Ho Ching to retire as Temasek CEO; Dilhan Pillay to take over on Oct 1

TEMASEK Holdings executive director and chief executive Ho Ching will retire from the group come Oct 1. She will also step down from its board on the same day. 

She will be succeeded by Dilhan Pillay Sandrasegara, who will continue to concurrently hold his current appointment as chief executive of Temasek International (TI) - Temasek Holding’s commercial arm. 

As chief executive, he will have the responsibility for the stewardship role of Temasek, particularly in respect of Temasek’s constitutional responsibilities to safeguard its own past reserves as a Fifth Schedule entity. 

Mr Pillay, established as one of the leading corporate lawyers heading a major law firm, joined Temasek 10 years ago, the state investor said in a statement on Tuesday. 

He held a two-year stint as head of Americas, based out of New York. In 2019, he took over the role as TI chief executive from Ms Ho. He is responsible for Temasek’s role as an investor, managing its investment and portfolio activities. 

Mr Pillay said Temasek has a strong leadership team, with diverse capabilities, strengths and experiences. “Leveraging our Temasek ecosystem and our global network of relationships, I am confident that we are in a good position to embrace the opportunities, and face the challenges, of today and the future,” he added.

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Temasek Holdings chairman Lim Boon Heng said that the board has had in place an annual review since the early 2000s to be prepared for all eventualities, with various succession options over different time horizons. Ms Ho has been part of this process and worked over the years to identify various potential successors both inside and outside of Temasek.

Lee Theng Kiat, Temasek Holdings executive director and Tl chairman, will also retire from his executive role at the same time. He will remain as a non-executive member of Temasek’s board and continue as non-executive chairman of TI. 

Mr Lim said: “This will provide continuity during this leadership renewal, as well as allow us to continue to tap his experience as a business builder, as well as his commercial network.” 

Temasek’s portfolio stood at S$90 billion, mostly in Singapore, when Ms Ho took on the chief executive role in 2004. Since then, it has tripled to over S$300 billion, notwithstanding the impact of the global financial crisis and the Covid-19 pandemic, Temasek said. 

Under her leadership, the group set up Temasek Trust and Temasek Foundation as its philanthropic platforms to support public good and social causes in a sustainable manner over time. 

Ms Ho said: “Temasek is a remarkable institution with deep roots in the ethos and founding values of Singapore. I have been privileged to be part of an incredible journey over these two decades at Temasek.”

Mr Lim noted that she has led Temasek through a "remarkable period of transformation". It evolved from a relatively passive owner of the shares in former government-owned companies in Singapore to a globally recognised and respected investor, forward-looking institution and trusted steward, he said. 

Temasek reported in September 2020 that its one-year total shareholder return (TSR) fell into negative territory at -2.28 per cent for the 12 months ended March 31, 2020. This is a further drop from the previous fiscal year's one-year TSR, which had tumbled to 1.49 per cent. 

The lower TSR was in part due to the sharp market correction in the quarter up to March 31, as a result of the onset of Covid-19 -- a trend also seen across regional indices over that period.

The state investor has also made several moves to develop the bond market. In October 2020, it raised US$2.75 billion (S$3.76 billion) from long-dated dollar bonds, including one with the longest tenor of 50 years, as part of its US$25 billion guaranteed global medium-term note programme.

Its wholly-owned subsidiary priced a U$1 billion 50-year bond at 2.5 per cent, a US$1 billion 30.5-year bond at 2.25 per cent and a US$750 million 10-year bond at 1 per cent.

In 2019, Temasek’s Astrea V private equity-backed retail bonds received a strong retail response, attracting nearly S$820 million from over 30,800 applicants. This is equivalent to a subscription rate of 4.5 times. 

READ MORE: Five things to know about Temasek's leadership transition