Singapore's Temasek mulls regional network
Singapore's Temasek mulls regional network
Associated Press, Singapore
Temasek Holdings, the Singapore government's investment arm, said on Monday it may try to create a pan-regional banking network by unifying its disparate set of bank assets.
The remark came as South Korean regulators said they were set to approve Temasek's move to increase its holding in that country's Hana Bank to 10 percent from 3.6 percent.
"If there's an opportunity for us to somehow put all these banking investments into a some sort of a banking network, which will help us to derive returns and value, we don't see why not," said Temasek spokeswoman Eva Ho.
But Ho stressed the plan was long-term, and noted that some of Temasek's bank holdings - including its South Korean interests - were minority stakes.
Temasek holds 28 percent of Singapore-based DBS Bank, one of only three major domestic lenders in the country. DBS has banking interests in Hong Kong and Thailand.
The investment arm has majority stakes in Bank Danamon Indonesia and Bank Internasional Indonesia, plus Hana Bank, South Korea's fourth largest. It also has a small holding in an Indian bank.
Temasek is also bidding for a Singapore property company, United Overseas Land, which holds 4 percent of DBS' main local rival, United Overseas Bank.
Backed by the government's authority and funds, Temasek aims to build up businesses that bolster the development of Singapore's trade-dependent economy.
Temasek Holding has long concentrated on its home turf, growing some of this country's top companies, such as Singapore Airlines and Singapore Telecommunications.
However, in the past two years Temasek's mission - under the stewardship of Executive Director Ho Ching - has been broadened to include promoting regional businesses.
Ho is married to Deputy Prime Minister Lee Hsien Loong, the son of Singapore's founding father, Lee Kuan Yew. The younger Lee is slated to replace current premier Goh Chok Tong in the coming months.
Lee the younger is also Singapore's finance minister and head of the local central bank. Officials routinely dismiss claims that Lee's family members are unduly favored in the city-state.