The Editor
The Age

Temasek has been mentioned in two articles on the proposed ASX-SGX transaction:
"A great furphy stopped" and "Singapore Inc likely to cut up rough".

We wish to provide key facts about Temasek for your readers.

Our Board and management make our investment, divestment and other company decisions on a professional and commercial basis, independently and without any directions or interference from our shareholder, the Singapore Government.

Over a 36-year period since inception, we have delivered a compounded annual return of 17% for our shareholder, including dividends. As at end March 2010, our one-year return for our shareholder was over 42%. Investments made since 2002, when we increased our investments in Asia, delivered annualised returns of over 23% to Temasek.

The integrity of Temasek's governance enjoys additional constitutional protection. For instance, the appointment of our CEO is a decision of the Board with the independent concurrence of the President of Singapore who is elected directly by Singaporeans, and who has a constitutional mandate to safeguard the Board integrity and past reserves of key Singapore institutions such as Temasek.

The appointment, renewal and removal of our Board members are also subject to the same constitutional safeguards.

Temasek does not own, manage or control the reserves of the Singapore Government or the "nest eggs" of Singaporeans.

Incorporated as a tax-paying investment private limited company, we own and manage our assets on a commercial basis. Temasek's initial portfolio of S$354 million in 1974 has grown to a market value of S$186 billion (A$145 billion) as at 31 March 2010. Our steady growth since inception has been underpinned by earnings from our portfolio companies and returns from our direct investment activities.

Temasek has no control or influence over SGX though we own SEL Holdings, a special purpose entity which holds a 23.5% stake in SGX. We reiterate that this is held for the benefit of the Financial Sector Development Fund, with no voting rights.

The articles miss the point that by law, SEL is not permitted to exercise or control the exercise of votes attached to the SGX shares, and therefore cannot vote in any shareholder vote on the ASX-SGX proposal. Temasek is in effect a non-voting trustee for the SEL shares in the SGX.

Temasek played no part in the SGX decision or offer for the ASX. Conversely, should ASX mount a takeover of SGX, as one article suggests hypothetically, Temasek would have no role to play in the SGX shareholder vote simply because it is a non-voting trustee.

For the record, as a long term international investor, Temasek welcomes investment opportunities from foreign or local investors in Singapore. Indeed, Temasek has sold several key Singapore assets to foreign buyers in open international bids. Such key assets sold to foreigners include the three major Singapore power generation companies, each of which generates about 30% of Singapore's electricity requirements. Australian buyers too have participated and won in such international bids for Temasek assets in Singapore.

Yours sincerely,

Goh Yong Siang
Senior Managing Director
Strategic Relations
Temasek Holdings