Temasek Review Online Poll

Here is the result of a different poll, not connected with Facebook:

http://www.temasekreview.com/2011/06/08/if-the-presidential-election-were-to-be-called/

The online website tends to have mostly anti-PAP readers, judging from the postings, so the results will not reflect the views of the general population. 

Safeguarding our reserves - investment policy

Dear Mr Tan,
I applaud you for stepping forward to offer your candidacy in the upcoming Presidential Election. I am glad we will likely see a contest. May the best man win for the good of our homeland.

I am an investment manager and wealth manager working for a global financial institution. In the course of my professional career, I have played multiple roles including managing money for institutions and wealthy individuals. For all these investors, there are always varying investment objectives and targets as the funds always have differences in use.

This should be no different when dealing with funds belonging to the nation, hard-earned monies from our forefathers. Just like a patriarch who stores his wealth, hands over to future generations, one would imagine that the purpose (investment objective) of such a fund would be: saving for the future, saving for "rainy days" and enhancing portfolio value to retain and grow future purchasing power.

While I believe that it is beyond to remit of the Elected President to involved himself in the operations of our sovereign wealth funds, I hope the EP will question GIC and Temasek on the basis of their performance and exposure reports which I would imagine is submitted to the EP.

I echo your call to urge GIC and Temasek to adopt a more conservative investment approach instead of going for the "big bang". In lay man's term, the way I would re-phrase the investment objectives I stated above for the SWFs is : "first, don't lose money. Second, retain its value. Third, grow and enhance the value sensibly". Given these objectives, looking back, it is questionable why GIC and Temasek went "big" into investments in Citi, UBS and Merrill Lynch. 

It is not too long ago that you were helping investors with bad investments in Lehman mini-bonds. It was on the back of that episode that we saw the sudden emergence of terms like "suitability check" for investors. My question is: Do the "aggressive" approaches adopted by our SWFs meet the "suitability check" for our reserves? Do our reserves deserve sensible and conservative investment objectives I had stated above? If we stretch our imagination further, it beats me why town councils went into Lehman minibond which were clearly not bonds even though the names implied so.

Another question relates to Temasek. It was set up many years ago as a holding company for our strategic holdings in companies like SIA, Singtel and DBS. This was a good move. As we know, the government divested some of these holdings in the 1990s and Temasek started to use the proceeds of those sale to go regional and invested in companies like the ICICI, the former ABC Learning and others. So, Temasek has deviated from the original "path". While we applaud Temasek for doing their annual reports, I think it is best to segregate the strategic holdings like SIA from other active investment decisions like buying and writing off ABC Learning. The rationale is very simple. I am quite sure Temasek management has no powers to actively trade SIA, DBS and other strategic holdings. So, their value-add to the citizens is in the non-strategic holdings.

We should know how they have performed without the strategic holdings so that they get the rightful credit and blame. Ideally, it would be better for Temasek to retain its original role. They can invest excess cash from sale of strategic assets but it must be properly accounted for. 

A better way is that Temasek can invest those proceeds via a separate vehicle so that that vehicle alone can capture all the active investment decisions taken. Temasek already owns two fund management units, Fullerton Fund Management and Seatown. Why don't either or both of these be wholly responsible for those active investments. This will provide full transparency on the real performance of the Temasek management minus the strategic holdings.

During a recent press conference Dr Tony Tan hosted to announce some management changes in the GIC, his Chief Investment Officer categorically stated that the fund has returned to pre-crisis level. What was the reference point? How do we define pre-crisis period? It was publicly reported that the fund has slightly more than half the fund invested in global equities. If we simply look at the MSCI World stock index, the highest level the index attained pre-crisis was in Oct 2007 at 1686.32. Yesterday, the same index was at 1301.84. Assuming half their investments (i.e. in equities), the other half must have done extremely well to claw back return performance back to pre-crisis level. Question is what kind of "turbo-charged" investments did they make that helped so much? Granted it might have performed well to help portfolio returns, were they suitable investments for a fund like the GIC? I have to assume that the claim about the fund being back to pre-crisis levels. Thus, my concern about the type of risks they took to achieve that.

Wishing you success in the elections.
HZN.

Can the President speak up?

http://singstatistician.blogspot.com/2011/06/will-president-that-speaks-up-cause.html?showComment=1307588541851#c1852495949551504078

Lehman decision await UK result - Australia

http://www.theage.com.au/business/lehman-decision-awaits-uk-result-20110607-1fqyq.html

TODAY - Tan Kin Lian to rely on social media

http://www.todayonline.com/Print/Hotnews/EDC110609-0000350/Tan-Kin-Lian-to-rely-on-social-media

President's pardon and ISA

Dear Mr Tan Kin Lian,

Please consider the following two issues as part of your Presidential campaign.

President’s Pardon

Currently, the President’s pardon on capital offences is decided by the Cabinet. The President just acts on the advice of the Cabinet. The Judiciary is supposed to be independent of the Cabinet. However many citizens are not comfortable with this approach, especially since the Judges are appointed by members of the Cabinet and/or the relevant ministries. This appears to make the clemency review process biased, as there is no independence and transparency in the deliberation process. Furthermore, calling it the President’s Pardon gives the incorrect impression that the President is deciding on the matter independently, when in fact it is not ie the Cabinet is deciding on the matter.

To bring independence and transparency into this process, may I suggest the President, together with his Council of Presidential Advisers, review clemency cases independently of the Cabinet. The President may seek advice from any other resource as he deems fit to assist in his decision-making process, as long as it is not from the Cabinet/Judiciary. I believe this will be fairer to the convict, as there will be a separate set of minds looking at the matter. This will provide more credence to the clemency process and reflect accurately the term “President’s Pardon”. The constitution may have to be amended to achieve this.

ISA Act

The ISA Act should be reviewed to reduce its scope. It should not be used to detain political opponents and dissidents.

It may be used to detain potential “criminals” who have intent and plans to commit crimes but have not done so yet. Such potential “criminals” may commit crimes if let loose. They may be detained without trial, even though no offence has been committed and no charges have been pressed against them. An example of such cases would be terrorists. Another example would be in the case of suspected “criminals” where the authorities are in the long-drawn process of gathering evidence against him. In the interests of national security, and since the law has no other way of handling such cases, detention without trial may be justified.

The constitution should be amended to limit the scope of the ISA Act to such cases only.

 VSL

Contest the Presidential Election

Here is my statement on my decision to contest the Presidential Election. It also sets out the issues to be addressed during and after the election.


Statement from Tan Kin Lian

8 June 2011

Contesting the Presidential Election

I have decided to contest the Presidential Election. My main aim in stepping forward is to give Singaporeans a wider choice of candidates to vote as the next President of Singapore.

I will be communicating with the people on my views on several issues that are important to them. Going forward, statements will be issued through my blog and in the media. I hope that the people will get to know me better from these statements.

My views on the many issues affecting the future of Singapore will be guided mainly by my personal values of honesty, fairness, positive approach, courage and public service. I want the people to know me by these values and hope that we can share some or all of these values.

Presidential Candidates

I have high respect for the two other candidates who have expressed their interest to contest the presidential election, namely Dr. Tan Cheng Bock and BG George Yeo. I also have the same regards for Dr. Tony Tan and President Nathan, if they do decide to contest this election. Each candidate has his strong points.

I hope that this contest will be carried out within a positive climate and that the people will focus on the positive points of each candidate, rather than adopt unfair means to smear the reputation of those who are willing to stand up for Singapore.

Hopefully, the outcome of this presidential election will be a win, not only for the successful  candidate, but also for the people of Singapore.

I echo the sentiment expressed by Mr. Ng Ya Ken in Today paper (8 June 2011). He said, “Allow losers in the Presidential Election the opportunity to serve on the Council of Presidential Advisers if they garner, say, 20 per cent of the vote. This might encourage more eligible and capable people to step forward. It would also add diversity to the composition of the council, which in turn would enhance the Elected Presidency institution”.  I had previously discussed a similar idea with my friends, but Mr. Ng has expressed it with the appropriate words.

I share the views of Dr. Tan Cheng Bock that the next President should play a role to unify the country.

Participation of the people

I have benefited from the participation of many people who have relayed their concerns, suggestions, and ideas to me by e-mail and comments in my blog and Facebook. This has helped me to better understand the key issues that have to be addressed and to find the possible approaches to address them. I have stated my views on some of these matters based on the information that is available to me now.

Some information may surface later that may change some of my views. I hope that my friends  will understand this limitation, but I also want them to know that all my future decisions will continue to be made on the values of honesty, fairness, positive approach, courage and public

service.

If I am elected into the office of the President, I intend to build a platform for the people of Singapore to continue to communicate with my office, using modern communication tools. I want to make it easy for the people to express their aspirations and to offer their feedback on issues that need to be addressed.

This should be on the big issues affecting the country and the people as a whole, and not the personal issues that can be addressed by the elected members of Parliament. Naturally, I would not be able to manage the interactions personally, and should be able to get the appropriate people to assist me in managing this process. My friend has suggested that this should be named as the president’s personal council.

I will give further thought to this idea, especially on its practical implementation. I believe that it will be a good channel to maintain close contact with the people.

Tan Kin Lian

Email: kinlian@gmail.com

Mobile: 81685845

Facebook: www.facebook.com/tankinlian

Blog: www.tankinlian.blogspot.com