Extraordinary Endeavors in Turbulent Times: Asian Innovation, Inclusion, and Impact during COVID-19

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 6 8 Temasek (Singapore) Extraordinary Endeavors in Turbulent Times that there would be hard times ahead. The top management knew that belt- tightening would be necessary for their businesses to survive and for jobs to be protected. So the C-suite, with the support of their boards, decided on voluntary wage cuts for themselves so that they would have the moral authority to introduce tough measures when needed. What followed was a strong sign of Temasek’s solidarity with its portfolio companies. On February 21, Temasek’s senior management decided on voluntary wage cuts of up to 15 percent of their annual salaries. The most senior executives took the deepest cuts, while the less senior took lesser cuts. The rank and file did not have their wages cut. The total salary forfeited was matched dollar for dollar by the company, and the funds were set aside for public health resilience initiatives. Temasek board direc- tors also donated to this fund, and a total of S$20 million ($15 million) was raised. Soon, government ministers in Singapore also took pay cuts, as did the management of several other leading companies in the city-state. In Lim’s words, “Over the years, we have developed this understanding that when the country faces a crisis, leaders will set the example of belt-tightening.” Investment Expertise and Diverse Networks Indeed, it was together with its portfolio companies and the broader community that Temasek faced the COVID-19 crisis. Temasek Holdings and its philanthropic arm Temasek Foundation engaged in a whole array of initiatives, ranging from the distribution of free hand sanitizers to all households in Singapore; to developing food aid programs for vulnerable and disadvantaged groups affected by the crisis; to providing test kits, surgical masks, and specialized oxygen-related treatment equipment to some 35 countries around the world. But it is Temasek’s medical initiatives that fully demonstrate its agility, resourcefulness, and innovation, and attest to its role as one of the most sophisticated government-owned investors in the world. As Fidah Alsagoff, a physician by training and the Head of Life Sciences, and Joint Head, Enterprise Development, at Temasek reflects, just as there was a global shortage of swabs, testing equipment, masks, and more, Temasek brought together academics, local enterprises, and regulators to “dig deep and find solutions” that would potentially prevent virus transmission and enhance diagnostics and treatment. Notably, while Temasek is an investment giant with a S$306 billion ($214 billion) portfolio, the collaboration with small and medium enterprises (SMEs) was a recurring theme in its initiatives to alleviate the public health crisis. In cases of What followed was a strong sign of Temasek’s solidarity with its portfolio companies. On 21 February, Temasek’s senior management decided on voluntary wage cuts of up to 15 percent of their annual salary. The most senior executives took the deepest cuts, while the less senior took lesser cuts. The rank and file did not have wage cuts.