Singapore feels heat on economic agenda Temasek faces claims that political motives lie behind investments, and Thai moves against it are raising the pressure, writes John Burton LONDON 1ST EDITION

Mounting efforts by Thailand's government to reduce Temasek's stake in Shin Corp, the telecoms group, have raised the regional political pressure on Singapore and Temasek to a new level. The stake was bought last year from the family of Thaksin Shinawatra, the prime minister ousted by Thai...

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Bibliographic Details
Published inThe Financial times (London ed.)
Main Author JOHN AGLIONBY, JOHN BURTON and AMY KAZMIN
Format Newspaper Article
LanguageEnglish
Published London (UK) The Financial Times Limited 24.01.2007
Subjects
Labor unions
Prime ministers
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Summary:Mounting efforts by Thailand's government to reduce Temasek's stake in Shin Corp, the telecoms group, have raised the regional political pressure on Singapore and Temasek to a new level. The stake was bought last year from the family of Thaksin Shinawatra, the prime minister ousted by Thailand's current military rulers. Temasek would not comment on whether the controversy it faces in south-east Asia would affect its future strategy in the region. However, Manu Bhaskaran, the Singapore representative of US-based Centennial Group and a director of several Temasek-linked companies, said: "The bottom line is that Temasek will continue to make investments anywhere if the financial targets it has set are met." the problems in Thailand illustrate how political factors can influence Temasek's financial performance. The tax-free sale of Shin Corp to Temasek a year ago by Mr Thaksin's family drew protests that eventually ended in the prime minister's overthrow in September's military coup. The new military rulers argue that Temasek violated foreign ownership rules by acquiring a majority stake in Shin Corp using proxies. They want Temasek's stake reduced to 49 per cent.
ISSN:0307-1766