Temasek Holdings

Temasek Holdings (abbreviated as Temasek) is an investment company owned by the Government of Singapore. Incorporated in 1974, Temasek has a multinational team of over 450 people. Temasek owns and manages a net portfolio of S$215 billion (US$173 billion) as at 31 March 2013, mainly in Singapore and Asia. It is an active shareholder and investor, and its portfolio covers a broad spectrum of sectors including financial services, telecommunications, media and technology, transportation and industrials, life sciences, consumer, real estate, as well as energy and resources.

Temasek is one of a few global firms assigned with the highest overall corporate credit ratings of “AAA” by Standard & Poor's and “Aaa” by Moody's. It has also attained perfect quarterly scores on the Linaburg-Maduell Transparency Index, a measure of the openness of government-owned investment funds.

Temasek has its own Board of Directors and a management team. It pays taxes to tax authorities and distributes dividends to its shareholder, the Singapore Ministry of Finance.

Incorporation
At independence in August 1965, the Singapore government had ownership or joint ownership of a number of local companies such as Malaysia-Singapore Airlines (later broken up into Malaysia Airlines and Singapore Airlines) and the Singapore Telephone Board (later to become Singapore Telecommunications).

As part of its push for local and foreign private investment in sectors such as manufacturing and shipbuilding, the government's Economic Development Board (EDB) took on minority stakes in a variety of local companies.

The government also acquired or established several companies such as the Keppel Corporation (originally Keppel Shipyard, taken over from the British Royal Navy after it withdrew from the island), ST Engineering (originally a weapon manufacturer set up to supply the Singapore Armed Forces), and the shipping company Neptune Orient Lines.

In 1974 Temasek was incorporated under the Singapore Companies Act to hold the assets and manage the investments previously held by the Singapore government. These were investments made in the first decade of nation building since independence in 1965.

The transfer of assets to Temasek meant that Temasek would own and manage these investments on a commercial basis, allowing the Ministry of Finance and the Ministry of Trade and Industry to focus on their core roles of policymaking.

Temasek’s main mission is to contribute to Singapore’s economic development, industrialisation, and financial diversification by nurturing effective and commercially driven strategic investments in and around Singapore.

Status
Temasek is a company incorporated in Singapore, and operates under the provisions of the Singapore Companies Act. It is neither a statutory board nor a government agency.

Like any other commercial company, Temasek pays taxes to tax authorities, distributes dividends to its shareholder and has its own Board of Directors and a professional management team.

Temasek is also designated a Fifth Schedule entity under the Singapore Constitution, with certain safeguards to protect its past reserves. For instance, any transaction which is likely to result in a draw of Temasek’s past reserves and the right to appoint, terminate, or renew board members are subject to the approval of the President of Singapore.

Other than specific safeguards to protect the integrity of Temasek board appointments and its past reserves, Temasek operates fully and independently as a commercial investment holding company.

In a 2009 speech given at the Singapore Institute of Policy Studies, Ho Ching (Executive Director & CEO of Temasek) described the company’s efforts to instill discipline, professionalism, and willingness to be tested and measured by providing public markers of performance.

Initial Portfolio
Temasek’s initial portfolio of S$354 million comprised shares in the following companies, start-ups and joint ventures previously held by the Singapore Government.

The companies included a bird park, a hotel, a shoe maker, a detergent producer, naval yards converted into a ship repair business, a start-up airline, and an iron and steel mill.

The companies in bold below are still within the Temasek portfolio.
 * 1) Acma Electrical Industries Ltd
 * 2) Cerebos Singapore Pte Ltd
 * 3) Chemical Industries (F.E.) Ltd
 * 4) Development Bank of Singapore Ltd (Now part of DBS Group Holdings Ltd.) 
 * 5) Instant Asia Cultural Shows Pte Ltd
 * 6) Insurance Corporation of Singapore Ltd
 * 7) International Development and Construction Corporation
 * 8) Intraco Ltd
 * 9) Jurong Bird Park Pte Ltd (Now part of Wildlife Reserves Singapore Pte Ltd.) 
 * 10) Jurong Holdings Pte Ltd (Now part of Sembcorp Industries Ltd.) 
 * 11) Jurong Shipbuilders Pte Ltd (Now part of Sembcorp Marine Ltd.) 
 * 12) Jurong Shipyard Pte Ltd  
 * 13) Keppel Shipyard Pte Ltd  
 * 14) Metrawood Pte Ltd
 * 15) Ming Court Hotel Ltd
 * 16) Mitsubishi Singapore Heavy Industries Pte Ltd
 * 17) National Engineering Services Pte Ltd
 * 18) National Grain Elevator Ltd
 * 19) National Iron & Steel Mills Ltd
 * 20) Neptune Orient Lines Ltd 
 * 21) Primary Industries Enterprises Pte Ltd (Now part of SATS Ltd.) 
 * 22) Sembawang Holdings Pte Ltd  
 * 23) Singapore Airlines Ltd 
 * 24) Singapore Airport Duty-Free Emporium Pte Ltd (Now jointly owned by Singapore Airlines Limited and SATS Ltd.) 
 * 25) Singapore Cable Car Pte Ltd
 * 26) Singapore General Aviation Service Company Pte Ltd
 * 27) Singapore National Printers Pte Ltd
 * 28) Singapore Offshore Petroleum Services Pte Ltd
 * 29) Singapore Textiles Industries Ltd
 * 30) Singapore Treasury Building Pte Ltd
 * 31) Singapore Zoological Gardens
 * 32) Singmanex Pte Ltd
 * 33) Sugar Industry of Singapore Ltd
 * 34) United Industrial Corporation Ltd
 * 35) United Vegetable Oil Pte Ltd

Board of Directors
Temasek's Board of Directors provides overall guidance and direction in the management of the company’s assets and investments. The Board is composed of ten members, most of which are non-executive and independent business leaders from the private sector.
 * LIM Boon Heng - Chairman (since August 2013)
 * Deputy Chairman, Singapore Labour Foundation
 * Chairman, NTUC Enterprise Co-operative Limited
 * Previously Secretary-General, National Trades Union Congress
 * Held several Cabinet positions in the Singapore Government from 1993 to 2011


 * KUA Hong Pak - Director (since November 1996),Chairman, Audit Committee
 * Managing Director and Group CEO of ComfortDelGro Corporation Limited; Deputy Chairman of SBS Transit Ltd and VICOM Ltd
 * Conferred the Singapore Public Service Star in 1996; re-appointed as Justice of the Peace in 2010
 * Conferred Honorary Shenyang Citizenship in 1997
 * CHENG Wai Keung - Director (since September 2011)
 * Chairman and Managing Director, Wing Tai Holdings Limited
 * Conferred the Distinguished Service Order (DUBC) in 2007; Justice of the Peace since 2000
 * GOH Yew Lin - Director (since August 2005)
 * Managing Director, GK Goh Holdings Limited
 * Chairman, SeaTown Holdings Pte Ltd
 * Chairman, Yong Siew Toh Conservatory of Music and Chairman, Singapore Symphonia Company Limited
 * Member, Board of Trustees, and Chairman, Investment Committee, National University of Singapore
 * HO Ching - Executive Director & CEO (since January 2004)
 * Previously President and CEO of the Singapore Technologies Group
 * Honorary Fellow of the Institution of Engineers, Singapore
 * Michael LIEN - Director (since January 2010)
 * Executive Chairman, Wah Hin & Co Pte Ltd
 * Member, Board of Trustees and Investment Committee, National University of Singapore
 * Founder, Asia Refuge Projects
 * TEO Ming Kian - Director (since October 2006)
 * Chairman, MediaCorp Pte Ltd, Vertex Venture Holdings Ltd, Temasek Life Sciences Laboratory Limited, and the Governing Board of the Earth Observatory of Singapore at the Nanyang Technological University
 * Previously Permanent Secretary in various Government ministries and Executive Chairman in key agencies
 * Conferred the Commander First Class – Royal Order of the Polar Star (Sweden) in 1994 and Singapore Meritorious Service Medal in 2008
 * Marcus WALLENBERG - Director (since July 2008)
 * Chairman, Skandinaviska Enskilda Banken, SAAB AB, AB Electrolux and LKAB
 * Previously Chairman, International Chamber of Commerce, Deputy Chairman, L M Ericsson, and President and CEO, Investor AB
 * Lucien WONG - Director (since March 2013)
 * Chairman and Senior Partner, Allen & Gledhill LLP
 * Chairman, Maritime and Port Authority of Singapore
 * Member, Board of Trustees for the Singapore Business Federation
 * Sits on the boards of several companies including Hap Seng Plantations Holdings Berhad, Singapore Airlines Limited, Singapore Press Holdings Limited, and Singapore Health Services Pte Ltd


 * Robert B Zoellick - Director (since August 2013)
 * Former President and CEO of the World Bank Group (from 2007 to 2012)
 * Former US Trade Representative (2001 to 2005) and Deputy Secretary of State (2005–2006) during the Administration of President George W Bush
 * Sits on the International Advisory Board of Rolls-Royce Group plc

Management Team
Temasek’s management team is in charge of the day-to-day operations of the company. It is currently composed of 17 managers in charge of different sectors, markets, and strategic areas:
 * CHAN Wai Ching
 * Co-Head, Corporate Development Group
 * Head, Organisation &Leadership
 * CHEO Hock Kuan
 * Head, Strategic Relations & Corporate Affairs
 * CHIA Song Hwee
 * Head, Investment Group
 * Co-Head, China
 * John CRYAN
 * Co-Head, Portfolio & Strategy Group
 * President, Europe
 * Head, Credit Portfolio
 * Head, Portfolio Strategy
 * Head, Africa
 * Gregory CURL
 * President
 * Nagi HAMIYEH
 * Co-Head, Enterprise Development Group
 * Senior Managing Director, Investment
 * Head, Australia & New Zealand
 * Head, Middle East
 * Co-Head, Africa
 * David HENG
 * Co-Head, Markets Group
 * Senior Managing Director, Investment
 * Head, South East Asia
 * HO Ching
 * Executive Director & CEO
 * Ravi LAMBAH
 * Senior Managing Director, Investment
 * Co-Head, India
 * LEE Theng Kiat
 * President
 * LEONG Wai Leng
 * Head, Corporate Development Group
 * Chief Financial Officer
 * Co-Head, Portfolio Management
 * PEK Siok Lan
 * Senior Managing Director, General Counsel
 * Senior Managing Director, Investment
 * Dilhan Pillay SANDRASEGARA
 * Head, Enterprise Development Group
 * Head, Singapore
 * Co-Head, Americas
 * Rohit SIPAHIMALANI
 * Co-Head, Investment Group
 * Head, India
 * Co-Head, Middle East
 * Boon SIM
 * Head, Markets Group
 * President, Americas
 * Co-Head, Credit Portfolio
 * TAN Chong Lee
 * Head, Portfolio & Strategy Group
 * Head, Portfolio Management
 * Head, Strategy
 * Co-Head, Singapore
 * Co-Head, Americas
 * WU Yibing
 * Head, China

Financial Highlights in 2013
As of 31 March 2013:

Performance

 * Temasek delivered a record net portfolio value of S$215 billion (US$ 173 billion), with a net cash position (up S$17 billion from S$198 billion the previous year).This marked an increase of S$154 billion over the past 10 years.
 * Over 73% of Temasek’s portfolio was held in liquid and listed assets.
 * Temasek invested a total of S$20 billion and divested S$13 billion during the year. Net investments for the year amounted to S$7 billion.
 * Temasek’s Total Shareholder Return (TSR) for the year was 8.86%. Compounded annual return to shareholder over the past decade was 13% while TSR since the company’s inception in 1974 was 16%.
 * Group Shareholder Equity increased to S$169 billion, including fair value reserve of S$13 billion, and Group Net Profile was at S$11 billion.

Global Exposure

 * Temasek’s net portfolio of S$215 billion comprised mostly equities.
 * Temasek had an underlying exposure of 58% to mature economies and 42% to growth regions.
 * Temasek’s underlying exposure included 41% exposure to Asia excluding Singapore, 30% to Singapore, 25% to North America & Europe, Australia & New Zealand, and 4% to Latin America, Africa, Central Asia & the Middle East.

Sectors

 * Temasek's underlying assets spanned across six major sectors:
 * Financial Services: 31%
 * Telecommunications, Media & Technology: 24%
 * Transportation & Industrials: 20%
 * Life Sciences, Consumer & Real Estate: 12%
 * Energy & Resources: 6%
 * Others: 7%