How GIC and Temasek are managing your money

[aerobwala]

https://www.sec.gov/Archives/edgar/data/936828/000119312521182926/d176959dsc13g.htm

Based on above filing at reporting date and Aug 27, XII's policy wiped out USD776M of our monies

 

[LITTLEREDDOT]

Ownself support ownself.
When the government uses citizens' monies to support a moribund stock market, it is the citizens' monies which are lost.
The local stock market returns are dismal because of the effects of the PAP government's mismanagement of the economy.
Too many government-linked companies throttled small entrepreneurs.
When the big GLCs include duds like NOL, SPH, Sembcorp, Keppel, Hyflux, no wonder performance sucks.
And now Temasek is asked to support SPACs. The same SPACs that are ruled as risky in the United States.
Hong Kong has drawn up provisions to protect retail investors from SPACs.
And now Temasek happily throws citizens' reserves into SPACs.
SPACs like Grab's S$40 billion SPAC when Grab is losing US$3 - 4 billion a year.

Singapore said to plan local stocks boost with Temasek fund​

Temasek and sovereign wealth fund GIC will be urged to use the city-state's new framework for special purpose acquisition companies. PHOTO: ST FILE

Sep 14, 2021

SINGAPORE (BLOOMBERG) - Singapore is planning new measures to boost its domestic stock market, according to people with knowledge of the matter. State investment giant Temasek's 65 Equity Partners, with a fund size of at least $1 billion , will invest in Singapore and regional mid-cap firms, including initial public offerings, the people said.
Temasek and sovereign wealth fund GIC will be urged to use the city-state's new framework for special purpose acquisition companies (SPACs), or blank-check companies, to encourage or facilitate the listing of tech firms in their portfolios, the people said, asking not to be identified before an announcement expected as soon as this week.
The Monetary Authority of Singapore (MAS) is also involved in the effort, with the capital markets regulator planning to add to some of its existing measures, one of the people said.
An effort to ramp up domestic investments by Temasek and GIC could help bolster Singapore's local bourse, which has struggled in recent years with tepid listings and low liquidity. A paucity of tech names - one of the hottest themes in global equity markets since the pandemic began - has also affected investor interest in Singapore's capital markets.
Singapore Exchange (SGX) this month presented rules for the listing of SPACs in an attempt to get a slice of what has become a worldwide frenzy. The move is expected to draw in listings from industries including technology.
Dominated by old-economy sectors such as finance and property, the benchmark Straits Times Index has returned an annualised 6 per cent over the past five years in US dollar terms, about half of the broader MSCI Asia Pacific Index's gains.

While local investments made up 24 per cent of Temasek's $381 billion portfolio as of March 31, much of that is tied up in monoliths such as Singapore Airlines and Singapore Telecommunications.
"The emergence of innovative, growth companies in Singapore and the region will present opportunities for capital solutions to support their expansion," Temasek said in an emailed response to Bloomberg queries.
"Temasek and its network of partners can be providers of catalytic capital, particularly in the areas of the longer term structural trends we have identified: digitization, sustainable living, longer lifespans and the future of consumption."
The Ministry of Trade and Industry, MAS, GIC and SGX declined to comment.
Temasek's Tan Chong Lee is helping to lead 65 Equity Partners, which will also have a remit that goes beyond Singapore as needed, the people said. Both it and a UK entity - 65 Equity Partners Management (U.K.) - were formally established earlier this year, according to regulatory filings in Singapore and the UK.
Sovereign wealth fund GIC is estimated to have US$545 billion ($732 million) in assets under management, according to the Sovereign Wealth Fund Institute. Its mandate has traditionally prevented it from investing domestically, except in rare examples where the vast majority of revenues are generated from outside Singapore such as logistics provider GLP and Esco Lifesciences Group.

 

[LITTLEREDDOT]

Quote: "The emergence of innovative, growth companies in Singapore and the region will present opportunities for capital solutions to support their expansion," Temasek said in an emailed response to Bloomberg queries."

Temasek is basically telling citizens that they will invest in e-commerce businesses that are losing money by the billions: GRAB, Sea Holdings (owner of Shopee), etc.

 

[mahjongking]

When it comes to give/temasek investing, it really is just gambling.
For whorejinx, it's worse when she buys high and sell low.

what is worse than buy high sell low?......
its heads we share the profits with kaki lang, tails we let the peasants take the loss

 

[Leckmichamarsch]

PIL if I am not mistaken is owned by kuok group. Together with malaysian bulk carrier.

STRICTLY NO BUMI.........THEY FUCK UP BIZ

 

[LITTLEREDDOT]

Temasek sold NOL in 2016

World's shippers are earning the most money since 2008​

Whether its giant container ships (above), bulk carriers or specialised vessels, earnings are soaring for ships of almost every type.PHOTO: AFP

SEP 12, 2021

LONDON (BLOOMBERG) - The global shipping industry is getting its biggest payday since 2008 as the combination of booming demand for goods and a global supply chain that is collapsing under the weight of Covid-19 drives freight prices ever higher.
Whether its giant container ships stacked high with 40-foot steel boxes, bulk carriers whose cavernous holds house thousands of tons of coal or specialised vessels designed to pack in cars and trucks, earnings are soaring for ships of almost every type.
With the merchant fleet hauling about 80 per cent of world trade, the surge reaches into every corner of the economy.
The boom back in 2008 brought with it a huge wave of new vessel orders, but the rally was quickly undone by a demand collapse when a financial crisis triggered the deepest global recession in decades.
This boom's causes are twofold - an economic reopening after Covid-19 that has spurred surging demand for goods and raw materials. Alongside that, the virus continues to cause disruption in global supply chains, choking up ports and delaying vessels, all of which is limiting how many are available to haul goods across oceans.
That has left the majority of the shipping sector with bumper earnings in recent months.

The bonanza is centred around container shipping - where rates are spiralling ever higher to new records, but it is by no means limited to it.
The shipping industry is posting its strongest daily earnings since 2008, according to Clarkson Research Services, part of the world's biggest shipbroker. The only laggards are the oil and gas tanker markets, where more bearish forces are at play.
"I'm not really sure the perfect storm covers it - this is just spectacular," said Mr Peter Sand, chief shipping analyst at trade group Bimco. "It's a perfect spillover of a red-hot container shipping market to some of the other sectors."
Container shipping remains the star. It now costs US$14,287 ($19,000) to haul a 40-foot steel box from China to Europe. That is up more than 500 per cent on a year earlier and is pushing up the cost of transporting everything from toys to bicycles to coffee.

Those gains are already showing in the earnings of A.P. Moller-Maersk, the world's largest container line, which hiked its estimated profits this year by almost $5 billion last month.
In a sign of just how profitable the industry has become, CMA CGM - the world's third-largest carrier - said it is freezing its spot rates to preserve long-term client relationships. In other words, the company is turning away profit.
While the demand for retail goods is lifting container markets, a recovering global economy is also churning through more raw materials - boosting the revenues of bulk ships that carry industrial commodities.
In that sector, earnings recently hit an 11-year high and are showing little sign of abating down the line with consumption expected to remain firm for the rest of the year.
"Strong demand for natural resources combined with Covid-related logistical disruptions" are supporting spot and future freight rates, Mr Ted Petrone, vice-chairman at Navios Maritime Holdings which owns a fleet of bulk carriers, said on an earnings call last week.
"Supply and demand fundamentals going forward remain extremely positive."
Such is the extreme strength across shipping that some bulk carriers have even turned to carrying containers on their decks.
Golden Ocean Group is among the companies that said it is looking at the idea. While it could spur additional profits in an already windfall year for owners, its not without its risks as bulk carriers are not designed to carry the giant boxes.
"It tells a story about the special situation we are in", in the container market, Golden Ocean chief executive Ulrik Andersen said earlier this month.

While for many shipping sectors Covid-19 has brought a boom, for oil tankers it has meant loss-making trades for much of this year and owners effectively subsidising the shipment of crude oil.
With OPEC+ still keeping a chunk of supply offline there are too many ships and too few cargoes, keeping earnings depressed. That has burned one of the hottest trades in the sector at the start of the year - bullish oil tanker positions in the hope of a summer surge in oil demand.
Still, with on land oil inventories declining, analysts continue to anticipate a rebound.
Rates could begin to move higher next month as stockpiles dwindle and demand for tankers grows, Pareto Securities analysts including Mr Eirik Haavaldsen wrote in a note to clients.
But for now, the tanker market remains the only blot for an industry where freight capacity is ever tightening.
The ClarkSea Index, which tracks daily earnings across a diverse range of shipping sectors, has already posted its longest run of monthly gains on record.

Those bumper earnings are also being seen in more esoteric markets. Car carriers now cost the most to hire since 2008. Rates for general cargo ships with heavy equipment are also surging, adding to a boom that is being led by container and bulk shipping.
"The charter rates reported in containers are crazy and it's the same for dry bulk," said Ms Alexandra Alatari, a shipping analyst at Arrow Shipbroking Group. "The fundamentals are so strong they support rates that would be the peak of any other year."

 

[LITTLEREDDOT]

Temasek chief defends investments in polluters in final speech​

Fri, 1 October 2021

Ho Ching at the townhall during the G20 leaders summit in Hamburg, Germany July 8, 2017. (PHOTO: REUTERS/Axel Schmidt)

By David Ramli
(Bloomberg) — Temasek Holdings Chief Executive Officer Ho Ching defended the company’s continuing investments in carbon emitters, in a final speech capping 17 years running Singapore’s US$281 billion state-owned investor.
“We debated and decided not to divest emitters just to tick the box - this does nothing to help the world decarbonise and it isn’t the right thing to do,” she said at the Ecosperity event in Singapore Thursday. “Instead we are prepared to do the hard work - to work with or even invest in emitters who commit to a clear transition plan for carbon reduction.”

The speech — in which she also called on companies, governments and investors to take urgent action to slash carbon emissions — ended what’s been an occasionally unconventional career for Ho, the wife of Prime Minister Lee Hsien Loong. Dilhan Pillay Sandrasegara will take over as CEO Friday, and Ho will join the firm’s philanthropic arm that same day before becoming its chair on April 1.
While Temasek has pledged to be an eco-trailblazer, it remains invested in businesses that contribute to global warming — from Singapore Airlines Ltd. to Sembcorp Marine Ltd., a supplier of offshore rigs. Where peers like Norway’s sovereign wealth fund have used hard targets and the sale of assets to improve their green credentials, Temasek is taking a different path as it attempts to halve the 2010 emissions of its portfolio by 2030.
The changeover at the top comes at a challenging time for Temasek, whose profits help fund the national budget. Almost half of its portfolio is invested in either China or the Americas, making it vulnerable to geopoltical tensions. And many of its assets are in large Singaporean entities whose sales are being battered by Covid-19.
Ho, 68, joined Temasek in May 2002 as executive director before being appointed CEO two years later. She started her career as an engineer and worked at the country’s Ministry of Defence, later becoming the president and CEO of Singapore Technologies Group prior to joining Temasek.
Over that period, the firm has grown from a US$77 billion largely domestic portfolio to a global institutional investor backing companies across a wide swathe of industries. Just 24% of its assets are now based in Singapore. It hasn’t been all smooth sailing for Temasek, which suffered a 31% decline after the financial crisis as well as falls in 2016 and 2020.

New Strategies​

Diego Lopez, managing director of Global SWF, gave Ho credit for helping push Temasek into a variety of new investment strategies, from venture capital and private equity partnerships to ESG and Impact investing. And while it isn’t ideal to have a sovereign-backed firm run by an executive married to the head of state, he added it also wasn’t unheard of.
“People talk about it in academic circles and in a theoretical way but in the industry if you’re interested in selling an investment or service to Temasek you don’t necessarily care,” Lopez said. “The organization is much more advanced than what it was 17 years ago.”
Ho’s replacement Pillay, is a Singaporean who was pursued by the outgoing CEO for three years before he accepted a role at Temasek in 2010. The Cambridge University-educated lawyer was widely seen as the favoured candidate when he was promoted to his current role running Temasek International in 2019. During his time he’s overseen the U.S. and Americas market teams and headed the investment and portfolio management groups.
When quizzed about changing roles at a press conference in February, both executives emphasized the evolutionary - rather than revolutionary - nature of running the firm as well as Pillay’s hand in helping create the existing strategy that will guide it over the next decade. Even so, his latest job will come with substantial pressure and heightened scrutiny.
“I think whenever you take on something new, you are taking a risk - you are taking on a reputational risk as to whether you are going to succeed or not,” he said at the time. “But I think if you don’t try, you never know, right?
While China took over from Singapore as Temasek’s biggest geographic source of deals for the first time in 2020, Temasek still plays a key role propping up local institutions. It recently helped fund 65 Equity Partners Holdings Pte, whose Anchor@65 fund will be tasked with backing high-growth companies willing to list on the local stock exchange.

Few Changes​

Lopez predicted few changes at Temasek over the short term and expected an orderly transition. While the company has always claimed to act as a purely commercial investor, it has a track record of providing billions of dollars in support during difficult times to national icons like Singapore Airlines.
“I don’t think Temasek could get away with saying ‘we won’t invest in Singapore Airlines because we don’t think it’s commercially beneficial,’ because that would go against the very origins of the fund and create tensions with the government,” he said.
Angela Cummine, sovereign wealth fund expert and author of Citizens’ Wealth, said Singapore’s use of Temasek had been “impressive.” But she added that it would need to become more transparent - especially around its investment strategies and how it helps fund the national budget - as it grows in size and stature.
Cummine said that losing Ho - and her perceived connections to the Singapore government - could potentially make it harder for Temasek.
“It’s not like you’re getting the word of the state when you’ve got the executives and the senior managers in the room with you from Temasek so that is actually quite a challenge for the incoming CEO,” she said.
© 2021 Bloomberg L.P.

 

[LITTLEREDDOT]

Temasek's portfolio grew from $90 billion to $381 billion from 2004 to Mar 2020. That is an annualised return of 9.28%.
During this period the US S&P500 Index return was more than 10% per year. This is for listed equities. Private equity returns would be higher.
Ho Ching was a below-average fund manager. And she reportedly got paid $100 million in a year for this.

A look back at outgoing CEO Ho Ching's key contributions at Temasek Holdings​

Ms Ho Ching with Temasek Holdings chairman Lim Boon Heng (centre) and incoming Temasek Holdings chief executive Dilhan Pillay Sandrasegara in February.
PHOTO: ST FILE

OCT 1, 2021

SINGAPORE - Long-time Temasek Holdings executive director and chief executive Ho Ching officially steps down on Friday (Oct 1), after some 17 years in charge at the investment company.
Ms Ho, 68, joined Temasek in 2002 as a director before taking on the role of CEO two years later. She is succeeded by Mr Dilhan Pillay Sandrasegara, who holds a dual role as CEO of both Temasek and its commercial arm Temasek International.
Ms Ho has been appointed to the board of Temasek's philanthropic arm Temasek Trust effective Friday and will succeed Mr S. Dhanabalan as its chairman on April 1, 2022.
The Straits Times looks back on some of Ms Ho's career highlights at Temasek.

1. Growing Temasek's portfolio​

Under Ms Ho's leadership, Temasek's net portfolio value more than quadrupled to $381 billion as at end-March this year. It had stood at $90 billion when she was first appointed in 2004.
During this period, Temasek's exposure has expanded beyond Singapore's shores, with investments in China now accounting for the largest share of its portfolio at 27 per cent. About half of its asset exposure was concentrated in Singapore back in 2004, compared with around 24 per cent as at March this year.

Financial services (24 per cent) and telecommunications, media and technology (21 per cent) remain the largest sectors in Temasek's portfolio. Its exposure to the life sciences and agri-food sector has grown to about 10 per cent currently, compared with 4 per cent in 2017.
It was among the investors that invested around US$250 million (S$340 million) in German biotech firm BioNTech last year, which jointly developed a Covid-19 vaccine with pharma giant Pfizer.
In its financial year ending March 31 last year, Temasek's one-year shareholder return turned negative and its net portfolio value dipped about 2.2 per cent from the year before. This was in part due to the market correction in the early stages of the Covid-19 pandemic, Temasek said then.
Nonetheless, it rebounded in 2021 as the global markets recovered, posting a one-year return of 24.53 per cent.

But Temasek's growth into a major global investor has inevitably come with some failures, with its investments in Thailand's Shin Corp and Australian education and childcare services provider ABC Learning Centres among its blips.

2. Nurturing strong leadership​

In February, when her retirement was announced, Ms Ho said it was a good juncture for the younger leadership to take over and lead the charge over the next decade.
Succession planning and looking for good candidates have always been important to Temasek's senior leadership, both Ms Ho and Temasek chairman Lim Boon Heng said then.
Ms Ho built and nurtured a strong leadership bench in Temasek, with some even moving to senior appointments beyond the company, said Mr Lim.

Recruiting Mr Pillay was a long process, with Ms Ho taking three years to convince him to leave law firm WongPartnership and join the company, she recalled.
"I do remember that it was a hard sell. And it was more than once, so it wasn't like a 'slam dunk'. But then if you want to recruit the best people, it is always a hard sell."
Ms Ho was originally to step down in 2009, with former BHP Billiton CEO Charles "Chip" Goodyear earmarked to take over from her. But Mr Goodyear pulled out just six months after the announcement, citing differences over strategy.

3. Philanthropic efforts​

During Ms Ho's tenure, the Temasek Trust and Temasek Foundation were set up to support public good and social causes.
Among its areas of focus are education, supporting those with special needs, disaster aid and sustainability.
Throughout the Covid-19 pandemic, Temasek has also played an active role in community efforts in Singapore and abroad, with nationwide mask, oximeter and hand sanitiser distribution efforts here.
It has also contributed medical supplies such as testing equipment and ventilators to help in the Covid-19 fight abroad.
In 2019, Temasek launched its social impact hub Temasek Shophouse, through which it seeks to elevate initiatives that contribute to the common good, hosting events and workshops on topics such as sustainability and mental health.

4. Sustainability push​

Ms Ho has been credited with driving Temasek to become a champion of sustainability.
Mr Lim said: "She has set the tone for a discussion about how companies can play a role in leading sustainability, and beyond that, put in place plans for Temasek and its portfolio to deliver."
At the Global Compact Network Singapore summit in 2019, Ms Ho encouraged companies to take steps towards reporting their use of resources and reducing waste.
"Clean air, clear waters, healthy soil and green forests - businesses have a front-line responsibility to protect these natural resources. It is both good governance and a real contribution to a better life for people in their communities," she said.
Sustainability has become a core focus for Temasek, with the company working towards net-zero carbon emissions by 2050. It has also been investing in companies addressing sustainability challenges.
Earlier this year, Temasek and asset manager BlackRock announced a US$600 million fund dedicated to carbon-cutting technologies.

5. Greater transparency​

Temasek also became more transparent under Ms Ho's leadership, and started publishing its detailed annual report despite not being required to do so as an exempt private company.
In 2014, Ms Ho was awarded the Asian Business Leaders Award by think-tank Asia House, "in recognition of her impressive business credentials and her moral leadership and service to society".
She was also lauded for her dedication to the highest standards in corporate governance, transparency and leadership.

 

[SalahParking]

if you factor inflation. Her returns were negative.

 

[laksaboy]

In 2014, Ms Ho was awarded the Asian Business Leaders Award by think-tank Asia House, "in recognition of her impressive business credentials and her moral leadership and service to society".

Globalist vermins and these are the 'founding stakeholders':

HSBC, Prudential, Stanchart

https://asiahouse.org/asia-house-advisory-board/

 

[LITTLEREDDOT]

Got caught holding too much Chinese stocks, and too much Chinese tech stocks?
Why sell? Didn't GIC and Temasek said they were bullish on China and over-weighting China?

Temasek sells off Chinese tech stocks amid crackdown by Beijing​

Temasek said in September that it was holding off on further Chinese tech platform investments.ST PHOTO: KUA CHEE SIONG

Nov 16, 2021

SINGAPORE (BLOOMBERG) - Singapore's investment company Temasek sold shares of US-listed Chinese technology companies from Alibaba Group Holding to Didi Global to online education providers amid regulatory crackdowns.
Temasek cut 16 per cent of its stake in e-commerce giant Alibaba and 11 per cent of its shares in ride-hailing service Didi, according to a 13F filing for the three months ended Sept 30. It exited Chinese search engine operator Baidu, TAL Education Group, New Oriental Education & Technology Group, and job service provider Kanzhun.
This comes as global investors weigh whether China's once-booming Internet market remains investable after the government introduced rules that weakened business prospects.
Temasek, which managed assets worth $381 billion as at March, told Bloomberg in September that it was holding off on further Chinese tech platform investments as it sought more certainty on the fallout from the regulatory tightening.
At the time, chief investment strategist Rohit Sipahimalani said Temasek was "fairly comfortable with the positions we hold". Temasek rebalances its portfolio from time to time in the usual course of business, a company representative said.
Temasek's disclosed holdings fell 4.5 per cent in value in the third quarter to US$28.1 billion (S$38 billion), according to a Bloomberg analysis of the filing. The Standard & Poor's 500 index advanced 8.2 per cent.


It is unclear if some of the transactions represent US-listed shares being exchanged for their Hong Kong-traded equivalents at dual-listed companies like Alibaba - something Temasek has done in the past. Its sovereign peer GIC told Bloomberg last month that it was weighing portfolio changes in response to China's wide-ranging curbs.

 

[borom]

This is the very reason why many countries have maximum term limits for heads of state, heads of government and other notable public office eg maximum two 4-year terms for US President , Indonesian President two 5 years term, France Two consecutive 5-year terms.
I consider this as the single most important constitutional change that will save our country from the situations like above as the new broom will sweep clean .
A lot of these policies are implemented because these people are in power for too long, become arrogant and complacent and will keep on passing new laws to stifle opposition and prolong their stay in power.
But with sheep, you never know .

 

[laksaboy]

I believe Ho Ching has lost plenty of money in China, from Luckin Coffee, Jack Ma's Ant Group to tuition centres etc.

Once again I reiterate: divest away from China, cut your losses and move on. The worst is yet to come.

But I guess you can easily squeeze daft Sinkies with fees, fares and fines, and all that squandered money can be recouped in no time at all.

 

[Patriotmissile]

Besides losing a few new towns since Merill Lynch's days, TH Ho Jinx gave u some masks, test kits and mouth gargle to beg u for forgiveness.

 

[LITTLEREDDOT]

So Temasek bought SIA bonds at 3.375% when it could invest in other airline bonds at 4.375% or higher?

Singapore Airlines raises $808m on cheap from US dollar bond offering​

SIA will issue the notes under its $10 billion multi-currency medium-term note programme. PHOTO: ST FILE

Jan 13, 2021

SINGAPORE (BLOOMBERG, REUTERS) - Singapore Airlines became the first carrier to tap the market for dollars in 2022, raising funds at a discount to peers thanks to its government backing.
The flag carrier sold US$600 million (S$808 million) of seven-year bonds at 3.375 per cent and a price of 99.273, lower than the average yield at issuance of 4.375 per cent for global airline bonds sold in 2021, according to Bloomberg-compiled data.
Hard-hit like many of its peers due to the pandemic, the airline has sought to cover expenses by raising $22.4 billion via a rights offering and by issuing debt. Temasek Holdings is SIA’s largest shareholder.
The Singapore government’s decision last year to allow entry of fully-vaccinated people from two dozen countries had given the city state’s travel sector a lift. But the Government last month froze the sale of tickets for arriving flights under its quarantine-free travel programme for four weeks, citing the risk from the fast-spreading Omicron coronavirus variant.
SIA’s’s newly issued bonds “could offer value given its support from Temasek and ample liquidity, offset by a slower recovery due to the lack of a domestic market,” said Bloomberg Intelligence analyst Sharon Chen.
Though still way below its pre-pandemic level, the number of passengers at Changi Airport rose over the course of 2021. SIA recorded a “meaningful increase in traffic,” though the onset of the Omicron coronavirus variant led to a temporary suspension of quarantine-free travel.
SIA isn’t the only Asian carrier looking to tap funds this week. Korean Air Lines is marketing a Samurai bond, which is guaranteed by the Export-Import Bank of Korea, at 0.45 per cent. It is to be priced on Friday.

This is SIA’s second United States dollar bond offering. A year ago, it raised US$500 million in a five-year issue with a 3 per cent coupon.
The airline was aiming to raise between US$500 million and US$750 million, sources said.
Despite the fall in travel demand, SIA has been spending billions of dollars renewing its fleet to help lower fuel burn and carbon emissions.
Net proceeds from the issue will be used for aircraft purchases, aircraft-related payments and general corporate or working capital purposes, including to refinance existing borrowings, SIA said.
SIA will issue the notes under its $10 billion multi-currency medium-term note programme.
The joint global coordinators for the issuance are Citigroup and DBS Bank. The banks are also joint lead managers along with Standard Chartered Bank Singapore and BNP Paribas.
SIA shares were trading unchanged at $5.02, as of 11.33am on Thursday.

 

[LITTLEREDDOT]

MAS slaps requirement on DBS to set aside additional $930m in capital due to November outage​

DBS suffered its worst digital disruption in a decade from Nov 23 to 25 last year. PHOTO: LIANHE ZAOBAO

Prisca Ang

FEB 8, 2022

SINGAPORE - DBS Bank will have to set aside another $930 million in capital following the widespread outage of its digital banking services last November.
The Monetary Authority of Singapore (MAS) has imposed this additional capital requirement on Singapore's largest bank after it suffered its worst digital disruption in a decade, from Nov 23 to 25.
The central bank on Monday (Feb 7) said DBS will need to apply a multiplier of 1.5 times to its risk-weighted assets for operational risk.
This translates into an additional amount of about $930 million in regulatory capital based on the bank’s financial statements as at Sept 30 – four times higher than the $230 million that DBS had to set aside for a similar disruption of its digital banking services in 2010.
The capital requirement refers to the amount of capital banks have to set aside as a buffer to cover unexpected losses and keep themselves solvent in a crisis.
MAS’ new requirement will not impact DBS’ dividend policy. But it will affect its capital ratios, which are used to measure a bank’s financial strength and ability to withstand risks.
The November disruption, which DBS had attributed to a problem with its access control servers, led to customers being unable to log in to the bank’s Internet banking platform and mobile app.

MAS noted deficiencies in the bank’s management of the incident and recovery procedures to restore its digital banking services to a normal state, resulting in the prolonged disruption.
The regulator said it has directed DBS to appoint an independent expert to conduct a comprehensive review of the incident, including of the bank's recovery actions.
The independent review will also have to assess how a similar incident can be prevented in future, said MAS.
In a statement on Monday, DBS chief executive Piyush Gupta said the bank will continue to review its systems and processes with an independent expert over the next few months.
He noted that customers rightly expect to have seamless and uninterrupted access to online banking services round the clock in a digital era.
“This is something we take very seriously. Since the November incident, DBS has taken a series of actions to improve the resilience of our services and incident response,” he said.

DBS told The Straits Times it has made several improvements to its access control server system since the incident, adding that the key focus has been on improving diagnostics and recovery protocols.
MAS said DBS has to rectify all shortcomings identified from the review and implement measures to ensure any future disruption to its digital banking services is resolved quickly and adequately.
“The additional capital requirement will be reviewed when MAS is satisfied that DBS Bank has addressed the identified shortcomings,” it added.

DBS said the MAS requirement will affect its capital ratios by 0.4 percentage point until remedial actions are completed.
The lender’s common equity tier 1 (CET-1) ratio as at Sept 30 would have been 13.4 per cent, including the capital impact arising from its acquisition of Citi’s Taiwan consumer banking business, which it announced last month.
The CET-1 ratio measures a bank’s core equity capital, compared with its total risk-weighted assets.
DBS said the ratio is at the upper end of its target CET-1 range and will therefore not impact its dividend policy.

Mr Marcus Lim, MAS' assistant managing director for banking and insurance, said the regulator requires financial institutions to have robust controls and processes to ensure that their IT systems are reliable and resilient, and essential financial services can be delivered continuously to customers.
"MAS will take appropriate supervisory action against any financial institution that falls short of our regulatory expectations," he added.

 

[Loofydralb]

The jinx does it again!

 

[LITTLEREDDOT]

And all these years Temasek did not push for the removal of SPH CEO Umbrage Ng Yat Chuan.
Nor did Temasek push for the removal of DBS CEO Piyush Gupta for the bank ATM network failure that cause the MAS to impose a $900m capital charge on the bank.

Temasek said to push for removal of Bayer CEO Baumann​

CEO Werner Baumann is one of the primary architects of Bayer's controversial mega-takeover of Monsanto. PHOTO: BAYER

Mar 28, 2022

FRANKFURT (BLOOMBERG) - Bayer's long-time investor Temasek is pushing for the removal of chief executive Werner Baumann, according to sources familiar with the matter, ratcheting up pressure just as the German crops and drugs giant started reversing a years-long stock slump.
The Singapore state investor has communicated its displeasure about current leadership to the company and supervisory board chairman Norbert Winkeljohann, the sources said. Temasek has longstanding concerns about Bayer's operating performance under Mr Baumann and the company's lack of succession planning, they said.
The big-name investor is considering options ahead of the shareholder meeting next month, including requesting a no-confidence vote in Mr Baumann or voting against ratifying the performance of the management, said the sources. Either step would significantly raise pressure on Bayer's supervisory board to reshuffle leadership.
No final decisions have been made on the course of action and it may not lead to Mr Baumann's ouster, the people said. Temasek declined to comment. Bayer referred to a response it gave to Swiss investor Alatus Capital and declined to comment further.
Temasek is the second shareholder to challenge management ahead of the annual general meeting. Alatus has already objected to ratifying the performance of Mr Baumann and his management team at Bayer's April 29 meeting, pointing to a significant loss in market value during his tenure.
But Temasek's move carries much more weight and this activist-type approach is rare for the firm. Temasek has been a major shareholder since it built a roughly 4 per cent stake in the German company in 2018, helping Bayer complete the controversial US$63 billion (S$85.6 billion) takeover of Monsanto. Investor frustration with leadership could also trigger Bayer, once the darling of Germany's blue-chip Dax Index, to revisit calls to break itself up between agriculture, pharmaceuticals and consumer healthcare units.
Mr Baumann, 59, is one of the primary architects of Bayer's controversial mega-takeover of Monsanto. He spearheaded the deal only weeks after becoming CEO in spring 2016 and has consistently maintained that the transaction made strategic sense.

Yet weeks after the deal closed in mid-2018, Bayer lost the first of several United States trials over whether Monsanto's product Roundup causes cancer, which Bayer denies. That brought on a tidal wave of litigation, which Bayer has struggled to resolve. The company has pledged to spend as much as US$16 billion to finally put the matter behind it.
Bayer's shares are down 39 per cent since the Monsanto deal closed. The stock performed well in recent months, however, buoyed by surging prices for agriculture commodities. The shares are up 29 per cent so far this year, making the timing of Temasek's move surprising for some. The Singapore investment firm, which has not made its views public yet, hopes the share rebound is sustainable but continues to be concerned about the long-term performance, the sources said.

Vote of Confidence​

Alatus, whose letter has been posted on Bayer's website, said the company has failed to lay out and implement a strategy that produces long-term growth for the crop science and pharmaceutical divisions. It also called for allowing shareholders to vote on members of Bayer's management team individually at the meeting, rather than as a whole.
Bayer rejected the latter request, saying it is not legally permissible under the pandemic-era virtual shareholders meeting setup. Temasek is concerned by the German company's rejection of and reasoning for dismissing the Alatus request, the sources said.
In responding to Alatus, Bayer argued that Mr Baumann's team has succeeded in the past year, citing earnings growth and progress in resolving litigation. The shareholder vote in question is whether to absolve Mr Baumann and other managers of responsibility for their actions last year - effectively a vote of confidence on their performance during the 2021 fiscal year.

All three of its divisions grew last year, led by the crops unit. In the letter responding to Alatus, posted on Bayer's website, the company pointed to the looming global food crisis resulting from Russia's invasion of Ukraine. Bayer's supervisory board has "unreserved confidence" in Mr Baumann, his team and their strategy, the company wrote.
Mr Baumann survived the past three annual meetings, including in 2019 when he actually lost a shareholder confidence vote. That vote, however, was largely symbolic and Bayer's supervisory board has continued to back him.
In September 2020, Bayer extended Mr Baumann's contract through April 2024, one year shorter than a normal term. Mr Baumann has said he will step down after that.

 

[laksaboy]

And all these years Temasek did not push for the removal of SPH CEO Umbrage Ng Yat Chuan.
Nor did Temasek push for the removal of DBS CEO Piyush Gupta for the bank ATM network failure that cause the MAS to impose a $900m capital charge on the bank.

Temasek said to push for removal of Bayer CEO Baumann​

CEO Werner Baumann is one of the primary architects of Bayer's controversial mega-takeover of Monsanto. PHOTO: BAYER

Mar 28, 2022

FRANKFURT (BLOOMBERG) - Bayer's long-time investor Temasek is pushing for the removal of chief executive Werner Baumann, according to sources familiar with the matter, ratcheting up pressure just as the German crops and drugs giant started reversing a years-long stock slump.
The Singapore state investor has communicated its displeasure about current leadership to the company and supervisory board chairman Norbert Winkeljohann, the sources said. Temasek has longstanding concerns about Bayer's operating performance under Mr Baumann and the company's lack of succession planning, they said.
The big-name investor is considering options ahead of the shareholder meeting next month, including requesting a no-confidence vote in Mr Baumann or voting against ratifying the performance of the management, said the sources. Either step would significantly raise pressure on Bayer's supervisory board to reshuffle leadership.
No final decisions have been made on the course of action and it may not lead to Mr Baumann's ouster, the people said. Temasek declined to comment. Bayer referred to a response it gave to Swiss investor Alatus Capital and declined to comment further.
Temasek is the second shareholder to challenge management ahead of the annual general meeting. Alatus has already objected to ratifying the performance of Mr Baumann and his management team at Bayer's April 29 meeting, pointing to a significant loss in market value during his tenure.
But Temasek's move carries much more weight and this activist-type approach is rare for the firm. Temasek has been a major shareholder since it built a roughly 4 per cent stake in the German company in 2018, helping Bayer complete the controversial US$63 billion (S$85.6 billion) takeover of Monsanto. Investor frustration with leadership could also trigger Bayer, once the darling of Germany's blue-chip Dax Index, to revisit calls to break itself up between agriculture, pharmaceuticals and consumer healthcare units.
Mr Baumann, 59, is one of the primary architects of Bayer's controversial mega-takeover of Monsanto. He spearheaded the deal only weeks after becoming CEO in spring 2016 and has consistently maintained that the transaction made strategic sense.

Yet weeks after the deal closed in mid-2018, Bayer lost the first of several United States trials over whether Monsanto's product Roundup causes cancer, which Bayer denies. That brought on a tidal wave of litigation, which Bayer has struggled to resolve. The company has pledged to spend as much as US$16 billion to finally put the matter behind it.
Bayer's shares are down 39 per cent since the Monsanto deal closed. The stock performed well in recent months, however, buoyed by surging prices for agriculture commodities. The shares are up 29 per cent so far this year, making the timing of Temasek's move surprising for some. The Singapore investment firm, which has not made its views public yet, hopes the share rebound is sustainable but continues to be concerned about the long-term performance, the sources said.

Vote of Confidence​

Alatus, whose letter has been posted on Bayer's website, said the company has failed to lay out and implement a strategy that produces long-term growth for the crop science and pharmaceutical divisions. It also called for allowing shareholders to vote on members of Bayer's management team individually at the meeting, rather than as a whole.
Bayer rejected the latter request, saying it is not legally permissible under the pandemic-era virtual shareholders meeting setup. Temasek is concerned by the German company's rejection of and reasoning for dismissing the Alatus request, the sources said.
In responding to Alatus, Bayer argued that Mr Baumann's team has succeeded in the past year, citing earnings growth and progress in resolving litigation. The shareholder vote in question is whether to absolve Mr Baumann and other managers of responsibility for their actions last year - effectively a vote of confidence on their performance during the 2021 fiscal year.

All three of its divisions grew last year, led by the crops unit. In the letter responding to Alatus, posted on Bayer's website, the company pointed to the looming global food crisis resulting from Russia's invasion of Ukraine. Bayer's supervisory board has "unreserved confidence" in Mr Baumann, his team and their strategy, the company wrote.
Mr Baumann survived the past three annual meetings, including in 2019 when he actually lost a shareholder confidence vote. That vote, however, was largely symbolic and Bayer's supervisory board has continued to back him.
In September 2020, Bayer extended Mr Baumann's contract through April 2024, one year shorter than a normal term. Mr Baumann has said he will step down after that.

Probably done at the behest of Temasek's sugar daddy BlackRock.

 

[Loofydralb]

Apparently they have second regrets about selling NOL and now trying to make amends by buying PIL over and remaking it into another NOL and hopefully this time successfully.
Also it will allow them some face saving when they market it to the citizens before next GE as the 'new' NOL.