. So we are saying that TH is immune to
and above auditing ? If not, which party did the audit ?
(b) Expectations :
Every day that kicks by, we have heightened expectations of
better responses coming up on the losses and destiny of current/ future
investments, and yet, we are not seeing it. Should the tax payer’s money be
de-linked from TH coffers ?
(c) Accountability :
I don’t want to jump to conclusion that direct parties involved, are trying
to ‘scratch one another’s backs’, but I don’t hear of staff being axed in the
midst of huge losses. I can tell you that 100 out of 100 private companies will
wave the person goodbye with this kind of huge writeoffs.
(d) Asset/ Liability issues :
It is not enough to show the balance sheet. Behind it, explain how
valuations of various elements are arrived. Like I said earlier, if we can dig
hard enough, we will find conclusions to things, favourable or non
favourable.
aiyoyo
think simple – who make loss who recoup/recover la
commoners only put into cpf monthly ma;
but cpf withdraw timeline extend & extend,
no meaning leh; fault dont come from commoners ma, correct?
why commoners suffer withdraw timeline/limit ruling leh?
very sad story.
aiyoyo
aiyoyo
one more thought/friend discussion item –
not sure if the hdb price up & up,
is it correlate to the elites loss also?
aiyoyo
Its a double edge sword for Temasek,
If you dont report , people speculate and go to the internet for information.Thinking that you got something to hide
If you report, you got to open your books as numbers cant go wrong, and people will probe with a magnifying glass for the fine details.
One thing I think they should do is to open up their books and be transparent. This is the only way to cure the speculation in the internet world.
The internet is more potent than the MSM as it can be viewed by the millions from overseas……….
They also forgot to report how huges loses like these will affect the Singaporean like me and you… Pandoras box indeed…..GST to help the poor!!
TOC when you are free
asked them to discuss india bangalor biochemical projects
how much invested
how much profits they raked
and how many singpore tech inc former armed forces CEOs they retired?
Ask Yourselves , singaporeans, these few questions:
1. IF this happened in other 1st worlds (for that matter 3rd worlds), what happens?
2. IF they dont reply, and People can do nothing about it, what does this mean?
3. Are singaporeans different than other 1st world countries? Are singaporeans so unique? Is it good in anyway? If singaporeans are like that, who is responsible for this situation?
4. Singaporeans, have you asked yourselves, is it Right to know?
Thats it singapore.
32) BlindMan on June 7th, 2009 9.17 am
” Its a double edge sword for Temasek,
If you dont report , people speculate and go to the internet for information.Thinking that you got something to hide
If you report, you got to open your books as numbers cant go wrong, and people will probe with a magnifying glass for the fine details.”
==-=====
Hey dude, Everyone has got a reason for everything. Some can even call it an excuse.
That does not give them the RIGHT to withhold information and not let the People know.
As some said, ‘wu si kee , wu si low’. So, why worry? it is expectable to incur losses. The KEY thing is to be Reveal information where the people have the right to know. They are reputed to be HONEST.
There is nothing to hide or hideable. Time will expose all.
So much $$,000,000,000 dollars gone like nothing happen, remind me of burning hell money, so many zeros and so cheap (to Temasick).
Someone inside, please blow the whistle on the truth !
(i know u are watching this thread)
I think we should hire the Lebanese to run TH and GIC. They are more talented than our so called elites in managing money.
http://news.bbc.co.uk/2/hi/middle_east/7764657.stm
Those massive losses will be recouped by another GST hike if you give pap the mandate again the next election.
Do you want your cost of living to go up again so that this govt will have chips son the gamble table? Citizens, please vote for change, vote to safeguard your money, vote to help Singaporean come out of poverty and tyrants, vote to reject pro-elitist policies. Most importantly, vote for check and balances in the existing govt.
28) KopitiamApek on June 6th, 2009 11.08 pm
If what you say is right….. When I turned 55 ….. I may not be able to withdraw anything…. and my money is “colder than water”.
They are going to pay me $200-$300 per month after what ? 65? then from 55 to 65 if I cannot work…. how? And even after 65, $200-$300 can only eat 1 meal a day… and collect carton boxes for a living?
38) Joel Low
I am not you mother. So I cannot tell you how to live your life. (Come to think of it, neither can your mother)
I am sharing what the CPF miniumun sum is about. Everyone is affected. Good luck.
38) Joel Low
///If what you say is right///
The info is from CPF board. not what I say.
Thank you.
38) Joel Low on June 7th, 2009 2.17 pm
Hey, we need to consider the effect of inflation or not?
Prices of food items have not dropped throughout this recession, according to my observation.
Good for you singaporeans. You like it, you get it. For sure.
Injoy haa haa haa!!!!!!!
regards
F.Spider (F = fighting)
41) Tear ‘em down on June 7th, 2009 3.47 pm
Situation can only go worse….. too much is too much…. enough is enough …..
We are made to suffer at the expense of somebody else personal egoistic pursuit …. I am doubtful if we can still smell our CPF when we are 55 or 65…..
the totally unbiased and highly integrity MSM of the world has made this report that seems to help TH exprain why they did it.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_386276.html
Hey, ST, whatever the reason, a LOSS is a LOSS.
Who in TH is Responsible , if any?
2 answers possible:
1. Yes , so-n-so is Responsible for this LOSS. But not problem we move on citing the reasons. Hold a press conference and announce to all stakeholders.
2. No, no one is responsible.
So, ST, which is it? Or is it you have your own 3 option?
Luckily, the people in general don’t give a ….. about it.
43) Who the …. is Responsible? on June 7th, 2009 4.14 pm
Bad decision over another bad decision …. too many bad decisions… We may be left with nothing in the end.
1.2 billion – Every Singaporean just lost $300 ….
I am lucky that my job is still intact during this crisis, drawing my 4k take home pay, together with my wife 3.5k, no kids… i pity those struggling to raise their kids on 2 to 3k pay, everything is getting more and more expensive, food, HDB flat, electricity bill, petrol…
Do i consider myself well-off? I don’t think so, as the salary that I draw seems not to be able to catch up with inflation. Sometimes I wonder how many real “Singaporean” are suffering in this downturn. it seems like most are not, going by what sunday times has publish that people are still spending like no tomorrow, or is it foreigners who are the one spending? It might even be the usual propaganda that our MSM is always using to boost the confidence level of the people so as to encourage them to spend or be left behind, knowing Singaporean kiasu mentality, eg. cars, houses, quick buy, if not when the foreigners come in, there will be no more houses and cars left. other people have, I also must have, bigger one somemore.
We are living in a mad world….
> In America, Red Indians say: White Men speak with forked tongues (ie say one thing, but do another)
In Singapore, its People say: Men In White also speak with forked tongues
(ie cannot be TRUSTED to practise what they preach — as in Lee Hsien Loong’s empty/insincere promise of “an OPEN and INCLUSIVE Singapore” when he was NOMINATED* Prime Minister in 2004)
[ *NOMINATED = NOT DIRECTLY ELECTED by Singaporeans! ]
> Self-proclaimed “First-World” PAP Million-Dollar Ministers may fool 66.6% S’poreans 66.6% of the time, but DEFINITELY NOT ALL S’poreans ALL the time !!!
> These mere POLITICIANS ( not Political LEADERS! ) are setting a deplorable/disgraceful example to our Civil Servants.
S’poreans who took the time and trouble to provide feedback/suggestions in newspaper forums have to face either DEAD SILENCE or HALF-ANSWER/NON-ANSWER replies from our over-paid self-proclaimed “First-Class” Bird-Brained Bureaucrats.
Hi David @45,
The people is never forced to accept it.
The fact is they consciously choose to accept the status quo.
Hello (38) Joel Low,
I don’t know how you do your math.
$200-300 a month, even by today’s cost, how to have one meal a day?
After deducting rent + water + electricity, OK, maybe every meal just take plain bread or white rice+ soy source!
And that is if you make sure you don’t get sick and if you need to go anywhere, don’t take public transport. please walk!
$200-300 per month?
Is this progress of Singapore ?
Life is so cheap for the peasant !