Efficient public property administration mannequin, spending billions of {dollars} on worldwide investments, together with the Vinhomes deal

Robust state funding fund

As a way to revive the financial system after independence in 1965, the Singapore authorities additionally thought of using “metal fist”. As a way to restrict the fragmentation of state-owned enterprises, in 1974 Temasek Holdings (Temasek) was established below the founding of Deputy Prime Minister Ngo Khanh Thuy (Goh Keng Swee).

Temasek holds a lot of the preliminary investments in GLCs (government-linked corporations), which have monopolistic management over key native industries corresponding to transport, public utilities. plus, telecommunications and in F&B and methods engineering GLCs.

Temasek is totally different from sovereign wealth funds. These funds use money reserves, whereas Temasek was established to handle portfolios, make investments shareholder funds and lift funds to develop the portfolio.

Within the early levels, Temasek profited financially from the privatization of its belongings. Because the dominant shareholder of main GLCs with the assist of native monopolies, Temasek has invested in 36 preliminary investments together with key nationwide corporations corresponding to transport corporations (NOL, Keppel, Sembawang), a financial institution (DBS Financial institution) and system engineering teams (Singapore Applied sciences, Singapore Telecom)…

Temasek retains solely strategically necessary investments, the surface investments which can be offered are likely to go to startups.

As of 1983, Temasek’s portfolio has elevated in worth by roughly 840% from S$345 million to S$2.9 billion, comprising 58 corporations with greater than 490 subsidiaries.

Temasek, within the identify of an organization, has really grow to be an efficient nationwide asset administration company and a mannequin price studying from many creating international locations in public governance.

Singapore's Temasek trump card: An effective public property management model, spending billions of dollars on international investments, including the Vinhomes deal, many achievements and controversy under Prime Minister Lee Hsien Loong's wife - Photo 1. .

Robust restructuring when Mr. Lee Hsien Loong’s spouse is CEO

However Temasek solely actually began to make massive modifications after Ms. Ho Tinh (Ho Ching) was appointed in 2002. This appointment raised considerations within the worldwide media concerning the independence of administration. Temasek’s management as the corporate’s incoming CEO is the spouse of Prime Minister Lee Hsien Loong.

After taking workplace, Ms. Ho Tinh started to exchange Temasek’s prime administrators and managers. A brand new board of ten administrators was established and 11 senior managers have been appointed, every working a division alongside useful strains.

This restructuring doesn’t restrict younger individuals to senior administration positions. Extremely certified staff have been employed all through the corporate. By 2003, nearly all of workers have been 35 years of age or youthful.

The brand new workforce made strategic modifications in company investments from sustaining nationwide wealth to producing worldwide monetary returns and eradicating the corporate’s picture as a “boring” software. ” and “secret” of the State of Singapore.

Underneath her management, Temasek has grow to be an energetic worldwide investor. To realize this repute, Temasek invested closely in buying vital stakes in massive corporations exterior of Singapore, particularly corporations with robust aggressive benefits and good management.

Temasek kicked off its worldwide technique by concentrating on a number of banks, first close to Singapore, then within the UK and US. Particularly, Temasek purchased controlling stakes in two Indonesian banks, Financial institution Danamon and BII Financial institution, for $337.5 million and $530 million respectively.

Temasek then acquired 6% and 4% of China Building Financial institution and Financial institution of China, respectively, for $9.three billion and $5.Four billion, respectively.

Singapore's Temasek trump card: An effective public property management model, spending billions of dollars on international investments, including the Vinhomes deal, many achievements and controversy under Prime Minister Lee Hsien Loong's wife - Photo 2. .

In June 2020, a gaggle of buyers led by Kohlberg Kravis Roberts (KKR, USA) funding fund, together with Temasek funding fund, accomplished a transaction to purchase again greater than 200 million shares of Vinhomes’ VHM by VHM. transactions.

The overall transaction worth is as much as 15,100 billion VND, equal to 650 million USD. By which, Temasek’s personal cash spent is 200 million USD

With a post-transaction holding fee of 6% of shares, this group of international buyers has grow to be a serious shareholder (holding over 5% of capital) of Vinhomes.

Temasek’s discipline of capital is just not restricted and reaches many international locations. Temasek has targeted its investments on rising markets and newer industries, together with transportation and business, life sciences and agribusiness, schooling and cellular.

In response to the monetary report in March 2020, the web funding worth of Temasek reached 306 billion Singapore {dollars}, equal to 214 billion {dollars} (about 5 million billion dong). Temasek can be one of many few corporations rated AAA by Customary & Poors and Moody’s.

Nonetheless, Temasek’s investments have induced political controversy. Temasek’s acquisition of a 42% stake in Shin Group in 2007, which owns key broadcasting rights in Thailand from former Prime Minister Thaksin Shinawatra, induced widespread outrage in Thailand over the sale of sources. nationwide sources.

That very same 12 months, an funding in Optus, a know-how companies firm with Australian protection contracts, sparked worldwide concern that Temasek was a political car.

Ung Minh

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