First of all, I would like to thank you all for joining us today.
 
Introduction
Dr Goh Keng Swee, a former Deputy Prime Minister of Singapore, once described the Singapore approach in the late 60s as follows:   
“There was a persistent search for practical solutions, a patient building of institutions and infrastructure, a generous allocation of funds, an accumulated collection of talented staff.  In the end, it paid off.¹ ”  

As many of you may know, Dr Goh was instrumental in the formation of Temasek as an investment company in the mid 70s to take over the role of managing government investments on a commercial basis.  His philosophy of searching persistently for practical solutions, patient building of institutions, infrastructure and people, is reflected in the  growth and development of Temasek through the years.   

Today, Temasek has both benefited from and contributed to the growth and development of Singapore through its investments in companies.   

Over the last decade or so, Temasek has been investing in the region.  We do this not only because being headquartered in Singapore we can feel the pulse and see the opportunities in Asia.  We do this also because our long term future is anchored in a thriving and peaceful Asia.

Just as we have both benefited from and contributed to Singapore’s success through our investments since the 70s, we hope to similarly benefit from and contribute to Asia’s growth and development as a prosperous and stable region, through our role as a long term investor in Asia and through our contributions as a corporate citizen.

Beyond Investing

As an institution, Temasek has been quietly playing a modest role beyond our investment focus.  We have sponsored scholarships, supported disaster relief, organised youth exchange programmes and funded research programmes.  We have been doing this directly as well as through the Singapore Technologies Endowment Programme  (STEP), the Singapore Millennium Foundation (SMF) and the Temasek Life Sciences Laboratory (TLL) which are not-for-profit organisations (NPOs) within the Temasek Group.   

We have decided to institutionalise our corporate citizen role by establishing the Temasek Trust.  This signals our larger commitment to play a constructive role in the continued progress and success of Asia and people in Asia.

Donations to Temasek Trust will be determined on the same basis as the staff incentive plan.  We decided this in 2003, when we put together a performance incentive plan for our staff.  For every year of positive wealth added from 2003, we have been putting aside a portion for the community just as we put aside a portion for our staff bonuses and incentives.   

Our staff know that for every dollar of bonus and every unit of long term incentive that they receive, a dollar or more will be correspondingly earmarked for our community contributions.  Instead of the usual carried interest that management receive in a typical investment fund, we have split this carried interest between our staff and the community.  

Thus, our donations to the community via the Trust or other vehicles may also be regarded as a collective donation from our staff and not just from the company per se.

We are very pleased to have enjoyed four successful years since 2003, prospering and growing with Asia.  We are ready to now formally launch the Temasek Trust (Trust) as the focal point for our wider community contributions.  The Temasek Trust together with Temasek Foundation (TF), and the other existing NPOs we support, like the Singapore Technologies Endowment Programme (STEP) for youth exchange, the Singapore Millennium Foundation (SMF) for research scholarships, and the Temasek Life Sciences Laboratory (TLL) for life science research, are the result of the patient building of institutions and infrastructure, the culmination of the persistent search for practical solutions,  plus the methodical accumulation of funds in tandem with our success as an investment house.   

Temasek Trust

In establishing the Temasek Trust, we have consciously decided to separate the stewardship function for the funds, from the function of community programme development and management.   

The Trust will be the principal recipient of the funds which Temasek has and will continue to earmark for the community in every year that we achieve positive wealth added.  In turn, the Trust will oversee the management of these funds, and disburse them to the designated civic beneficiaries for the approved programmes. 

Funds gifted to the Trust are co-invested with Temasek or placed with fund managers appointed by Temasek.  Henceforth, the staff and management of Temasek will be responsible not only for delivering results to our shareholder and earning a bonus for themselves, but they will also now be responsible for delivering results to the Trust as an additional stakeholder.  They will contribute to increasing the pie for the community which the Trust will serve.  

Today, we are very pleased to make an initial gift of 500 million Singapore dollars to the Temasek Trust.  This gift will be managed by the Trust as an endowment.  The Trust will disburse up to four percent every year for the designated civic organisations.  The trustees may at their discretion also decide, on a unanimous basis, to disburse up to 10% of the endowment, particularly to start new programmes or undertake major initiatives.  The Trust may also receive other specific use funds which are earmarked for particular programmes.  These could include existing commitments that Temasek has to the various civic beneficiaries like SMF or TLL. 

More funds will be donated to the Trust in future for each year of positive wealth creation that we deliver.  In addition, the Trust may also accept gifts from third parties for general endowment or specific purposes, but it will not actively solicit donations from third parties. 

The Trust itself will not have IPC status, as we do not intend to limit support to Singapore based activities.  Instead, the Trust will have the full flexibility to contribute to the wider community in Asia, including Singapore. 

We are very privileged and honoured that four eminent leaders from the business and public sectors across the region have accepted our invitation to be the Founding Trustees of Temasek Trust.    

Mr Lee Seng Wee has kindly agreed to be the Founding Chairman, to share with us the DNA of integrity and returning to the wider society as an individual, a shareholder, and a corporate citizen.  Mr Sim Kee Boon from Singapore, Mr Ratan Tata from India and Professor Xu Kuangdi from China are the other three Founding Trustees who care for the society and who know what it means to understand with the heart and decide with the head.   

I would like to thank them for agreeing to take on the great responsibility as stewards of the Trust - I have no doubt their breadth of experience and wealth of knowledge will help to guide the Trust as it takes its first steps to weave a new thread of hope and responsibility in Asia and Singapore. 

Temasek Foundation

After this event, the establishment of the Temasek Foundation will be announced.

Chaired by Mr GK Goh, the Temasek Foundation is focused on four principal areas:

• investing in human capital through education, healthcare, research and knowledge;
• building bridges among the diverse races, languages, religions and cultures in Asia;
• promoting better governance and regulatory capabilities in Asia; as well as
• supporting emergency relief and recovery in times of disasters.

The Temasek Foundation will work with partners to source or develop programmes which fit its mandate.  It currently has one officer, its CEO Benedict Cheong, and will build up a small team to evaluate and assess programmes and partners with whom the Foundation will work.  The Foundation will take the next six to 12 months to learn from other philanthropic foundations around the world, and identify or develop suitable outreach programmes.  It is likely to roll out relevant programmes sometime end of this year or early next year.
Through the Foundation and the other NPOs I mentioned previously, Temasek and the Temasek Trust will contribute to the betterment of Asia, and do its part to build a peaceful and prosperous Asia of hope and opportunity.    

Temasek Cares!

Apart from these institutional commitments, several of our staff have been active volunteers in their own personal capacities.  In addition, they voluntarily set up an in-house volunteer group, Temasek Cares!, to further encourage the spirit of volunteerism in the organisation.  Temasek Cares! has adopted the  Singapore Leprosy Relief Association for  everal years, offering support and befriending services, especially during festive occasions.  The Spastic Children's Association of Singapore was also adopted in 2005 with the same spirit of providing support and care especially in time and effort.  In addition, the staff volunteers also work to help in fund raising for various good causes to help  organizations or individuals in need.  Temasek matches such fund raising efforts dollar for dollar.    

Conclusion

Today, as we set up Temasek Trust, and later launch the Temasek Foundation, my colleagues and I are deeply appreciative that we are in a position to contribute to the improvement and betterment of the region in a meaningful and sustainable way.  We are privileged to be able to play our part as an Asian company by investing in the great potential of Asia and her peoples.  We are honoured that we have such distinguished partners to bring this dream to reality. 

Once again, thank you for sharing this occasion with us.  

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¹ Goh Keng Swee, The Economics of Modernisation, Marshall Cavendish Academic, 1972, pp 234