Temasek Holdings-About Temasek Holdings:
Temasek Holdings is the Singapore government holding company in the four largest one, under the Singapore Ministry of Finance, total assets of over S $ 700 billion (360 billion U.S. dollars), with 35 listed companies, their trading volume of listed companies Singapore accounted for nearly 1 / 3. Through equity investment, holding shares of 500 companies, and gradually formed from the government to a parent, subsidiary, branch offices and other property management organizations, as many as six levels of world-renowned large-scale government-controlled enterprises. As the World Bank experts, Chunlin Zhang said, "and the international private sector compared to similar companies, Temasek Holdings 'and government-linked company (GLC)', at the rate of return on equity performance to be better", its performance, management quality, cleanliness and so better than any other private industry are inferior. Temasek Holdings Limited (referred to Temasek Holdings) as the Singapore government invested 100% of the holding company was established in 1974 after nearly 30 years, corporate governance, capital operation, etc. have made the same industry than the international private more prominent performance. Learn from their experience in government capital management and effective practices, reform and development of state-owned holding company of great practical significance.
Temasek Holdings - Basic Introduction
Temasek Holdings Temasek Holdings signs Ltd. (hereinafter referred to Temasek Holdings) as the Singapore government invested 100% of the holding company was established in 1974 after nearly 30 years, corporate governance, capital operation, etc. have made more than international private sector is more prominent with the performance. Learn from their experience in government capital management and effective practices, reform and development of state-owned holding company of great practical significance.
Temasek Holdings - Strategic PositioningExecutive Director of Temasek Holdings Temasek Holdings owned by the Singapore government set up by the Ministry of Finance director of state-owned holding, operation and management of the government on behalf of the Singapore government capital, is responsible for most of the government's asset management. This is a unique Singaporean government-run system of government assets embodied.
Singapore government-owned assets management system is the establishment of four major holding company in charge of a large number of government statutory bodies, the government's assets, to take government, market-oriented mode of operation, indirectly, to strengthen the operation and management of government assets. Whether it is a statutory body or government companies, operate in accordance with market rules. Because property rights and responsibility, the Singapore government to avoid the direct management of government departments, state-owned enterprises, run by Chief drawbacks, both to achieve the Government's effective control of state-owned assets, the government has greatly enhanced the competitiveness of the company.
Singapore's economic relationship with the government entity has three categories: statutory bodies, government corporations, government holding company. The statutory body, similar to our institution, established by law by Congress, with special privileges, functions and scope of activities, but not in the public sector, in addition bear a part of policy-related losses, many are profitable; its government companies, is holding company owned by the Singapore Government, in accordance with company law up businesses. 1994, Singapore has a number of statutory bodies for enterprise transformation, such as the Port Authority, Maritime Port Authority through the establishment of the exercise of governmental functions, the original Port Authority transformed into Enterprise Group, the holding company shares held by the government.
Singapore has a large number of statutory bodies, government corporations. To strengthen management, improve operational efficiency, the Government has established four government-controlled companies: Temasek Holdings, Singapore's development holding company, holding company of Singapore Technologies, Singapore healthcare companies. Temasek Holdings is the largest holding company, responsible for managing most of the government's assets; development holding company in Singapore is the second largest holding company, operating reserves, but only in the overseas market, is not involved in the domestic market; Singapore Technology Holdings Inc. is the third largest holding company, management of government defense and science and technology companies; Singapore healthcare companies control all the state-owned hospitals.
Temasek Holdings - Corporate Governance
Relationship with the Singapore government's Temasek Holdings
Singapore's Temasek Holdings Chief Executive Officer under the provisions of the Articles of Association, Temasek's Chairman of the Board, Director and General Manager of the appointment are subject to approval by the President of the Republic of Singapore; more than 80% of the board of directors are government officials, as civil servants Director and part-time do not pay, the government still paid salary, part-time directors to send rewards and punishments, promotion, replaced by the Government under the company's operating conditions to determine the (mainly by civil servants of this part-time directors of the company is state-owned Temasek Holdings asset management an important feature), the basic right of the company's personnel controlled by the government. Singapore's Temasek Holdings authorities as the Ministry of Finance, Temasek Holdings, the corporate governance framework in the role is limited: the Ministry of Finance assigned to the civil service part-time directors of the Company; Temasek submit an annual audited financial report for the Ministry of Finance Review; Finance Minister to convene and often associated with Temasek or its management company (GLC) meeting to discuss the company's performance and plans. In addition, the Ministry of Finance only affect GLC Temasek Holdings in a stock merger and sale involved only when problems arise.
Temasek's corporate governance structure
In accordance with relevant laws and regulations in Singapore, Singapore 4 holding companies to implement the general manager responsibility system under the Board of Directors. Temasek Holdings Board of Directors currently consists of 10 members, eight by civil servants. Board of Directors the right to appoint additional directors (the number of directors does not exceed the maximum amount stipulated in the articles within); Board of Directors with the approval of the majority of the members consent, can designate any person as his nominee director can also be terminated at any time of the agency relationship; Board can appoint one or more need to Managing Director. Role of the Board: to decide on dividend distribution and placement decisions and other major issues in investment decisions, such as the use of funds also enjoy full autonomy, free from constraints of government departments. At the same time, the Board as a government agent of property rights, with the share capital of its subsidiary, change, corporate restructuring, the annual budget and final accounts, appointment of directors and other major property management decision-making power to decide, under the supervision and management of the company's business activities and the responsibility to ensure that the Government asset value of the liability.
Senior managers of the appointment and removal by the Board, but must comply with section 22C of the Constitution of the Republic of Singapore provisions, and agreed to by the President of the Republic. Managers responsible for the daily operation and management activities.
Temasek Holdings - Philosophy
As a government holding company, Temasek Holdings to focus on improving shareholder value. Its business objectives in pursuit of profit-based, taking into account of the Government. Therefore, in project selection and capital investment decisions are based on issues can be profitable as a standard. In order to ensure profitability, investment, the company and its subsidiaries have the autonomy to select an item. Any investment project to go through the pre-assessment, if not profitable, will not be considered. If indeed the country needs, the government departments concerned so requests, the Government must not lose money as a precondition to the company, to give appropriate compensation, the company was to be accepted. If the subsidiary at a loss so that insolvency, bankruptcy will be closed.
Temasek Holdings - the mode of operation
Main advantage of equity investment, equity participation by enterprises, holding, trading companies and the subsidiaries listed securities, etc., in the country and around the world engaged in investment holding companies and diversified operations, expanding operations and capital. As to the sole, holding, equity, listed equity transfer or the manner in which the invested enterprise depends largely on the nature of the business. For example, for strategic and national security-related companies, related to social development and community development, tourism or recreation business planning and legal gambling enterprises, often taking sole proprietors; for other companies, are usually taken to control or equity approach to guide and promote private investment.
Equity adjustments: Temasek holds numerous domestic and foreign company's equity, strengthen the equity management, ongoing equity adjustments, become an important task. First, adjust the current equity holders to retain in a strategic stake in the company such as Singapore Telecommunications (Temasek holding 68%), Singapore Airlines (57%), PSA Singapore and Singapore Power, but gradually weaken the holding power; continue to have "critical resources" project equity, such as water, energy, natural gas facilities, and air and sea ports; remain with the next step to follow up the industry, has an interest in the project. Third, disposal and development strategy that "is no longer relevant or no international growth potential," the business, there is no strategic investment projects, reduce the equity in these projects. Since 1985, Temasek Holdings sold off about 40 companies and the entire equity stake in 25 companies. Temasek has also recently developed a plan divest stake, first to sell small, not worth spending time monitoring of investment projects, but taking into account the interests of minority shareholders are not at liberty to sell the stock. While preparing for the sale of shares to or through mergers and acquisitions, reduction in those who "have the potential out of the domestic market" toward other regional or global market, the company's shares.
Temasek Holdings - the field of business
Singapore's Temasek Holdings as the majority of government responsible for the management company involved in wide range of areas, penetrated into all walks of life, beginning and not confined to a particular region or industry. Direct or indirect investment areas are: the financial sector (Development Bank of Singapore shares, Keppel Bank, export credit insurance companies, etc.), transportation (holding Singapore Airlines, starfish Shipping Company, Singapore, MTR Corporation, etc.), trade industry (plus slope international trading company shares, primary products, industrial companies, biotechnology companies in Singapore, etc.) and cultural entertainment (holding the Singapore Zoo, Singapore Pools, etc.), shipbuilding (holding Keppel, Sembawang Shipyard etc.), real estate and hotels (owned BC hotel chain, Singapore Ministry of Finance building management companies, urban development and management company, etc.), construction (building technology holding company in Singapore, resource development companies, etc.), petrochemical industry (holding petrochemical company in Singapore, Singapore national Oil Company, etc.), consulting (holding international development and consulting firm, MSD's, ENV companies, etc.), services (national granary holding company in Singapore, national University Hospital, National printing companies, etc.).
With Temasek's investment strategy constantly adjusted, through the sale, transfer, etc. out of the equity held by a number of areas, are constantly moving their investment to better reflect the direction of centralized government holding company.
According to Temasek Holdings, Chairman of the Board Dhanabalan in December 2001 that, Temasek's investment in the next five years will focus on three main areas: First, strategic projects, such as water and communications; two is involved in the growth potential but high risk industries such as life sciences; third foster home as a base of operations to Singapore's knowledge-intensive enterprises.
Temasek Holdings - management practices
The practice of management holding company Temasek Holdings
Temasek, the investment company focusing on strengthening the supervision and management, improve the investment company members of the Board and management quality, to attract the best talent, so that the Board of Directors diversified, actively promote the investment of the company to give shareholders a reasonable return, enhance the company's competitiveness in the market and aggressive.
Investment company Temasek Holdings on the requirements of: (1) to become a world-class company with international competitiveness, to attract talent; (2) has a highly qualified board of directors; (3) focus on core competencies; (4) to pay competitive wages; (5) to improve return on assets, return on equity, so to maximize financial performance. Company should be based on international standards as a benchmark. In order to encourage more attention to each company's core competitiveness, any diversification plan must first be Temasek's consent.
Specific management: the investment company Temasek Holdings on management control, is also based on property rights. (1) Temasek Holdings appointed director; (2) Temasek Holdings reported regularly to the Board of Directors meeting of the memorandum; (3) submit regularly to Temasek Holdings, the Company monthly, semi-annual and annual financial and management reports; (4) periodic reporting on the Company's investment and loan program; (5) major decisions such as capital increase, shall be subject to the consent of the Board of Directors of Temasek Holdings.
In the cultivation of Temasek, the Singapore really emerged in a number of international standards of large enterprises, such as Singapore Airlines, SingTel, Sembawang Shipyard. Their outstanding performance, not only the domestic circles of praise, but also emerge in the international market (90 years Singapore Airlines has been hailed as a model for the international aviation community to learn), so that the Government has granted its "foster world-class company." the historic mission is the progressive realization.
