Posted by: bigtalksingapore | February 12, 2009

Temasak Holding big losses ?

Everyone have been talking about it for a pretty long time.

They finally released the official figure for the the “Losses” or “Potential losses” incur by Temasak Holding.

The figure was a staggering 31% slump of the portfolio (See Attachment #1 Tag #1).

Now I learn a new way to use the word “Slump” instead of “Losses”.

31% is about (185-127) S$58 Billion !!

This is quite comparable to the money disappear into the “Madoff Scandal”.

I will “Big-Talk” on some of the following issues.

  • Temasak Holding “Losses” or “Potential losses” vs Ho Ching step down.
  • The new Temasak Holding CEO Mr Charles W Goodyear.
  • Temasak Holding role in Singapore economy.
  • Temasak Holding Management responsibility

Temasak Holding “Losses” or “Potential losses” vs Ho Ching step down.

  • Does it bother you that the timing of Ho Ching stepping down from Temasak Holding CEO and release of 31% “Slump” is so coincidental ?
    First Ho Ching leave Temasak Holding (7 Feb 2009, Attachment #3), then they announce “Temasak down 31%” (11 Feb 2009, Attachment #1).
    If these steps were reverse, maybe more people will blame the 31% “Slump”  on Ho Ching.
    So, did they let Ho Ching step down first as part of the damage control measure  ?
    .
  • During the press release, the first question by the reporters was whether Ho Ching stepping down was due to recent losses (Attachment #4 Tag #1).
    Mr Danabalan answered with an immediate “ABSOLUTELY NOT !” and a stern warning to the reporter.
    I’m wondering, does the  “Absolutely not” an indication that Temasak Holding CEO (Present and future) has no worry of bearing any responsibility even if they lose or “Slump”  money ?
    If that is the case, the new CEO Mr Goodyear is going to be a damn happy man.
    .
  • At the start of the press release, Mr Danabalan said that “we also have a very well rounded and experience management team which has operated as a team and not as a one man (Or Woman) show
    http://www.razor.tv/site/servlet/segment/main/news/20876.html
    http://www.razor.tv/site/servlet/segment/main/news/20878.html
    There’s a chinese saying “此地无银三百两”.
    And Ho Ching was one of the top most powerful woman in the world.
    .
  • Ho Ching is stepping down and cutting all ties with Temasak Holding (Attachment #4 Tag #3).
    It’s like saying that all future losses by Temasak Holding is no more related to Ms Ho.
    And of cos no more “Potential Losses” connection with our PM also (Attachment #4 Tag #2).
    Is it ?
    .

The new Temasak Holding CEO Mr Charles W Goodyear.

  • The new CEO Mr Goodyear is an American.
    Considering the sensitivity of SWF and Temasak Holding being linked and supported by its Government and people, will there be a conflict of interest when Mr Goodyear make decision.
    Right now, America seem to like a lot of bailout packages.
    Will Mr Goodyear come out with bailout portfolio tuned for America ?
    After all, he is still an American and I presume that his loyalty is with America and want to see to its success.
    Unless of cos he give up his America citizenship to become Singaporean,  nah..unlikely.
    .
  • Mr Goodyear experience seem pretty impressive.
    Mr Goodyear began his career in Wall Street (Attachment #5 Tag #1).
    Gee, Wall Street, that is like a condemned name nowadays.
    Well, remember Mr Madoff ?
    His experience and character (Before the scandal) is even more “Powderful”.
    And look at the legendary “Madoff scandal”.
    I’m already spook by Madoff, so I’m in a little bit of “以小人之心妒君子之腹” here, so please forgive me.
    .

Temasak Holding role in Singapore economy

  • We all know that Singapore National Reserve is meant for Singaporean during time of needs.
    What about the money in Temasak Holding ?
    If it is operating as a private fund, does it mean that when there is a need to help Singaporean, it may not be used ? Because it may be considered better to keep the money in other investment (Eg. Merrill Lynch) and wait for it to appreciate long term (And god know how long is long).
    If it is operating as a public fund, how can it be accountable to Singaporean ?
    .
  • They kept saying maximizing  “Stakeholder” interest.
    I kept asking myself who the “Stakeholder” is.
    Is it the fund managers, the ruling government or the people ?
    .

Temasak Holding Management responsibility

  • We all know Temasak Holding is and would not become “Truely Transparent”.
    But we should realized the importance of responsibly managing such a huge sum money after the financial crisis created by irresponsible Wall Street bankers and fund managers.
    I think this is a good time to look at Temasak Holding and ask “Is Temasak Holding reward system similar to Wall Street where fund managers are rewarded for making high risk investment and even making losses or slump ?”.
    If Temasak Holding is going to “Slump” 31%, shouldn’t it review its bonuses and salary ?
    The Citibank CEO has already cut his salary to US$1, Temasak Holding should learn from them ?
    I mean not $1, but at least take a cut of let say 31% ?
    http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_337820.html
    .

Attachment #1: Today, 11 Feb 2009m Page 1

20090211c2_temasakholdinglosss58billion_todaypg1

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Attachment #2:  Today, 11 Feb 2009, Page 3
20090211c3_temasakholdinglosss58billion_todaypg3

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Attachment #3:  Today, 7 Feb 2009, Page 1

20090207a1_singaporehochingstepdownfromtemasakholding_todaypg1

.

Attachment #4: Today, 7 Feb 2009, Page 4
20090207a3_singaporehochingstepdownfromtemasakholding_todaypg4.

Attachment #5:
20090207a2_singaporehochingstepdownfromtemasakholding_todaypg1

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