Prime Minister and Finance Minister Lawrence Wong stated on Sep. 23 that Temasek has become “an institution synonymous with Singapore’s success.” Speaking at Temasek’s 50th anniversary dinner, he highlighted that the company’s evolution over the past 50 years mirrors Singapore’s journey. PM Wong praised Temasek’s achievements and contributions, including its community initiatives during the peak of Covid-19. He also noted that Singapore must navigate a new global environment where economic activities are increasingly viewed through a security lens, advocating for the country to remain open and continue pushing for free flows of trade and investments.
Background
Temasek was established in 1974 to manage government enterprises on commercial principles. At that time, Singapore was in the early stages of industrialisation, and the government had provided loans or co-invested in companies to attract investors and create jobs. Founding leaders, such as the first Minister for Finance Goh Keng Swee, believed that government-owned companies could become inefficient and wasteful without commercial and market discipline. Thus, Temasek was formed to operate these companies on an “arms-length basis” from the government, ensuring no reliance on favours or special treatment. The company has been guided by principles aimed at creating a better future for the next generation.
Temasek’s achievements and how firm stepped up during Covid-19
PM Wong highlighted Temasek’s role in contributing to Singapore’s economic success. Initially responsible for 35 companies taken over from the government, Temasek has grown its portfolio by investing beyond Singapore and learning from its initial overseas investments. This growth has made Singapore’s economy more vibrant and provided well-paying jobs for many Singaporeans. PM Wong thanked Temasek, its founders, and staff for their efforts during the Covid-19 pandemic, including maintaining vital supply chains, conducting swab tests, and distributing masks and sanitisers. “We won the fight against Covid because our country rallied together, and in no small part, because Temasek and its portfolio companies stepped up in our darkest hours of need,” he said. He added that Temasek believes in “doing well, but also doing right and doing good.”
Economic activities are viewed through a security lens, Singapore has to stay open
Despite past successes, PM Wong emphasised that Singapore and Temasek cannot “rest on its laurels” given the new global environment. He pointed out that tensions between China and the United States are causing economic activities to be viewed through a security lens. Restrictions in fields like Artificial Intelligence and semiconductors have led to security concerns involving electric cars and solar panels. As countries aim to avoid shortages in critical components, more protectionism and state interventions are observed globally. To navigate these challenges, PM Wong stressed the importance of Singapore staying open and continuing to push for free flows of trade and investments. He referred to the finance term “alpha,” describing Singapore’s “greatest alpha” as its reputation for trust, integrity, and reliability. These attributes, he said, are a unique competitive advantage that attracts investments and partnerships, driving long-term growth. “These are the attributes for which Temasek is well-known for, and which will ensure Temasek remains a valued and trusted long-term partner,” he concluded.
Future implications and ongoing challenges
Looking ahead, PM Wong acknowledged that the global landscape is fraught with uncertainties, but he expressed confidence in Temasek’s ability to adapt and thrive. He noted that the company’s forward-looking mindset and commitment to innovation would be crucial in navigating future challenges. Additionally, he highlighted the importance of Temasek’s role in fostering sustainable development and addressing global issues such as climate change. As Singapore continues to evolve, Temasek’s adaptability and resilience will be key to maintaining its position as a leading investment company and a pillar of Singapore’s economic success.
