Singaporean worried about Temasek Holdings raising funds via
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Singaporean worried about Temasek Holdings raising funds via placement of public bonds
February 19, 2010
A Singaporean by the name of Lim Kay Soon has written to the Straits Times Forum today expressing his fears about Temasek Holdings’ “upward revision of its private fund-raising scope from US$5 billion (S$7 billion) to US$10 billion”.
“By raising funds via placement of public bonds which Temasek fully and unconditionally guarantees, Temasek is no longer only managing Singapore’s surplus funds. It has, in fact, morphed into a semi-private fund management company,” he wrote.
Set up in 1974 to manage Singapore’s strategic “assets”, an euphemism for state-owned companies, Temasek Holdings has evolved to become a major international fund under the leadership of Ho Ching, the wife of Prime Minister Lee Hsien Loong.
Under her charge, Temasek bought stakes in many international companies such as Thailand’s Shin Corp, Australia’s ABC Learning and U.S’s Merrill Lynch which were all disastrous flops resulting in loss of billions of dollars.
Mr Lim is concerned about Temasek “indirectly leveraging on its triple A status – which comes from Singapore’s surplus funds – to access global private funds.”
“As with all investments, there are two possible outcomes, winning or losing. Should Temasek lose all of Singapore’s surplus funds, that would be sad, but Singapore would be able to painfully bear with it. On the other hand, should Temasek also lose with its borrowed money, it will not only hurt Singapore’s pockets, but may also shake the world’s confidence in Singapore as a top financial centre,” he added.
Mr Lim’s fears have been misplaced. Temasek Holdings is a “commercial entity” or an “Asian investment firm” which is owned solely by the Ministry of Finance. It has nothing to do with Singaporeans or Singapore. Neither does it have to account to anybody for its investments decision.
He ended his letter by asking if Temasek should be allowed to trade with Singapore’s future:
“Singapore’s financial strength and stability is a key pillar of its economy. Should Temasek be allowed to leverage on and trade with the nation’s future?”
Mr Lim should stop wasting time asking questions which will yield any answers from the authorities. He should just accept Finance Minister Tharman’s exhortations and “trust” the system.
After all, whether Temasek makes money or not is really none of Singaporeans’ business since they will never benefit from it in the first place.
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only fools will believe Temasek is NOT private..................public in name only............
good...........raise more money is good.................lose more money lagi good.............hope Temasek will lose every dime.................
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Originally posted by As romanista2001:
only fools will believe Temasek is NOT private..................public in name only............
good...........raise more money is good.................lose more money lagi good.............hope Temasek will lose every dime.................
They lose every dime, means you owe the world money.
America keeps borrowing from China and Japan, and Americans just owe the whole world money. -
US don't owe anyone but the Feds.................China and Japan bought their treasuries from the Feds...........
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Bad enough that they want all of Singaporeans' money.
Now they want other people's money too.
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You know what's the irony?
The coupon rate on the Temasek bond is 4.3%, CPF is only paying 2.5% for interest rates on your CPF funds.
Temasek bond issue a big hit: Reports
Investors snap up $1.5b bond sale, with US orders said to form the bulk; offer closes on Oct 26. -ST
Wed, Oct 21, 2009
The Straits TimesBy Alvin Foo
INVESTORS have reportedly pounced on a $1.5 billion sale of bonds by Temasek Holdings - its first such offering since 2005.
One report said the issue had sold out within hours with orders for US$4 billion (S$5.5 billion) worth of the 10-year bonds from around the globe far exceeding what was on offer.
Temasek offered a coupon of 4.3 per cent - the annual interest rate paid on the bond - which is nearly 1 percentage point better than for US Treasuries.
http://www.asiaone.com/print/Business/News/Story/A1Story20091021-174760.html
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Originally posted by βÎτά:
You know what's the irony?
The coupon rate on the Temasek bond is 4.3%, CPF is only paying 2.5% for interest rates on your CPF funds.
Temasek bond issue a big hit: Reports
Investors snap up $1.5b bond sale, with US orders said to form the bulk; offer closes on Oct 26. -ST
Wed, Oct 21, 2009
The Straits TimesBy Alvin Foo
INVESTORS have reportedly pounced on a $1.5 billion sale of bonds by Temasek Holdings - its first such offering since 2005.
One report said the issue had sold out within hours with orders for US$4 billion (S$5.5 billion) worth of the 10-year bonds from around the globe far exceeding what was on offer.
Temasek offered a coupon of 4.3 per cent - the annual interest rate paid on the bond - which is nearly 1 percentage point better than for US Treasuries.
http://www.asiaone.com/print/Business/News/Story/A1Story20091021-174760.html
One must wonder why a SWF needs to issue bonds to raise additional money.
Money from Sg reserves not enough?
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me also worried.. all of a sudden so many bond issues at a short period
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It show that even if you are a scholar or ex general, that does not mean you are investment expert.
Just observed the adnormal rise of price when the dragon come to power.
And the amount of money that the dragon wife is sprouting is worse than her previous task at the chocolate wafer fab.
Why the bond ? Just read the foreign press, you know the answer.
The reserves is just an empty shell at the moment.
Emperor new cloth.
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Originally posted by charlize:
One must wonder why a SWF needs to issue bonds to raise additional money.
Money from Sg reserves not enough?
They lost quite alot of reserves from the recent crash, the recent bond issue should be targetting funds from other countries, that's why the coupon rate is pegged above US market.
They can probably ask MAS for more funds (they could always run the printers), but that will probably lead to higher inflation.
Perhaps they want to increase their punts.
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Originally posted by βÎτά:
They lost quite alot of reserves from the recent crash, the recent bond issue should be targetting funds from other countries, that's why the coupon rate is pegged above US market.
They can probably ask MAS for more funds (they could always run the printers), but that will probably lead to higher inflation.
Perhaps they want to increase their punts.
When losing lots of money, double down and try your luck.
Talk about a gambling mentality.
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did the scholars read and analyse
1 - herald tribune
2 - financial times
3 - guardian
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Originally posted by charlize:
When losing lots of money, double down and try your luck.
Talk about a gambling mentality.
That's Martingale, you can't keep on losing on every bet right, if you double with every loss, you will eventually win, at least that's the logic behind it. Good thing casinos have table limits.
Originally, martingale referred to a class of betting strategies popular in 18th century France. The simplest of these strategies was designed for a game in which the gambler wins his stake if a coin comes up heads and loses it if the coin comes up tails. The strategy had the gambler double his bet after every loss, so that the first win would recover all previous losses plus win a profit equal to the original stake. Since a gambler with infinite wealth will with probability 1 eventually flip heads, the Martingale betting strategy was seen as a sure thing by those who advocated it. Of course, none of the gamblers in fact possessed infinite wealth, and the exponential growth of the bets would eventually bankrupt those who chose to use the Martingale. It is widely believed that casinos instituted betting limits specifically to stop Martingale players, but in reality the assumptions behind the strategy are unsound. Players using the Martingale system do not have any long-term mathematical advantage over any other betting system or even randomly placed bets.
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Originally posted by quitter / loser roll back:
Singaporean worried about Temasek Holdings raising funds via placement of public bonds
February 19, 2010
After all, whether Temasek makes money or not is really none of Singaporeans’ business since they will never benefit from it in the first place.
If Temsek investment is non of singaporeans' business, why the hell is Temsek using our singapore surplus fund and got more funding from the CPF and other government authorities?
9 Failed ventures out of 10 Ventures?????
Any company failing 9 ventures out of 10 should be made bankrupt and liquidated by now............Temsek is like a walking bubble and a new brother of AIG.....
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doubt so.
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Originally posted by Ionlytalknoaction:
If Temsek investment is non of singaporeans' business, why the hell is Temsek using our singapore surplus fund and got more funding from the CPF and other government authorities?
9 Failed ventures out of 10 Ventures?????
Any company failing 9 ventures out of 10 should be made bankrupt and liquidated by now............Temsek is like a walking bubble and a new brother of AIG.....
temasek holding is under our "beloved" gahmenerp you see they happy happy go up can we do anything
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Originally posted by Clivebenss:
doubt so.
As long as temsek keep failing the ventures and our government keep printing money for temsek,
temsek will become the next brother along with AIG.....
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The events unfolding at Temasek is due to the fact that even the PAP believe that ’Money No Enough’
Now that there is a counselling service for those known to be addicted to gambling - it is suggested that the "dragon and the horse" should both seek counselling before attempting to fool around with Singapore's Money.
It is stooooopid for MM LKY to create the two key safeguard on Singapore's National Reserves - with one held by Parliament and the other by the Elected President - when the annual surplus is diverted from the Finance Ministry to the GIC and Temasek.
With a PAP selected and approved candidates dominating Parliament and unable to vote according to each personal conscience, and the Elected Presdiency being a PAP "annointed and appointed" person - it does not take too much imagination to see the inability of both holders of the Keys being dumb and deaf to the situation.
It is recommended that the following be viewed - ’Singapore Temasek Holdings handle Employee Bonus Plans’ - so as to understand how Singaporeans can be expected to be treated by this PAP government.
Otherwise review the following from ‘from Singapore Election 2006’ so as to prepare ourselves for ’Singapore General Election 2010’
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Seriously, what's wrong with our current gov? They really need someone to shout into their head to wake up their idea...
It's like dumb and dumber....
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May be they earn "private f**s" from those large investments. Win, lose or suck not their problem.
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also not much of our problem mah, just hv a good lunch, go shopping, go movie with bf, chop bf, later go disco...who care so much. They win, lose or suck also got nothing give you.
Singaporeans are like this, especially Uncles, talk talk until many kind of imagination come out of them...real illusionist.
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It definately wrong for sovereign fund to source financing from the market. It like saying, Singapore government that buy up and lending American governments billions of our CPF monies and now are going to the market and 'borrowing more money from its citizen and invest in high risk American stocks!!!!!!!!!!!!!!!!!!!!!!!!!!
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They won't care, it's not their money anyway and still draw their high salaries.
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they also dun care what you said here...so save your breath/ have fun and paid you own beer
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Originally posted by Clivebenss:
They won't care, it's not their money anyway and still draw their high salaries.
Seems self serving top the list