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.