The State as Shareholder: The Case of Singapore

This report provides an update on Temasek Holdings’ role as a state holding company, and how it owns and governs Singapore-listed Government-linked Companies (GLCs) and Government-linked Real Estate Investment Trusts (GLREITs). Temasek acts as an active investor with long-term returns maximisation as its key motive in its investment decision-making; hence managed the GLCs and GLREITs on a commercial basis. Monitoring and accountability measures are in place, Temasek held both the GLCs and GLREITs in a multi-tier corporate structure. The findings bring into question the unfavourable literature on government ownership. SGX-listed GLCs and GLREITs are well managed, efficient, and profitable. They play a vital economic role in transforming Singapore from a developing third world country to its current status as a globalised city-state. It can be argued that GLCs and GLREITs in Singapore are an exception to how SOEs around the world are owned, managed and governed.