Temasek Holdings
What Is Temasek Holdings?
Temasek Holdings is a sovereign wealth fund (SWF) — a state-owned company — that deals with an investment fund for the benefit of the Government of Singapore. Utilizing federal reserves, it centers around investments situated in Singapore, China, and North America, as well as Europe and a few emerging economies. Temasek Holdings has a portfolio of roughly SGD $306 billion (US $226.6 billion) as of March 2020.
The investment fund presently has 11 offices worldwide and deals with many investments and financial services including telecommunications, media and technology, transportation and industrials, consumer and real estate, life sciences and agribusiness, energy, and resources.
Grasping Temasek Holdings
Temasek Holdings was established in 1974 under the Singapore Companies Act, which incorporated the organization. Incorporation permitted the company to possess and oversee investments and assets that the Singapore government had recently been responsible for. By alleviating the government from the financial angle task of overseeing investments, the government's Ministry of Finance had the option to have additional time and capacities to zero in on policymaking and regulation, as it was intended to do.
The company was initially based on a portfolio of SGD$354 million dollars from shares in companies, startups, and adventures that were held by the Singapore government, including a bird park, an inn, a shoemaker, a steel mill and an airline.
In spite of the fact that Temasek Holdings has the standard corporate structure, with two unique elements that mirror its status as a Fifth Schedule corporation in Singapore:
- The endorsement of the President of Singapore is required to make certain moves, like arrangement and removal of directors and key managers, including the CEO; the Board and CEO are accountable to the President. The majority of Temasek Holdings' directors and key officers are independent directors delegated from the private sector. Temasek has one sole shareholder in the Singapore Minister for Finance.
- The company's financial statements are examined by the Government of Singapore's Auditor-General.
Regardless of the fact that the Singapore Minister of Finance is the company's sole shareholder, Singapore's government isn't straightforwardly associated with any of the investment or operational choices on any level of the company. The government is a shareholder as illustrated by the Board of Directors, which permits Temasek to operate as a Fifth Scheduled Company.
Aaa
The rating that Moody's Investors Service relegates Temasek and the debt issued by its financing subsidiary Temasek Financial Ltd.
However it endured a shot in fiscal year 2019, posting just a 1.49% shareholder return, the company flaunts a 15% total return since its beginning in 1974.
Like any company, Temasek pays taxes to the tax specialists and separately declares dividends to its shareholders.
Special Considerations
Temasek's website stresses its "stake in the prosperity of our more extensive community," refering to its Temasek Trust, established in 2007, which funds the Temasek Foundation. This nonprofit is partitioned into six foundations that regulate 23 philanthropic enrichments:
- Temasek Foundation International
- Temasek Foundation Cares
- Temasek Foundation Connects
- Temasek Foundation Nurtures
- Temasek Foundation Innovates
- Temasek Foundation Ecosperity
Generally, Temasek Holdings claims to have impacted 1,300,000 individuals all through Asia and Singapore with its community work and programs.
Features
- The company's Temasek Foundation has funded 23 humanitarian endeavors all through Asia.
- Financed by government reserves, it has a portfolio of almost $306 billion and has a total shareholder return of 15% since its commencement in 1974.
- Temasek has a to a great extent independent Board of Directors, and one shareholder — the Singapore Ministry of Finance.
- Temasek Holdings is a state-owned company that deals with an investment fund for the benefit of the Government of Singapore.
