Dividends to Shareholder
We pay dividends to our shareholder as part of our financial discipline. Up till last year, 50% of these dividends, also known as NII, could be used by the Singapore Government for spending, including long term commitments like the Pioneer Generation Package of 2014.
NII/NIR Contributions to Singapore Government Budget
From 2009 to 2015, apart from Temasek’s NII Contributions, other Singapore entities such as GIC also contributed to the budget through the NIR spending rule based on their expected long term real returns.
Together, such NII/NIR Contributions totalled about S$7 billion to over S$9 billion each year from 2009 to 2015. They supplemented other sources of operating revenue (e.g. taxes and other charges) and enabled the Government to prepare for long term needs, including enhanced support for the silver generation.
From 2016 onwards, Temasek has been included in the NIR framework. This has increased the
spending capacity of the Government, with NII/NIR Contributions projected to be the largest
component of Government revenue at about 18% for the 2016 Government Budget.
Temasek will continue to pay dividends as part of our financial discipline, based on our dividend
policy. The NIR framework does not require Temasek to pay more dividends, or sell any assets.