20151220 Should Temasek continue to use billion$ for speculation?

Singaporeans have been misled but should have known by now that our reserves are being used for speculation. Sadly, this appears to be none of Parliament’s business.

Billion-dollar speculation risks the loss of reserves accumulated over decades. If our state’s coffers are filled to the brim, it should prioritise social spending over speculation.

Billion-dollar investments, which have seen a spike in recent years, may also suggest that our SWFs are desperately trying to generate higher returns to make up for previous investment losses. This is just my humble take and our SWF’s servants would do well to clarify in no uncertain terms, ie be totally transparent. This is not a request for any favour: it is every citizen’s right to demand transparency from Temasek.

Our recent investments in Alibaba confirms ongoing casino-like activity involving billion$. Will Alibaba investment become Ali-byebye?

Alibaba or soon to be Ali-byebye?

Chart @ FT.com

Shortly after its IPO, 1Q 2015 saw about S$5 billion pumped into Alibaba, followed by more than S$400 million in the following quarter. When the market tanked in 3Q 2015, Temasek took a hit on 8.8 million shares.

Suddenly, long term = short term? Are we supposed to believe this is another portfolio adjustment or perhaps, closer to the truth, our hedge funds are taking extremely high risks?

Singaporeans have been repeatedly told our reserves are prudently invested and our little red dot needs to perpetually save for a by-the-time-we-are-dead rainy day. In reality, our reserves are also used for extremely risky, billion-dollar bets in the global ‘casino’.

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