GST increase also due to reserves used for Temasek-linked companies’ ‘growth’

I refer to “Surbana Jurong guns for S$3.8b in fees in 3-5 years; eyes two architectural firms”. BT

Singaporeans should be deeply concerned because Surbana Jurong (SJ), a Temasek-linked company, believes in throwing billions in reserves at acquisitions to ‘grow’.

SJ is not an exception as many TLCs use the throw-money-and-hope-for-the-best investment model.

Where non-GLCs aim to improve the bottom line for shareholders, SJ has a unique objective: increase revenue to become the top few architectural outfits in the world.

BT on SJ’s revenue objective: “Still on a prowl for more acquisitions … is now aiming for S$3.8 billion in revenue a more-than-doubling of revenue from S$1.5 billion as at end-2017.”

In 2015, revenue was only $500 million.

CEO Wong Heang Fine is also proud to let Singaporeans know that SJ’s other aim is to increase foreigner headcount: “.. aiming for 20,000 employees globally in the next three to five years .. a jump in staff strength from more than 13,500 employees currently …”.

In 2015, SJ had only 4000 employees.

So, after increasing both revenue and headcount by more than 300%, has SJ become more profitable?

CEO Wong’s absurd reply:

SJ has embarked on a multi-billion dollar plan to “form a specialised unit called SJ Capital by the third quarter .. invest seed money into infrastructural projects …”.

According to SJ, “The seed money will come from Surbana Jurong and its parent firm Temasek Holdings.”

Rest assured, billions will come from Temasek’s reserves, ie Singaporeans.

It should be clear that PAP has not been forced to raise GST: it has prioritised GLCs’ ‘growth’ above Singaporeans’ well being.  Bear in mind that infrastructure projects are capital intensive and don’t earn returns for years, if not a decade.  Not to mention they may even result in losses.

In its hurry to be placed among the top few architectural firms in the world, SJ appears to have overpaid for acquisitions.

For example, although Australian company SMEC was valued at a “fair value” of “$1.62 to $1.83 by SJ’s appointed valuer, SJ still paid a premium above the highest fair value, ie paid $1.90 in cash for each SMEC share.  Perhaps SJ was so generous because it was paying with Ah Kong’s money?

SMEC shareholders were naturally ecstatic, as reported in the Australian media:

As usual, some facts were conveniently left out in our local media: SMEC’s net debt had increased from $31 million to $56.6 million in March 2016, 6 months earlier.

And why did SJ acquire a company which it had known was under investigation by “the Australian Federal Police for alleged foreign bribery”.  (Sounds familiar?)

No thanks to its stupidity, SMEC’s profitability was impacted by a ban only a year after SJ’s acquisition.

ABC News

Of course SJ is not the only TLC to have overpaid for foreign assets.

At the rate TLCs burn cash to expand and create fake growth, PAP will perpetually need to hoard increasing amounts of reserves.

No wonder PAP needed to burden citizens with another GST hike and all sorts of cost increases.

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

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17 Responses to “GST increase also due to reserves used for Temasek-linked companies’ ‘growth’”

  • patriot of Temesak:

    Remember ABC kindergarten??? the JINX paid $400Million for a kindergarten going BellyUp…And TRUE to FORM it went BELLY-UP after Temesak and the JINX took over…

    There is a COST of having a Dynasty of Evil Bastards playing with our Lives and Money!!!

    AND… the SHIT will HIT the CEILING FAN sooner than you “THINK” that is if the silly stoopid sheep can “THINK”

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  • vincent tan:

    temasek did throw and still throwing good millions at
    GRAB and UBER…
    do national service supporting COE by any how bidding.
    enjoy the eternal discounts rides while it last , sinkies

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  • rukidding:

    I am a Singaporean,…and I actually believe that most Singaporeans are “Daft”.

    I also believe that many are “timid” and “ball-less” and are being “bullied” by own fellow Singaporeans coming ( mostly from the 70% group).

    I also believe that these people from that 70% are also the same group of people that are “using” cheap. foreign labors .

    I also believe that when “trouble” comes…these same group of people will either “flee” away from this place…or “expect others” to “clean up” their “shits”

    When “confonted” and “cornered”…these group of people will use “Law and Lawyers” to “threaten” or “drained your resources till you ownself giveup” !

    You wonder,…why do we do NS for ?

    Protect who ???

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  • LuHsien Lwong:

    Phillip is not wrong neither is G not being truthful about GST. It’s just about them not telling us everything.

    GST to them also means Government Supports Temasek but we just keep thinking only of Goods and Service Tax.

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  • LIONS:

    GST= GLCs’ Squandering Tax.
    Tax poor sgs to fill BIG HOLE$ dug by CHING HO.

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  • Tikam tikam enterprises:

    What’s next?

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  • opposition dude:

    The jigsaw pieces are all there for the dafts to assemble and to see the picture but all they do is grumble and vote PAP. Alas.

    Something is definitely wrong when water increases by 30% followed by GST a few years later. All this on top of a $9.6 billion budget surplus!

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  • HarderTruths:

    rukidding:
    I am a Singaporean,…and I actually believe that most Singaporeans are “Daft”.

    I also believe that many are “timid” and “ball-less” and are being “bullied” by own fellow Singaporeans coming ( mostly from the 70% group).

    I also believe that these people from that 70% are also the same group of people that are “using” cheap. foreign labors .

    I also believe that when “trouble” comes…these same group of people will either “flee” away from this place…or “expect others” to “clean up” their “shits”

    When “confonted” and “cornered”…these group of people will use “Law and Lawyers” to “threaten” or “drained your resources till you ownself giveup” !

    You wonder,…why do we do NS for ?

    Protect who ???

    Fully agree with you. $G locals have been, are and will be hopeless and always be third-class citizens.

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  • who r you to criticize the PAP:

    “Multi-million-dollar payday for SMEC investors after Surbana sale. A big thank you to Singapore taxpayers for your generosity and making us multimillionaires”

    Philip Ang:

    For example, although Australian company SMEC was valued at a “fair value” of “$1.62 to $1.83 by SJ’s appointed valuer, SJ still paid a premium above the highest fair value, ie paid $1.90 in cash for each SMEC share. Perhaps SJ was so generous because it was paying with Ah Kong’s money?

    SMEC shareholders were naturally ecstatic, as reported in the Australian media:

    “Multi-million-dollar payday for SMEC investors after Surbana sale. A big thank you to Singapore taxpayers for your generosity and making us multimillionaires”

    As usual, some facts were conveniently left out in our local media: SMEC’s net debt had increased from $31 million to $56.6 million in March 2016, 6 months earlier.

    And why did SJ acquire a company which it had known was under investigation by “the Australian Federal Police for alleged foreign bribery”. (Sounds familiar?)

    No thanks to its stupidity, SMEC’s profitability was impacted by a ban only a year after SJ’s acquisition.

    Philip Ang, who are you to criticize the PAP? They are all top scholars. They all excelled in the exams. That’s good enough. That’s how brilliant the PAP is.

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  • Change We Must:

    Temasak lost all our chips and they need more chips from us.

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  • PAP.Guarantee.Win.GE2020:

    who r you to criticize the PAP:
    Philip Ang, who are you to criticize the PAP? They are all top scholars. They all excelled in the exams. That’s good enough. That’s how brilliant the PAP is.

    Exactly, exactly.

    Philip and readers here are full of jealousy that they are no match for PAP academics achievement. Bunch of Sour grapes.

    Please support PAP 99 campaign.
    - We 70% PAP supporters want 9% GST hike for all Singaporeans.
    - We 70% PAP supporters want 9% pay increment for Ministers, MPs and Civil Servants.
    - We 70% PAP supporters want Singapore to be a cheaper, better, faster economy.

    Readers beware: Opposition will crash Singapore. Watch this video clip.
    https://www.youtube.com/watch?v=PTmgwX8taQQ

    Many investors are now quitting Taiwan. Taiwan economy will crash soon. It is a matter of time.

    WP.Guarantee.Lose.Aljunied-Hougang.GE2020
    GE2020.PAP.Guarantee.Win.All
    Majullah $PAP$ $PAP$ Huat Huat Huat

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  • oxygen:

    @ Who r you to criticize PAP

    YOU IDIOT LITTLE FART OF DESSICATED COCONUT, if by now you don’t know the answer

    who r you to criticize the PAP: Philip Ang, who are you to criticize the PAP? They are all top scholars. They all excelled in the exams. That’s good enough. That’s how brilliant the PAP is.

    This is what Janil Puthucheary PAP MP said of “fake news” (criticism of PAP)

    Janil Puthucheary: It is in Singapore’s interest to have a robust polity, a robust civic discourse and engagement with the world,”

    https://www.bloomberg.com/news/articles/2018-03-13/singapore-to-fight-fake-news-with-same-approach-as-illicit-drugs

    @ PAP.Guarantee>win.GE2020, you are the dumbest rubber tapper from Bolehland.

    You don’t even know the difference between stock market indices and economy claiming that economies climbing to new heights. Plenty of MORONS like you exists in the PAPpy tribe.

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  • Ah Peng Kia:

    Readers beware: Opposition will crash Singapore. Watch this video clip.
    https://www.youtube.com/watch?v=PTmgwX8taQQ

    Many investors are now quitting Taiwan. Taiwan economy will crash soon. It is a matter of time.

    WP.Guarantee.Lose.Aljunied-Hougang.GE2020
    GE2020.PAP.Guarantee.Win.All
    Majullah $PAP$ $PAP$ Huat Huat Huat

    Haha, what an apt video you attached. Looks to me that PAP is the one that is doing damage from both ends – squandering money on bad investments and poor infrastructure decisions, and behaving like school yard bullies in Parliament. Short of throwing chairs and punches, they have certainly laid bare their inadequacies for the world to see.

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  • Wow, billions garbage:

    Are u saying Gorilla is on the prowl again. No wonder it needs to have 4to serve instead of the LPG highky honored for overslept when he was supoosed to prepared for his Gorilla acts of swinging om wire. No wonder Grace is living up to her ancestral name and has betrayed her sinners sakvager times and times again. Tharman must be on pins now and quivering just to be throat gripped by the gorilla AD llSzewang. Will Sylvia divinely annointed to put Gorilla away?

    Another plp clearance. No trust kopiau. Too many kopiau causing sleepless nites and sliding creature bad dreams

    GD Star Rating
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  • HarderTruths:

    We have all been paying fro this crap with our longest working hours in the world and no life other than a pappy slave.

    Get out now.

    GD Star Rating
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  • 沒天灾多人祸的星岛:

    星岛是天賜無天灾,然而何耒这样冥和怨气?
    苛政由沒惱而貪又自已为是的自政造成百千万政富所造成旳人祸!
    公民从恩公变成糞土,除非化成屁虫公具!
    苛政由㳘氓手流击。双眼尽被纸金完全盖住。
    东拿西抓变成弟四代的流氓风度。越抓越狂。
    糞土可会長芽的。贪是罪恶之首,何得天佑呢。
    古言告示,不是沒報,是时间沒到!
    只因坏得佑,所以造成人祸多!
    耶说,我耒救罪恶之徒,所以有人祸吗?
    佛说,放下屠刀,立地成佛。所以人才拿起屠刀才能放下吗?
    所以啊,苦民怒说几千年还在説呢
    好人沒好報。坏人吗,不是沒坏報是肘间沒到只好發击好報。
    真是天理或是苛政謊言呢?
    你们说说看!

    GD Star Rating
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  • Beyond comprehension:

    Do netizens wonder why is it that most Asian political leaders are only persecuted after they lost power and not during their reign over the country unlike the west where most are persecuted while they are still in office and seldom after they are no longer in power. Is it because of a greater prevalence of plpism in Asian countries than in the West although they have in their dictionary words meaning the same as plp, the hokkien version. The Americans equivalent is brownnosing where they emphasize their disgust with the stink associated with the color. The Britons like to emphasize their atas gentlemamship and called these plp as boolickers suspiciously associated with the kowtow symbolic deprivation. The not so gentleman versions are cork suckers, ball carriers much closer relatives to hokkien plp. Chinese in general used an equivalent similar to the Americans ie fiack worms 屁虫。

    Nevertheless the definition and characterization are similar regardless of the emphasis. They are bereft of human values, spineless which universally one can only sustain their human values if their spine is intact. Professionals once a plp has completely dumped their professionalism into the sewer and are the most dangerous kind to the human race. Just imagine a legal professional succumbing to become a plp, would there be what humo sapiens know and treasure as JUSTICE. What if an engineer becoming a plp, many deads will remain as 寃魂野鬼!while the culprit is at large with their millions saved from materials, design and operationals. What when a medical practioner is a plp, one may die with obituary expressed gratitude from relatives instead of knowing the truth and securing justice.

    Is that why there is really no equivalent in the west to the 5000 years civilization word jian (賎). Strange that only the west and not the east that singers lament about “When will they ever learn?”

    Well netizens what say ya?

    GD Star Rating
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