Lim Boon Heng: Government has never been involved in the daily operations of Temasek Holdings; it is an independently-run company

At the fourth Sovereign Wealth Fund Conference held at SMU, Temasek Holdings Chairman Lim Boon Heng said that although the Singapore government is the company’s sole shareholder, it has never been involved in the daily operations and investment decisions of Temasek. Temasek has always been run as an independent investment company. Mr Lim also stressed that Temasek defends its decision-making freedom from political interference, but does not view it as a matter of course. He said that, as a long-term investor, Temasek looks at returns ranging from five to 20 years to measure its own performance, rather than considering the rate of returns each quarter. It will also not be concerned by the fluctuating rate of returns annually. Mr Lim pointed out that by adopting mark-to-market investment disciplines, Temasek is able to avoid the anxieties typical investors face when considering the losses that will be incurred from divestment. This helps it maintain agility when it responds in the face of intense market volatility.