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Feb 13, 2010
GROWTH MODEL
The Temasek approach
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IN WEDNESDAY'S report, 'Rethinking the Temasek growth model', Professor Huang Yasheng suggested that there is a 'basic illogic to the Government being involved in venture financing, at a political level and operational level'.
While we appreciate Prof Huang's views, we were surprised that he mistakenly labelled government venture financing as the 'Temasek model'.
First, Temasek invests for sustainable, long-term returns. While risk-taking is part of our business, venture financing of new technology start-ups is not the mainstay of our investment focus.
Second, Temasek operates on a commercial basis. The employees of Temasek or Temasek-linked companies are not civil servants. Several of our portfolio companies are involved in the delivery of basic infrastructure services like telecommunications, ports and airlines, where disciplined, reliable and dependable service delivery is paramount. They also constantly innovate and evolve, seeking new ideas and improvements, and do not depend on 'cheap labour' for their successes.
Third, while Temasek is wholly owned by the Minister for Finance (Incorporated), the Government does not exercise any 'heavy-handed political intervention' in the operational and business decisions of Temasek or the Temasek-linked companies.
The respective management teams are guided and supervised by our respective boards comprising reputable and experienced business leaders from Singapore and abroad.
It is this Temasek model that enabled many companies in our stable to grow from humble beginnings to become acknowledged leading players in their respective sectors, able to compete with the best in class globally. They include Singapore Airlines, DBS, CapitaLand, Keppel, SembMarine, PSA, SingTel and ST Engineering.
We agree with Prof Huang that the world is changing, and the constant challenge is for Temasek and its portfolio companies to keep apace and adapt successfully to new situations and a fast- moving global environment.
Myrna Thomas (Ms)
Managing Director
Corporate Affairs
Temasek Holdings
GROWTH MODEL
The Temasek approach
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<!-- end left side bar --><!-- story content : start -->
IN WEDNESDAY'S report, 'Rethinking the Temasek growth model', Professor Huang Yasheng suggested that there is a 'basic illogic to the Government being involved in venture financing, at a political level and operational level'.
While we appreciate Prof Huang's views, we were surprised that he mistakenly labelled government venture financing as the 'Temasek model'.
First, Temasek invests for sustainable, long-term returns. While risk-taking is part of our business, venture financing of new technology start-ups is not the mainstay of our investment focus.
Second, Temasek operates on a commercial basis. The employees of Temasek or Temasek-linked companies are not civil servants. Several of our portfolio companies are involved in the delivery of basic infrastructure services like telecommunications, ports and airlines, where disciplined, reliable and dependable service delivery is paramount. They also constantly innovate and evolve, seeking new ideas and improvements, and do not depend on 'cheap labour' for their successes.
Third, while Temasek is wholly owned by the Minister for Finance (Incorporated), the Government does not exercise any 'heavy-handed political intervention' in the operational and business decisions of Temasek or the Temasek-linked companies.
The respective management teams are guided and supervised by our respective boards comprising reputable and experienced business leaders from Singapore and abroad.
It is this Temasek model that enabled many companies in our stable to grow from humble beginnings to become acknowledged leading players in their respective sectors, able to compete with the best in class globally. They include Singapore Airlines, DBS, CapitaLand, Keppel, SembMarine, PSA, SingTel and ST Engineering.
We agree with Prof Huang that the world is changing, and the constant challenge is for Temasek and its portfolio companies to keep apace and adapt successfully to new situations and a fast- moving global environment.
Myrna Thomas (Ms)
Managing Director
Corporate Affairs
Temasek Holdings
