Temasek’s spin doctors at Straits Times tries to salvage battered public image
August 11th, 2009 | 
Author: From our Correspondent
The spin doctors at state-controlled Straits Times are having a busy time of late trying desperately hard to salvage the battered reputation of Temasek Holdings and that of its beleaguered CEO Ho Ching.
For the second time in less than a week, Temasek’s chief apologist Gabriel Chen wrote another half-baked article to exonerate Temasek from its earlier distastrous investments by making grandiose pronouncements about its “recovery”.
His latest claim:
“Temasek invested more than US$500 million in the rights issues and has seen the shares rise by around 293 per cent during an eight-month period.” (read full article here)
This will translate to a gain of $146.5 million dollars. What Gabriel failed to mention is that these are unrealized gains as Temasek is still holding on to the shares.
In contrast, the losses incurred by Temasek over the sale of BOA and Barclays shares are already crystallized which means that sum of money is already gone.
Temasek is said to have sold its stake in Barclays in December and January at an estimated loss of between £500 million ($1.2 billion) and £600 million. It paid £975 million to buy the shares at 720 pence apiece in July 2007.
Temasek also took a hit of between US$2.3 billion and US$4.6 billion from its BoA divestment, which was done in several tranches in the first quarter of this year when BoA shares ranged between US$2.53 and US$14.81.
Assuming Temasek lost a total of US$3.5 billion dollars (taking the lower limits of $1.2 billion for Barclays and $2.3 billion for BOA), the unrealized gain of $146.5 million dollars represent only 2.9% of the amount lost which is “peanuts” by comparison.
Gabriel Chen should be asking some serious questions on behalf of Singaporeans instead of seeking to sweep the mistakes made by the Temasek Board under the carpet:
1. Who is responsible for the decision to buy BOA and Barclays at such a high price before dumping them at a low?
2. How much exactly did Temasek lose from these two investments?
3. Why is Temasek still keeping Ho Ching and the senior management?
4. What are the real reasons for Chip Goodyear’s departure?
5. How much was Chip Goodyear paid for his short stint at Temasek and was there any severance fee?
Had this happened in Japan, South Korea, Hong Kong, Taiwan, Thailand or even communist China, the entire Board will not only have to step down, but will be forced to apologize to the people in public as well.
It is unfathomable that the Straits Times still believe it can hoodwink and mislead Singaporeans at this juncture where the massive losses of Temasek have been made known in the world unless its journalists have difficulties comprehending the difference between “million” and “billion”.
Whatever small “gains” made by Temasek now and in the future is not going to change the fact that billions of dollars had been lost and will probably not be recouped in the near future. The 293 per cent surge in the value of shares bought by Temasek is of little consequence to the common man in the street.
Singaporeans have been told time and again that we need to pay astronomical salaries to recruit the most talented people to govern the country. On this basis, we trust the government that the best team has been put in charge of Temasek.
If the government expect their salaries to be pegged to the private sector, then they should show us the same degree of accountability and transparency which is practised there.
Temasek has always regarded itself as an Asian “investment” firm and not a sovereign wealth fund linked to the government. What will happen if a public-listed company were to lose so much money? How is it going to answer to its shareholders?
Whether Temasek manage to recoup its losses is immaterial. They have to answer to the people of Singapore for every single cent of Temasek funds come from the taxpayers in one way or another.
The only honorable thing left for Ho Ching and her team to do right now is to resign from Temasek and apologize to Singaporeans. Mistakes have been made. Somebody has to assume responsiblity for them. It is time for a change. Temasek will do better with a new CEO in charge.
Related articles:
>> Temasek’s big blunder as BOA and Barclays rebound
>> Temasek Outperforms? by Edmund Khor
>> More accountability for Singapore’s SWFs by Fang Zhi Yuan
EDITORS’ NOTE:
If you like our work and would like to support us, please transfer your donations via paypal to our account (temasekreview@gmail.com). Any amount will be greatly appreciated! Alternatively, you can also help boost our advertising revenue by clicking on the ads displayed. Thank you!
Posted in Headlines
28 Responses to “Temasek’s spin doctors at Straits Times tries to salvage battered public image”
Loading ...
Alex Tan Allan Ooi AWARE Chee Soon Juan Chiam See Tong Claire Lee David Widjaja DBS Dr Allan Ooi Dr Silviu Ionescu Dr Vivian Balakrishnan Foyce Le Xuan highnote5 Hong Lim Park Jack Lin Xinli Jack Neo Jack Neo affair Jack Neo scandal Josie Lau Josie Lau Meng Lee Lee Kuan Yew Lehman brothers Lighthouse Evangelism MAS minibonds Miss Singapore World NTU stabbing PAP Pastor Rony Tan Ris Low Romanian diplomat in hit-and-run Rony Tan S-League silviu ionescu Singapore Singapore 2010 Youth Olympic Games Tan Kin Lian Thio Su Mien Tiger Woods affair Tong Kok Wai Top 8 Vivian Balakrishnan Wendy Chong Y O G Youth Olympic Games
WP Cumulus Flash tag cloud by Roy Tanck and Luke Morton requires Flash Player 9 or better.
1. First of all, the gains are mainly from their own TLCs, so from an investment angle, they lost big time on their non-TLC investments. So, not worth their salt!
2. Secondly, the sale of BofA/Barlcays shares and the rights subscription are not mutually exclusive, ie they do not need to raise funds from the sale to subscribe to the rights, unless they are so cash-strapped. Or are they?
1. What’s the difference or rather the similarity between a “A CONman and a LOST-CAUSE man”?
Ans. Both Are CONS and pursuing Lost Causes!!! FOOLS in short!!!
2. What’s the difference or rather the similiarity between “A INsane man and and a Sane man who who TELL INSANE Stollies?
Ans. Both Are INSANE and so SICK IN MIND, HEART, MIND AND SOUL!
NOTE: I doubt that reading about these things will help to MAKE Gabriel Chen to realise that STATUS AND MONEY ALONE DOES NOT MAKE A MAN A MAN!!!
3. What’s the differenc AND rather the similiarity between A COW and her CALF?
Ans. 1. Both Are COWS.
2. The COW MOOOOoooS COARSER HOARSER, LOUDER LONGER, MORE OFTEN AND ANGRIER and MORE IGNORANT WITH EACH ADDITIONAL MOOOooo TO GET THE ATTENTION OF HER CALF.
3. The INNOCENT YOUNG YOUTHFUL AND ENERGETIC CALF mooos SOFTLY SWEET AND CUDDLY BUT ROAMS AND ROMPS IN SPROUTS OF SPRINTING TAKING IN THE FRESHNESS OF THE MEADOWS AND AIR ARROUND ENJOYING LIFE TO BE HAD.
4. THE OLD AND AGEING COW BECOMES INCREASINGLY IMPATIENT AND ANOYYED WITH HER SPRITLY YOUNG CALF AS she cannot keep up with it anymore. And so GETS INcreasingly DOMINANT to try and CONTROL IT and to THE DEMISE of her CALF”S growing excercise needs.
“Wisdom COMES and wsidom goes”!!!
When rights shares like DBS Group, Capital Land etc etc are offered at very steep discount to the then prevailing market prices, it is DISCOUNTED PERFORMANCE when even compared to the ex-entitlement right price. So comparing the rights price at which addtional shares as against the current market price is like comparing a bus ride on public transport and driven around in a luxury stretched limousine. It is grossly misleading and most of its finance non-savvy readers outside don’t know or understand this “high finance” distortion of reported “news”.
Dr. Tony Tan passionately urged and wants SPH and its journalists to publish “quality” and “credible” news. Did Gabriel Chen’s article meets SPH’s internal quality control vetting publicly asked of by its Chairman??
Anyone got a better perspective than offered in this wayang party com write-up?
I do not believe a word of the half-truths and pseudo-analysis of whatever they publich anymore. But credulity gets stretched so much so that you find the desperate justifications by `journalist’ both pathetic and laughable. Are we kids to be distracted from the truth?
did the president use his second key to approve using these monies ? or he’s actually not holding any key or holding an “imaginary” key ?
The power behind the move to reinstate HC must understand the implications and repercussions for the future of Singapore. Instead of singing praises about Temasek by using the press to deceive the public (this is good for the present), the power must think of the future of Singapore if they claim that they care so much for Singapore.
I remember in the 60s or 70s, there was a Minister who messed up by introducing Fringe Carpark system. He had to step down. I had high praise and regard for the impartiality of the government then.
But no more now. By allowing HC to remain at temasek, the power is setting a precedent for the next PM and Ministers and their cronies that if any of their favourites failed in their job they can remain in that job. This will set the framework for the decline of Singapore. We have seen this happen in other countries in SE Asia. The present government must remain strict and tough towards its own chosen people i.e PAP members and cronies and set high standards (which our leader claims but has clearly failed) in order to win our hearts, not by publishing self praising newspaper articles. The more they publish the more they backfire.
For those of you idiot arm chair bloggers, kiasu, and all your life just complain, my advice to you shut up. Temasek already one of the best investors out there, you jokers keep saying the lost money this and that. what about the gains the made selling BII, INdosat,Bank of China, China Construction Bank, etc. Which investor do not lose money, only idiots keep complaining. Even the great warren buffet lose money. So shut up unless you want singapore entire proceeds just to buy US Treasury bonds paying 0% in long run
Writer said: Temasek’s chief apologist Gabriel Chen wrote another half-baked article to exonerate Temasek from its earlier distastrous investments by making grandiose pronouncements about its “recovery”.
chief apologist Gabriel Chen? ROTFL
Is that a new million dollar appointment at TH? You have got a very good sense of humour there, even I also kudos to you.
I would have thought of at best, Chief Wayanist, Chieft Scapegoat. Tsk Tsk
So now Temasek has a new Director of Apology?
Dr. Tony Tan actually did his papers a disservice.
He implied that ST and the likes are not good or up to standard.
He should be commended for that.
Looking at the standard of reporting and the choice of material, I wonder why it took him so long to make that comment.
Who else buy ST besides residents in Singapore?
I bet you, the PRC in S’pore don’t even buy ST.
Dr. Tony Tan is betting wrong when he hopes that immigration will drive readership of his papers.
Damn wrong.
http://www.youtube.com/watch?v=znOocYPqpEM&feature=related
The country may be different…but the spin is the same.
Looking at recent performance, TH does not look good at all of their much boastful “achievements”. If you want to brag, by all means do so, but SHOW ME THE MONEY in good times and bad BECAUSE IT IS PUBLIC MONEY, not private money. If it is private money, you can boast in MSM or the whole world and lose as much as you like, it is NOT RELEVANT to all other Singaporeans.
When public money is involved, it is ACCOUNTABILITY OF PERFORMANCE because investment is definitely risk and return outcome and comcomitant performance measure. Without accountability, maybe indifference or adverse performance will result or has already resulted. The better alternative in those circumstances is to distribute all back to the rightful stakeholders – namely all Singaporeans – and let them “gamble” as they wish.
Right now, there is no accounting published information to show over the years how much funds were gains and losses were from investment made and how much of the current portfolio is cash pumped in by the Ministry of Finance over the decades. A lot of money could have been lost and concealed by new cash inflow into those managed funds. To resolve controversy over performance and accountability issues, I would welcome a cash handout to all Singapore. I want to invest my share of those proceeds on my business opportunities not let someone who perhaps is less capable than my own achievement record – GOOD OR BAD IS NOBODY ELSE BUSINESS BUT MY OWN.
At least a promise to distribute this money back to Singaporeans will forced a lot of passengers of convenience (PRs) to decide to change citizenship and commit to this nation using us as a stepping stone for somewhere else.
[...] GIC, Temasek State Fund Investments – Temasek Review: Temasek spin doctors at Straits Times tries to salvage battered public image [...]
Thank you for your nice remider! So…
QUOTE
I remember in the 60s or 70s, there was a Minister who messed up by introducing Fringe Carpark system. He had to step down. I had high praise and regard for the impartiality of the government then.
UNQUOTE
Minister was Minister of the Transport & Communications Minitry, Mr. Yong Nyuk Lin, and even a close relative of lky I heard. Not sure if he is still around but the last time I heard was that he had passed.
The “Fringe Carpark System” used those “BusPlus” green buses to ferry drivers from the nearest carparks to their offices.
Many years laters these buses are now being used to ferry hospital patients and vistors from MRT stations. So more than apparently, it turns in reality to have a sort of “Fringe-Benefit”. BUT for NON-Car owners”! Sure is a Quirky-World ain’t it?! Eventhough it’s a “PlusBus Fringe Benefit”! Important IS THAT Good came out of it for the benefit of the larger working population who mostly can’t afford cars anymore!
Thank you for your Warren Buffet reference. As it Most Definitely Brings Up A Most STARK COMPARISON AND IN THE ENORMOUS DIFFERENCES between lky, lhl, gct, dana, hc and MOST SUCCESSFUL and TRULY REALLY PRAGMATIC and HOLISTIC WAYS of Warren Buffet.
Warren buffet ha only two simple rules. HE said … TO HIS COMPANIES’ BOARD OF DIRECTORS …
QUOTE
Rule No. 1 – DON’T LOSE Your SHAREHOlDER’S Money!
Rule No. 2 – REMEMBER Rule No. 1!
So, how do our ‘Above-World-Class-AND-MOST-WELL-Paid’ TOP-BRASS leaders COMPARE??? EXCELLENT??? VERY GooD??? GooD??? Average Or “Normal” as in COMMON??? BELOW Average??? Even POOR???
If you MUST Rate them, do please account for area of POLICY(IES) and CONSRTUCTIVE carried through TO SUCCESS Or TO Failure.include as reference to the person by initials. THIS WILL BE A MOST INTERESTING ‘EXERCISE’ HERE IN WP NOW ALSO most appropriately known as “The Temasek Review”. Try to be Concise By Listing. So far, we’ve been ASSESSED, CAJOULED, EVEN CRITICISED by our ELECTED Leaders!!!??? Now let’s turn the tide and carry out THIS Exercise MOST Sensibly, Coherently and USE Internet Technology THEY so LOVE for “Singapore’s”. That said, lhl “shouldn’t have any angst AT ALL” against our doing THIS – If HE IS InDEED Serious About us being AN “OPEN AND INCLUSIVE CIVIL SOCIETY” IN NATIONHOOD!!!
So, WP/TTR and other similar blogs using THIS Technology THEY so love SHOULDN’T SHUT-DOWN, LIMITED & RESTRICTED IN ANY MANNER
OR ANYONE HERE BE SAID TO HAVE “CROSSED-THE/THEIR-LINE AND OB-MARKERS”!!!???
Let’s Shiow Then THAT WE ALSO HAVE “Talent” AT LEAST AS GOOD, if not better THAN those “FT” of theirs in OVERALL PERSPECTIVES! This SI important IN THE context of FTS who TRULY ARE TALENTS INDEED! The SAGA can be said to be nothing more then a “wage numbers CRUNCHING” thing for government itself and thus their Privatised Companies!!!??? NOT TRUE???
Q.: EVER Increasing LowER WAGEs on a “SLIDING-DOWN-SCALE” and DESCENDING with job levels. While at THE OTHER END of THE SCALE,ISN”T IT an Ever INCREASING HiGHER WAGES on an “UPHILL-SCALE” and ASCENDING with job levels???
Let’s give them their monies WORTH!!!??? Show THAT WE DO HAVE GOOD BRAINS TOO. Every brain is finite. So no one brain or some brain cvan have all the answers to all of lifes problems AND SO BE RGITH TO IGNORE THE REST OF US — AND ALSO “BRAND” US AS “LESSER-MORTALS”???!!!
The trouble with mm’s measure by MONEY AND Meritorcracy WITHOUT ANY TEMPERANCE – IS THE ULTIMATE DECADENCE OF “MORAL-VALUES” HE SO MUCH TALK ABOUT TOO BUT UNFORTUNATELY AS SEPARATE ISSUES. MAN HAS ALWAYS HAD THE PROPENSITY TO LOVE “The Good Taste of MONEY AND SUCCESS” SO MUCH, THAT MORAL AND CIVIC VALUES BECOME “THROWN TO THE DOGS” FOR THEIR MEALS SO TO SPEAK!!! THIS is the WISDOM we don’t seem to “mm” realising to this day. Last BUT NOT The Least, INSPITE OF his GREAT PERSONAL WEALTH, HOW DOES Warren Buffet live? Old OLD house & Old Old car, etc still functional, makes own “popcorns” too – IN COMPARISON To our Ministers??? A man’s wealth says thing about a him. BUT his Personal AND Extent Of PERSONAL POSSESSIONS AND AMASSING THEM – SAYS A LOT LOT MORE!!!???
Lets Hit that ACCELERATOR – AND GO!!! COME ON GUYS & GALS!!!
Interesting take.
http://josh.sg/2009/08/all_hail_temasek.html
“Chartered Semi (273% return on the rights investment!) floated in November ‘99 at $33/share split adjusted. Temasek was, and still is a 60% owner via its Singapore Technologies subsidiary. It’s now trading at $2.25 per share, and there’s 940 million shares out… so… carry the one… gee that’s a big number, that can’t be right… carry the one… wow, maybe it is right… Temasek has lost $17.3 billion on Chartered Semi since it floated.”
But they’ve made nearly $350 million on their rights issue investment! And the Straits Times has dutifully reported it. Bravo, bravo to everyone concerned.
The FACT is – Temasek is in the BLACK.
Come all SINGAPOREANS let’s all rejoice for we’ll all get something in our pockets (Dividend Bonus) come next year (for doing absolutely nothing except “cow peh cow boo”).
Hi Comboman,
Temasek has over $200 billion dollars. It can afford to lose $199 billion dollars and still remain in the BLACK.
But again, how we ever be sure that Temasek is not in the RED?
Caterpillars can only think of eating voraciously TODAY because our bank account is in the “BLACK” ( if it is) and when it is in the RED tommorrow, they sell their mothers in Geylang as old chickens and find no buyer still after some thorough close up PHYSICAL HAND ACTION examination
The Shit Times editors must be either sleeping in their jobs or they must be the most unprofessional. How can they let such crap be published ?
If they can make such a mistake as publishing the wrong photo of a CEO who passed away recently, what kind of standards do they have ?
Why would any self-respecting professional journalist want to work for the lap dog newspaper, ST???
Shitty Times is a ‘protected entity’ so they can spin anything any garbage they want without being held accountable, all under the guise of ‘the publisher had acted without malice and in the public interest.”
http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_415870.html
Defamation suit dismissed
THE High Court has thrown out a defamation lawsuit brought by a childcare centre against Singapore Press Holdings (SPH).
In his judgement released on Wednesday, Justice Lee Seiu Kin said that although certain parts of the report titled ‘13-month-old boy critically ill in hospital’ defamed the Al-Amin Education company, the publisher had acted without malice and in the public interest.
The report, published in The Straits Times on May 23 last year by senior health correspondent Salma Khalik, highlighted the condition of toddler, Muhammad Hafiz Badrulhisham, who contracted hand, foot and mouth disease (HFMD).
Al-Amin took issue with the report as it had stated that the boy’s mother Madam Jamaiedah Mustafa said that her son probably caught the bug from his cousin, who attends the Al-Amin Education Centre in Tampines.
Mdm Jamaiedah also said she was upset that the centre did not inform parents that it had some children down with HFMD.
Al-Amin said it had been defamed because readers would conclude that it did not take measures to protect its students against HFMD.
The centre would be seen as negligent in allowing the disease to spread.
It was suing for unspecified damages as its reputation had been tarnished by the report.
In the two-day hearing in April, the centre’s lawyer Anthony Netto, argued that there was no evidence the cousin caught the disease at the kindergarten and was the one who infected Muhammad Hafiz.
The centre had also taken all reasonable steps to notify parents of infections among students, he said.
busybody on Tue, 11th Aug 2009 7:00 pm
did the president use his second key to approve using these monies ? or he’s actually not holding any key or holding an “imaginary” key ?
He is holding on to a second key and not an imaginary one – a spare key.
cram on Wed, 12th Aug 2009 2:54 pm ….greetings….
Interesting piece of news. Lucky, I have NOT bought its IPOs or since listing. Otherwise, I would be crying all the way to my bank and back. I was tempted and nearly bought the stock when its share price crashed down on announcement of steeply “discounted” rights. If I knew its past since IPO, I would not even think of touching it with a 10 foot pole!
What puzzles me is why don’t they shut the loss-making business down instead of depleting shareholders’ value? Or why the big rights issue at such fantastic dilution and steep discount too to keep it alive unless they are sure there is some expectations of turning it around to sustainable prosperity? IT MUST HAVE BEEN BLEEDING LIKE HELL. Or maybe sell this to the Taiwanese who seems to run this business a lot better than us? Why not divest, take the cash and run, looking at other rewarding opportunities elsewhere.
In business or in investment, I would never throw good money after “bad”. Who knows if it is a bottomless black hole of never-ending losses?
“…. Who else buy ST besides residents in Singapore?
I bet you, the PRC in S’pore don’t even buy ST.
Dr. Tony Tan is betting wrong when he hopes that immigration will drive readership of his papers.
Damn wrong….”
eh bro/sis.. no choice lah. need to buy ST. if not, where my dog gonna pang sai on?? and my maid how to clean window?
What is honor compared to a few million in salaries?
why did chip goodyear did not take up the CEO of Temasek?because he is not given a free hand in the running of the organistaion.His hand must be binded.If the obama govt or arnold schuznagger of carliflornia sk him to run a US fund,i am sure his expertise would be given a free rein.Here you are alliowed to bark and wag youre tail to say yes yesw yes.Sad day indeed.i black temasek
[...] >> Temasek’s spin doctors at Straits Times try to salvage battered image [...]
[...] >> Temasek’s spin doctors at Straits Times try to salvage battered image [...]