Getting the right talent is key to Singapore Inc’s success

[SINGAPORE] Last month, Singapore investment company Temasek announced a repositioning of its organisational structure and sharpened its focus on key portfolio segments. 

It set up three distinct portfolio segments – global direct investments; Singapore-based Temasek portfolio companies; and partnerships, funds and asset management companies – to help drive its growth. 

In line with the segment changes, there were also organisational moves. Chia Song Hwee will be appointed as co-chief executive officer of Temasek International with effect from Oct 1. He will work with CEO Dilhan Pillay to position the organisation for its next phase of growth.

Underlying these moves is the overarching aim of building a resilient and forward-looking portfolio.

Over the last few years, some of Temasek’s key Singapore-based portfolio companies have themselves undergone restructuring exercises. 

Take Singtel for example. It underwent a strategic reset as part of ongoing efforts to restructure and reposition the company for growth. Under CEO Yuen Kuan Moon, in 2021, it spun off its information and communications technology arm, NCS. Among other moves, it has consolidated its consumer and enterprise businesses into one operating company.  

Last year, on the back of a successful strategic reset, it unveiled a strategy for growth and sustained value realisation called ST28.

Another example is Seatrium, which was formed when Sembcorp Marine acquired Keppel Offshore & Marine (O&M). By combining two leading players in the field, the new entity aims to accelerate its strategic transition into offshore renewables, new energy and cleaner O&M solutions. 

Together with the transformation plans, there are often changes at the board and/or management level.

Such moves have paid off in terms of enhanced shareholder value. 

These organisational and management changes are timely and necessary at this stage of Singapore Inc’s development.  

From the time of Singapore’s independence, as the economy developed, companies have grown in tandem, establishing themselves locally and overseas.  

For these players, the issues are not of struggling to survive, as in Singapore’s early days, nor of trying to scale their business. The question is: “What next?” As the big boys in their field, they must tackle how to maintain that pole position and not plateau off into obscurity. 

That is why not just Temasek portfolio companies, but many of Singapore’s large family-owned companies, including the property players, are also having to grapple with the issues of rejuvenation and finding that new spring in their step. 

At this point, it is not just about having the strategic vision, but also having the right people within the organisation to execute that vision. They have to be agile and handle change across a large workforce amid a volatile global environment. 

DBS illustrates the ideal outcome, where the goals of the board aligned with having the right CEO in Piyush Gupta to drive the bank’s transformation some years back.

As more Singapore companies embark on their transformation journeys, the key challenge for them will be to find the right talent who can implement change and drive a reset successfully. Perhaps some of the Singapore CEOs who are making their mark in global organisations overseas should also attempt to do the same with companies back home.