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Jul 16, 2010
GOVT'S NEXT CHALLENGE
Find ways to let S'poreans reap Temasek's excess gains
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I AM certain that Singaporeans want Temasek's investment performance to outperform all long-term benchmarks adopted by its management and the Government ('Temasek's assets hit record $186b'; last Friday).
However, there is the question as to how Temasek uses any excess returns. Currently, it reinvests these returns back into its investment portfolio. Hence, through Temasek's growing domestic portfolio, some of these funds find their way back into the Singapore economy. Temasek's role in fostering aspects of the domestic corporate sector is well known.
Having been constructed over many years, Temasek's investment portfolio is now mature, that is, it is self-sustaining. Therefore, the portfolio is now satisfactorily able to absorb payouts to its ultimate beneficiaries: Singaporeans.
The Government should explore alternative mechanisms to share Temasek's investment successes with the population at large.
One recommendation is to distribute a small percentage of excess returns directly to Singaporeans.
=> Why small %? Why should Sporns deserve peanuts from THEIR OWN MONEY?
For example, the
Government could consider reinvesting 80 per cent of excess investment returns into Temasek's portfolio, while the remaining 20 per cent is paid out to citizens in the form of annual 'Temasek Bonus Shares'.
A high watermark may be implemented to ensure that payouts are sensible and do not eat into Temasek's long-term portfolio.
Temasek is a fiduciary tasked with generating investment returns on behalf of Singapore and Singaporeans.
=> Expect Whore Jinx to reply that his only shareholder is MOF and not Sporns and MOF to scratch his back and say that it leaves everything to him. Short on overthrowing the wicked and corrupt Leegime in the cumming GE, Sporns will continue to be slaves to one Familee of Sell Country Thieves!
Thus, any excess returns over its rolling five-year benchmarks should accrue to the Singaporean population. As with any prudent portfolio, much of the returns should be ploughed back into the investment account while a limited portion may be used for current consumption.
Sovereign wealth funds like Temasek clearly have a role in managing a nation's wealth. However, in the economic context of modern Singapore, transforming their role into delivering additional concrete benefits for Singaporeans is the Government's next challenge.
Imran Ahmed
GOVT'S NEXT CHALLENGE
Find ways to let S'poreans reap Temasek's excess gains
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
I AM certain that Singaporeans want Temasek's investment performance to outperform all long-term benchmarks adopted by its management and the Government ('Temasek's assets hit record $186b'; last Friday).
However, there is the question as to how Temasek uses any excess returns. Currently, it reinvests these returns back into its investment portfolio. Hence, through Temasek's growing domestic portfolio, some of these funds find their way back into the Singapore economy. Temasek's role in fostering aspects of the domestic corporate sector is well known.
Having been constructed over many years, Temasek's investment portfolio is now mature, that is, it is self-sustaining. Therefore, the portfolio is now satisfactorily able to absorb payouts to its ultimate beneficiaries: Singaporeans.
The Government should explore alternative mechanisms to share Temasek's investment successes with the population at large.
One recommendation is to distribute a small percentage of excess returns directly to Singaporeans.
=> Why small %? Why should Sporns deserve peanuts from THEIR OWN MONEY?
For example, the
Government could consider reinvesting 80 per cent of excess investment returns into Temasek's portfolio, while the remaining 20 per cent is paid out to citizens in the form of annual 'Temasek Bonus Shares'.
A high watermark may be implemented to ensure that payouts are sensible and do not eat into Temasek's long-term portfolio.
Temasek is a fiduciary tasked with generating investment returns on behalf of Singapore and Singaporeans.
=> Expect Whore Jinx to reply that his only shareholder is MOF and not Sporns and MOF to scratch his back and say that it leaves everything to him. Short on overthrowing the wicked and corrupt Leegime in the cumming GE, Sporns will continue to be slaves to one Familee of Sell Country Thieves!
Thus, any excess returns over its rolling five-year benchmarks should accrue to the Singaporean population. As with any prudent portfolio, much of the returns should be ploughed back into the investment account while a limited portion may be used for current consumption.
Sovereign wealth funds like Temasek clearly have a role in managing a nation's wealth. However, in the economic context of modern Singapore, transforming their role into delivering additional concrete benefits for Singaporeans is the Government's next challenge.
Imran Ahmed
