[Asia Economy Reporter Lee Hyun-woo] Temasek, Singapore's sovereign wealth fund, has reportedly frozen employee wages and asked senior executives to voluntarily return up to 5% of their salaries amid growing concerns over investment losses in China due to the impact of the novel coronavirus (COVID-19) outbreak.
According to Bloomberg on the 25th, Temasek will halt all salary increases, including promotions, for one year starting in April, and senior executives will be required to voluntarily return up to 5% of their salaries. The salary cuts for senior executives will lead to reduced year-end bonuses. This measure is seen as a response to the anticipated significant impact on the Chinese economy due to COVID-19, which has raised concerns over Temasek's investment losses in China. Previously, Temasek also implemented wage freezes during the 2003 SARS (Severe Acute Respiratory Syndrome) outbreak and the 2008 global financial crisis.
Temasek, which is known to manage a total of $224 billion in assets, invests about 26% of its total funds in China. The stock prices of Alibaba, an e-commerce company invested in by Temasek, and Industrial and Commercial Bank of China, the largest bank in China, have been continuously declining this year. Similarly, Singapore Airlines, which has also made large investments, is requesting employees to take voluntary unpaid leave as flight operations have decreased due to the impact of COVID-19.
Meanwhile, Temasek, a state-owned investment company operated by the Singapore government, was established in 1974 by the Singapore government to hold, manage, and invest public equity assets. It operates 11 offices worldwide and employs approximately 800 staff members of 30 different nationalities.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
