Prime Minister (PM) and Finance Minister Lawrence Wong said on Sep. 23 that Temasek has become "an institution synonymous with Singapore’s success".

Speaking at Temasek's 50th anniversary dinner, he added that its evolution over the past 50 years mirror Singapore's journey.

PM Wong paid tributes to the state investment arm's achievements and contributions, including its efforts in various community initiatives during the peak of Covid-19.

PM Wong also noted how Singapore will have to find its own path forward as economic activities around the world are being "viewed through a security lens".

He explained that supply chains are being reconfigured with security considerations in mind, after the pandemic revealed that

He also noted restrictions on "key technologies" like Artificial Intelligence.

Singapore should "stay open" and continue "pushing for free flows of trade and investments" while navigating the new global environment, he said

Temasek's beginnings

PM Wong began by talking about how Temasek was set up in 1974 to take over, own, and manage government enterprises on commercial principles.

He noted that Singapore was at an early stage of industrialisation then, having provided loans to or co-invested in some companies to attract investors and create jobs.

He said Singapore's founding leaders, such as the first Minister for Finance Goh Keng Swee, felt that the country should "do things differently" as government-owned companies may end up becoming "inefficient" and "wasteful" after losing sight of "commercial and market discipline".

PM Wong added that the government had also wanted to do something to "resist the temptation" of running the companies on its own.

After Temasek was formed, government-owned companies would then operate on an "arms-length basis" from the government.

Companies and the government would also not be relying on one another for favours or "special treatment".

He noted that Temasek had also been guided by the same principles laid out for Singapore's economic development, such as having a forward-looking mindset and striving to create a better future for the next generation.

Temasek's achievements and how firm stepped up during Covid-19

On the company's achievements and contributions, PM Wong said that Temasek's role has evolved and contributed to Singapore's economic success.

He highlighted how the company has grown from its initial custodial and administrative responsibilities, with a portfolio of 35 companies taken over from the government at first.

He commended Temasek's efforts in investing beyond Singapore and how the company had learnt from some of its failed initial overseas investments and progressively grew its portfolio.

PM Wong added that the company's success had made Singapore's economy "more vibrant" and provided well-paying jobs for many Singaporeans

He also thanked Temasek, its founders and staff, adding that the company "stepped up" during the Covid-19 pandemic by keeping Singapore connected to vital supply chains, volunteering for operations on the ground, conducting swab tests, and distributing masks and sanitisers to Singaporeans.

"We won the fight against Covid because our country rallied together, and in no small part, because Temasek and its portfolio companies stepped up in our darkest hours of need", PM Wong said.

"Indeed, Temasek believes not only in doing well, but also doing right and doing good," he added.

Economic activities are viewed through a security lens, Singapore has to stay open

Despite the country and company's successes, PM Wong noted that Singapore and Temasek cannot "rest on its laurels" considering the "new environment" globally.

He highlighted tensions and potential conflict between China and the United States (U.S.) which are causing economic activities around the world to be "viewed through a security lens".

He also noted how restrictions have already been imposed within fields like Artificial Intelligence (AI) and semiconductors, leading to security concerns involving the likes of electric cars and solar panels.

As no country wants their manufacturing capabilities to grind to a halt due to shortages in critical components, more protectionism and state interventions are observed in business activities globally.

To navigate such challenges, PM Wong said Singapore would have to stay open and continue pushing for free flows of trade and investments.

Referring to the finance term "alpha", which is the "extra edge" driving higher returns that investment professionals often look for, he said that Singapore's "greatest alpha" is its reputation for trust, integrity and reliability.

He said that these attributes are a unique source of competitive advantage for us, and it is very hard for others to replicate.

He added that such attributes has attracted investments and partnerships driving the country's long-term growth.

"These are the attributes for which Temasek is well-known for, and which will ensure Temasek remains a valued and trusted long-term partner."

Top photo via Lawrence Wong/Facebook