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Letter in response to 'Temasek does not manage CPF monies', TODAY

7 January 2014

In his letter “Review CPF interest rate, Minimum Sum” (4 January 2014), Mr Fang Shouyi mentioned Temasek Holdings as “one of three agencies managing our reserves”.

We wish to clarify that Temasek does not manage CPF monies, nor do we manage or invest Singapore’s foreign reserves.

Mr Fang also noted that Temasek “has enjoyed a total shareholder return of 16 per cent per annum in Sing-dollar terms since inception”.

Temasek invests for the long term.

As an owner, we are mostly invested in stocks and shares of companies. The total market value of our portfolio can rise or fall by 30% or more, during volatile periods such as the global financial crisis. 

We are mindful that past opportunities and conditions are not likely to repeat in the coming decades. Furthermore, global structural risks remain.

We are pleased to inform Mr Fang that we are exploring how to make it practical and efficient for us to offer Temasek Bonds to retail investors in Singapore. This will provide an alternative investment opportunity for those seeking stable returns with lower risks. We look forward to sharing more information with the public when ready.

Stephen Forshaw
Managing Director, Corporate Affairs
Temasek

 

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TODAY: Review CPF interest rate, Minimum Sum

From Fang Shouyi
04 January 2013

The Central Provident Fund Minimum Sum is raised yearly to account for inflation, so that we have sufficient retirement income. Perhaps, a better way to beat inflation is to increase our CPF returns.

Hence, I suggest that the CPF Ordinary Account interest rate be pegged at 1 per cent higher than the preceding year’s inflation rate. The Minimum Sum could be kept at the current value of S$148,000.

This would likely be affordable to the Government. Temasek Holdings, one of three agencies managing our reserves, has enjoyed a total shareholder return of 16 per cent per annum in Sing-dollar terms since inception, for example. Such a move would also incentivise efforts to keep inflation at bay.

 

 

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Temasek Review 2014

Our journey has just begun: 
Temasek ends active year with a S$223 billion portfolio, closing with a net cash position.

Investment Themes

Guided broadly by our investment themes, we seek to build a portfolio that delivers sustainable long term returns.