GIC, Temasek & MAS 01 (May 08 - Aug 09)

[millionairemind]

So much so for long term investment..

June 3, 2009
Barclays stake sold
By Alvin Foo

TEMASEK Holdings has sold its stake of almost 2 per cent in British banking giant Barclays in December and January, according to an unsourced Reuters report.

Both parties declined comment when contacted by The Straits Times on Wednesday. A Temasek spokesman said: 'We don't comment on unsourced reports.'

However, sources told The Straits Times that Temasek sustained a loss of between 500 million pounds and 600 million pounds on the sale, which was said to be have been completed in December and January.

Its loss is in sharp contrast to the Abu Dhabi government, which sold more than 11 per cent of the bank's shares on Tuesday, making a US$2.5 billion profit from its investment in just seven months.

Temasek paid 975 million pounds buying Barclays shares at 720 pence apiece in July 2007.

Temasek sold its 3 per cent stake in the Bank of America in the first three months of the year, leading to estimated losses of between US$2.3 billion and US$4.6 billion and prompting criticism of the move.

Last week, Finance Minister Tharman Shanmugaratnam defended Temasek's overall track record in Parliament, revealing that Temasek had made 'large investment gains' during the market cycle which began in 2003 including both boom and bust phases.

Mr Tharman said Temasek's portfolio grew $56 billion from March 2003 to November last year even after taking recent sharp declines into account. It averaged returns of slightly over 15 per cent a year.

The sale of its Barclays and BoA stakes are in line with Temasek's recent tweaking of its long-term investment strategy to focus more on Asia and emerging markets such as Brazil and Russia.

It will, in turn, reduce emphasis on developed countries such as the United States and Europe.

[kennynah]

vote pap out lor.....


then we will have a democratic system where MPs of varied parties can debate meaningfully how our money shd be invested...

[OE2008]

These series of love affairs with Banks are very costly. Never learn

[LenaHuat]

To me, these look like infatuations with bankers rather than banks.

[millionairemind]

Published July 4, 2009

Temasek looks to its first gusher
Push into resources investments off to good start with winning of Indonesian oil and gas exploration deal

By RONNIE LIM


TEMASEK Holdings has finally made its foray into the oil and gas business by clinching its first-ever exploration rights - an Indonesian concession in West Belida onshore Sumatra.

This comes a year after it first set up Orchard Energy, its oil and gas exploration and production (E&P) subsidiary. Things have started moving now that Orchard has an experienced team in place, led by 30-year E&P veteran Tony Tan who crossed over from Singapore Petroleum Company in January to be its CEO.

Orchard Energy was among 11 winners - together with 'big boys' like ExxonMobil and Hess Corporation - in the latest round of oil and gas exploration rights in eastern Indonesia. Its wholly-owned subsidiary, Orchard Energy (West Belida) Limited (OEWBL) signed the production sharing contract (PSC) with Indonesia in May. It is partnering PT Bayu Energy Lestari, an Indonesian investment and consultancy company, for the PSC, although OEWBL - with a 94 per cent working interest - will operate the concession block.

Under the latest round of PSCs, besides paying 'signing bonuses' worth a total US$21.6 million to the government, the 11 winners have committed to invest a total of US$189 million over the next three years in their PSC areas.



Indonesia is pushing to produce more oil from ageing fields. In the first quarter of 2009, production there averaged 946,000 barrels per day, down 14,000 b/d from the government's target of 960,000 b/d. Last year Indonesia withdrew from the Organisation of Petroleum Exporting Countries due to declining production and increased imports of oil.

Orchard's three-year investment commitment of US$5.76 million for the West Belida PSC is relatively small compared with what some of the others have committed. It may well have to cough up more funds later, one industry source feels.

ExxonMobil has, for instance, committed US$40 million over three years to explore a block in offshore Papua, while Hess Corp, the fifth biggest US oil producer, is investing US$26 million to explore the South Sesulu block, off Kalimantan.

Explaining how the three-year investment commitments work, one oilman said: 'Typically, in the first year, the PSC operator will re-process or analyse earlier field data before shooting his own 2-D and 3-D (three-dimensional) seismic in the second year.

'Actual exploration drilling usually starts in the third year, and in Indonesia, it will cost on average US$30 million to US$40 million to drill a few wells offshore,' he said. But the operator can, however, decide to abandon the PSC before actually doing any drilling if the seismic data shows an unpromising field.

Industry sources say that Orchard's investment commitment will also cover general administrative costs, like setting up office in Indonesia. This is something which OEWBL has done, setting up shop at Indonesia Stock Exchange Tower 2 in Jakarta, with Ronald Frederik appointed as its acting general manager.

Orchard Energy was set up by Temasek last April as part of the investment company's push into resource investments.

Over the last year, the outfit has assembled a team of experienced E&P staff, including engineers and geophysicists who had previously worked in Chevron and Unocal Corporation, as well as commercial and financial officials, including several from SPC previously. Its board also includes old industry hands from ExxonMobil and Shell.

Indonesia is one of its focus areas in the Asia-Pacific, with its other target countries being Vietnam, Malaysia, Thailand, Australia and China. The company said that it will grow its business by acquiring both producing assets and exploration acreage. One industry observer said that with Temasek's financial muscle, Orchard could easily have bought into a producing oil/gas field, although the West Belida exploration concession is a starting point.

[winston]

Hmmm... 4t stimulus program came out in October.

Temasek,Bank of China unit plans $1-2 bln fund -sources

HONG KONG/SINGAPORE, July 9 (Reuters) - Singapore's Temasek [TEM.UL] is in talks with a unit of Bank of China <601988.SS> <3988.HK> to launch a US$1 billion to US$2 billion investment fund to focus on fast-growing infrastructure projects across the vast nation, sources said on Thursday.

Talks between Singapore's sovereign wealth fund and BOC International, the Hong Kong-based investment banking arm of Bank of China, were in early stages but both had agreed on the general idea of the fund plan, initiated by the Chinese bank, said the sources with direct knowledge of the plan.

Temasek and Bank of China aimed to set up a joint ventue to manage the fund, which would seek investment opportunities emerging from China's 4 trillion yuan ($585.5 billion) economic stimulus package launched late last year, the sources said.

The sources declined to be identified as negotiations between the two parties are confidential.

Temasek and BOC International both declined to comment.

[millionairemind]

July 16, 2009
MAS reports $9.2b loss

THE Monetary Authority of Singapore (MAS) posted a net loss of S$9.2 billion in its last financial year that ended March, badly hurt by a decline in global markets.

The loss compared to a profit of S$7.44 billion a year ago and $3.85 billion in 2006, MAS Managing Director Heng Swee Keat told a press conference on Thursday morning.

'The unprecedented global financial crisis has weighed heavily on financial markets worldwide, leading to severe declines in valuation across many asset classes amidst heightened market volatility,' he said. 'MAS' investment were negatively affected by this crisis.' The loss in the last financial year equalled about 3.5 per cent of the central bank's average assets, he said.

'This severe crisis has therefore pared about about 80 per cent of the gains in the preceding two years,' added Mr Heng. 'The extent of loss has been mitigated as we raised the liquidity profile of our portfolio in the early part of 2008, in the face of greater uncertainties.

'With the broad based upturn in financial markets after the close of the financial year, the valuation of MAS' foreign assets has improved and more than half of the losses have been recovered.' Despite the severe global conditions, Mr Heng said Singapore's financial system has, by and large, weathered the crisis well.

In managing this crisis, MAS has focused on maintaining the strength of Singapore's financial system, based on three key pillars:maintaining sound financial institutions; ensuring well functioning markets; and maintaining confidence of investors.

'The measures taken around the three pillars of maintaining sound financial institutions, ensuring well functioning markets and maintaining confidence of investors, as well as the way in which institutions and market players responded to the crisis, have helped our financial sector weather the crisis,' he said.

'A healthy and functioning financial system has continued to support credit and capital intermediation to the economy.'

Compared to the Asian Financial Crisis, the moderation in bank lending has been milder. While credit conditions have tightened, there has not been disruption of credit flows to corporates, added Mr Heng.

He pointed out that a total of S$9.6 billion was raised by SGX listed companies in the first half of 2009, which accounted for 65 per cent of total rights offerings in Asia in this period.

More than 7,300 Government-backed loans amounting to S$4 billion have since been approved in the first half of 2009.

In the first quarter of this year, the financial sector grew by 7.7 per cent quarter-on-quarter on a seasonally-adjusted annualised basis. Financial services employment has also held up reasonably well. Employment stock continued to rise in the last quarter of 2008 and fell by 1,900 or 1.1 per cent in the first three months.

[winston]

Dear All,

I have filed MAS into the GIC & Temasek thread since they also have sizable investments ( and losses ).

Take care,
Winston

[kennynah]

..I have filed MAS into the GIC & Temasek thread since they also have sizable investments ( and losses ).

[winston]

Temasek says Goodyear not to become CEO

SINGAPORE - Singapore's Temasek Holdings said Charles (Chip) Goodyear (below) has decided not to become the chief executive of the state investment firm due to differences on certain strategic issues that could not be resolved.

Ho Ching, the current CEO, will continue to remain executive director and chief executive, the statement said.

Mr Goodyear had been appointed a member of the Temasek board on February 1 and CEO-designate on March 1. -- REUTERS, AFP