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Reconstructing SWF GIC & Temasek Holdings Investment Direction

The main stream media as well as some blogs have started to become TEMASEK Apologists.

They argued that nobody could possibly know the problems of FTX in advance or how crook and fraudulent those young punks were.

They listed all the Big Names funds which were also caught in this “unfortunate” fraud and lost tons of money, over a total of $2B at least. You see, not only Temasek Holdings lost money but all other sophisticated institutional investors also lost money!

However, what they didn’t tell us is, there were even MORE institutional investors and fund managers have seen through the bunch of punks led by SBF as frauds and scammers, thus didn’t even invest a single cent in it! Warren Buffett would never invest in them!

Losing money isn’t the only serious problem here. All investors big and small will lose their money from time to time.

But we must differentiate between pure financial illiterate speculators or unsophisticated retail investors like those aunties and uncles on the street vs institutional investors. Sophisticated Institutional Investors like Temasek Holdings have all obscenely paid experienced talents, analysts and fund managers to do proper due diligence, getting more insights and information or intelligence gathering on any entities they wish to invest in. That’s alot more advantage they have over those retail investors or speculators on the street!

Secondly, it’s a total shame that such institutional investors could be scammed by a bunch of young punks right under their nose! They should at least feel ashamed of themselves!

Third, even amateur investors would be alarmed with that kind of PE ratio which is a sign of overpriced and over valuation. Worse, the purpose of fund raising of FTX was clearly to amass huge amount of money which was intended to buy in more risky assets or crypto companies in the midst of a possible high risk total crypto melt down situation!

Sophisticated Institutional Investors like Temasek Holdings don’t seem to understand the great amount of risks involved in crypto exchange, apart from crypto currency itself. They thought it would be safer to invest in crypto exchange or crypto related platforms rather than the crypto currency itself.

They forgotten that unlike traditional stock exchange, crypto currency can be created out of the exchange which is the issuing platform itself. Worse it wasn’t properly regulated!

Most importantly, Temasek Holdings has basically forgotten that they are SWF. Unlike other institutional investors, their mission statement should be slightly different. Their mission is to make good use of the gov funds to get reasonable returns while making sure that they would not lose the value of these funds in risky investment.

They are not supposed to be too greedy and ended with high risky assets which may give high returns but would also mean great risks that may just wipe off the investments altogether!

SWF may suffer paper losses from time to time but they should not engage in investments which are known to be highly risky that may result in total bankruptcy and total loss of the investment.

Regardless of how well or bad Temasek Holdings due diligence was, it should not even consider investment in FTX at all right from the start. This is from a proper SWF perspective. There were double risks. Crypto currencies and the platforms are all considered risky sector. Secondly, investing in FTX which will use the funds to buy up more troubled crypto companies or exchange, added another high level of risks!

Temasek Holdings in particular, should know very well how risky it is to go into a collapsing market and trying its luck to get bargain hunting. Didn’t it learn anything from its losses in 2008 Merrill Lynch misjudgement and misadventure?

Temasek Holdings is building a track record of high appetite of risk which doesn’t fit its role as SWF. It is behaving more like aunties going shopping to look for bargain buys or basically believing every words the street salesman tell them or just basically jump into rumor buying speculative stocks!

It shouldn’t be so. MOF should reset the guiding principles for both SWF GIC and Temasek Holdings for managing our countries’ money. There would be risks in investment but they should not take excessive risks at all.

Thus my rebuttal to those Temasek apologists, nope, your argument doesn’t stand at all because TH isn’t just any other hedge fund or venture fund. It is a Sovereign Wealth Fund. The fundamental issue here is that it is taking too much risks and behaving like other venture funds or worse inexperienced retail investors.

This fundamental issue must be addressed.

 

Goh Meng Seng

 

 

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READER COMMENTS BELOW

17 Responses to “Reconstructing SWF GIC & Temasek Holdings Investment Direction”

  • P Against People:

    Standard pappy defence: We are very good, because there are worse. Not limited to Singapore examples. Can find anyone in the world worse than them.

    Every school kid in Singapore should get an A.

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  • Wake Up SGs:

    Ho Ching helming Temasek as chairwoman is a big joke.
    Stepped down as its CEO, then stepped up as chairman..
    This j*n* should just get lost instead of gambling away &losing more of SG’s monies.

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  • Flickshit:

    Does the aunty have knowledge about economic and financial risk management. If not , how can she head the tomasick and made is sicker. She should be removed and apologies to all tax-payers money.

    Heaven needs to dispose these useless people and takes care of the people’s hard-earned money.

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  • Words only:

    Msm painted Temasek as a victim ………NO CHOICE BUT TO LOOSE MONEY!

    The fact REMAINS ……….that THIS SWF consists of PEOPLE NOT VERY CLEVER…………where is the DUE DILIGENCE before INVESTING?

    MSM said that TEMASEK DID NOT PLAY CRYTO………how is this possible?

    WHEN YOU ARE INVESTING IN A CRYTO X-change…….

    IS IT POSSIBLE NOT TO INVEST IN PROSTITUTION or call girl service WHEN YOU ARE INVESTING IN A CALL-GIRL OR PROSTITUTION. X-CHANGE.

    Please stop playing with WORDS!

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  • xoxo:

    RESTRUCTURING?
    I think not just that.
    RE-STAFFING is more urgent.
    $cholars n *fave* FTs must be REPLACED WITH REAL SG-TALENTS.
    FTs ,with past connections with ANGMOH institution$,WILL LIKELY TEND TO BE BIAS when recommending INVESTMENTS.
    And,$cholars?
    They are too *COCKY* and so tend to make BAD DECISION$ that could be avoided!

    Just too much elitism in both TH N GIC.
    WE NEED MORE ORDINARY SGS WITH GENUINE TALENTS NOT JUST AT GIC N TH BUT ESPECIALLY INSIDE PARLIAMENT N EVEN GOVT.

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  • Buy High Sell Low:

    Nothing has changed.
    Loss you pick up the tab, gain becomes my bonus.
    A lifetime cushy job next best to haalima.
    A nation of wimpy kids.

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  • Asd:

    I think fill own pocket and no accountability such investment pick the cupboard collector aunty also can do it so why don’t let such poor hold such job but group of self privilege few

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  • Asd:

    I think these are mot action of educated people and refusal to take responsibility but the money

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  • PAP mandate strong:

    Cmon

    Like World cup , who guess argentina lost to Saudi , Japan won over Germany. Or England , Spain kick ass Iran , Costa Rica.

    I guess you watch and for many years right ?
    你那麼神 please tell next match who won who lose and what the score?

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  • MAS could have blacklisted FTX:

    I don’t think it’s asking too much for MAS to have the vigilance to smell something is wrong.

    Perhaps MAS is staffed with too many FTs?

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  • SINGAROAR:

    All assets be it be land,state own buildings,reserves etc belongs to each and every Singaporean.As such there is no reason for the PAP to hide the no.of companies and employees in each of this companies.What is every employee ‘s remuneration? What is the profits and loss of each company?Which accounting firms are auditing these companies? How much of CPF funds are in Temasek and how much has been returned? If only the interest has been serviced,TH is in debt to the CPF board.So it’s claim that it’s loss in FTX is 0.0009 is to mislead the Public.It is the same with GICs which gets its funding from land sales.How much of these funds have been returned?

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  • Trust only myself:

    When unthinking Singaporeans will wake up……..?

    No, never…….the DNA to accept the liars cannot change.

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  • 61% blindly vote:

    All of us know about how wrong PAP ministers have benchmark their salaries. The benchmark is wrong as salary of US president is $200,000 a year.The correct benchmark is politicians, not CEO. So obviously their salary should be less than $200,000 a year. We also know that mps relative like wife, children, sons and brothers should not be receiving salary and post in government related companies. 61% knew something was wrong but choose to vote blindly. 61% knew the party they vote and how the party keep asking for money and more money like tax money GST. The moment 61% cast the vote, they voted for non transparency, pay and pay and all the bad policy and bad behavior. Today, LW, CCS, DL held top post when they are the most unpopular among opposition and in PAP they are most popular. So see how 61% has prepare Singapore to suffer. I mean it cannot be 61% don’t know all these things and who is responsible for what policies. If Singaporeans keep on anyhow vote, Singaporeans will suffer like hell.

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  • Hold Ho Ching accountable:

    Ho Ching claims “Temasek can afford to be contrarian” so it invested in FTX. This is an insult to Singaporeans.

    FTX failed because billions were transferred to Alameda Research, a trading company of San Bankman Fried, to pay for its trading losses. As a result, FTX did not have enough funds to operate causing it to collapse. Both FTX and Alameda were poorly managed.

    Did Temasek know about Alameda Research? Did it do due diligence on it? Did it check the internals controls and corporate governance of FTX? Did it ask other venture capitalists why they did not invest in FTX?

    Whatever “contrarian business” Temasek invested in when it put money in FTX it did not have a chance of succeeding because it was poorly managed and/or an outright fraud. She would have known this if Temasek did a proper due diligence on FTX and on Sam Bankman Fried.

    Ho Ching is basically incompetent. She already lost BILLIONS when she invested in Merrill Lynch and Barclays. She lost hundreds of millions investing in a bankrupt disk drive company. There even more losses not made public.

    Ho Ching should not get a “free pass” for her stupidity and incompetence. She should be held accountable and immediately removed as Temasek Chairman.

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  • MarBowling:

    Removing Holee Jinx doesn’t SOLVE the WHORE oops WHOLE Problem. The SOLUTION is to REMOVE Mai Hum. Once he falls HEAVILY from the Banyan Tree which he and his Wifey have been squatting on top for donkey years, the REST of those mini gorillas and Big Fat monkeys will SCATTER all over the FShop and most will RUN ROAD! WHEN and NOT IF this happens, Initially SinKapore will experience some loss of confidence and uncertainty. We will get over it. Voters in the forthcoming GE, Jia Yu!

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  • Sheeples Solidarity Forever!:

    “The political problem of mankind is to combine three things: economic efficiency, social justice and individual liberty.”

    - John Maynard Keynes

    https://youtu.be/umA5dbd-O-4

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  • Habislah:

    https://governanceforstakeholders.com/2022/11/14/governance-at-the-norwegian-oil-fund/

    Here is how the world’s most transparent SWF does its business.

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