Sequel to ‘Do not underestimate the Malaysians’
Temasek ignores downgrades, is very optimistic on India story
Mydigitialfc.com, 5 Jul 2012 by Rajesh Abraham
Temasek, the investment arm of the Singapore government, on Thursday said it was “very optimistic” on India’s long-term potential, dispelling fears expressed by rating agencies which downgraded the country’s outlook recently.
The Singapore sovereign fund, …said it would continue to bet on Indian companies, which are proxies for the country’s economic growth. India accounts for 5 per cent of Temasek’s 42 per cent exposure in Asia.
The sovereign fund has $109 billion worth investments in Asia, making India investments at nearly $6 billion….
This is an extract of an article by Rajesh Abraham reporting from Mumbai. I like his use of the word ‘bet’. It is not investment today is different from the past. All are taking a bet. The only difference today is the betters are betting big time today, not with their own money but with OPM.
And while Temasek has its gun sight lined up at India, Malaysia is lining up to acquire the assets in Singapore. Not a bet deal really, selling Sinkie assets at a high price and buying cheap in India. The return is tremendous, and both ways win, making good profits at home and potentially bigger profits in India. This is putting the win win formula into practice.