It was after hours in March 2020, when Loy Kiet Ying, then-Director of Temasek’s Transportation and Logistics investment group, was called back to the office.

As COVID-19 swept across the globe, and nations, including Singapore, closed their borders, airlines faced unprecedented upheaval. Flights were grounded and revenues plummeted, yet financial obligations – and the need for liquidity to meet them – remained.  At Temasek’s corporate headquarters, Kiet Ying stepped into a meeting with Singapore Airlines’ (SIA) management and Temasek’s senior leadership.

Even as the airline organised emergency flights to bring Singapore citizens and residents home, its management was preparing to announce a $15 billion rights issue, and reached out to Temasek, its majority shareholder, to underwrite the issue. This meant that Temasek would commit to purchasing any shares and mandatory convertible bonds left unsubscribed, guaranteeing that vital funding would be secured.  

“Although it was a significant investment, SIA is one of the world’s strongest airline brands, and even if it took time, we expected air travel to return. Our focus was to ensure SIA had the resources to weather the crisis, and position itself both for a strong recovery and growth beyond the pandemic,” says Kiet Ying.

 “We secured internal approvals within 24 hours,” she recalls. “The adrenaline rush in those critical moments is something I’ll not forget.” 

Investing in recovery

Kiet Ying’s connection to SIA runs deep – her father was a senior systems analyst with the airline for more than 20 years, and she grew up flying almost exclusively with it. “Since I was a child, I’ve looked forward to flying on SIA. Every flight has been a memorable experience.”

In 2010, she joined Temasek, gaining experience in derivatives, financial services, and the Investment Group Office, before moving to the Transportation and Logistics Investment Group in 2019. Just months later, she found herself in intense discussions with SIA’s management, as both sides closely monitored the rapidly evolving COVID-19 crisis. “The minute borders started to lock down, things escalated quickly,” she says, recalling the days – and nights – spent mapping out multiple scenarios, and hypothesising a range of outcomes. “No one knew how long this was going to last.”

Despite the uncertainty, both sides kept their focus on long-term goals. “We were aware that SIA was in the middle of a fleet renewal cycle – a significant, multi-year capital commitment,” she says. “We also knew the new generation aircraft was key to SIA’s continued leadership.” The new aircraft would not only enhance SIA’s competitiveness, but reduce carbon emissions in line with the airline’s sustainability goals, and Temasek’s broader commitment of halving its 2010 emissions by 2030, and achieving net zero by 2050.

Meanwhile, the airline’s management took the opportunity to drive initiatives that would sharpen its competitive edge – from developing the airline’s digital capabilities and improving its productivity to upskilling its staff and renewing and maintaining its aircraft and facilities.

Throughout, SIA’s leadership remained focused on preserving the airline’s core resources – its pilots, crew, and an operational fleet – ensuring it remained ready for recovery, Kiet Ying notes. “SIA’s employees have always been a key differentiator. Retaining these employees with years of training and experience ensured it maintained its leadership in product and service excellence.”

The rights issue in May 2020 and June 2021 reinforced SIA’s balance sheet and boosted investor confidence. SIA went on to raise a further $8 billion, “signalling strong market confidence that SIA would be able to navigate the crisis,” says Kiet Ying.

Meanwhile, Temasek worked closely with SIA on scenario planning. Beyond the immediate crisis, Temasek and SIA considered potential industry shifts. “We were thinking ahead — what would aviation and air travel look like after the pandemic?”   

A strengthened alliance

The collaboration during those critical months deepened the long-standing relationship between Temasek and SIA, says Kiet Ying. “We worked together to navigate the worst of times, and emerged stronger.”

Beyond the rights issue, both sides have also engaged on a wide range of topics, both during and since the pandemic, including sustainability, capital structure, and digital transformation.

Their collaboration extended to engaging with the broader ecosystem – the airport and its service providers, and regulators, she says. “COVID-19 didn’t just impact the airline, it affected Singapore’s connectivity and business environment, which in turn had a significant impact on other Temasek portfolio companies in Singapore.”

Recognising the value of strong partnerships, Temasek established the Portfolio Development Group (PDG) in 2020 to work closely with key portfolio companies on long-term sustainable value. In 2022, Kiet Ying assumed the role of PDG director.

The commitment to partnership and resilience remains central to Temasek’s strategy, she says. “Temasek’s approach goes beyond just investing; it's about building enduring partnerships to create sustainable value. We co-create solutions that drive growth and enhance long-term competitive advantages, ultimately delivering value to Temasek as a shareholder.”