Temasek, portfolio firms need to make commercial decisions without fear of politicisation: Shanmugam
He warned that if corporate boards become overly cautious to avoid politicisation, it will compromise investment returns.
Singapore's Senior Minister K. Shanmugam has warned that Temasek portfolio companies must not fear making investment decisions due to political pressure or criticism. Recent racist comments surrounding Singapore Airlines' investment in Air India have sparked this concern. Temasek, an investment company owned by the Ministry of Finance, must ensure its portfolio companies make commercial judgments free from undue political influence.
Shanmugam emphasized that shareholders, including Temasek, have the right to expect accountability and transparency from SIA, the investor in Air India. He clarified that the actual shareholder in Air India is SIA, not Temasek, and that SIA should make investment decisions based on its professional judgment. Shanmugam stressed that the government maintains strict principles of not interfering in individual investment decisions or putting political pressure on Temasek portfolio companies.
The government's role is to ensure professional management and provide political cover for Temasek and its portfolio companies to make properly considered commercial decisions.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
