The Prime Ministers Better Half

THE PRIME MINISTER’S POWERFUL BETTER HALF

Introduction

Temasek Holdings is a Singapore-based investment company with over US$100 billion in assets, including shares and investments in a wide range of industries worldwide. It is owned by the government of Singapore and the prime minister of Singapore, Lee Hsien Loong, has a supervisory role over the company. Although there were accusations of nepotism when Ho Ching, the prime minister’s wife, joined the company in 2002 (at the time her husband was the Finance Minister of Singapore and her father-in-law the legendary former Prime Minister of Singapore, Lee Kuan Yew), Temasek Chairman Dhanabalan told Businessweek: “I got her not because of her political connections but because of her competence and record” (Thomas White International 2010).

Ho Ching has proved to be a formidable leader who transformed Temasek’s inner structure as well as its international profile. In 2002 the company’s investment portfolio was domestically-based and comprised mainly government-linked companies. Under her leadership, the company revised its investment strategy and took bold steps (in Asia and then further afield) through cultural diversification, a global outlook and transparent policies. From a company which employed mainly Singaporeans in 2002, Temasek’s staff included people from 22 different countries and the company had a senior management team that was 40% non-Singaporean in 2007 (Thomas White International 2010). The company’s portfolio grew exponentially during her leadership and Temasek transformed from being a largely domestic investment company in 2002 to a global-oriented investment house. “Thanks to Ho Ching’s deal-making, the net value of Temasek’s portfolio grew 27% to US$108 billion in 2010 from US$80 billion the previous year. ‘ This is the first time that Temasek’s portfolio has crossed the US$100 billion mark,’ the company said in a statement. Temasek reports a healthy 17% yearly compounded rate of return to its...