SINGAPORE TELECOM VENDOR SHARES (Funds received by Temasek Holdings Pte Ltd)

Mr Robert Chua Teck Chew asked the Minister for Finance, as a result of the successful sales of Singapore Telecom Vendor Shares by Temasek Holdings Pte Ltd to the public, (a) how much was received by Temasek Holdings; (b) how much of the funds received was derived from Central Provident Fund members' accounts; and (c) how does Temasek Holdings intend to invest such funds and what is the expected range of returns on such investments.

Mr Robert Chua Teck Chew: Sir, before I ask Question No. 4, I would like to declare that I am a director of ECICS Holdings and IFS which are subsidiaries of Temasek Holdings. Question No. 4, Sir.

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, the net proceeds from Singapore Telecom's initial public offer was about $4 billion.

The amount withdrawn from CPF members' accounts to purchase Singapore Telecom shares was about $2.18 billion.

The funds will be reinvested. How this will be done will depend, among other things, on what investment opportunities are available. The expected returns will depend on the nature of the investment, as well as the economic and market conditions prevailing at that time.