The 50th anniversary of Temasek, the global investment company headquartered in Singapore, was held on Monday evening, with a speech delivered by Prime Minister Lawrence Wong that saluted early “pioneers”, including PIO Singaporeans Joseph Yuvaraj Pillay and Dhanabalan Suppiah. Both the former Indian-origin chairmen of Temasek were present at last evening’s anniversary dinner.
He also spoke of the “alpha”, that “extra edge” that enables sustained success. For Singapore, “the greatest source of alpha” was the country’s “reputation for trust, integrity and reliability”, he said.
In his X posts following the event, PM Wong wrote: “Happy 50th birthday @Temasek! SG’s economic success has been built on an ethos of self-reliance, being open to the world, and a boldness to push frontiers. This mindset has also guided Temasek over the past 5 decades.
“Thank you to everyone in Temasek and its portfolio companies — past and present — who have contributed to this remarkable journey. Special thanks to former Temasek Chairmen Mr J.Y. Pillay, Mr Lee Ek Tieng, and Mr S. Dhanabalan for their leadership.”
Pillay and Dhanabalan were mentioned in the prime minister’s speech, too, when he spoke of how Temasek has grown. Its work had “started with an initial portfolio of just 35 companies which Temasek had taken over from the [Singapore] government”. Over time, a few companies from the original portfolio “have become regional and global champions in their respective industries, like DBS and SIA”.
PM Wong, who is also the finance minister of Singapore, pointed out, “Temasek itself is regarded as one of the foremost equities investment companies in Asia and the world.”
This growth has been achieved without sacrificing principles. “Indeed, Temasek believes not only in doing well, but also doing right and doing good,” said PM Wong, touching upon the work done through the Temasek Trust and Temasek Foundation. “I am also glad that Temasek’s portfolio companies are leading the way as responsible corporate citizens…,” he said.
Giving credit to the early leadership of Temasek that charted the course of its triumphant progress, the prime minister said, “The many positive outcomes that we see today is really the fruits of the labour and foresight of the many who came before us — those who founded and later transformed Temasek, and who ran its portfolio companies. They gave their hearts and minds, and their sweat and tears to build what we have today.”
PM Wong said, “I am glad to see Mr J. Y. Pillay and Mr Dhanabalan here tonight with us and many other pioneers who were contributing to Temasek in those early years. We owe them a great debt of gratitude.”
Temasek, he said, had begun in 1974 with the goal of doing things differently, avoiding the pitfall of state-owned companies “losing sight of commercial and market discipline”, and becoming “bloated, inefficient and wasteful”.
The companies in the original portfolio of Temasek were meant to be managed “on strict commercial principles”, and then be operated “on an arms-length basis from the government”.
Rewarded by its strategy of embracing market dynamism, Temasek has gone from strength to strength. “When it started, Temasek’s portfolio was wholly Singapore based. Over time, its investments in Asia grew. Now Temasek has a global portfolio, with investments across Asia, the Americas, Europe, Middle East, and Africa,” said the prime minister.
Singapore’s source of “alpha”
Looking deeper into the story of Singapore and Temasek, the prime minister said, “In finance, investment professionals are always looking for ‘alpha’, the extra edge that drives higher returns and enables you to outperform market benchmarks. For Singapore, the greatest source of alpha lies in something more enduring — it is our reputation for trust, integrity and reliability. These attributes are a unique source of competitive advantage for us, it is very hard for others to replicate.”
He added, “I believe what is true for Singapore applies to Temasek, too.”
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Before coming to this “alpha” point, PM Wong had said that the global economic environment was changing, and a tiny nation like Singapore — and an investment company like Temasek — “cannot rest on our laurels”.
Unfortunately, there are dark clouds over the horizon. We are in a new era, marked by the growing contest for dominance and leadership between America and China. The two sides are continuing to engage one another, but there is deep mutual suspicion and mistrust in the relationship. Neither side wants a conflict, but both sides are preparing for a conflict to happen. That is why more and more economic activities around the world are being viewed through a security lens.
Singapore Prime Minister Lawrence Wong, speaking at the Temasek 50th anniversary dinner
Global economic moves these days are guided and shaped by security issues. As Wong explained, “Restrictions have already been imposed on key technologies like Artificial Intelligence and semiconductors. What is worrying is that security concerns are spilling over to more and more areas.”
As security overshadows economics, “the pendulum of economic thinking has swung to the other extreme”, with the free trade and laissez-faire economic management of the late 20th century being replaced by “more calls for targeted protectionism and aggressive subsidies for key industries” in the 21st century, as it stands today.
For Singapore, this means finding its “own path forward in this new environment”.
To create a national economic roadmap for the coming decades, PM Wong said, “I think we [would] do well to heed the advice from our founding leaders — to maintain a clear distinction between business and government, to keep government lean and efficient, minimise the regulatory burden on business, and ensure a conducive environment for enterprises and entrepreneurs to flourish and thrive.”
He emphasised, “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.” This is the “alpha” that Singapore has to offer to the world.
