(A) the government does not interfere in enterprise decision-making.
Temasek enterprises can thrive because the government deliberately implements the policy of inaction and does not interfere in the decision-making of these companies in operation or business. As the competent department of Temasek, the Ministry of Finance of Singapore is a 100% shareholder, but its role in the governance framework of Temasek is very limited: appointing the chairman, directors and general manager of Temasek Holdings; Review the annual financial report submitted by Temasek Holdings; Convene a meeting of Temasek Holdings or its subsidiaries to discuss the company's performance and plans. In addition, the Ministry of Finance will only intervene when there are problems that affect Temasek's acquisition and sale of shares in affiliated companies. Although there are still four government officials (the other six are private enterprises) among the board members of 10, the directors who are government civil servants work part-time and have no part-time salary, but the salary is still paid by the government. In investment decision-making, government civil servants represent the interests of government investment and pay more attention to national macro-justice factors, while the other six private entrepreneurs ensure the operational efficiency of enterprises in market competition.
(2) The holding mode of inaction.
In terms of corporate governance, Temasek Holdings has always maintained a "limbo" relationship with its political alliance companies as an "active shareholder". On the one hand, Temasek reflects its business direction by holding shares or selling shares. On the other hand, Temasek, as a shareholder, actively participates in the governance of its wholly-owned and holding enterprises, that is, sends its executives to the board of directors of its companies to participate in decision-making. Temasek deliberately avoids participating in the daily operations and business decisions of various companies, so that Temasek's enterprises can conduct business in full accordance with correct business principles. Temasek will focus on the macro work of establishing enterprise values, core business, cultivating talents, formulating strategic development goals and striving for lasting profit growth. Self-discipline and inaction ensure the continuous development and growth of Temasek's enterprises. In order to ensure the realization and expansion of shareholders' interests, Temasek takes profitability as the standard in project selection and capital investment decision. Therefore, any investment project must be evaluated in advance, and if it cannot be profitable, it will not be considered. If it is really needed by the country, the company will accept the request from the relevant government departments, and the government must compensate the company without losing money.
(C) a sound manager market
Temasek's manager selection is not only completely divorced from the government, but also has a perfect manager market, and the investment and management team it needs can be obtained through international search. For these excellent professional managers, Temasek has established a compensation and welfare plan that "makes the interests of management consistent with creating value for shareholders", thus encouraging more than 200 Temasek investment teams, who are only about 35 years old every year, to find and capture possible huge wealth opportunities on a global scale.