<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>May 27, 2009
parliament
</TR><!-- headline one : start --><TR>Temasek can help local firms expand
</TR><!-- headline one : end --><TR>Two MPs moot idea in urging review of investment agency's role </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Sue-Ann Chia
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Temasek is an investment holding firm that owns and manages a diversified portfolio with the aim of delivering long-term returns to the Government, says the Finance Ministry website. -- PHOTO: BLOOMBERG
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TEMASEK Holdings can make a greater difference to Singapore by helping homegrown enterprises expand regionally and globally, said two MPs in Parliament yesterday.
Such a move will lead to a stronger Singapore economy, they argued. The suggestion from Mr Liang Eng Hwa (Holland-Bukit Timah GRC) and Nominated MP Loo Choon Yong was made when they urged the Government to review the role of Temasek.
The Ministry of Finance website describes Temasek as an investment holding company that owns and manages a diversified portfolio with the objective of delivering long-term returns to its shareholder, the Singapore Government.
Mr Liang said Temasek could fill the void left by the then Development Bank of Singapore, now DBS Bank, which helped promising firms expand during the country's early years of industrialisation.
Today, government agencies such as the Economic Development Board (EDB), Spring and A*Star have stepped in, but he feels their roles are 'less direct' and their assistance 'limited'.
'Temasek can play this role of nurturing more regional and global champions and, in doing so, root them in Singapore,' said Mr Liang, a DBS managing director. 'While this is admittedly a change from Temasek's current stated role of an investment house with purely commercial objectives, I believe the organisation can make a greater difference by producing more respected and admired companies in the region based in Singapore.'
Dr Loo mooted the idea of having two Temaseks, each with its own board and management team. They will execute separately the different objectives of investments and growing local enterprises.
Their ideas were among many given yesterday when 15 MPs and one minister addressed the House on Day 2 of the debate on the President's Address. Last Monday, President SR Nathan mapped out the Government's priorities for the remaining legislative term, after the House went into recess last month to take stock of events following the global economic crisis. He also called for fresh and creative ideas to grow the economy.
In their responses yesterday, several MPs focused largely on the fundamental strength of Singapore's growth model, in which multinational companies (MNCs), free trade and global markets are pivotal. But they agreed that changes can further strengthen the economy.
Said Dr Teo Ho Pin (Bukit Panjang): 'Our challenge is to find niche export products with few competitors.' This is because many countries including Singapore are aware they cannot rely on manufacturing anymore as cheaper business costs elsewhere will draw away investments and reduce their revenue.
Mr Teo Ser Luck, Senior Parliamentary Secretary (Community Development, Youth and Sports, and Transport), wanted Singapore to 'spread our risks' by finding new sources of revenue.
To anchor more MNCs here, Mr Liang suggested a 'pick and choose' strategy when attracting them here, rather than an 'all are welcome' approach. The MNCs should also be encouraged to partner or form joint ventures with home-
grown companies, he added, to help local firms seek opportunities overseas.
Both Mr Liang and Dr Loo also made a strong case for helping local businesses succeed. 'MNCs come and go, according to their own interests, not Singapore's interests,' said Dr Loo, who is executive chairman of listed Raffles Medical Group.
In contrast, successful local companies such as Venture Manufacturing, Creative Technologies and Banyan Tree continue to have a stake in Singapore, he added.
Dr Loo made these points when he disagreed with the recent remarks of a former EDB chairman who said Singapore does not need local entrepreneurs, as MNCs drive economic growth.
He also praised government-linked companies (GLCs) like CapitaLand, which has supported smaller firms in venturing overseas where it has a presence. BreadTalk and Osim have set up shop in CapitaLand's shopping malls in China. He suggested that GLCs be given incentives to follow suit. [email protected]
parliament
</TR><!-- headline one : start --><TR>Temasek can help local firms expand
</TR><!-- headline one : end --><TR>Two MPs moot idea in urging review of investment agency's role </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Sue-Ann Chia
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Temasek is an investment holding firm that owns and manages a diversified portfolio with the aim of delivering long-term returns to the Government, says the Finance Ministry website. -- PHOTO: BLOOMBERG
</TD></TR></TBODY></TABLE>
<TABLE><TBODY><TR><TD>
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TEMASEK Holdings can make a greater difference to Singapore by helping homegrown enterprises expand regionally and globally, said two MPs in Parliament yesterday.
Such a move will lead to a stronger Singapore economy, they argued. The suggestion from Mr Liang Eng Hwa (Holland-Bukit Timah GRC) and Nominated MP Loo Choon Yong was made when they urged the Government to review the role of Temasek.
The Ministry of Finance website describes Temasek as an investment holding company that owns and manages a diversified portfolio with the objective of delivering long-term returns to its shareholder, the Singapore Government.
Mr Liang said Temasek could fill the void left by the then Development Bank of Singapore, now DBS Bank, which helped promising firms expand during the country's early years of industrialisation.
Today, government agencies such as the Economic Development Board (EDB), Spring and A*Star have stepped in, but he feels their roles are 'less direct' and their assistance 'limited'.
'Temasek can play this role of nurturing more regional and global champions and, in doing so, root them in Singapore,' said Mr Liang, a DBS managing director. 'While this is admittedly a change from Temasek's current stated role of an investment house with purely commercial objectives, I believe the organisation can make a greater difference by producing more respected and admired companies in the region based in Singapore.'
Dr Loo mooted the idea of having two Temaseks, each with its own board and management team. They will execute separately the different objectives of investments and growing local enterprises.
Their ideas were among many given yesterday when 15 MPs and one minister addressed the House on Day 2 of the debate on the President's Address. Last Monday, President SR Nathan mapped out the Government's priorities for the remaining legislative term, after the House went into recess last month to take stock of events following the global economic crisis. He also called for fresh and creative ideas to grow the economy.
In their responses yesterday, several MPs focused largely on the fundamental strength of Singapore's growth model, in which multinational companies (MNCs), free trade and global markets are pivotal. But they agreed that changes can further strengthen the economy.
Said Dr Teo Ho Pin (Bukit Panjang): 'Our challenge is to find niche export products with few competitors.' This is because many countries including Singapore are aware they cannot rely on manufacturing anymore as cheaper business costs elsewhere will draw away investments and reduce their revenue.
Mr Teo Ser Luck, Senior Parliamentary Secretary (Community Development, Youth and Sports, and Transport), wanted Singapore to 'spread our risks' by finding new sources of revenue.
To anchor more MNCs here, Mr Liang suggested a 'pick and choose' strategy when attracting them here, rather than an 'all are welcome' approach. The MNCs should also be encouraged to partner or form joint ventures with home-
grown companies, he added, to help local firms seek opportunities overseas.
Both Mr Liang and Dr Loo also made a strong case for helping local businesses succeed. 'MNCs come and go, according to their own interests, not Singapore's interests,' said Dr Loo, who is executive chairman of listed Raffles Medical Group.
In contrast, successful local companies such as Venture Manufacturing, Creative Technologies and Banyan Tree continue to have a stake in Singapore, he added.
Dr Loo made these points when he disagreed with the recent remarks of a former EDB chairman who said Singapore does not need local entrepreneurs, as MNCs drive economic growth.
He also praised government-linked companies (GLCs) like CapitaLand, which has supported smaller firms in venturing overseas where it has a presence. BreadTalk and Osim have set up shop in CapitaLand's shopping malls in China. He suggested that GLCs be given incentives to follow suit. [email protected]
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