Singapore's Temasek Plans Pay Cut, Anticipates Global Recession
By Chen Shiyin
Nov. 21 (Bloomberg) -- Temasek Holdings Pte, Singapore's state-owned investment company which manages a $130 billion portfolio, said it will institute a firm-wide pay cut, anticipating a global recession that may last beyond 2009.
The company's senior management has ``volunteered'' a 15 percent to 25 percent pay cut, it said in an e-mailed response to a Bloomberg News query. The key managers will provide almost 90 percent of the savings from the companywide cut, it added.
``As a long term investor, we believe this current crisis will throw up tremendous opportunities,'' Robert Chong, Temasek's managing director of human resources, said in the e-mail. ``Yet, we also recognize the short term challenges and will adjust our actions appropriately.''
Temasek, led by Chief Executive Officer Ho Ching, is seeking to cut costs amid a slump in financial markets that has wiped out more than $33 trillion in global stocks this year, hurting the value of its investments. It has bought stakes in Merrill Lynch & Co. and Barclays Plc after the credit crisis led to about $966 billion of writedowns and credit losses and more than 170,000 financial job losses worldwide.
``We anticipate a global recession in 2009 and possibly beyond,'' Chong said.
The company, which is wholly owned by the Singapore Finance Ministry, also aims to expand its workforce by 15 percent in the next two years, he added. That's part of a longer-term plan to have about 500 employees, he said.
Administrative expenses rose 6.4 percent to S$8.6 million in the year ended March, making up 10 percent of revenue. Profit doubled for the year to S$18.2 billion ($12 billion) as sales of energy and Chinese banking assets countered slowing returns from stock market investments, Temasek said in its annual report released on Aug. 26.
Its shareholder return by market value grew 7 percent in the 12 months to March 31, slower than the 27 percent expansion in the previous period, the annual report showed. It paid an annual dividend of 7 percent, matching previous payouts.
By Chen Shiyin
Nov. 21 (Bloomberg) -- Temasek Holdings Pte, Singapore's state-owned investment company which manages a $130 billion portfolio, said it will institute a firm-wide pay cut, anticipating a global recession that may last beyond 2009.
The company's senior management has ``volunteered'' a 15 percent to 25 percent pay cut, it said in an e-mailed response to a Bloomberg News query. The key managers will provide almost 90 percent of the savings from the companywide cut, it added.
``As a long term investor, we believe this current crisis will throw up tremendous opportunities,'' Robert Chong, Temasek's managing director of human resources, said in the e-mail. ``Yet, we also recognize the short term challenges and will adjust our actions appropriately.''
Temasek, led by Chief Executive Officer Ho Ching, is seeking to cut costs amid a slump in financial markets that has wiped out more than $33 trillion in global stocks this year, hurting the value of its investments. It has bought stakes in Merrill Lynch & Co. and Barclays Plc after the credit crisis led to about $966 billion of writedowns and credit losses and more than 170,000 financial job losses worldwide.
``We anticipate a global recession in 2009 and possibly beyond,'' Chong said.
The company, which is wholly owned by the Singapore Finance Ministry, also aims to expand its workforce by 15 percent in the next two years, he added. That's part of a longer-term plan to have about 500 employees, he said.
Administrative expenses rose 6.4 percent to S$8.6 million in the year ended March, making up 10 percent of revenue. Profit doubled for the year to S$18.2 billion ($12 billion) as sales of energy and Chinese banking assets countered slowing returns from stock market investments, Temasek said in its annual report released on Aug. 26.
Its shareholder return by market value grew 7 percent in the 12 months to March 31, slower than the 27 percent expansion in the previous period, the annual report showed. It paid an annual dividend of 7 percent, matching previous payouts.
