Daily Lesson from Life 10 February 2009

First of all, today is my niece's birthday. We had a celebration dinner and cake eating session at my brother's home. It was an enjoyable evening for all! Happy birthday my dear niece!


"Temasek portfolio down 31% But it has not done as badly as other market indices, said Senior Minister of State for Finance. --> Tue, Feb 10, 2009 The Straits Times

SINGAPORE'S state-owned investment companies have not been spared the fallout from the global market downturn.


The net portfolio value of Temasek Holdings fell 31 per cent between March 31 and Nov 30 last year, from $185 billion to $127 billion, Senior Minister of State for Finance Lim Hwee Hua revealed in Parliament on Tuesday.

The Government of Singapore Investment Corporation (GIC) also posted a decline in the value of its investments, but Mrs Lim did not reveal the numbers."

These are significant revelations by the Ministry of Finance as the net portfolio value fall of Temasek Holdings is significant. Of course, in the bad years of 1997 and 2001, the investment values of both government investment vehicles suffered similar if not more drop then now.

It is significant for the main reason that the soon-to-be-ex-CEO of Temasek Holdings for the last 5-6 years is the wife of PM Lee and the daughter-in-laws of MM Lee.

Lessons for me are:

1. with investment, as with most other good and bad things in life, you will have your bad years as well as your good years. Sometimes the bad years is not due to your lack of vigilance or efforts or care or competence but just the macro environment turned so much against you and the market that it is not really any one's fault. Of course, the skilled investors will try to minimize losses compare to the market as much as possible;

2. the investment performance of both Temasek and GIC has been a curiosity for Singaporeans as they are concerned about how the taxpayers' money are invested. They are concerned about the return of principal, hopefully plus interest and dividend, will provide them with a nice nest egg for their retirement. It is good that the leaders responsible realized the need to be accountable and disseminate the performance results with the public - the main stakeholders, regardless of if they are literate or not. If they are not, more efforts need to be put in to help them understanding in layman's terms!;

3. now that the performance issue are publicly revealed and discussed, we can move forward with the knowledge that there is no longer the need to be too conservative with sharing these results. In fact, it should be seized upon as a chance to continue to be candid and open with sharing such information with Singaporeans, who are the main stakeholders.

You can see when issues important to the people gets some clarify from the leaders, the people will be more comfortable with trusting the leaders. Even when there are bad news, the sharing by the leaders provide the opportunities to explain, and re-commit the people to support the cause continuously!

May Temasek and GIC recover from this set back and continue to grow the money of Singapore for current and future generation. Be accountable and it will be fair treatment for all. No fear nor favour!