PAP’s transfer of state assets at lelong prices enabled Temasek to achieve high historical returns

Temasek’s high return claims may be factual.  This is because it has paid for state assets from the PAP government at lelong prices.

On such asset transferred to Temasek was Post Office Savings Bank (POSB). POSB became a statutory board in 1971.  Public resources in the hundreds of millions or billions must have been used in its expansion over more than 2 decades before PAP decided that it was time for profits to go into Temasek’s pocket.

Timeline:
1976 – One million depositors, deposits crossed $1 billion mark.
1986 – Deposits crossed $10 billion mark.
1998 – Transferred to DBS at only $1.6 billion

According to MOF, DBS paid 1.37 times NTA for POSB, valuing the pow chiak bank at only $1.6 billion.

Considering “POSBank’s savings account base covers about 95% of all adult Singaporeans, as well as many students and children”, isn’t $1.6 billion a lelong price?

According to an earlier POSB annual report (see table below), total deposit had already hit $20 billion in 1993 and the number of savings accounts was higher than Singapore’s total population of 3.3 million.

Even aliens were opening savings accounts at POSB in 1993

As a stat board, POSB was generating surpluses every year. A few years earlier, its annual surpluses had even exceeded $200 million.**

A price tag of $1.6 billion meant DBS could have recoup the entire investment in probably 5 years due to POSB’s consistent expansion.  POSB was as good as a giveaway.

With about $30 billion in deposits, POSB could not have been worth only $1.6 billion.  If DBS were profitable every year, had $30 billion in deposits and an established network, would it price itself at $1.6 billion in a merger?

PAP was in such a rush to transfer ‘pow chiak’ POSB at below market value to Temasek that they even broke the law when it did not inform the President. (Many have speculated that DBS was overexposed during the Asian Financial Crisis.  By taking over POSB, DBS would have immediate access to an additional $30 billion in deposits.)

Unreserved President Ong Teng Cheong:

The lelong sale of POSB – just one of many stat boards – has enabled Temasek to achieve impossibly-high returns.

(CAAS – worth tens of billion$ was transferred to Temasek at only $3.3 billion. (Leong Sze Hian)  And weren’t the 3 power generation plants which Temasek sold for about $12 billion also transferred during another Great Singapore Sale?  What about Singapore Airlines, Singapore Power, PSA, Singtel, etc?)

Without the transfer of state assets at ridiculously-low prices, Temasek could not have achieved double-digit, long-term returns.

It is precisely to conceal this fact that transparency will never see daylight at Temasek.  Or Singaporeans would discover that its stratospheric returns are all BS.

What do you think?

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

**
In 2000, the government tried to paint POSB as a failure in Parliament to justify merger with DBS at $1.6 billion. “Ministerial Statement on Bank Charges by DBS/POSBank

 

 

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22 Responses to “PAP’s transfer of state assets at lelong prices enabled Temasek to achieve high historical returns”

  • PAP has the mandate:

    Corruption has no boundary for PAP government.

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  • patriot of Temesak:

    The self PROCLAIMED aristroFatCATS will always be the Pinnacle that exploits the silly base of sheep Bleating”YesSir!!! we are FOOLS!!!”

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  • Calling A Deer A Horse:

    This is what happened when you have a husband and wife team heading our SWFs, ignoring conflict of interest.

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  • Bapak:

    Isn’t such practise also corrupt?

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  • 鸟龙的人:

    应该是POSB收購DBS
    变成DBS收購POSB
    王鼎昌说从来不知道鎖匙在哪里
    不听话,结果白衣气死白衣

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  • C'est la vie:

    *****
    Not forgetting, all members of the Board are duly “bonused” when Temasek “does” well, and this invariably includes the 2 biggest conniving crooks in SG, comprising a husband and his engineer wife.

    Anywhere else, and they would have been tarred, scalped, branded, stripped and banished !!!
    ***
    *****

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  • FBI:

    Now Indian happiest. Drawing 20 mullions a year in DBS. What has he contributed.!!?

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  • pap selected INDIAN president:


    What do you think?

    BY definition, taking someone else’s asset without requisite compensation or requisite permission is THEFT.

    what do we think?

    WE think it is legalized THEFT. all made to LOOK legal for show but in their heart of hearts they know they are doing things illegally.

    NEED new government to do the check and balance to find out exactly the degree of rot as it exists. SAD. because of 70% sheep we continue to live with thieves who thieve in broad daylight.

    ++++++++++++++++++++++++++++++++++++++++++++++
    ic says INDIAN. because papa is INDIAN and mendaki says INDIAN. but pap says malay. who is right?
    ++++++++++++++++++++++++++++++++++++++++++++++

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  • rukidding:

    Dafts will forever remain as Dafts !

    Think about it ?….why do someone who needs your support every 5 years “dares” call you a Daft ????

    Take a look around you and what kind of people do you see more “mingling” amongst you ????

    True, sincere people who truly wants to “set roots” here ?…or actually,..loys of “fake people” who have “back doors”to “take flight” once “the benefits end”…and are really “having left leg on one boat…and a right leg on another” ????

    Are “they” here to “spend”??? …or are “they” here to “suck and compete”?

    Is your life getting any better ?..your “income” and “purchasing power” any better ?re your “Leeder’s income”….”justified”??…have “they” being “doing a real good job” ????

    Mybem,,,its time to get a “New broom” ???

    A New broom sweeps clean, …is cheaper these days….has better qualities ….make of new materials and technology ….as opposed to the “old ,outdated”…yet..”bloody expensive”….and “cannot help clean,anything”…except good for “display” !

    Why , buy “faked, lousy branded goods which our forefathers used to trust but you know its quality has deteriorated and replaced by cheap. fuckup material ?

    Yjme to make a FIRM DECISION and CHANGE BRAND !

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  • LIONS:

    POSB rescued DBS BANK,the Damn Bloody Stoopid Bank in late 1990s.Poor man’s money to help RICH MAN’s bank???.

    Now,filled with FAKE FTs after KOH BOON HWEE farked the loyal sgs staff n put peenoise n indians there.

    Another PAP classic.
    Screw own citizens.

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  • Samuel S:

    Whenever this government did we have no right to question and when Temasek makes money it again will not channel to her citizens. But when it looses the government will increase taxes to her countrymen to soften the blow to TH.

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  • oxygen:

    SO DOES THAT MEAN THAT THE MUCH-BOASTED 16% COMPOUNDED RATE of return achieved by Temasek Holdings since inception is just decades of FAKE NEWS publishing and public-mind brainwashing?

    And now PAPpys is worried about the dangers of fake news publishing and dissemination?

    How convenient of political expediency?

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  • that is why!:

    That’s why by hook or by crook have to get TCB out of the way in the presidential election!!…otherwise all the skeletons will fall off one by one from the closets!!

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  • MarBowling:

    DBS was sinking fast. The MM(MasteMind) who had one hand that covered the whole sky, engineered the swallowing up of POSB when it was announced in Parliament that POSB on its own would not be able to survive in the commercial environment and therefore needed to be merged with DBS, one of the commercial bank!

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  • Edwintan:

    This is not the platform to write all this stuff… if have proof, go to CPIB lah

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  • oxygen:

    @ Edwintan

    YOU SHOULD TELL THAT to President Ong Teng Cheong. He as 2nd key custodial authority protested against “irregularities”, didn’t he?

    Edwintan: This is not the platform to write all this stuff… if have proof, go to CPIB lah

    Or you could do that yourself now, if you deem there is the appropriate avenue and if this discourse platform in your opinion is inappropriate forum for public information and exchange of views.

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  • Unresolved Grievances:

    Wah seh. Got balls. How many Ang Moh MNC people working put POSB? Ang Moh must be ultimate goondus. British approve the swoop, than what political coward? No need President? Like that do it? CPIB sleeping? And the President later than know? Wah seh. Such thing also can command and control within government. PAP vs PAP. No need vote PAP already. Opposition also no need vote. Ong Teng Cheong President so? Vote what PAP or opposition? President also dunno and can just do it? Where is Tan Cheng Bock, Tan Kin Lian, Tan Jee Say or any opposition?

    https://www.theonlinecitizen.com/2014/02/08/ong-teng-cheong-i-had-a-job-to-do/
    Wah seh. Still got Strike. Got MRT. All bus system than stop at red line and green line. Why build other line?

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  • Robert Kennedy Jr. says:

    We do not have free market capitalism in America; we have crony capitalism. There is a huge difference between free market capitalism that democratizes a country and makes us more efficient and prosperous
    versus corporate crony capitalism.

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  • Mystery:

    The sale of POSB is the Mystery that started everything. Our reserves, CPF, TH and GIC are all intricately connected.

    Ong Teng Cheong, job as President to protect the reserves was bypassed.
    Roy Ngerng who publicize the link between CPF, and MAS, GIC, TH got sued until pants drop.
    Tan Cheng Bock was made ineligible via Reserved Election after narrowly lost to Tony Tan.

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  • oxygen:

    @ Mystery

    MONEY IS FUNGIBLE, more so in hidden hands COMPLETELY WRAPPED UP IN OPACITY – and PAPpys now wants to legislate “FAKE NEWS”, can Sinkies believe this?

    Where is the residual ‘GENUINE NEWS”?

    Mystery: The sale of POSB is the Mystery that started everything. Our reserves, CPF, TH and GIC are all intricately connected.

    Ong Teng Cheong, job as President to protect the reserves was bypassed.
    Roy Ngerng who publicize the link between CPF, and MAS, GIC, TH got sued until pants drop.
    Tan Cheng Bock was made ineligible via Reserved Election after narrowly lost to Tony Tan.

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  • Rudder Truth:

    Bottom line is corruption.

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  • TRE More Honest Than Clown:

    Edwintan:
    This is not the platform to write all this stuff… if have proof, go to CPIB lah

    This place is better than everything else. More attention is paid here than under the table.

    GD Star Rating
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