Temasek, portfolio firms need to make commercial decisions without fear of politicisation: Shanmugam
He warns if corporate boards become overly cautious, it will compromise investment returns in the long run
Senior Minister and Coordinating Minister for National Security K Shanmugam warned on September 4 that Temasek portfolio companies must not fear making investment decisions due to political pressure or politically motivated criticism. He spoke out on recent racist comments surrounding Singapore Airlines' (SIA) investment in Air India, which had sparked a wave of racist comments online in Singapore.
SIA holds a 25.1% stake in Air India through its joint venture Vistara with Tata Sons, established in 2013. Shanmugam emphasized that SIA shareholders and the broader public expect the company to be accountable and transparent, and that shareholders have the right to ask SIA management and directors questions at its annual general meeting.
He also noted that the actual shareholder in Air India is SIA, not Temasek, and that SIA should make decisions based on its professional judgment and resources. Shanmugam stated that Temasek, as a shareholder in SIA, will expect the airline company to make responsible investment decisions. He emphasized that the government maintains a strict policy of not intervening in individual investment decisions and putting political pressure on Temasek portfolio companies.
The government's role is to ensure professional management in Temasek and provide confidence to Temasek and its portfolio companies to make well-considered commercial decisions free from undue pressures.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
