Temasek Holdings

[opmi]

TIH Clearing the kuti kuti inside Temasek portfolio that is too small for Temasek to manage.

[greengiraffe]

http://www.businesstimes.com.sg/premium/...t-20140919

PUBLISHED SEPTEMBER 19, 2014
S'pore seriously considering third China park project
It will focus on connectivity and modern services
BYCHUANG PECK MINGIN HONG KONGPRINT |EMAIL THIS ARTICLE

Mr Lee: Singapore has yet to make up its mind to go ahead with the project, likely in the western region, which will figure large in the next phase of China's economic development. - PHOTO: LIANHE ZAOBAO

SINGAPORE is seriously considering taking on another mega industrial park project in China, this time in the western region which will figure large in the next phase of the country's economic development, Prime Minister Lee Hsien Loong told Singapore reporters on Thursday.
But he said Singapore has yet to make up its mind to go ahead with the project, which Chinese newspapers reported will focus on "connectivity and modern services". "We have not reached that point yet."
"The Chinese side is very keen and we're taking it seriously," Mr Lee said after wrapping up an eight-day official visit to southern China and Hong Kong.
While it's referred to as another government-to-government project, similar to the China-Singapore Suzhou Industrial Park and the China-Singapore Tianjin Eco City project, he said "the exact form will depend on the Chinese side and we'll be discussing with them". "It's a big decision. We have to consider that carefully."
The project must have a balance between policy and commercial goals, according to him. "To start a third government-to-government project, there has to be a clear understanding of what the objective is, the economic policy and, at the same time, how can we package it so that it's a commercially cogent and viable project," Mr Lee said. "Then also, (we) have to decide where we're going to do this. These are things we're studying and discussing with the Chinese side and we hope to come to a conclusion soon."
He agreed that connectivity and modern services should be the focus of the project. It "makes sense because you're talking about the western region, you're talking about vast areas, linking them together not just physically but also IT, financial services . . . and modern services is something which encompasses logistics and many other relevant things".
Mr Lee would probably like the project to follow the private-sector-led and government-backed model that is the Sino-Singapore Guangzhou Knowledge City project. After visiting this industrial park in Guangzhou last week, he suggested that, because government resources are already stretched to their limits, it is one model for future China-Singapore mega investment projects.
Mr Lee, who had spoken to some of the Singapore investors in southern China in the past week, said they are taking the China market very seriously. "One of them told me (that) working in Guangxi, which is not quite so developed, not quite so well known, there's advantage being there because there are more untrodden paths where you can break new ground and find new opportunities."
The Singapore businessmen were happy to see him there. "They said, 'How about you come twice a year because when you come then we have links. We make contact with the party secretary, with the governor, or the chairman in the case of Guangxi, with the mayors'," Mr Lee said.
"And they get the visibility and everybody knows that there's blessings from the two governments."
On the new Chinese political leaders he met, Mr Lee observed that they are "very driven, know their job and are very anxious to get ahead and to make an impact in their province, of in their city or in their area".
"Whether you're in Guilin, which is a tourism area, or in Shenzhen, which is a 10-million population city, they all are on the lookout for ideas and they all want to show results," he said. "And they would like to work with Singapore. Our brand name is good. They think it's a plus to be associated with us, to have projects where they can say, 'This is a Singapore project'."
In Hong Kong, which he last visited in 2001, Mr Lee found that the former British colony has built "even closer ties with China and (is) contemplating its next steps forward".
"They are planning for the next 30 years and we have to be part of this - and our attitude must be that it's good that the region is prospering, so long as we are also moving with it," he said.

[BlueKelah]

build one project for them and likely similar copies will be made tenfold. This was very evident with the first Suzhou project more than a decade ago.
"Fool me once, shame on you; fool me twice, shame on me"

SG side needs to find some way to collect royalties or protect their ideas/designs. Even proper city planning is very complex nowadays and designing a new city involves a level of skill and technology which should be protected somewhat intellectually.

Archive report...

http://www.nytimes.com/1999/10/01/business/worldbusiness/01iht-suzhou.2.t.html

Lack of trained staff to manage and maintain completed projects is something China will have to work on as well.
Its a big step going from farming to building lego. Its an even bigger step from building with Lego to designing Lego packages.

Much better to provide services to the Arabs, I am sure they are better pay masters with much less chance of being conned.

[sgd]

build one project for them and likely similar copies will be made tenfold. This was very evident with the first Suzhou project more than a decade ago.
"Fool me once, shame on you; fool me twice, shame on me"

SG side needs to find some way to collect royalties or protect their ideas/designs. Even proper city planning is very complex nowadays and designing a new city involves a level of skill and technology which should be protected somewhat intellectually.

Archive report...

http://www.nytimes.com/1999/10/01/business/worldbusiness/01iht-suzhou.2.t.html

Lack of trained staff to manage and maintain completed projects is something China will have to work on as well.
Its a big step going from farming to building lego. Its an even bigger step from building with Lego to designing Lego packages.

Much better to provide services to the Arabs, I am sure they are better pay masters with much less chance of being conned.

a very blunt article.

http://www.nytimes.com/1999/10/01/busine...u.2.t.html

A better idea we come in with less obviously they want to use our contacts so why don't we just provide consultancy take a 10% stake in the project they bear 90% of the cost, then we look for services things like utilities that such project requires like water electrical and invest in those so even if the project later flounders it doesn't matter electrical and water main grids

[specuvestor]

Ever since Singapore pare down their stake to 35% minority, the park made money and was hailed as success in 2004 (IIRC)

Shows and teaches us something about Chinese business mentality and strategy

Like i shared before their strategy can be simplified in their rail business
1) JV to build rail network
2) build own hardware
3) build own rail network
4) refine and improve on rail network
5) export rail network

If Singapore continues to do it, it will be for building up goodwill rather than PnL. Unlike some western countries, Singapore is not really in hurry for foreign revenue.

[sg550319]

Ever since Singapore pare down their stake to 35% minority, the park made money and was hailed as success in 2004 (IIRC)

Shows and teaches us something about Chinese business mentality and strategy

Like i shared before their strategy can be simplified in their rail business
1) JV to build rail network
2) build own hardware
3) build own rail network
4) refine and improve on rail network
5) export rail network

If Singapore continues to do it, it will be for building up goodwill rather than PnL. Unlike some western countries, Singapore is not really in hurry for foreign revenue.

agree. chinese ways of doing business. Singapore has gained in other areas, the 1st yuan processing centre or one of the three yuan clearing hub.

[Temperament]

Ha! Ha!
Business in this terms then may be acceptable to the Chinese:-
"Kaki Lung, Pak Si Boh Siang Kang".

Another words it's better to benefit your own kind even if you lose out a bit or a lot in business dealings.
Rather than lose out to an "outsider".
Outsiders may not have repeated business dealings compare to "KAKI LUNG"

[greengiraffe]

http://www.businesstimes.com.sg/premium/...e-20140923

PUBLISHED SEPTEMBER 23, 2014
Temasek takes on sustainability challenge
Chairman cites spirit of doing things today with tomorrow in mind
BYKENNETH LIM
kenlim@sph.com.sg @KennethLimBT

Long-term vision: 'Growth does not mean sacrificing a sustainable environment for our people,' said Lim Boon Heng. - PHOTO: DESMOND FOO/THE STRAITS TIMES
[SINGAPORE] A long-term investor with a strong public service sensibility and a massive portfolio must inevitably confront the issue of sustainability.
For Singapore government-owned investment company Temasek Holdings, that time has begun in earnest, chairman Lim Boon Heng hinted on Monday at a dinner to mark Temasek's 40th anniversary.
"This spirit of doing things today, with tomorrow very clearly in our minds also describes the ethos of Temasek," Mr Lim said. "It forms our values and culture as a long-term investor, as a forward-looking institution and most of all, as a trusted steward."
Singapore President Tony Tan Keng Yam recalled that Temasek was created as a way to keep government from overly influencing its commercial interests.
"Many state-owned companies, or SOEs, around the world are protected from competition and cushioned from corporate realities through subsidies in various guises. This leads to an unlevel playing field."
He especially noted how many Temasek-linked companies became regional and global champions on their own. "Temasek didn't make them champions. They competed fiercely and freely against the best in the world for a customer base far larger than our home market."
But Temasek is also distinctive as an investor with a horizon that is longer than most funds. That gives the fund the imperative to consider the issue of sustainability.
Mr Lim spent significant time discussing Temasek's recent focus on environmental sustainability. The firm on Sept 19 organised an "Ecosperity" conference with Goldman Sachs and the National University of Singapore to explore the issue of sustainable growth.
Temasek is also in talks with Singapore's JTC Corp regarding the potential merger of their infrastructure and development units.
Accounting for the environment does not take away from economic development, Mr Lim stressed.
He recounted Singapore's experience, from simple initiatives such as the annual Tree Planting days to the Clean Air Act, which has been strictly enforced even in the face of the potential loss of foreign investments.
"Looking after our environment is not something reserved only for the more prosperous or more developed nations," Mr Lim said. "Growth does not mean sacrificing a sustainable environment for our people."
Mr Lim said that the concept of sustainability extends beyond the environment. Temasek had also seeded 16 non-profit endowments, and is a champion of corporate governance.
"This is also why we actively promote good governance, and sound and fair regulations - we are always looking at the need to ensure long-term sustainability, be it financial, environmental, organisational or people."

[greengiraffe]

http://www.businesstimes.com.sg/premium/...k-20140925

PUBLISHED SEPTEMBER 25, 2014
Temasek unit in tie-up to create LNG benchmark
The S'pore LNG Price Marker would delink pricing from oil market

BYCHAN YI WEN
yiwenc@sph.com.sg @chanyiwenbt

Mr Seah: Taking into account regional gas supply-demand dynamics
[SINGAPORE] Asia is today the biggest consumer of liquefied natural gas (LNG) in the world - but it is burdened with a pricing mismatch.
With demand growing exponentially in a region that accounts for 75 per cent of global demand, something needs to be done.
Thus, Temasek unit Pavilion Energy has tied up with local and regional partners to fix it.
Currently, prices are largely pegged to the Japan Crude Cocktail (JCC) prices, which are often higher than gas price benchmarks in the US and Europe, and tied to crude oil prices.
But getting the price right for Asia is critically important - to help build sustainable economies and to create room for future growth and opportunities, said Pavilion chief executive officer Seah Moon Ming.
At the Asia-Pacific summit of the sixth world LNG series where global business leaders and government officials convened, he announced Pavilion's involvement in developing an Asian LNG Hub based on an Asian LNG Price Marker with various stakeholders, including the Singapore Exchange, IE Singapore, and regional governments and commodity exchanges. This initiative, he asserted, would contribute towards energy security for Asia.
The first step in realising this goal is to develop a Singapore LNG Price Marker which is independent of the oil market, that better reflects actual regional gas supply and demand dynamics and therefore provide more transparent pricing in the region.
Mr Seah suggested taking a leaf from continental US, where gas prices take reference on a "Net-Back" basis from Henry Hub (the pricing point for natural gas futures on the New York Mercantile Exchange) in Louisiana.
For the Asian Hub, the price that a regional buyer pays for an LNG cargo could be "Net-Back" to the Price Marker.
Tony Regan, principal consultant of Singapore-based energy consultancy Tri-Zen International, agreed that there was some pressure from LNG buyers to move away from the traditional contract formula, to using a specific gas price reference.
"Currently, we don't have an alternative. We don't have an Asian gas price reference at the moment. If we see that in Singapore, we will see buyers and sellers using an Asian price reference point in contracts."
Currently, Asia pays a hefty premium for LNG. In 2012, Mr Seah said, Asian buyers paid almost US$130 billion for LNG. And despite that, demand is surging.
Singapore, he said, is looking to expand LNG imports beyond the initial three million tonnes per annum to meet longer-term requirements, and Asian countries such as Bangladesh, Vietnam and the Philippines have also begun to source and import LNG.
Mr Seah added that the traditional Asian LNG importers - Japan, South Korea and Taiwan - will remain big players. Today, Japan is the world's largest LNG importer (accounting for 30 per cent of global demand), followed by Korea.
But the spotlight of Asia's ballooning LNG appetite is on China. In the first half of 2014, it increased its LNG imports by nearly 25 per cent compared to the same period in 2013, and in July 2014 alone, this demand jumped 36 per cent from July 2013.
Yet, what we see of China's fast-growing LNG consumption may still be the tip of the iceberg. Today, gas still constitutes just 5 per cent of its overall energy mix - a pale shadow of the global average of 20 per cent.
"I have been engaging with China for the last 20 years," said Mr Seah, who is also vice-chairman of China Business Group under the Singapore Business Federation, "and one thing I know about the Chinese market is that it is big, and has the potential to be bigger.
"With recent policy measures introduced by the China central government to curb pollution and to displace coal usage, it will not be hard for China to achieve 10 per cent gas usage over the next 10 years."
But between now till 2017, China will require more than US$40 billion to finance the switch from coal to natural gas, he said, thus, the need for the Asian LNG Hub.
With an LNG marketplace that is home to many trading houses, and its strategic location in the Strait of Malacca and the South China Sea that sees over 50 per cent of global LNG supplies passing through, Singapore is a "natural partner" in this initiative, said Mr Seah.

[Freenasi]

I don't think all these Suzhou project make any money, maybe the opposite. It's more like doing China a favour at the early days, until they realise there is not much skills to acquire. Perhaps all the collaboration nowadays is more like having some fringe activities to keep ties going.

build one project for them and likely similar copies will be made tenfold. This was very evident with the first Suzhou project more than a decade ago.
"Fool me once, shame on you; fool me twice, shame on me"

SG side needs to find some way to collect royalties or protect their ideas/designs. Even proper city planning is very complex nowadays and designing a new city involves a level of skill and technology which should be protected somewhat intellectually.

Archive report...

http://www.nytimes.com/1999/10/01/business/worldbusiness/01iht-suzhou.2.t.html

Lack of trained staff to manage and maintain completed projects is something China will have to work on as well.
Its a big step going from farming to building lego. Its an even bigger step from building with Lego to designing Lego packages.

Much better to provide services to the Arabs, I am sure they are better pay masters with much less chance of being conned.