Shaping Tomorrow
Committed to

Do well

We invest in companies and solutions for a better, smarter and more connected world.

Determined to

Do right

We empower our people to deliver and make the world a better place.

Inspired to

Do good

We enable our community to come together for a better life for us all.

Temasek Review 2018

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Overview

Ins & Outs of Temasek

A visual guide to our sources of funds and their use.

Icon Divestments

We receive proceeds from sale of our assets whenever we rebalance our portfolio.

Our annual divestments averaged about S$18 billion over the last five years.

Icon Dividends from Portfolio

We receive dividends from our portfolio companies.

Our annual dividends averaged S$8 billion in the last five years.

Icon Distribution from Funds

Our investments in funds distribute their returns to us when they start maturing.

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Icon Temasek Bonds

We borrow directly from bond investors through our US$15 billion Global Medium Term Note Programme.

As at 31 March 2018, we had 14 Temasek Bonds totalling some S$11.4 billion with a weighted average maturity of over 11 years.

Temasek Bonds are rated AAA/Aaa by S&P Global Ratings and Moody’s Investors Service respectively.

Icon Temasek Euro-commercial Paper (ECP)

We borrow short term money by issuing ECP, with maturities typically below a year.

As at 31 March 2018, our S$1.4 billion of ECP had a weighted average maturity of about two months.

Icon Bank Borrowings

We may also borrow from banks from time to time, especially for short term funding or bridging needs.

Icon New Capital from Shareholder

Our shareholder, the Minister for Finance, may inject fresh capital or assets into Temasek.

This includes the initial S$354 million portfolio of 35 companies to form Temasek in 1974.

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Our funds come mainly from our own portfolio.
Temasek mixing pot

A visual guide to our sources of funds and their use.

  • Funnel
  • Funnel

  • Icon Divestments

    We receive proceeds from sale of our assets whenever we rebalance our portfolio.

    Our annual divestments averaged about S$18 billion over the last five years.

  • Icon Dividends from Portfolio

    We receive dividends from our portfolio companies.

    Our annual dividends averaged S$8 billion in the last five years.

  • Icon Distribution from Funds

    Our investments in funds distribute their returns to us when they start maturing.

  • Icon Temasek Bonds

    We borrow directly from bond investors through our US$15 billion Global Medium Term Note Programme.

    As at 31 March 2018, we had 14 Temasek Bonds totalling some S$11.4 billion with a weighted average maturity of over 11 years.

    Temasek Bonds are rated AAA/Aaa by S&P Global Ratings and Moody’s Investors Service respectively.

  • Icon Temasek Euro-commercial Paper (ECP)

    We borrow short term money by issuing ECP, with maturities typically below a year.

    As at 31 March 2018, our S$1.4 billion of ECP had a weighted average maturity of about two months.

  • Icon Bank Borrowings

    We may also borrow from banks from time to time, especially for short term funding or bridging needs.

  • Icon New Capital from Shareholder

    Our shareholder, the Minister for Finance, may inject fresh capital or assets into Temasek.

    This includes the initial S$354 million portfolio of 35 companies to form Temasek in 1974.

Temasek mixing pot
Our funds come mainly from our own portfolio.
Investments and Associated Costs Dividends to Shareholder Taxes Endowments for Communities

Investments and Associated Costs

We invest in companies with outstanding management, sound governance, and competitive products and services, to deliver a better, smarter and more connected world.

Dividends to Shareholder

We pay dividends to our shareholder. This financial discipline is directed by the Temasek Board.

From 2000 to 2015, up to 50% of these dividends could be used by the Singapore Government for budget spending. The remaining dividends were locked up as past reserves of the Singapore Government.

This was part of the Government NII spending framework, which helped fund long term social needs like the Pioneer Generation Package of 2014.

Taxes

Temasek pays local taxes on its earnings in various countries.

Taxes paid to the Singapore Government help to fund spending for public services like defence, education, healthcare and social services.

Endowments for Communities

We have gifted 18 endowments over the years to build people, communities and capabilities, and rebuild lives, mostly in Singapore and Asia.

Their programmes have touched the lives of over 800,000 people over the last 10 years.

Staff Volunteers

Our staff volunteers come together via their T-Touch initiative to make a difference in the community.

They volunteer ideas, time and money to support their chosen charities within their communities.

NII/NIR Contributions to Singapore Government Budget

From 2000 to 2015, up to 50% of Temasek’s dividends could be spent by the Government under the NII framework.

NIR is not an outflow for Temasek

From 2016 onwards, the Singapore Government may spend up to 50% of Temasek’s expected long term returns, net of inflation. These are projected and unrealised returns, based on the current portfolio mix.

MAS and GIC have been included in the NIR framework since 2009.

NII/NIR Contributions are now the largest source for Singapore Government budget spending, at 18% of the 2018 Government Budget.

Corporate and Personal Income Taxes, and the Goods and Services Tax are the next three largest sources for Government budget spending.

This NIR framework does not require Temasek to pay more dividends, or sell any assets.

We do not manage:

  • Singapore CPF savings
  • Singapore Government reserves
  • Singapore foreign reserves

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