PDF《Singapore》

Singapore Background ? SOEs - State owned-enterprises - underperform around the world ? Singaporean GLCs - Government-Linked Companies- perform much better ? Why? ? Does good governance have anything to do with it? Issues in SOEs ? Lack of incentives ? Absent owners ? Complex goals ? Political interference ? Public scrutiny (taxpayer'

s money) ? Bureaucratic controls ? Monopoly ? Rent seeking ? Corruption ? …… What do Singaporean GLCs do differently? ? Clear Business Mandate ? Arm'

s length distance to politics ? Active ownership by Temasek ? Competition between companies ? International operations ? ….

. ? Good governance Independent boards, committees, transparency, accountability… GLCs 37% Non- GLCs 63% Government-linked companies matter in Singapore Based on

2008 to

2013 market capitalisation data, GLCs accounted for 37% of the stock market value. GLREITs 54% Non- GLREITs 46% Based on

2008 to

2012 market capitalisation data, GLREITs made up 54% of REIT market. Note:

2008 -

2013 Singapore'

s Market Capitalisation data downloaded from Bloomberg Professional Services. Number of SGX-listed GLCs and GLREITs

1 27

23 29

18 20

6 8

80 81

82 83

84 85

86 87

88 89

90 91

92 93

94 95

96 97

98 99

00 01

02 03

04 05

06 07

08 09

10 11

12 Listed GLCs Listed GLREITs Fig 4. Temasek'

s Ownership Structure of SGX-Listed GLCs and GLREITs (FY2012)

20 18

16 18

17 13

16 15

15 14

4 6

9 8

8 4

6 6

6 6

04 05

06 07

08 09

10 11

12 13 20-year TSR % Temasek MSCI INVESTMENT PERFORMANCE Shareholder Return Source: Temasek Review 2004- 2013. Fig 2. Total Shareholder Return (TSR) % 2004-2013

46 16

25 27

7 -30

43 5

1 9

48 16

22 37 -2 -43

74 11 -2

12 04

05 06

07 08

09 10

11 12

13 One-year TSR % Temasek MSCI S'

pore

3 5

6 8

10 6

6 9

10 13

1 2

3 8

9 3

5 9

8 13

04 05

06 07

08 09

10 11

12 13 10-year TSR % Temasek MSCI S'

pore

20 18

16 18

17 13

16 15

15 14

4 6

9 8

8 4

6 6

6 6

04 05

06 07

08 09

10 11

12 13 20-year TSR % Temasek MSCI S'

pore ACTIVE OWNERSHIP Temasek'

s invested S$159 billion and divested S$100 billion over the last decade. Invested S$

159 Billion Divested S$100 Billion Source: Temasek Review 2004- 2013. INTERNATIONALIZATION Non-Domestic Ownership of Assets increased 22% over the last decade. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

04 05

06 07

08 09

10 11

12 13 Singapore Asia ex-Singapore Non-Asian OECD Economies Others Source: Temasek Review 2004- 2013. GOVERNANCE

12 10 GLCs Non-GLCs 64% 48% GLCs Non-GLCs 74% 28% GLCs Non-GLCs 65% 7% GLCs Non-GLCs Risk Governance Chairman Independence External Board Appraisal Board Independence GLCs have higher percentage of independent directors on their boards. GLCs have higher percentage of Boards led by an independent/ non-executive chairman. GLCs are more likely to hire external consultants to conduct board appraisals. GLCs are more likely to have a Board Level Risk Committee. Note: Analysis based on data from CGIO'

s GTI

2009 -2013. GOVERNANCE SCORES (GTI

2009 C 2013) 61.9 68.4 70.5 69.0 79.1 33.4 33.3 31.1 34.0 36.6

09 10

11 12

13 GLCs vs All non-GLCs GLCs All non-GLCs 61.9 68.4 70.5 69.0 79.1 35.2 37.4 34.7 37.2 40.8

09 10

11 12

13 GLCs vs Trimmed Non-GLCs GLCs Trimmed non-GLCs 61.9 68.4 70.5 69.0 79.1 40.3 38.9 43.4 46.4 47.6

09 10

11 12