Public interest

WHILE many observers agree that the Government's reply was inadequate, the question remains: How much information should it reveal?

It boils down to what 'public interest' - a term used by Mr Tharman in his parliamentary reply - means when it comes to Temasek.

Should it be taken to mean that it is the Government's duty to disclose information unless such disclosures compromise national security?

Or is it just public curiosity - which can be ignored?

Most observers believe that viewing Mr Goodyear's exit as a matter of public interest in the first sense would be 'overstating' its importance.

Leadership changes are commonplace in corporations and Temasek - like any corporation - does not need to elaborate on management decisions, they argue.

There might also be a non-disclosure agreement between Mr Goodyear and Temasek, preventing the investment agency from revealing more.

'It is reasonable for Temasek...to rethink its strategy from time to time and if the new CEO cannot work within that strategy, then there should be a parting of the ways,' notes Mr Edwin Truman from the US-based think-tank, Peterson Institute for International Economics, which studies SWFs.

'I do not think it is necessary or even appropriate for the Government or Temasek to reveal what goes on inside the boardroom.'

Mr David Cohen, an economist at Action Economics, adds: 'Temasek should not be held to any higher standards than other corporate entities. It is managed on commercial considerations which it bases all its decisions on.'

Yet, Temasek is also a different corporate creature because it is involved in growing Singapore's reserves.

Any misstep has political implications, which is reason enough for some observers to believe Temasek and the Government need to open up more and satisfy people's genuine desire for more information - even if it can be construed as public curiosity.

'Temasek is seen as a company that belongs to the Singaporean people. Therefore, the public's heightened sensitivity or interest, even if unnecessary or excessive, has to be understood and appreciated,' says Mr Tan.

In Mr Singh's view, people want to know why the CEO succession process failed because the dearth of answers on Mr Goodyear's resignation is in stark contrast to the deluge of information when Temasek announced in February that he would be its new chief.

'We were told of the thorough process by Temasek's board in selecting the new CEO. Minister Tharman also shared with Parliament how Temasek did the right thing and found the best person for the job,' he notes.

'It is, therefore, to be expected that people want to know what went wrong with the process which was said to be thorough, because we cannot afford to repeat the mistake in the future.'

The vocal backbencher and businessman, who was among four MPs who sought answers in Parliament, suggests that people's trust in the Government may be at stake.

'If this is what we can expect of how Temasek will manage our reserves, then we all need to know what went wrong, if the Government wants to continue to expect Singaporeans to have confidence and full trust in what the Government and its agencies are doing,' he says.

Who wants to know

BUT who exactly are the people demanding answers?

It is tough to pinpoint an exact group or how large it is as interest in Temasek is varied and widespread, note observers.

But one thing they are sure of: What sparks greater public scrutiny in Temasek is usually bad news.

When Temasek reported huge losses due to the global economic crisis, the man in the street became interested as it was viewed as his money lost, notes Mr Singh.

'They were talking about it in the coffee shops,' he says.

But when Mr Goodyear resigned and the reins were handed back to CEO Ho Ching, it aroused the interest of professionals and the business community more than the common folk, he adds.

Some people's interest is also piqued because Ms Hois the wife of Prime Minister Lee Hsien Loong, says Mr Tan.

Just as there was a lot of speculation about why she was leaving Temasek and what she would do next, there is also interest in her staying on and for how long.

'They are all interested in information that can help them make better sense of Temasek,' notes Mr Tan.

'Of course, some of this information may in turn be used to criticise Temasek, the Government and the Lee family for a variety of motives and motivations.'