Temasek’s achievements over 50 years mirror Singapore’s success: PM Wong

SINGAPORE - Singapore’s investment company Temasek has transformed over the past 50 years to become one of the foremost equities investment companies in Asia and the world, and it is moving forward from a position of strength amid uncertainty, said Prime Minister Lawrence Wong.

Speaking at Temasek’s 50th anniversary dinner at Shangri-La Singapore on Sept 23, PM Wong noted that Temasek’s initial role was mainly custodial and administrative, with a portfolio of 35 companies that it had taken over from the Government, including DBS Bank and Singapore Airlines.

But Temasek transformed into a more active manager of its portfolio over the years, and stepped up its direct investments into new areas in Asia and beyond, he added.

Its portfolio also developed from being just Singapore-based to having investments across Asia, the Americas, Europe, the Middle East and Africa. 

PM Wong noted that Temasek today is very different from what it was in 1974, but that the global environment is also more challenging amid US-China tensions and greater protectionism.

Against that backdrop, Singapore will have to find its own path forward, and what is true for the country applies to Temasek, too, he said.

PM Wong added: “Even as Temasek embarks on its next phase of transformation, some things cannot, and must not, change – your adherence to exemplary standards and values; your ability to think long term, to grow with commercial and strategic discipline, and to add to the Singapore brand of quality, reliability and integrity. 

“These are the attributes for which Temasek is well known for, and which will ensure Temasek remains a valued and trusted long-term partner.”

The event was attended by more than 600 Temasek partners and friends, including representatives from the board and senior executives from its local and global portfolio companies. Singapore Cabinet ministers and government and business leaders here and globally were also present.

Temasek also launched a commemorative book titled By Generations, For Generations: Fifty Years Of Temasek As Told By The People Who Shaped It, written by former journalist Ong Soh Chin, who did research and interviews with about 90 staff, alumni and business partners.

PM Wong noted that when Temasek was formed in 1974, Singapore was still in its early stages of industrialisation, and the Government owned a collection of companies, including a chicken essence company.

“In many developing countries, then and now, it is not unusual for governments to play a direct role in stimulating economic activities. Because the private sector may not be so well developed; so the line between business and government is not always clearly defined,” he said.

But Singapore’s founding leaders felt that the Government needed to do things differently and resist the temptation of running the companies itself, he added.

Hence, Temasek was set up to own companies and manage them on commercial principles.

“This means the Government should not be leaning on the companies for favours; (and) importantly, neither should the companies be asking the Government for special treatment,” said PM Wong, noting that this is how things have operated here for the past 50 years.

The same principles that guided Singapore also guided Temasek, he said, such as being self-reliant while remaining open and having a forward-looking mindset, to create a better future for the next generation.

He added: “Today, Temasek has become an institution synonymous with Singapore’s success. Your evolution mirrors our own nation’s journey. Your achievements are a reflection of the same resilience, adaptability and strength – to continually strive for excellence, ceaselessly innovate, and build for the future.”

He noted that Temasek’s achievements are good not just for the companies and their shareholders, but also for Singapore.

“Your success has made our economy more vibrant, and provided well-paying jobs for many Singaporeans,” PM Wong said.

“Even as you grew your presence abroad, you have continued to keep Singapore your home base. You have helped to anchor important capabilities here that make us more resilient and better able to respond to crises and emergencies.”

During the Covid-19 pandemic, Temasek and its portfolio companies kept Singapore connected to supply chains and got community care facilities running, while staff volunteered for ground operations, conducted swab tests and distributed masks, PM Wong recalled.

“We won the fight against Covid-19 because our country rallied together; and in no small part, because Temasek and its portfolio companies stepped up in our darkest hours of need,” he said.

He also welcomed Temasek’s commitment to support communities in Singapore and abroad, through its Temasek Trust and Temasek Foundation, and noted that its portfolio companies are leading the way by contributing to various causes.

“Balancing and realising these multiple objectives is never easy. It’s easy to talk about ESG (environmental, social and governance aspects) and triple bottom line as though they can all be achieved at the same time, but all of you know that there are hard trade-offs to manage.

“In the end, the ability of Temasek and its portfolio companies to realise its goals depends critically on its leadership and people,” PM Wong said.

He added: “The Government has always been careful not to have any role or influence in Temasek’s investment decisions. Our approach has been to hold the board accountable for Temasek’s performance. 

“But this approach has been possible only because we have people on the board who are committed and capable, and who can be trusted to work with the management to look after our long-term interests; to protect what we have inherited in Temasek, build on it, and pass it on to future generations in better shape than we started.”

But there are dark clouds ahead, as the world is in a new era marked by the growing contest for dominance and leadership between China and the United States, PM Wong said. He noted that both sides continue to engage each other, but there is deep mutual suspicion and mistrust.

“Neither side wants a conflict, but both sides are preparing for a conflict to happen. That’s why more economic activities around the world are being viewed through a security lens,” he said.

Key technologies like artificial intelligence and semiconductors already have restrictions imposed. “What is more worrying is that security concerns are spilling over to more areas,” PM Wong added.

There is also more state intervention in business activities and attempts to reconfigure supply chains, he noted.

In this landscape, Singapore has to find its own path forward, he said.

He noted that the country would do well to heed the advice of its founding leaders: maintain a clear distinction between business and government, keep government lean and efficient, and minimise the regulatory burden on business.

“As a small economy, we have to stay open, we have to be nimble, quick enough to seize new opportunities, and we must continue pushing for free flows of trade and investments, through regional and multilateral forums.

“Importantly, as countries and companies everywhere look to diversify their exposures, and widen their range of partners, we want Singapore to be their choice partner. We want to be a reliable and trusted node from which they operate,” PM Wong said.

The Republic’s extra competitive edge is its reputation for trust, integrity and reliability, he added.

These same values apply to Temasek too, he said.

“You have a stable of leading companies that enable you to seize new opportunities. You have a wide network of friends and partners from all over the world that can be called upon,” PM Wong said.

“So you are moving forward from a position of strength, as you seek out new opportunities to take Temasek to the next level.”