The new cabinet will be sworn in tomorrow (21 May 2011).  This marks the start of a new term of government in Singapore. Accordingly, all reserves built up by Temasek up until and including today will be protected as Temasek's past reserves. 

We welcome this opportunity to share the following additional background facts with the public.

Under the Singapore Constitution, Temasek is a Fifth Schedule Company, directly and independently accountable to the President of Singapore for the protection of Temasek's past reserves. 

While the President does not direct Temasek's investment and company decisions, prior approval from the President is required for any activity which may draw on Temasek's past reserves. 

To date, Temasek has not drawn on its past reserves.

Temasek does not manage or invest any CPF money. Nor does it manage the foreign reserves of Singapore.

Temasek is a commercially-managed investment company, governed by the Singapore Companies Act.  Investment, divestment and all company decisions are the fiduciary responsibility of Temasek's Board of Directors and its management team.   While it is the sole shareholder, the Singapore Government does not direct Temasek's commercial and business activities.

As a commercial company, Temasek pays taxes on its earnings, and also distributes dividends to its shareholder. These contributions to Government revenues are available for budget spending for the current generation, or add to the Government's past reserves to be kept for future generations or used for rainy day or emergency situations.

Temasek is managed professionally with the aim to deliver sustainable long term returns, and reports annually to its shareholder on its performance. Between March 2005 and March 2010, Temasek's portfolio grew from S$103 billion to S$186 billion.

Although not required to do so, Temasek publishes an annual Temasek Review, providing a summary of key financials as well as the relevant investment performance over different time periods from one year to over three decades. The latest publication is available at www.temasekreview.com.sg.

Stephen Forshaw
Managing Director
Corporate Affairs
Temasek Holdings

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