THE TEMASEK TIMES

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Market analyst: Temasek Holdings’ investment in Europe runs against stream of ‘common thinking’

Posted by temasektimes on June 2, 2012

Just when most investors are getting out of Europe which is currently gripped by a crippling debt crisis with Greece looks set to exit the Eurozone soon, Singapore’s sovereign wealth fund Temasek Holdings is making a bold leap into the unknown by looking for opportunities there.

In an interview with the state media, Temasek’s head of strategy Chia Song Hwee said the investment firm is now looking at European firms with good operations and strong businesses outside the region:

“In the current market environment, as you know, there are market imbalances… So there is an abundance of opportunities for us to tap. However, the most difficult part of picking up opportunities in such an environment is what is the right time, what is the right valuation for the risk-reward proposition,” he said.

Acquisitions in Europe would mark a departure from Temasek’s recent investment activities, which focused on top banks in China and other other emerging economies.

One market strategist for IG Markets Singapore Justin Harper described Temasek’s European foray as flying in the face of market sentiment on the region:

“They seem to be contradicting what most people are doing, a lot of people are saying get out (of Europe), if they have not done that already they’ve got more problems to come…That raises eyebrows from the point of view that they’re going against the stream of common thinking.”

During the peak of the financial crisis in 2009, Temasek Holdings snapped up ailing banks Bank of America and Merrill Lynch on the ‘cheap’. Its investment decision was then criticized by U.S. investment guru Jim Rogers who predicted that Temasek will lose ‘a lot of money’ which eventually came true.

 

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16 Responses to “Market analyst: Temasek Holdings’ investment in Europe runs against stream of ‘common thinking’”

  1. spotlessleopard said

    It is alright…..GIC and Termersick Holdings take a long long view on investments..as long as 30years…so what if the money belongs to the Citizens of Singapore…their Grandchildren will reap the rewards….that is the wisdom of LKY.

    • time limit had to be imposed and make known to Singaporens said

      Wisdom of LKY applied on his time, and may not be suitable now as time and situation had changed.

      An responsible Chairman of Temasek should not take so long, as he had to prove during his time of his capability and not 30 years later that he will not be around in Tamesek anymore.

      Tamasek should imposed year limit, say 5 years or 10 years, to prevent high risk investment. This is all tax payers money. This guideline or rules should be made transparent to the public, i.e tax payers and Singaporeans.

  2. Not their own money, so why bother to worry to lose. They pay themselves fat bonuse year after year.

  3. 坡仔哥哥 said

    There is nothing wrong with this sort of thinking….there are lots of good distressed assets which can be bought on the cheap and we can reap a win fall when the market picks up again in 3 to 4 years.

    My concern is whether we common folks can reap the benefits or not ?

  4. blunttalk said

    Once again, Jim Rogers just appeared on RT Channel to say he’s certainly not getting into anything in bankrupt Europe and foresaw 2013-2014 global economic shocks emanating from there. That’s what the multi million super brains in the GLCs are paid for, squandering other people’s money just like the Western Cabal Banks

  5. GhostMan said

    We are gonna to lose a lot money very very soon

    • P Koh said

      Tamasek and GIC have already lost a lot of money before. They never learnt from mistakes, after all the money does not belong to them but the citizens of Singapore. Anyone in his right senses would wait and observe the situation for a clearer picture to emerge and understand what is there in the horizon and not to plunge blindly into investing in Europe which has not seen daylight yet with the financial crisis of the PIGS – Portugal, Italy, Greece and Spain. Now, you see why the minimum sum for old age savings kept rising. Who are accountable for the outcome of investments and has anyone seen the report card or are they only meant for certain eyes only.?

  6. tan said

    Can anyone please tell me what happen to Temasek Holding investment in Citibank few years back?

  7. Jack said

    There is no risk.. If they win, they proudly announce it and it becomes their money.. If they lose, they keep quiet and its not their money to lose anyway…

  8. Jack Ng said

    Our Govt is taking too much risk with our CPF money, obviously, their investment have not been performing well, otherwise, they would not have been increasing the Minimum sum in CPF and extending retirement age.

    I hope our govt is right and much smarter than all the fund managers in the world, else, our grandchildren will be paying off the dept

  9. Marcelo said

    The fellas are either enlightened investors or moronic fools. For the sake of the country, I hope its the former…

  10. 'Mk Chin said

    Temasek doing it again?
    2009, Temasek Holdings snapped up ailing banks Bank of America and Merrill Lynch on the ‘cheap’. Its investment decision was then criticized by U.S. investment guru Jim Rogers who predicted that Temasek will lose ‘a lot of money’ which eventually came true.

  11. Jo said

    Well it a risk when everyone is pulling out but ur pouring in tend to make ppl wonder what is wong with the investment team tt is making this decision is Singapore really tt rich to pull off this kind of stunt really to pour in the money when everyone else is trying hard to get out of there and there no way of knowing if the investment will pay off or it eventually become a bubble just burst by den it maybe too late to do anything

  12. If everyone is getting out, then We should be GETTING in or consider GETTING IN

  13. Duncan said

    To sum up the story, they are just copying the PRC ways to acquire this bankrupt european well known MNCs.

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