How Does Temasek Holdings Fund Their Investments?

  

Temasek Holdings is an investment company owned by the Singapore government, not a fund manager for the government.

So where does Temasek get their money to invest?

We look at the background to Temasek. We look back to the 1960s.

In the 1960s, in order to jumpstart the economy, the government embarked on an industrialization drive and also took on a proactive entrepreneurial role by taking stakes in a wide range of companies in the manufacturing, financial, trading, transportation, shipbuilding and services sector.

Many of these early companies were joint ventures with foreign investors which helped in the transfer of technology.

Some were of strategic and national importance.

For example, the Development Bank of Singapore was set up to provide development financing.

Singapore Airlines was formed in 1967 from the split of the Malaysia-Singapore Airlines.

The national shipping line, Neptune Orient Lines, was formed in 1968 to leverage on Singapore's strategic location while Sembawang Shipyard was established in the same year when the Singapore Government took over the shipyards left behind by the British forces after they withdrew from Singapore.

These companies became government linked companies (GLC).

The government's stakes in these companies were originally held directly by the Ministry of Finance. The Ministry of Finance established Temasek Holdings in 1974 to manage these assets.

When Temasek Holdings was incorporated in 1974 under the Singapore Companies Act, it held as its initial portfolio investments and assets made in the first decade of nation building.

The value of Temasek's initial portfolio was $354 million.

The objective of the transfer of these assets to a commercial company was to free the Ministry of Finance to focus on its core role of policymaking and regulations, while Temasek would own and manage these investments on a commercial basis.

So, how does Temasek fund its investments?

Temasek investments are financed using dividends and other cash distributions it receives from its portfolio companies and other investments, divestment proceeds from sale of its investments, and borrowings and debt financing sources such as the Temasek Bonds and Euro-commercial Paper Programme.

Since 2004, Temasek has published its annual Temasek Review, which provides a summary of its group financial results based on audited financial statements, as well as data on Temasek’s portfolio, shareholder returns and its governance and investment frameworks.

An online version is available for reading.

Temasek’s annual report exceeds the standards of disclosure under the SANTIAGO PRINCIPLES, a set of best practices adopted by sovereign investors in collaboration with the IMF and various governments, including Australia, Canada, Norway and the USA.

Reference:
http://www.swfinstitute.org/swfs/temasek-holdings/
http://www.temasek.com.sg/faqs
http://business.asiaone.com/news/temaseks-one-kind-sovereign-wealth-fund

Temasek Holdings And Your CPF

Temasek Holdings is not a fund manager for the government. It is an investment company. 

It does not handle any CPF monies. It has never handled CPF monies. 

Temasek investments are financed using dividends and other cash distributions it receives from its portfolio companies and other investments, divestment proceeds from sale of its investments, and borrowings and debt financing sources such as the Temasek Bonds and Euro-commercial Paper Programme.

From 50 shades of brown to a green city: Celebrating our toilet journey....

By Jack Sim, founder of World Toilet Organization, for The Straits Times

SINGAPORE'S toilet journey is one to be proud of as we celebrate our country's 50th birthday and reflect on just how far our nation has come in its jubilee year.

I still remember clearly when the first flushing toilets were introduced in Singapore's Housing Board flats. My family wanted more than anything to move into a modern apartment with a flushing toilet. That happened in 1962, when we moved into a rental flat in Jalan Bahagia. I was five.

The indoor, flushing HDB toilets not only gave us convenience, safety, health and hygiene, but they were also seen as symbols of progress and gave us a sense of status and dignity, which is also very important for the pride of a nation.

I grew up in a kampung in Lorong Ong Lye near Paya Lebar Road. Growing up, our toilet, like that of most families, was a simple squat over wooden planks, with a bucket below it to capture the waste that was collected at night - the so-called "night-soil" bucket system.

It was very traumatic as a child to look down at all of the 50 shades of brown in the bucket, as well as used sanitary napkins and intestinal worms crawling while big green flies buzzed around.

I'm 58 this year. Just in my lifetime, I have witnessed how Singaporeans have enjoyed a better quality of life as toilets and sanitation have improved over the last 50 years as the nation progressed.

In the years under British rule in the 1960s, Singapore was a filthy, overcrowded city. Open defecation was rampant and, at best, our sanitation system was the "night-soil" bucket communal toilet system.

In rural areas at that time, pit latrines were shared by a number of families that consisted of a drop hole in the ground, with planks over the hole, located outside the houses. Once the pit was full, the waste was emptied manually and disposed of directly into nearby waterways. Public health was poor. Diarrhoea was widespread and frequent outbreaks of typhoid fever were caused by poor hygiene. The Singapore River was full of debris and faecal contamination.

With no natural resources and less than 600 sq km of land at that time, and without a sufficient water supply, the prevailing wisdom was that our island state would not be viable after its separation from Malaysia in 1965.

Yet, against all odds, its economy grew at an average of 8 per cent annually over the next 30 years, transforming Singapore from a "Third World country" to the country with the third-highest per capita GDP in the world.

One main component of this economic miracle was the concept of public health based on a "clean" strategy.

Improved cleanliness and hygiene reduced our health expenditure from 4.5 per cent of GDP in 1965 to 3 per cent of GDP consistently over the next three decades.

We invested more in the prevention of diseases so that we spent less on cures. By providing clean water and sanitation, we created a healthy, productive workforce that was ready for foreign investors to train and employ.

We installed an extensive sewerage network, which was later taken underground with the Deep Tunnel Sewerage System to optimise land space.

The cleaning up of the Singapore River took 10 years and was the cornerstone of Singapore's transformation into a clean city. By cleaning up the river and our waterways, we also prevented the spread of many diseases. Today with the Marina Barrage, we have turned the rivers into reservoirs for drinking water which we recycle continuously into Newater with an award-winning waste-water treatment plant.

We also cleaned up the streets and imposed heavy fines on people who litter. Today, the national culture is to hold on to a piece of rubbish until we find a dustbin to dispose of it.

The concept of "clean" was thus applied beyond clean toilets, to cleaning up the waterways and the environment, and greening the country. The idea of a "clean" mindset extended to cleaning up organised crime and corruption, and the resulting leaps forward in the quality of life in Singapore.

In 1998, inspired by then Prime Minister Goh Chok Tong's call for clean public restrooms as one of the markers of a gracious society during his 1996 National Day Rally speech, I decided to devote my life to improving sanitation. I founded Restroom Association Singapore, with the mission of raising the standards and cleanliness of public toilets in Singapore. Then in 2001, seeing the need for a global body to tackle the worldwide sanitation challenge, I founded World Toilet Organisation, and established World Toilet Day on Nov 19 to draw attention to the sanitation crisis.

In 2013, the United Nations General Assembly unanimously adopted Singapore's "Sanitation for All" resolution and officially declared Nov 19 as UN World Toilet Day, to be commemorated each year.

Singapore today is renowned globally for being a clean, green garden city, and our country's approach is an inspiration that holds valuable lessons for developing countries that are now seeking to tackle their sanitation challenges.

Addressing Singapore's sanitation challenge and taking a "clean and green" approach has led to an improved quality of life, a better environment and economic prosperity. Singapore's journey from a developing country with poor sanitation to one of the world's cleanest countries, with one of the strongest economies, is one for all of us to reflect on with pride in this SG50 year.

The next time you visit your flushing toilet, you should feel proud of our progress as a nation, while you remember that 2.5 billion people on this planet still do not have this privilege.

stopinion@sph.com.sg

http://bit.ly/1Q5VKGo

Why CPF Life Is Relevant To You

 

There was a time when the young were the 'pensions' of the old. Families were large and six or seven children might share the burden of supporting their aged parents.

Today's smaller families with one or two children means that parents can count less on their children for financial support in old age.

And with growing life expectancy, the scenario where children have to look after both their elderly parents and grandparents in addition to raising their own families is not an impossible one.

Therefore the need to ensure that one has adequate savings in your CPF as far as possible for one's retirement becomes more urgent. This is especially so for those who have little other savings of their own besides CPF.

A research carried out in the UK by retirement specialists MGM Advantage shows that 4 out of 5 elderly workers (age 55 - 64) underestimate their average lifespan.

Similarly a research by the Society of Actuaries in the US shows that more than half of people over age 45 are underestimating how long they will live.

In Singapore, if we go by sentiments expressed in online comments, we can also come to the conclusion that many underestimate how long they will live because the many who call for their CPF to be returned to them at 55 believe that they are going to die before reaching the retirement age of 65.

Underestimating how long one will live has huge financial consequences because it means that one's provisions for retirement will be inadequate and one runs the risk of outliving your retirement savings.

There is a way to avoid this risk. CPF Life.

CPF Life will ensure you of
(1) a monthly payout
(2) for as long as you live.

With CPF Life, you don't have to worry about outliving your savings. And if you do not have any other savings other than CPF, then CPF Life becomes even more important to you.

Ref:
http://bit.ly/1Ly609H
http://bit.ly/1EqWqQ3

Memories Are Short

1965. After the separation from Malaysia, the future was fraught with uncertainty.

1968. The British announced the full withdrawal of its troops. This impacted the Singapore economy by 20%.

I971. The economy was succeeding. Rent and prices of land had gone up. There was a shortage of workers.

And guess what? The complaints had started.  

No wonder Mr Lee Kuan Yew had once described the Singaporean as the 'champion grumbler'.

In a speech on the occasion of the 8th anniversary of the Pek Kio Community Centre on 27 March 1971, Mr Lee said:

"We can afford to complain today only because we have worked so hard the last 5.1/2 years and are succeeding.....

"Memories are short. People rarely compare what they have with what they had. They compare what they have with what they think they should have."

He ended that speech with this:

As long as our economy is on the up, we can do all this, and more. Grumble, argue, press for better conditions, by all means. But never forget, our economy can be compared to a fine automatic watch, with delicately synchronised movements. Use a screw driver and a pair of pliers to pry it open and you destroy it. So see to it that no one is stupid or mad enough to meddle with our economy and our future.

Ref: http://www.nas.gov.sg/archivesonline/data/pdfdoc/lky19710327a.pdf

So you want to abolish streaming?

Abolish streaming!

Let's have just one common stream, no more labels, no more discrimination, no more stress and everyone will be happy.

Really?

In reality, without streaming, the weaker students are disadvantaged and the brighter ones penalized. How does a bright child learn at a faster pace and the weaker one go slower when everyone is thrown into the same end of the pool?

If you are a swimming coach, you will not put students of different abilities into the same group. You WILL separate them into groups according to the level of ability they have attained. This allows you to design your lessons that enable the students in each group to make further progress without anyone being held back.

Education is much like learning how to swim. You group your students according to their level of proficiency so that the brighter ones can run on the fast track while the weaker ones can go at a pace they can manage so that their foundation can be consolidated and strengthen and THAT gives them a fighting chance to succeed. And you do want to catch a floundering child as early as possible before he gets discouraged.

Why stream?
 
Streaming at primary four was introduced by Dr Goh Keng Swee in 1980. This followed a comprehensive review of the education system. At that time, dropout rates and education wastage were high. Streaming was introduced to reduce dropout rates by allowing students to learn at their own pace and within their own capabilities.

With the introduction of streaming, the education system moved away from a one-size-fits-all system to a system that creates multiple pathways for students.

Nature does not endow everyone with the same intelligence, gifts and talents. Therefore each one of us has our own mountain peak to conquer, not a peak that is imposed from outside.

A good education system is a diverse system that caters to the different learning temperaments, abilities and interests of students, not a rigid system that forces everyone into a common stream.

That call to remove streaming is a regressive one, well-intentioned by some and populist in approach by others, is a regressive one representing a big step backward.

 http://on.fb.me/1FEZ9dG

What happened to the trees that Mr Lee Kuan Yew planted?

Mr Lee Kuan Yew planted more than 60 trees since 1963. Of these 39 have survived. 

My Paper managed to trace the locations of 33 of them. The exact locations of the remaining 6 could not be verified. 

The trees are mostly in good condition and many of the older ones tower overhead with verdant crowns. 

Flower tributes could be found lying next to five trees, including a single rose nestled by the foot of a young bintangor bunut in Holland Drive.

National flags were placed near two other trees in Mei Chin Road and Telok Blangah Crescent.

The rest of the trees planted by Mr Lee no longer exist, largely due to redevelopment.

These include the first tree he planted, a mempat tree at the now-defunct Farrer Circus on June 16, 1963; a broad-leafed mahogany planted at the old National Stadium on Nov 5, 1976; and a golden penda tree planted at Block 6, Everton Park on Nov 8, 1994.

Known for his pragmatic ways, Mr Lee was quoted in 1985 as saying: "Trees die off. They have to be replaced. It's ceaseless... I hope to do it every year for as long as I am in office."

He planted at least one tree per year, mostly in conjunction with the annual Tree Planting Day that began in 1971.

Most of the trees Mr Lee planted were in parks and Housing Board estates - mainly in the Tanjong Pagar area - in November or December, when monsoon rains meant that less watering was needed.

Mr Lee, who was also called Singapore's Chief Gardener, planted his last tree, a sea teak, at Block 123, Bukit Merah View on Nov 2 last year.

http://mypaper.sg/top-stories/trail-mr-lees-trees-20150520