“We are certainly not happy with the negative wealth added in March last year, as well as March this year,” says Ho Ching. (See Bloomberg report below.) Read the transcripts of Ho Ching’s speech here.
SINGAPORE, July 29 – Singapore state investor Temasek said on Wednesday its portfolio had fallen by S$40 billion as of end-March 2009 from a year ago.
“In our Temasek Review last year, we reported an annual value-at-risk of almost S$40 billion last March. This meant a 16 percent probability for our portfolio value to drop more than S$40 billion by March this year. Indeed, it has turned out to be so, and more,” CEO Ho Ching said in a speech.
Temasek had S$185 billion in assets as of end-March 2008, which fell to S$127 billion as of November 2008. Ho did not give the exact portfolio level.
This was the first public comment by Ho, also the wife of Prime Minister Lee Hsien Loong, after Temasek said last week that Charles “Chip” Goodyear will not become CEO due to differences over strategy.
Ho said Temasek would continue to look at internal and external candidates for her replacement.
- Reuters.
The following report is by Bloomberg:
Temasek May Let Public Invest, Retain ‘Family Jewels’ .
July 29 (Bloomberg) – Temasek Holdings Pte, reeling from the aborted appointment of Charles “Chip” Goodyear, said the value of its assets slumped by more than S$40 billion ($27.7 billion) and that Singapore’s sovereign fund may allow public investment for the first time.
The company will seek “sophisticated co-investors” and won’t sell the “family jewels” for short-term gains, Chief Executive Officer Ho Ching, the wife of Singapore’s Prime Minister Lee Hsien Loong, said in a speech today in Singapore. Goodyear’s departure was “unfortunate” and Temasek will continue to review its succession plans, she added.
The appointment of Temasek’s first foreign CEO collapsed a week ago because of differences over strategy, raising concerns over transparency andmanagement control after losses on Merrill Lynch & Co. and other financial investments dragged down its performance last year.
“Allowing the public to invest in Temasek would increase the state-run fund’s transparency,” said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. “It will increase pressure on their managers to avoid investment mistakes.”
The fund predicted last year a 16 percent probability that the value of itsassets may drop by more than S$40 billion in the 12 months ended March, Ho said. That figure announced today suggests an improvement from the S$58 billion loss in value for Temasek’s assets the fund reported between April and November.
Temasek’s Assets
The state-owned investment company’s assets were valued at S$127 billion as of Nov. 30, compared with S$185 billion at the end of March last year, the Ministry of Finance said in February.
“We are certainly not happy with the negative wealth added in March last year, as well as March this year,” Ho said. The fund defines “wealth added” as returns above risk-adjusted cost of capital.
Temasek would consider creating one more group of stakeholders over the long term, and may invite the public to “co-invest” with the company, Ho, 56, said. It may seek “sophisticated investors” in five to eight years and retail investors in the next eight to 10 years, she added.
“It is important to test this over at least one market cycle during the next five to eight years,” she said. “If this pilot is successful, we may then consider a co-investment platform for retail investors in perhaps eight to 10 years’ time.”
‘Pretty Huge’
Temasek could attract some “pretty huge investments,” though it will have to balance the interests of shareholders and the state, said David Cohen, director of Asian economic forecasting at Action Economics in Singapore.
“They’ll be subject to greater disclosure and corporate governance but that’s going to be the case going forward anyway with or without external investors,” Cohen said.
Ho, who was due to step down Oct. 1, said the fund will act to enhance value over as long as 30 years and will not sell stakes “for divestment’s sake.”
“We don’t intend to raid the larder nor sell the family jewels for short-term gains,” she said. “We will jealously guard our interest and will invest, rationalize, consolidate or divest where it makes sense, where we can achieve clear, sustainable value.”
Expansion Overseas
Temasek was founded in 1974 to foster development of the island’s banks, airlines and ports. Ho drove an expansion outside Singapore and increased financial assets to 40 percent with stakes in Merrill Lynch, Barclays Plc and Standard Chartered Plc.
Temasek is the biggest shareholder in five of Singapore’s 10 biggest publicly traded companies by market value, including Singapore Telecommunications Ltd., Southeast Asia’s biggest phone company, and DBS Group Holdings Ltd., the region’s largest bank by assets.
Ho said it was “unfortunate” that Goodyear didn’t take the top job, and that the succession review continues for her replacement.
“I just want to reaffirm that the decision was both mutual and amicable,” Ho said. “ We continue to hold Chip in very high regard for his professionalism and his integrity.”
Ho said financial services investments will still form part of Temasek’s core holdings. Temasek is still “fairly comfortable” in the financial services industry, she said.
Loss on Stake Sale
The fund, in the first quarter, sold its 3.8 percent stake in Bank of America Corp., which bought Merrill Lynch, at a loss that may have totaled $4.6 billion. Temasek sold its stake in London-based Barclays at a loss in December and January, Reuters reported on June 3, citing people familiar with the matter.
Temasek is “very comfortable” with its investment in Asia, and the long-term potential returns from the region remains strong, Ho said. Temasek has stakes in India’s ICICI Bank Ltd., China Construction Bank Corp. and lenders in Indonesia, South Korea and Pakistan.
Ho said the company’s senior management have most of their compensation incentives deferred between three years and 12 years.
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singaporeans get ready to face doomsday soon as long as the msm helps to cover up all the truth, as long as the system remains, be prepared for the worst and see how many of these elites would still be around the island when the whole system collapsed.
48) Justice Bao
It takes many lies to cover the first lie, and even more lies to cover every lies used to cover the first lie…………….you get the picture lah
To reveal a $40b loss and the plan to jointly invest with the public in the same breadthe is really silly. Such a plan ought to be released when the company has done well, which will then instil confidence in investors. This alone speaks volumes about the quality of the board. Sign.
39) GABRIEL
//////Maddof loses $100b. TH loses $40b. One goes to jail, the other continues to call the shots.
The analogy may not be fair.One operated outside of the law, the other within its ambit.
But In both instances, it’s the people’s hard-earned money that has gone down the drain.///////////
I would put in another way….
One operated outside of the law, the other operated ABOVE the law.
14) Peter Sellers
//////“We are certainly not happy with the negative wealth added in March last year, as well as March this year” is classic TH double-speak. Why not say “asset erosion” instead of “negative wealth added/////
What she mean was she ain’t never done nothing about no “asset erosion” because she knew nothing about nothing else except adding “negative wealth”
thief.
liar.
cheat.
she’s got negative intelligence
let’s all migrate somewhere
national day?
what a joke.
it takes negative financial intelligence to create negative wealth
and it takes negative EQ to be oblivious of negative public sentiments.
Just got an information….
When Mr. Goodyear was appointed to takeover the CEO post around March 09, there was already a plan to call for an election during June 09. HC was supposed to hand over ‘officially’ only in Oct 09.
In order to tame voters on the losses suffered and to convince voters that famiLEE is not controlling TH, they decided to call upon an ‘outsider’ to takeover the CEO post, and there was already plan to kick this temporary CEO out before Oct 09, ie, once the election is over.
This tactic was used in the 60′s. During that time, then the communist leaders were in today’s Mr. Goodyear shoe.
However, the sudden recovery in the stock market, the property market, and the economy as whole prompted them to call off the election. But still, Mr. Goodyear had to leave TH.
I wander how much of that 40 billion were used as bonuses to TH. Also foreign banks who took the injection of cash from TH also used it for bonuses. Because of the significant amount lost, an investigation is needed. If MingYi the Buddhist monk goes to trial for misusing PUBLIC funds, what about TH? In fact, MingYi’s cash spent is peanuts compared to 40,000,000,000.
she sounds like one who is absurd, negative mind or no brainy human being. i think a child can think and speak better than her.
I remember reading “The Red Azelia” once upon a time.
The turn of fate!……..no wonder the retirement age is going up as the whole world got sucked …….Money No Enough lah!
I hope my son when grow up get to be employed by such organizations cos it will be great future.
What can S$40 billion dollars do for Singaporeans?
——————————————————————————–
From our Correspondent
It was revealed lately that Temasek Holdings’ portfolio had declined by at least $40 billion (= $40, 000, 000, 000), or more than a fifth, in the year 2008 to March 2009. (Source: Reuters)
Now, what can this sum of money do for Singaporeans if it is not lost?
To put things in perspective:
- Each Singaporean will receive $1,3333 in cash or top ups in medisave (assuming the number of citizens to be 3 million)
- It will take an average Singaporean earning a median pay of $4,000 83,3333 years to earn this amount of money.
- It will provide 4,000 families on Public Assistance Scheme $41, 700 a month for the next 20 years or
- 8,000 retrenched Singaporeans $20, 850 a month for the next 20 years till they find a job.
- It can build 80 Khoo Teck Puat hospitals to cater to residents in every corner of Singapore.
- Free upgrading for all the HDB estates in Singapore (inclusive of lift upgrading).
- Pay for the tuition fees for 800, 000 university students (assuming $50,000 per student) for their entire course of study.
- Buy 200,000 3-room HDB flats for 200,000 poor, destitute and homeless Singaporeans (assuming cost of $200,000 per unit).
- Waival of the S&C charges of 555,555 households for a period of 100 years (assuming $60/month per head).
- Waival of all income taxes for a year ($29.1 billion dollars was collected by IRAS in 2007)
How can a country which can afford to lose $40 billion dollars in less than a year not able to provide more welfare for its citizens?
Well, this is hardly surprising when the person responsible for the loss is re-appointed to lead Temasek again!
……………………………..
repost again
from a stolen source
hoching ole hoching
now our cpf is your famiLLEE jewel…
how did you managed to convined your husband to overide parliament on usin OUR cpf savin$ as YOUR monopoly chips?
now loss lioa
so how?
gameover
or
throw the disc 3 times again?
you also get unlimited getoutofjail cards as well?
In the first place, what financial qualification does a former DSO engineer have to run Temasek ?
she is arrogant and incompetent
Hopfully famiLee has learned a lesson. Puting the wrong person in charge even it is one of your own people do not automatically bring glory but potential disaster. The right person as everyone know is one with experience. This is not going to be the last but maybe the begining of more scandal to come as more and more famiLee relations are drafted into managing gahment owned companies. What do one call such behaviour? Nepotism? Sadly nepotism and corruption goes hand in hand. Selecting a CEO of a publicly owned company should be open and transparent. It should not be a family affair as the asset is own by Sinkaporean.
I REMEMBER SOME YEARS BACK, ONE DSO ENGINEER FLY TO USA AND OVERNIGHT SIGN A PURCHASE AGREEMENT FOR MICROPOLIS HARDDISK COMPANY. IT IS A BADLY ORGANISED AND LOSING ENTITY AND YET OUR DSO ENGINNER THINK SHE GOT A GOOD DEAL. WITHIN ONE YEAR SHE DECIDE TO WRITEOFF THE INVESTMENT AND SOLD OFF THE FACTORY AND EQUIPMENT FOR ONLY TENS OF THOUSAND AND NOTHING HAPPENED. THIS IS A LESSON FOR SINGAPORE. IF WE CONTINUE TO FORGIVE THIS STUPID MISTAKES BY THE SO CALLED ELITES, THE MOST RECENT ONE OVER BUDGET OF 300 MILLIONS FOR YOG AND SALAMAH ESCAPE AND ANG PS INCIDENT AND NOTHING HAPPENED, THE FUTURE IS BLEAK FOR OUR CHILDREN.EVEN A LITTLE FORGETNESS TO PUT A CARPARK COUPON IS PUNISHED WITH A $70 FINE. I WAS VERY SURPRISED BY THE MICROPOLIS PURCHASE AS I AM WORKING AS A ENGINNER IN A HARDDISK COMPANY AT THAT TIME. EVEN A ORDINARY ENGINEER KNOW WHAT A FOOL IS TO PURCHASE MICROPOLSIS WITH A PRICE TAG OF US$1 BILLION. HAHAHA
Yes, I remember this piece of history whereby $500mil was lost but when someone queried in the pariliament, reason given – ‘It’s a commercial decision’. Now it’s known as ‘honest mistake’.
Some people (I am one of them) are not business people materials.
Life.
Yes , this issue should be brought up during the coming GE and a third independent party should investigate and all those held accountable should be punished so that justice is served.
Singaporeans need to know the truth and how measures can be put in place to minimize these losses which concern money from you and I.