ST: Find ways to let S'poreans reap Temasek's excess gains

[Dinkley]

Find ways to let S'poreans reap Temasek's excess gains

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. 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. 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

http://www.straitstimes.com/STForum/Story/STIStory_554147.html

 

[halsey02]

They will share the losses with us... that is sure! hah hah hah

 

[Dinkley]

They will share the losses with us... that is sure! hah hah hah

Losses we pay.

Gains they pocket.

 

[ahleebabasingaporethief]

Coming soon to your pockets real soon.

Erections cumming. This time S'poreans already have a mental figure of at least $2,000 per person. If not, sure vote against
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[halsey02]

Losses we pay.

Gains they pocket.

You got it.....not pocket...that, they will scream you are are saying that they are corrupted...

They will ask for an a huge increase of renumeration, for they have helped increased the growth..."uptuturn the downturn"..wheras we less mortal will only a morsel of what they will ge, we get the 'downturn the upturn'....please don't get that out of tune, tone deaf 'chemical ali' of SINgapore to sing :p

 

[leetahbar]

before we come to that demand, ask yourself whether do u share ur wealth with more needie or poorer strangers first.

if we can't do that ourselves, why are we expecting TAMASICK to behave otherwise? in real sense, they probably are making a loss overall but boasting this to distract suspicion.

 

[BusNo64]

before we come to that demand, ask yourself whether do u share ur wealth with more needie or poorer strangers first.

before u ask this question ask urself first, why u remain a jobless bum taking pocket money from ur elderly parents and expect ppl to give blanja u all the time? why donch u go get a job and feed urself and stop treating ur poor elderly parents like ATM? :oIo::oIo::oIo::oIo::oIo: