Singapore, 22 July 2013 – Temasek Holdings (Private) Limited (“Temasek”) announces that Mr Lim Boon Heng will succeed Mr S Dhanabalan, to become its fourth Chairman, on 1 August 2013.

Mr Dhanabalan will be retiring from the Temasek Board with effect from 1 August 2013, ahead of his 76th birthday in early August. His 17-year leadership since September 1996 as Chairman of Temasek was marked by his clarity of purpose and a deep commitment to the larger good.

Mr Lim Boon Heng, a shipping pioneer and a well-respected retired union and political leader, joined the Temasek Board in June last year. Elected unanimously by the Board to succeed Mr Dhanabalan, Mr Lim brings with him a lifelong dedication to improve the lives of workers, families and the elderly. 

Mr Dhanabalan’s Leadership of Temasek
Marrying his passion for the common good with his deep understanding and experience of economics and business discipline, Mr Dhanabalan shaped the ethos of Temasek as an active shareholder and investor, a forward-looking institution, and a trusted steward.

Mr Dhanabalan guided Temasek over almost two decades of growth and change, as its longest serving Chairman. He enabled Temasek to build on its strong foundation in Singapore and nurture a global leadership team of diverse talent.

The 1990s saw the addition of corporatised entities to the Temasek portfolio, such as SingTel and PSA. These have since transformed into competitive regional and international enterprises. 

Post 2000, Temasek stepped up its regional investments to add a robust Asia growth element to its portfolio. This layered in a more resilient balance of growth and stability for the Temasek portfolio as a whole. 

In the process, the Temasek portfolio grew from a value of S$70 billion in March 1997, to S$215 billion in March 2013, amidst a turbulent era which included three major economic dislocations - the 1997 Asian Financial Crisis; the extended post-2000 recession including the effects of 9/11 in 2001 and SARS in 2003; and the Global Financial Crisis in 2008.

Mr Dhanabalan has been a clear advocate of sound and effective governance. Under his leadership, the Temasek Board established the Temasek Charter in 2002, and updated it in 2009 and 2012, to serve as the guiding principles for Temasek as an active long term investor, institution and steward. Mr Dhanabalan supported the inaugural publication of the Temasek Review in 2004 followed by the credit rating of Temasek in the same year. Temasek subsequently issued its benchmark US dollar 10-year maiden Temasek Bond in 2005. 

Together, these initiatives form public markers of Temasek’s credit quality, and its position as a transparent and professionally managed investment company. They signal a sound governance framework for Temasek as a value adding shareholder, an active investor, an institution of excellence and integrity, and a responsible steward with both head and heart for the wider community.

Mr Dhanabalan has been a strong proponent for appointing capable business and successful corporate leaders to the boards of the Temasek portfolio companies. He entrusted the boards with the responsibility and fiduciary duty of looking after the interest of their respective companies and their shareholders. 

Similarly, he has been tireless in his efforts to refresh and renew the Temasek Board on a regular basis. Within Temasek, the management team was also strengthened significantly through the years to include well respected industry leaders. 

Mr Dhanabalan holds a strong belief in giving back to society. This is also very much part of the Temasek culture. 

In 2003, Temasek initiated a policy to set aside a share of its returns above its risk-adjusted hurdle for community contributions. Such funding for community causes has been gifted mostly in the form of endowments. Earmarked for various non-profit philanthropic organisations (NPPOs) such as Temasek Foundation and Temasek Cares, these endowments support public good and social causes in a sustainable manner over time. 

The Temasek Trust was established in 2007 with its own Board of Trustees to independently oversee the management and sustainable distribution of endowments and gifts from Temasek for specific NPPOs.

Mr Lim Boon Heng Succeeds Mr Dhanabalan as Chairman Temasek
A Board member since 1 June 2012, Mr Lim Boon Heng, 65, is familiar to a number of Temasek portfolio companies over his career in the private and public sectors. 

In his early career, Mr Lim led a pioneering team in Neptune Orient Lines (“NOL”) to open the USA market for the fledgling shipping company. In his later life, he also served on the boards of major companies such as Singapore Airlines, and was a consistent champion of the productivity movement in Singapore.

After a successful 10-year career with NOL, Mr Lim left in 1980 to contest in his first election, and became a Member of Parliament for Kebun Baru. He went on to win a total of seven elections before retiring from politics in mid-2011. 

He has been, and continues to be, an untiring champion of the labour movement. He joined the National Trades Union Congress (“NTUC”) in 1981, and was elected as its Secretary-General in 1993, a position he held until he stood down in 2006. He remains the Deputy Chairman of the Singapore Labour Foundation, a position he has served since 1997.

Mr Lim is an active advocate of co-operatives to help lower the cost of living for workers and the public alike. The co-operatives are the social enterprises which he actively nurtured, and occasionally restructured.

Among these was his drive to expand the touch points of NTUC Fairprice, Singapore’s largest supermarket retail chain with more than 270 stores, through brand segmentation and differentiation of offerings. He was also instrumental in guiding the board and leadership succession at NTUC Income, to position it for its next phase of development.  NTUC Income is one of Singapore’s leading insurers with total assets of S$20 billion and two million customers.

More recently, Mr Lim initiated the formation of the holding co-operative, NTUC Enterprise, to provide for better governance and ensure consistency of purpose for the various NTUC co-operatives to serve the needs of workers and the general public. He was, until recently, Chairman of NTUC Eldercare, which provides community day care and other services for the elderly in the Singapore heartlands.

In his Parliamentary career, Mr Lim was Deputy Speaker of Parliament from 1989 to 1991. He took on his first ministerial appointment in 1991, at the Ministry of Trade & Industry, and went on to hold several cabinet positions in the Singapore Government, including in the Prime Minister’s Office, till his retirement from politics in 2011.

A tireless advocate of the productivity movement, Mr Lim served from 1991 to 2003 as Chairman of the National Productivity Board, and its successor organisation, the Productivity and Standards Board. 

Mr Dhanabalan reflects on his tenure in Temasek:
“When I first started working in the Ministry of Finance, EDB and DBS during the late 1960s, we did not know what to expect. I certainly did not expect that I would, one day, take on the role of Temasek Chairman.” 

He elaborated, “Seventeen years is a long time in the corporate world. I have been very fortunate and privileged to have the opportunity to work with a remarkable team of dedicated and capable colleagues over those years; both on the board and among the management and staff of Temasek.

“I record my deep appreciation for my fellow board members, as well as the Temasek team, as we shape and reshape Temasek to remain relevant in a volatile world. I would also like to thank the boards, management and staff of our portfolio companies who have contributed much to Temasek’s growth and success over the years. As is very often the case, success is never due to one person, but a whole team. I know that Temasek will continue its journey towards 2020 and beyond.”

“I have been looking forward to my retirement, and I am delighted that Boon Heng will succeed me in taking Temasek into its next phase of growth. His experience in both the public and private sectors, as well as his people-orientation and leadership experience, will be of immense value and relevance as Chairman of Temasek.”
 

Mr Lim Boon Heng shares his views:
“Temasek is a key Singapore institution, and an Asia-focused investment house. It has a portfolio of strong companies and a remarkable team of global talent. The energy and the drive of the management and staff are very impressive. I am very honoured to have this opportunity to work with the Board and Management to take the company forward.” 

“On behalf of Temasek, the Board and stakeholders inside and outside Temasek, I would like to place on record our deep thanks and heartfelt appreciation to Dhana for his sterling leadership, his outstanding public service and the remarkable transformation of Temasek during his tenure as Chairman.”

“I am also very pleased that Dhana has accepted our invitation to support us as our honorary advisor, to share with us his extensive network and perspectives on key issues.”

Ms Ho Ching, Temasek Executive Director and CEO, adds her thoughts:
“Dhana has been an inspirational leader and mentor to me and the rest of us in Temasek, as well as many in the various Temasek portfolio companies where he has either previously held leadership positions or offered his guidance as friend and mentor over many decades.   

“All of us in Temasek - whether on our Board or among our management and staff - benefited tremendously from Dhana’s strong moral compass and wise counsel over the years. His personal values and professional principles embody the Temasek ethos. We all deeply appreciated, and will miss, his quick and deep insights on a wide range of issues.”

Ms Ho Ching elaborated, “Many of us have also learnt much from him as a leader with integrity, humility and compassion. Dhana is a friend, to whom many of us can go to for honest advice and thoughtful guidance. 

“Without Dhana’s clear leadership and support for many of the ground-breaking initiatives, Temasek would not be what it is today. I wish him a well-earned retirement, after having served Singapore selflessly in so many ways over many years.

“At the same time, I take this opportunity, on behalf of the Board and of our Temasek staff, to welcome Boon Heng as our fourth Chairman. Boon Heng shares many common traits with Dhana, including a strong moral compass and a deep dedication to public service and public good. I am sure he will add to the tapestry of Temasek as we strive towards 2020 and beyond,” she said.

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Annexes:

More about Mr S Dhanabalan

More about Mr Lim Boon Heng

About Temasek

Media & Investor Contacts

More about Mr S Dhanabalan

A respected and accomplished civil servant, business and political leader,

Mr S Dhanabalan actively participated in the transformation of Singapore through decades of public service.

Mr Dhanabalan started his career in the Ministry of Finance, in 1960, where he saw at first hand the economic restructuring and transformation of Singapore from an entrepôt port and British Far East base, into a business, financial and manufacturing hub in Asia.  He played an active role in the formation of Singapore’s Economic Development Board, and the establishment of the then Development Bank of Singapore (now DBS) in 1968.  He was later a founding board member of the Government of Singapore Investment Corporation (“GIC”) in 1981, serving till 2005.

Mr Dhanabalan was working in DBS when he first entered politics in 1976, as the Member of Parliament (MP) for Kallang. He won five consecutive elections, and continued to serve as MP for Kallang until 1991 and then as MP for the Toa Payoh Group Representation Constituency from 1991. He retired from Parliament in 1996. 

Over the course of his political career, Mr Dhanabalan was Senior Minister of State for National Development (1978-1979) and for Foreign Affairs (1979-1980). He succeeded S. Rajaratnam as Minister for Foreign Affairs (1980-1988). During the same period, Mr Dhanabalan was also Minister for Culture (1981-1984), and Minister for Community Development (1984-1986). These stints were followed by his appointment as Minister for National Development (1987-1992) and as Minister for Trade and Industry (1992-1993).

Over the years, Mr Dhanabalan has also had a close association with the Singapore labour movement. He served on the board of NTUC Income, the insurance co-operative of the National Trades Union Congress (“NTUC”). In recognition of his contributions to the labour movement in Singapore, Mr Dhanabalan was awarded the NTUC Friend of Labour award in 1979 and the NTUC Medal of Honour in 1992. He was Chairman of the Singapore Labour Foundation from 1993 to 1996.

After his retirement from Parliament, Mr Dhanabalan was appointed Chairman of Temasek in September 1996, and was concurrently Chairman of Singapore Airlines (1996‐98), and Chairman, DBS Group Holdings Ltd (1999‐2005). He remained a Director on the Board of GIC for over two decades (1981‐ 2005).

Mr Dhanabalan currently serves as a Member of the Council of Presidential Advisers (since 2004) and is a Permanent Member of the Presidential Council for Minority Rights (since 1998).

A keen and active volunteer in the broader community who believes in leading by example, Mr Dhanabalan served as President of the Singapore Indian Development Association from 1996 to 2002 and is a Life Trustee of the Association. He has been the Patron of the Singapore chapter of Habitat for Humanity since September 2003, and participated actively in its home building programme in regional locations such as Batam.

In addition, Mr Dhanabalan is Chairman of the YMCA Advisory Council; a position he has held since June 2011. He was Chairman of the Advisory Board of the Salvation Army, Singapore, from 1995 to 2010, and remains its Honorary Member.

Mr Dhanabalan holds an Honours degree in economics from the University of Malaya. He received the National University of Singapore Eminent Alumni Award in 2009.

In recognition of his lifelong contributions and distinguished service to the nation, Mr Dhanabalan was awarded one of Singapore’s highest civilian honours – the Order of Temasek (Second Class) – on National Day in 2007. 

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More about Mr Lim Boon Heng

A firm believer in public service, Mr Lim Boon Heng combined his career in both the private and public sectors, with his deep commitment to various community causes, and the Singapore labour movement.

Mr Lim began his career in Neptune Orient Lines (“NOL”) in 1970, where he was instrumental as a key leader in the pioneering team to open new markets such the USA for NOL.  He rose to be Manager of Corporate Planning and Liner Services, before leaving in 1980 to contest his first election. He won his maiden election as a Member of Parliament (“MP”) for Kebun Baru. He served as an MP for over three decades, winning a total of seven successive elections before retiring from politics in 2011.

Mr Lim joined the National Trades Union Congress (“NTUC”) in 1981. He was elected its Secretary-General in 1993, and re-elected for five consecutive terms until he stepped down in 2006. As a national union leader, he played an active leadership role for 26 years, growing its membership against a worldwide trend of declining union membership. 

He expanded union membership coverage to junior management, and supported efforts to lower the cost of living for members and the public through a successful co-operative movement.

Mr Lim nurtured and drove the business and strategic objectives of several of NTUC's co-operatives and social enterprises. He was a strong advocate of the brand segmentation of NTUC Fairprice businesses to meet the varied needs of our changing population landscape, growing it to become the largest supermarket chain in Singapore.

Mr Lim was also actively involved in guiding the leadership succession at NTUC Income, the S$20 billion insurance enterprise, positioning it for its next phase of development. More recently, Mr Lim actively restructured the NTUC co-operative movement through the formation of the holding co-operative, NTUC Enterprise. He served for over a decade as Chairman of NTUC Eldercare, espousing community day care and other services for the elderly as the Singapore population extended its life expectancy into the 80s.

Mr Lim was concurrently a national union leader and an active leader in national politics.  He was Deputy Speaker of Parliament from 1989 to 1991, before taking on his first ministerial appointment in 1991 as Senior Minister of State (Trade & Industry), and later as Second Minister for Trade and Industry from 1993. He was also a Minister in the Prime Minister's Office (1993-2011). In 2004, he became Chairman of the Central Executive Committee of the People's Action Party till he stepped down in 2011.

A dedicated advocate of the productivity movement as a key driver for labour wage increases, Mr Lim served from 1991 to 2003 as Chairman of the National Productivity Board and its successor organisation, the Productivity and Standards Board, which was later renamed the Standards, Productivity and Innovation Board (or SPRING Singapore).

Mr Lim holds a BSc (Hons) in Naval Architecture from the University of Newcastle-upon-Tyne, United Kingdom, 1970. The University of Newcastle-upon-Tyne conferred upon him an Honorary Doctor of Civil Law in 1996. He was also conferred an Honorary Doctor of Business by the RMIT University, Melbourne, Australia in the same year.

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More about Temasek

Incorporated in 1974, Temasek is an investment company based in Singapore, with 11 affiliates and offices in Asia and Latin America. Temasek owns a S$215 billion portfolio as at 31 March 2013, with 71% of its underlying assets in Asia (including Singapore), and 25% in the mature economies of North America, Europe, Australia & New Zealand.

Temasek's investment themes centre on:

●  Transforming Economies

●  Growing Middle Income Populations

●  Deepening Comparative Advantages

●  Emerging Champions

Temasek’s portfolio covers a broad spectrum of industries: financial services; transportation, logistics and industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources.

Total shareholder return since inception in 1974 has been 16% compounded annually.

The company has had a corporate credit rating of AAA/Aaa since its inaugural credit rating in 2004, by rating agencies Standard & Poor's and Moody's respectively.

Past and Present Chairmen of Temasek:

            Mr Lim Boon Heng  (2013 -         )

            Mr S Dhanabalan     (1996 - 2013)

            Mr Lee Ek Tieng      (1987 - 1996)

            Mr J Y Pillay           (1974 - 1987)