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SINGAPORE: Singapore investment firm Temasek Holdings has no deadline to find a new successor to replace CEO Ho Ching.
Replying to questions in Parliament, Finance Minister Tharman Shanmugaratnam said the government will leave the decision to Temasek. But he added the CEO should ideally be a Singaporean.
In February, American Charles Goodyear was appointed to take over as Temasek's CEO. Five months later, it was announced this would not happen, with strategic differences cited as the reason.
Just what these differences were and how they emerged were among the hot topics raised in Parliament on Tuesday.
Mr Tharman said: "People do want to know. There's curiosity. It is a matter of public interest. But that is not sufficient reason to disclose information. I understand the interest, but it serves no strategic purpose."
For nearly 20 minutes, MPs raised questions pertaining to Temasek, including whether it should be headed by a foreigner.
Lim Biow Chuan, MP for Marine Parade GRC, asked: "Would the government not think that a Singaporean CEO would be in a better position to share Temasek's values with respect to Singapore's, and that the local CEO would be more aligned with Temasek's long-term orientation?"
Replying, Mr Tharman said: "Ideally, we should have a Singaporean as a CEO. You really want someone as CEO and you want enough people on the board with direct experience of managing global operations, ideally not just the operations of an investment company, but someone having operating experience.
"The ideal is not always possible. And quite frankly the field at any point in time is always narrow among Singaporeans as well as among foreigners."
Mr Tharman also said it is critical that the Temasek board remains in the control of Singaporeans. Temasek is independent of the government and it has to be accountable to deliver good sustainable returns on its investment.
Going forward, Mr Tharman said the search for a new CEO continues in line with Temasek's processes for succession planning. He reiterated that the government does not directly manage the process, as to do so would make the appointment of the CEO a political decision.
Responding to another question, Mr Tharman said Mr Goodyear had not received any severance or goodwill payments as a result of his premature departure.
But concerns linger on whether privileged information will be leaked.
Low Thia Khiang, MP for Hougang, said: "We now have a foreigner who has actually gone deep enough into the company, with probably inside information or even state secrets. So how does the government ensure that Mr Goodyear will not divulge such information?"
Mr Tharman replied: "The main thing that we're very guarded about is the size of our reserves, not Temasek's assets because that's fully published. But the size of our GIC (Government of Singapore Investment Corporation) assets is not published. And that would not have been accessible to Mr Goodyear or to other senior management in Temasek.
"So, there is not much information that is critical to government that is within Temasek's fold. But there's proprietary information. Had Mr Goodyear stayed on for a few years he would have had the same proprietary information, as with other senior management."
Mr Tharman added that there is no push factor for current CEO Ms Ho Ching to step down.
- CNA/yb/ir
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