GIC, Temasek & MAS 01 (May 08 - Aug 09)

[winston]

Li & Fung cut costs

HONG KONG - HONG KONG sourcing giant Li & Fung has implemented a hiring freeze, cut travel expenses and could lay off some employees because of the slowing global economy, the company said.

The firm supplies global retailers, including US giant Wal-Mart, with goods ranging from clothes to gadgets, often made in southern China's factory belt.

'Due to worsening economic conditions which are impacting some of its customers, Li & Fung... announced that the company is undertaking a critical review of its cost structure,' it said in a statement issued late on Saturday.

'Initiatives include a hiring freeze in most locations, reduction of travel and other discretionary expenses and, as a last resort, employee downstaffing,' the statement added.

'At this stage, it is envisaged that a limited number of employees working with business units whose customers have suffered most severely will be made redundant.'

Demand for goods from southern China has dropped dramatically in the past few months, manufacturers say, as the global slowdown squeezes demand in Europe and the United States. Thousands of factories have gone out of business. -- AFP

[mocca_com]

FountainVest raises $1 bln China fund, Temasek helps
Wed Nov 12, 2008 9:01pm EST

By George Chen

SHANGHAI, Nov 13 (Reuters) - FountainVest Partners, backed by Singapore's Temasek Holdings [TEM.UL], said on Thursday that it had raised nearly $1 billion for its first China-focused private equity fund despite the global financial market turmoil.

FountainVest, whose top management team includes four former senior Temasek executives, aims to complete 15 to 20 investments in China in the next four to five years, a statement said.

It will target investments between $50 million and $150 million for each deal and focus on emerging industry leaders who can benefit from China's transformation in terms of consumption, urbanisation and sustainable development.

"Despite the global economic downturn, we are optimistic about China's long-term growth prospects," Frank Tang, co-founder and chief executive of FountainVest, was quoted as saying.

"We believe that the investment opportunities in China have just begun to emerge. The transformation of consumption in China will be the driving force for growth in the coming decades," said Tang, who was a senior managing director at Temasek, a sovereign wealth fund.

The other co-founders of FountainVest include Terry Hu, former managing director and head of global real estate investments at Temasek, and George Chuang and Chenning Zhao, who both worked for Temasek (Hong Kong) as its managing directors.

Major investors of FountainVest include Temasek, Canada Pension Plan Investment Board, Ontario Teachers' Pension Plan, the statement said.

While China's economic growth has cooled amid the worst U.S. financial crisis since the Great Depression, it is still growing faster than any other major economy, with plenty of capital-hungry entrepreneurs looking to fund projects.

On Sunday, the Chinese government, which is keen to maintain a strong pace of growth, unveiled a 4 trillion yuan ($586 billion) spending package, or nearly 15 percent of its annual economic output, spread over a little more than two years.

FountainVest will join the fierce competition for China deals with global private equity heavyweights, such as Carlyle Group [CYL.UL] and Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz), which have done multi-billion dollar deals in the past few years.

"FountainVest is focused on China, and committed to building the future champions in China and globally by establishing solid partnerships with Chinese entrepreneurs," said Tang, who was also formerly head of China investment at Temasek. ($1=6.830 Yuan) (Editing by Jacqueline Wong)

[winston]

Temasek cuts pay to combat slowdown

SINGAPORE - Singapore's state investor Temasek Holdings said on Friday it would cut pay across the board in a bid to slash costs as the firm projects tough economic conditions in 2009 and beyond.

Temasek, headed by Ho Ching, said senior managers had volunteered to take a pay cut of between 15 and 25 per cent.

'We anticipate a global recession in 2009 and possibly beyond. Therefore, Temasek will institute a firm-wide wage cut,' said Robert Chong, managing director of human resources at Temasek.

Mr Chong also said the current crisis 'will throw up tremendous opportunities' and that the majority of wage savings will be borne by their key managers. Temasek said it aimed to increase headcount by 15 per cent over the next two years.

Temasek owns stakes in global banks such as Standard Chartered, Barclays, Merrill Lynch, Bank of China and India's ICICI Bank, the stocks of which have all fallen as the credit crisis unfolded, some of them very sharply.

Final government data released on Friday confirmed that Singapore was in recession. The city-state's economy shrank at a worse-than-expected rate of 6.8 per cent on an annualised and seasonally adjusted basis in the third quarter, and the government said the economy may shrink next year. -- REUTERS

[LenaHuat]

Wow at last the haircuts are being dished out :

Temasek’s Managers to Lead Companywide Pay Cut Amid Recession

http://www.bloomberg.com/apps/news?pid=20601087&sid=ab7r1Ay.et1Q&refer=home

[kennynah]

after thamanshanmugaratnam (or is it tharmanmugaratnam or tharmugaratnabe...oh, does not matter)...said to expect civil servants and meansters to possibly expect lower bonuses and pay cuts....??

[LenaHuat]

after thamanshanmugaratnam (or is it tharmanmugaratnam or tharmugaratnabe...oh, does not matter)...said to expect civil servants and meansters to possibly expect lower bonuses and pay cuts....??

Meansters.........Ok I've got to read between the misspelling

[mocca_com]

why they change their view so fast? today they have just sold sfi and now powerseraya. what wrong? they need liquidity or they are just raising cash with plan to make acquiration later? hmm.. well, maybe T know that worst have yet to come? let see

Temasek sells PowerSeraya to YTL Power for S$3.8b
By Rachel Kelly, Channel NewsAsia | Posted: 02 December 2008 2117 hrs


Photos 1 of 1






SINGAPORE: Temasek Holdings has sold the Singapore generation company PowerSeraya to Malaysia's YTL Power for S$3.8 billion.

PowerSeraya is the third and last genco that Temasek had put up for sale. It had earlier sold Senoko Power and Tuas Power.

The timing of the transaction was a surprise.

Just a week ago, Temasek had said that it was suspending the tender process for PowerSeraya due to poor market conditions.

In a statement, Temasek said it had found YTL Power's proposal to be attractive.

Temasek said with the sale of PowerSeraya, it would have fulfilled its commitment to help develop a competitive power generation market in Singapore.

YTL will pay S$3.6 billion for the purchase and take on a debt of $201 million.

The transaction is expected to be completed in early 2009.

PowerSeraya is the second largest power generation company in Singapore by installed capacity.

It can produce 3,100 megawatts of electricity or about a quarter of Singapore's total licensed generation capacity.

PowerSeraya also operates oil trading and multi-utility businesses.

YTL Power Managing Director Francis Yeoh said the acquisition of PowerSeraya will help grow YTL's utility business in the region.

The deal is subject to approval from YTL shareholders.

DBS Bank is providing some S$2.25 billion in credit facilities to YTL. - CNA/vm

[kennynah]

why do i care so much.....the money...though ours theoretically....is in reality ....Lee's.... dont be silly...to think it belongs to you and me....

[millionairemind]

Singapore’s Lee Defends Performance of Temasek, GIC in Banks
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By Shamim Adam and Chen Shiyin

Dec. 5 (Bloomberg) -- Singapore’s Prime Minister Lee Hsien Loong defended the performance of the city’s state-owned investment companies after a plunge in the value of their stakes in Citigroup Inc., Merrill Lynch & Co. and other global banks.

Government of Singapore Investment Corp. and Temasek Holdings Pte, the nation’s two key investment companies that each manage more than $100 billion of assets, should be assessed on their overall portfolio returns instead of the performance of specific assets, he said.

“The situation looks a lot gloomier now than when they went in but these are long-term investments. It looks under water now, but the situation can change,” Lee told the Foreign Correspondents Association at a lunch today. “But if you are taking a long-term view, you have to be in on the downs as well as the ups.”

The two companies have invested more than $23 billion in Citigroup, UBS AG and other banks as financial-services companies seek funds after posting close to $1 trillion of writedowns and credit losses. A measure of financial companies on the MSCI World Index has dropped 59 percent this year, the worst among its 10 industry groups.

GIC, which invested $18 billion in UBS and Citigroup in the past year, has had a “respectable” performance over the last 20 years, said Lee, who’s deputy chairman of the government’s fund manager.

Merrill, Standard Chartered

GIC said in September it’s boosting investments in emerging markets, private equity and other asset classes to raise returns after cutting back stocks and holdings in developed nations.

Temasek is the biggest stakeholder in Merrill Lynch after a $5.9 billion investment in the past year. It’s also the biggest shareholder of banks including London-based Standard Chartered Plc and Singapore’s DBS Group Holdings Ltd., and holds stakes in Barclays Plc, India’s ICICI Bank and other lenders in Indonesia, South Korea and Pakistan.

Temasek, whose chief executive officer is Ho Ching, Lee’s wife, had an average 18 percent annual return on investment since its inception in 1974. GIC said in September that annual returns in the past 20 years averaged 7.8 percent in U.S. dollar terms, compared with 7 percent for the MSCI World Index.

Singapore, which entered a recession last quarter, may remain in one for a year, Lee said today. A recovery after the recession may take several years, he said.

The government, which brought forward its budget by a month to January, will implement measures announced then at once instead of waiting until the next financial year, which begins in April, he said. Still, any measures are not likely to solve the economic crisis immediately, Lee said.

‘Come Through’

The premier, who lifted a ban on casinos in 2005, said he’s confident the city’s two gaming resorts will “come through.” Singapore awarded licenses to Malaysia’s Genting Bhd., the world’s biggest casino-operator by market value, and billionaire Sheldon Adelson’s Las Vegas Sands Corp.

Las Vegas Sands, which owns the Venetian resorts in Las Vegas and Macau, said last month it has enough money to finish its Singapore casino without help from the city-state’s government after the company raised $2.1 billion. The stock has plunged 96 percent on concerns of rising debt and falling revenue.

[winston]

1) Temasek had an average 18 percent annual return on investment since its inception in 1974.

2) GIC said in September that annual returns in the past 20 years averaged 7.8 percent in U.S. dollar terms, compared with 7 percent for the MSCI World Index.

Temasek's return is respectable ... 18% pa.

GIC's return of 7.8% is average though.

Wonder why there's such a big gap of 10% pa between the two funds ?