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SINGAPORE: Analysts said Temasek's decision to update its charter is a timely one, given the changes in the global economic environment over the past seven years.
They also believe the refining of the charter will help set Temasek apart from other sovereign wealth funds which are controlled by their respective governments.
The global economy in 2002, when the Temasek Charter was introduced, was very different from today's.
Asia was recovering from the effects of both the 1997 Asian Financial Crisis and the collapse of the Internet bubble in 2000.
Annie Koh, dean, Executive & Professional Education, Singapore Management University, said: "The charter then was very much helping our local companies grow, so Temasek was taking stakes in CapitaLand, DBS, all home-based companies to ensure self-sustainability.
"2009 - it's after a big mess in the world. And people are starting to say, what is Temasek's stand? And to be consistent they still believe in growing companies. But it may not involve just local companies alone.
"Temasek clarifies that they are an asset management company which to me is great, because it's not just a sovereign wealth fund. They do not shroud themselves in mystery, they are very open."
Kai-Alexander Schlevogt, associate professor of Management Practice, NUS Business School, said: "I think it's a very good sign that Temasek continuously updates its charter. It shows its flexibility in adjusting to changing market conditions.
"What I especially appreciate about the new charter is the emphasis on commercial principles and a very clear statement about how Temasek actually involves itself in the companies."
Temasek is widely regarded as a sovereign wealth fund, but the charter also clarifies that as an asset management company, it is driven by commercial principles.
Ho Ching, CEO, Temasek, said: "As we invest internationally and regionally, we just want to introduce ourselves and make it clear. One reason for making it clear is that in most places, people will tend to look at you through the lens of their own experience.
"In many countries, if you're owned by the government, you are directed by the government or the politicians. In this case, we are not."
Another area observers found interesting was Temasek's statement on corporate citizenship. SMU said this is an area many companies are focusing on today and Temasek should rightly seek to contribute to the society it is investing in.
However, NUS Business School's Professor Kai said he would have liked more detail on the charter, for example, the process by which it is designed.
Mr Schlevogt said: "In the future, it could be nice if we knew who participated in drafting the charter. I would suggest that the stakeholders are actively involved in drafting the charter. We want to leverage the diversity of stakeholders, incorporate different objectives. That's why we need to know who's involved. This is a sign of transparency.
"At the end of the day, it's the leadership of Temasek and the shareholder in the first place - the Ministry of Finance. But other stakeholders like employees, and the broader community should be involved as well." - CNA/vm
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