SINGAPORE: More global economic activities are now being “viewed through a security lens” as the “pendulum of economic thinking has swung to the other extreme”, said Prime Minister Lawrence Wong on Monday (Sep 23).
In a new era marked by tensions between the superpowers, the world is seeing a rise in protectionism, state interventions in business activities and attempts to reconfigure supply chains for security considerations, Mr Wong said in a speech delivered at Temasek’s 50th anniversary dinner held at Shangri-La Singapore.
“Unfortunately, there are dark clouds over the horizon.”
Singapore will have to find its own path forward in the new environment, said the prime minister.
But even as the outlook darkens, Temasek – an institution synonymous with Singapore’s economic development and grounded by the same principles of resilience, adaptability and strength – will continue to be a trusted partner in the country’s future, Mr Wong said.
TEMASEK’S GROWTHTemasek was created in 1974, at a time when the Singapore economy was still grappling with the effects of the withdrawal of British troops and in the early stages of industrialisation.
To attract investors and create jobs, the government provided loans to some firms and co-invested with others. As a result, the government soon found itself owning a collection of firms – from newly converted shipyards to an airline, and even a chicken essence company, said Mr Wong.
While it is not unusual for governments in developing countries to play a direct role in stimulating the economy, Singapore’s founding leaders felt that things should be done differently.
Temasek was hence formed to take over an initial portfolio of 35 state-owned enterprises and manage them on strict commercial principles, Mr Wong added.
“The companies would then operate on an arms-length basis from the government. This means the government should not be leaning on the companies for favours but importantly, neither should the companies be asking the government for special treatment,” he said.
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Temasek's net portfolio value grows by S$7 billion to S$389 billion, boosted by US and India investments Apart from this “clearer delineation of roles”, Singapore’s economic transformation was based on several key principles – to be self-reliant as a tiny island with no hinterland and no natural resources, remaining open to people from around the world, and be driven by a forward-looking mindset.
These are the same principles that have guided Temasek since its formation, said Mr Wong.
“Today, Temasek has become an institution synonymous with Singapore’s success. Your evolution mirrors our own nation’s journey,” he added.
“Your achievements are a reflection of the same resilience, adaptability and strength which is to continually strive for excellence, ceaselessly innovate, and build for the future.”
These achievements include transforming some of its portfolio companies, such as DBS and Singapore Airlines, into regional and global champions in their respective industries. The state investor’s success has transformed the Singapore economy and provided well-paying jobs for many Singaporeans, Mr Wong said.
In addition, Temasek has continued to keep Singapore its home base. This has helped to “anchor important capabilities” that made the country more resilient and better able to respond to crises and emergencies, such as during the COVID-19 pandemic.
During the pandemic, Temasek and its portfolio companies kept Singapore connected to vital supply chains and got the community care facilities at Changi Expo and Changi Exhibition Centre up and running, among others.
“We won the battle against COVID-19 because our country rallied together; and in no small part, because Temasek and its portfolio companies stepped up in our darkest hours of needlegend bet,” said Mr Wong.
The launch of Temasek’s commemorative book “By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It” held at Temasek’s 50th Anniversary Dinner on Sep 23, 2024. (Photo: CNA/Syamil Sapari)