ABSTRACT

The creation of Temasek is closely linked to the history and structure of the Singapore economy and the role of the state in economic development. It is important to know that the core of the Singapore economic system was formed in response to numerous political and economic challenges. The government even set up enterprises in competition with the private sector. Besides being the exclusive provider of infrastructure and social services, as are many other governments, the Singapore government engaged in direct production. During the 1985-86 recession, which was due in part to high wages in the exports sector and the reduced demand for electronic products, the Singapore dollar also came under speculative pressure. Temasek also shifted its focus from Western markets to Asian and emerging markets and increased its investment in real estate, transportation, and logistics sectors.