Temasek
Why Thailand Can’t Have a Temasek, and Why We’re Stuck with a National War Chest That's Just Another Parking Lot for Funds
Let’s talk about Temasek Holdings, the crown jewel of Singapore's financial strategy—a sovereign wealth fund that’s the envy of the world. Founded in 1974 by Lee Kuan Yew, Temasek started with a humble sum of 354 million SGD and has now grown to a whopping 250 billion SGD. It’s the kind of success that has made Singapore a global powerhouse in terms of wealth creation and economic stability. And here’s the kicker: They did it without needing to sell their soul—or more specifically, without needing to sell their state-owned assets to foreign entities to cover up political shortcomings. But, of course, Thailand can’t have this. Why? Well, the answer is simple: Take a look at the Thaksin-Shin Corp Temasek deal.
The Thaksin Temasek Debacle: When Wealth Meets Political Turmoil
You remember 2006, right? The year Thailand was treated to a fascinating episode of "political drama" starring none other than Thaksin Shinawatra and Temasek. Thaksin decided to sell his majority stake in Shin Corp (the crown jewel of his empire) to Temasek for a cool $1.9 billion. Now, even though the deal was considered by many to be a sound financial move (Temasek’s investment was solid, Shin Corp was a booming telecom giant), it set off a political firestorm like no other. There were protests, accusations of corruption, allegations of conflict of interest, and—because we live in the land of subtlety—it escalated into the infamous airport shutdown of Suvarnabhumi.
So, why did this all blow up? Simple. In Thailand, any deal that’s even slightly close to the government, politics, or money is guaranteed to cause chaos. The conflict of interest issue? Massive. The perception of corruption? Imminent. Even though the deal itself was financially sound and beneficial to both parties, the perception of the deal was that it wasn’t about business—it was about power and money. And that’s a problem when your country’s political system thrives on the exact opposite of transparency and fairness.
The Temasek Dream: Something We Can’t Afford to Dream About
Now, back to Temasek and why Thailand can’t have one. Temasek is a shining example of how a sovereign wealth fund (SWF) can be run professionally, independently, and successfully. The fund operates free from the whims of political influence, with a mandate to build and manage assets for the future of the people, not the politicians. But here’s the thing: Temasek works because it is built on trust, merit, and long-term vision—three things Thailand has, uh, maybe a bit of a... shortage of.
Imagine the political uproar if Thailand tried to set up its own Temasek-like SWF. It would be an immediate minefield of conflict. Politicians would line up to take their piece of the pie, and the public would assume the fund was created to line their pockets, not for long-term national prosperity. The thing is, Thailand doesn’t have the political infrastructure to run an SWF like Temasek. And even if we did, there’s the problem of corruption that runs through the system like a river of red tape. There’s no way Thailand could attract investors to pour money into a “national fund” with the constant shadow of political maneuvering and backroom deals. It’s like putting a broken engine in a Ferrari and hoping it’ll drive fast.
The "VAYU1" Fund: More Parking Than Prowess
Sure, we have VAYU1—a so-called national fund managed by the Ministry of Finance. But let’s not kid ourselves here: VAYU1 is essentially just another way for the government to park its money with other investors. It’s like a glorified piggy bank where we’re just shifting money around, hoping for the best. At best, it’s a vehicle for temporary financial stability, not a sovereign wealth fund designed to build national prosperity.
Unlike Temasek, which has assets like Singapore Airlines, DBS Bank, and Keppel Corporation, Thailand’s “national wealth fund” would likely end up being an expensive VIP table at the corruption party, with everyone taking a cut. The sad reality is that any attempt to replicate Temasek’s success would simply become yet another political football for every faction to kick around. So why bother?
The Skill Issue: You Can't Have a Temasek Without Fixing the Politics First
What’s the root cause of all this? It’s not a money problem. Thailand has plenty of assets—oil, sugar, agriculture—just like other oil-rich nations or agricultural powerhouses. It’s not about not having the resources; it’s about not knowing how to manage them effectively because politics gets in the way.
Until Thailand can remove its political baggage—the shady dealings, the backdoor agreements, and the relentless power struggles—we’ll never have a sovereign wealth fund that can rival Temasek. We need to fix the system first, but, let’s be real, when was the last time anyone was serious about fixing the system? It’s like putting out a fire with gasoline.
Conclusion: Maybe We’re Just Not Ready
Thailand could have a Temasek-esque SWF, but first, it would have to clean up its act. That means eliminating corruption, creating a transparent, merit-based system, and building trust with the public. But, hey, it’s like asking for a miracle—and miracles are rarely in supply around here. So for now, let’s stick with VAYU1, because it’s easier to park the money and pretend things are working than actually face the hard truth: We’re not ready for a Temasek.
