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I WAS particularly surprised that Temasek Holdings invested A$401.5 million (S$396.1 million) in Australian childcare chain ABC Learning, which represented a 12-per-cent stake in the company.
Founder Edmund Groves apparently went overboard with his overly-ambitious expansion plans.
Now that the company is in dire financial straits and has gone into receivership, I would be surprised if Temasek can get any decent returns from the huge investment.
As the money invested was from Singapore's reserves, I hope that analysts and policymakers at Temasek Holdings will be more careful in analysing a company's bottom line and accounts before taking the plunge and investing in foreign companies on the country's behalf.
I hope that the authorities can assure the public that there is a good team of analysts and decision-makers in Temasek, well-positioned to help the country grow its reserves instead of incurring substantial losses.
Mr Gilbert Goh Keow Wah
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