Thai political drama continues

The Thai political drama has resumed with the sudden return of former PM Thaksin Shinawatra and the lifting of the country's badly-implemented capital controls.

The two developments may seem unrelated but they have the combined effect of showing the continued influence of the man who was embroiled in the controversial deal with Singapore government investment arm Temasek Holdings in 2006.

Despite criticisms against Thaksin over a host of issues, the Thai strongman had run the country better than a bunch of generals.

Although the Thai election has concluded, Thaksin could still play a significant role in the national political theater through his proxies. He's got strong and interesting ideas like owning Manchester City Football Club, where he is the chairman. And he has plenty of money, especially from the Temasek deal, to bankroll any fresh campaign.

While the Thai saga continues, some of the basic questions about the Shin deal may re-surface. Why did Temasek buy Shin in the first place? Although Singapore politicians had said ad nauseam that it was simply a commercial deal, nobody was convinced.

As mentioned earlier, there was one sexy theory that could help explain the whole saga. According to the theory, the payment of S$3 billion by Temasek and partners to Thaksin for his holding company was part of a quid pro quo to abandon Thailand's long-cherished dream to build the Kra Canal.

According to one wit, Thaksin had wanted to build the canal and resolve two issues at one go -- turn Thailand into a major shipping hub, and isolate the Islamic separatist movement in southern Thailand. A canal will literally divide Thailand into two distinct regions.

Will Thaksin stick to the purported deal? Or will the Kra Canal idea resurface? Any such deal would have been conditional on Thaksin remaining in power.

But Thaksin the civilian businessman can now theoretically push for the construction of the canal, which will enable ships to bypass Singapore and sail from South China Sea to Andaman Sea and Indian Ocean.

After all, nobody expected a 'commercial' deal to trigger a military coup that toppled the country's leader.

Note: The pix from the website of Singapore's BT showing Thaksin paying homage to his country outside the airport in Bangkok on Feb 28.

Asean a happy family?

The ten Asean members will sign a charter in Singapore to mark yet another commitment to build a stronger community with over 500 million people.

According to news reports, the charter marks the first time that the 40-year-old bloc, which has often been described as a family by its member nations, will codify its basic principles and organisational rules.

The Straits Times said the 31-page Charter includes provisions for leaders to meet twice a year, new rules for settling disputes peacefully, more flexible decision-making processes, and steps to beef up the organisational structure of the grouping so that it is able to monitor and implement what members have agreed to do together.

Sophie's World has not seen the implementation details but is curious about the provision to resolve disputes. Will it be a motherhood statement about the need to resolve disputes peacefully without resorting to violence? Or will the charter spell out something concrete like all neighbourly disputes be referred to an international court or arbitrator if affected parties are unable to come to terms after 10 years of bilateral negotiations?

The provision is definitely an important point because there is no shortage of disputes within the so-called Asean family. Some of the family tiffs include:

1. Asean members' inability to rehabilitate the dumb generals and killers of Myanmar;
2. Malaysia and Singapore are crossing swords at the ICJ over a rock known as Pedra Branca or Pulau Batu Putih in the South China Sea;
3. Singapore and Malaysia still can't resolve their bilateral problems after nearly two decades;
4. Malaysia and Indonesia are still banning sale of sand to Singapore;
5. Indonesia and Singapore couldn't seal a treaty to extradite any Indonesian criminal in Singapore;
6. Singapore and Indonesia could not seal a defence cooperation agreement;
7. Nearly all Asean members are pissed off with Indonesia's annual haze;
8. Thailand is still seething over Singapore government investment arm Temasek Holdings' controversial deal with former Thai PM Thaksin Shinawatra's Shin Corp;
9. Indonesia and Malaysia have not fully embraced each other after another round of Konfrontasi;
10. Malaysia and Singapore can't even agree on a new overhead bridge to replace the old causeway to help improve the massive cross-border flow of goods and people, although Asean dreams about a region with free movement of goods, services, investment, skilled labour and freer flow of capital by 2015.

The Singapore charter is definitely a step in the right direction to set up a proper framework for the interaction of its ten family members.

But individual members of the Asean family must look at wider interests, not just their narrow self-interest.


Sophie's Note: Wikipedia entry showing satellite image of the 2006 Southeast Asian haze over Borneo.

Postcard from Chiang Mai

Some lovely pictures from the latest contributor to this blog -- Uncle Siam, who brought his family to Chiang Mai in northern Thailand recently. The little farmers in the top left hand pix are actually Bangkok urbanites in disguise! So cute!

Uncle Siam says the building in the bottom right hand corner is the Mandarin Oriental Dhara Devi, an amazing replica of a northern city of olden days.

The pictures show a peaceful and idyllic landscape despite the country's current woes following a series of headline-grabbing events in the last one year -- Singapore government investment arm Temasek Holdings' controversial purchase of Shin Corp from former Thai PM Thaksin Shinawatra, street protests over the non-payment of tax by the vendor in the deal, the military coup that ousted Thaksin, Temasek's blunders in Thailand, Thai government's unhappiness over Thaksin's 'private' visit to Singapore, spying charges levelled against Singapore, and Thailand's loss of the Asean Football Championship to Singapore.

Uncle Siam and his little troopers truly enjoyed Chiang Mai and beautiful rural Thailand.

The same cannot be said about Thaksin although it is his home base. He is currently in exile.

Singapore-Thailand Clash

Singapore's Mustafic Fahrudin scored the controversial penalty, after an unprecedented walkout by the Thai football team in the emotionally charged game in Singapore last Sunday. Singapore beat Malaysia to reach the finals. Pix source: The Straits Times

All eyes will be on the second leg of the soccer finals in Bangkok tomorrow night between Singapore and Thailand in the Asean Football Championship. Singapore is leading 2-1 following the controversial penalty and the unprecedented walk-out by the Thai football team in protest last Sunday.

Tension is running high, amidst the controversial win and the strained bilateral ties between the two countries. Bilateral ties had been strained by a series of events in the last one year -- Singapore government investment arm Temasek Holdings' purchase of national asset Shin Corp from former Thai PM Thaksin Shinawatra, street protests over the non-payment of tax by the vendor in the deal, the military coup that ousted Thaksin, Temasek's blunders in Thailand, Thai unhappiness over Thaksin's 'private' visit to Singapore, and spying charges levelled against Singapore.

Against this backdrop, security will be stepped up considerably at the Bangkok stadium, which will host at least 2,000 Singapore fans. The two sides will do their utmost to help avert a clash of their fans. A clash of the fans would be an unfortunate and unforgettable personification of the clash between the two countries.

It would be extremely unfortunate if bilateral dealings affect people-to-people relationship. It will truly be sad if football saga does imitate real life, as captured in this tongue-in-cheek article in Bangkok newspaper The Nation today.

Football saga imitates real life
Singapore's dodgy soccer win fires talk of eavesdropping, use of foreign nominees

Even Prime Minister Surayud Chulanont was curious to know whether Temasek United Football Club had used underhand tactics to win the first leg of the Asean Football Championship. The Thai national team lost 2-1 to the Temasek team in a highly emotionally charged atmosphere.

"Were we cheated?" the PM asked reporters yesterday. He had missed the match broadcast from Singapore on Wednesday night.

The latest clash between Thailand and Singapore has turned into a political issue. It comes hot on the heels of deteriorating relations, with the Kingdom suspecting that Singapore is now able to listen in on its calls because the former prime minister sold control of ShinSat, the sole national satellite company, and the country's biggest mobile-phone firm (AIS) last year to Temasek Holdings, a state investment firm in the city-state.

Army chief and coup leader Gen Sonthi Boonyaratglin voiced concern that Thai military information was no longer secure because control of key telecommunications firms had been lost with the controversial Shin deal.

"You pick up the phone and it goes to Singapore," he reportedly remarked. The military installed government is also afraid that the sale of ShinSat might enhance Singapore's capacity to eavesdrop on calls here. Premier Surayud said they were looking into whether Thailand may be able to buy back control of the firm or if a new satellite needs to be launched.

The joke going around the Thai team is that their game plan might have been "discovered" by their opponents prior to the match.

After all, how come the Singaporeans knew that Thai star Kiatisak Senamuang would be absent from the game? And how did the Singaporeans players know just to mark Thai midfielder Dassakorn Thonglao, who became the most frequently fouled play by his opponents? Mmm ......

Well, the loss was not entirely attributed to Malaysian referee C Ravichandran's decision to award that hotly disputed penalty to Singapore with just nine minutes remaining.

Was the referee, like Dr Mahathir Mohamad, the former Malaysian leader, just trying to drive a wedge further between Thailand and Singapore, knowing the penalty would drive us nuts?

A more deserving question may be how the Singaporeans managed to respond so well to our game plan.

But, what's done is done. The Thai team lost and Thai football fans are now left hoping their team can win the second leg on their home turf - on Sunday.

Looking around the pitch though, the Thai national team won't enjoy a huge advantage in the second leg as the physique of the Singaporeans suggests they're in a different league.

Although the title of the tournament described it as a competition for the Asean region, the appearance of some Singaporean players conjured up an image of nominees - as they seem to come from all over the world.

Take the Caucasian-looking guy with the pierced-nose - the tall Mustafic Fahrudin, who scored their winning goal. Fahrudin, formerly Serbian, rewarded his adopted country handsomely with victory from the penalty spot. In fact, Fahrudin is far from the only nationalised player for Singapore. Exceptional skill was not the factor that made Precious Emuejeraye stand out from the crowd. Emuejeraye is black, originally from Nigeria, and towered over everyone on the pitch. Daniel Bennett is not Singapore-born either - but another imported player from the UK wearing Singaporean colours. A fourth - Si Jia Yi - was once Chinese, but is now Singaporean.

These players were influential in providing the backbone for their team's performance. Temasek Holdings has been accused by some of using Thai nominees to acquire control of Shin Corp on behalf of foreigners. And when it comes to football, the Singaporean team has shown the world it can use foreign "nominees" to improve its playing strength.

There is nothing wrong with this. But the next challenge for Temasek is how to truly nationalise Shin Corp without being caught using local nominees. Or… maybe that's just sour grapes.

Dr M Soldiers On

Former Malaysian Prime Minister Dr Mahathir Mohamad (pix illustration from kickdefella) is still in his combative mood and has not lost his wit despite his recent heart attack.

According to The Nation newspaper in Thailand this week, he threw his support behind Thailand's diplomatic spat with Singapore, accusing the city-state of interfering in the Thailand's internal affairs and violating diplomatic norms by permitting a senior government official to meet ousted premier Thaksin Shinawatra.

Some observers may feel that the retired Malaysian leader should just shut up like a pensioner. And he should not add fuel to fire in the squabble between neighbours. There is some truth in it.

But there is also the view that Dr Mahathir is a strong Asian voice, often saying things bluntly without fear or favour. After all, who else would say that US President George Bush should be tried for the invasion of Iraq? Please see Dr Mahathir's current mission and earlier postings.

Of course, Dr Mahathir is well positioned to talk about his relationship with Singapore, as mentioned in an earlier posting.

The following is the full transcript of his interview with The Nation's Group Editor Thepchai Yong in Langkawi over the weekend.

Q : How do you see the on-going spat between Thailand and Singapore?
A : Well I hate to say but I think it was unwise for Singapore to seek advantages from Thailand's problems. Because they saw that Thaksin was in need of some help and they extended help not in the way that could be appreciated by the Thai people. And in the present situation, Thaksin's visit to Singapore obviously to discuss this thing, was not very diplomatic.

Q : So Thaksin shouldn't have been welcomed by Singapore's deputy prime minister.
A : Yeah, that was not necessary. There are other places you can meet to discuss business. Because I'm quite sure in order to talk business, that's why they met.

Q : Talking business could be one thing, but knowing that such reception would draw reaction from Thailand. The Thai Foreign Ministry made it clear that they had warned the Singaporean government that there would be reaction if Thaksin met its deputy prime minister. And yet the Singaporeans went ahead with it?
A : Well you see, Singapore does not really care about the opinions of its neighbours, Singapore has been very unfeeling, not sympathetic to the problems of their neighbours. And we have problems with Singapore. In my 22 years in office I tried to resolve them by being friendly but I couldn't solve these problems with Singapore.

Q : Why would Singapore not want to be friendly with Malaysia ?
A : Singapore wants to win and they believe that the most important thing is what profits Singapore. What others get is not relevant.

Q :Profits in what term, business term or diplomatic term?
A : In business term, in diplomatic term, in whatever way, Singapore must be top.

Q : The Thai Foreign Ministry reacted by suspending a visit by the Singaporean foreign minister. Do you think that was the right reaction?
A : Well you know me, I'm very tough in certain things. If I find a foreign minister in another country say nasty thing about my country that is not in the interest of my country, I would have acted very strongly.

Q : Would you have done the same?
A : Probably I would do the same.

Q : Do you think Thailand and Singapore should try to patch things up?
A : Yeah, I think they should, but in a way that is honorable.

Q : Who should take the initiative? The Thais believe that Singapore owes them an apology.
A : I think Singapore should apologize because basically Singapore was interfering in the internal affairs of Thailand, and that was not good. You see, Thaksin has problems with Thailand and its people, not with Singapore. But Singapore comes in, in order to help Thaksin. And I think it didn't work.

Q : In Thailand they say if you want to know how to deal with Singapore, talk to the Malaysians. What can we learn from your experience in dealing with Singapore?
A : Either being nice or being tough, they always think about themselves. And they think you won't be able to touch them. They are beyond any action that you may be able to take. That's the character of Singapore, not one cent for anybody else, unless they gain something.

Q : So you're suggesting that Thailand should continue to be tough with Singapore.
A : You should try to get what is your right from Singapore, but it's going to be difficult. Singapore is likely to ask you for some concessions, here there and everywhere Otherwise you won't get back what is yours by right, but that is the way Singapore deals with people.

Q : Did it surprise you that Thai army chief Gen Sonthi and the coup leader few weeks ago said every phone call in Thailand has been monitored by Singapore?
A : I wouldn't be surprised because that's the kind of things they do.

Q : You mean they eavesdrop on friends?
A : Yes they do, they even spy on friends.

Q :That happens to Malaysia too?
A : Yes, one of my political secretaries was removed and detained because he was known to be associated with somebody from Singapore. Of course, Singapore denied, but our police believe that he was passing information.

Q : But why wire-tapping friends? Neighbours shouldn't do this to each other.
A : Well, but we find friends do tap and listen to what friends talk about, but I think Singapore does it in a much more offensive kind of way.

Q : So Thailand and Singapore should sit down and find ways to get their relations back to normal. But can they be normal again?
A : It will be difficult but I think I believe in trying.

Q : Should Thais make the initiative or should Singapore do it first? Thais have been very angry and feel very strongly about this.
A : I think we need a cooling down period.

Singapore's Failed Coup?

So much has happened in Thailand ever since former premier Thaksin Shinawatra sold his flagship Shin Corp to Singapore government investment arm Temasek Holdings last year.

The deal sparked widespread protest over the non-payment of capital gains tax by Thaksin although it was a common practice in Thailand. Bangkok saw widespread protests and the unprecedented burning of effigies of Singapore PM Lee Hsien Loong and wife Ho Ching, who also heads Temasek. Incidentally, Temasek reports to the Finance Ministry, which is headed by PM Lee. The entire Singapore government machinery backed the Temasek deal despite the disastrous outcome.

That's not the end of the saga. The ageing Thai King backed the military in ousting Thaksin in yet another coup d'etat in the country's history. The military-backed government was incensed when Thaksin made a private visit to Singapore last week. Singapore defended its right to host Thaksin although it's highly questionable whether it was indeed a private visit.

While the saga unfolds, the basic question remains unanswered: Why did Temasek buy Shin in the first place? Although Singapore politicians have said ad nauseam that it was simply a commercial deal, nobody was convinced. Why did the Singapore government arm rush into a badly structured deal with the former Thai premier?

One sexy theory has since surfaced that could help explain the whole saga. According to the theory, the payment of $3 billion to Thaksin for his holding company was part of a quid pro quo to abandon Thailand's long-cherished dream to build the Kra Canal.

According to one wit, Thaksin had wanted to build the canal to resolve two issues at one go -- turn Thailand into a major shipping hub, and isolate the Islamic separatist movement in southern Thailand. A canal will literally divide Thailand into two distinct regions.

The canal project, which has been on the drawing board for more than 300 years, will have major impact on Singapore and even Malaysia should it take off. This is because ships can sail from South China Sea to Andaman Sea and Indian Ocean straight, bypassing Singapore and the Straits of Malacca. The role of Singapore as a shipping hub will be greatly diminished should the Thais finally build the canal.

But not everyone buys the theory. One counter argument: The costs outweigh the benefits of such a project. Furthermore, the time saved for shippers and liners is minimal, unlike the more crucial Panama Canal. Another counter argument: It would have been cheaper for Temasek's port operating arm PSA International to take a stake in the Kra Canal project should it materialise.

Whatever the truth is, events in Thailand are truly fascinating. It's got all the right ingredients for a Hollywood movie!

Singapore Images in 2006

Some images of 2006 captured by The Business Times of key business and political events in Singapore and business deals linked to Singapore entities overseas.

Big stakes, buoyant sentiment
By VINCENT WEE

2006 was a year of big numbers, big stakes and bullish sentiment. The resurgent economy brought waves of investment and optimism to our shores, but also winds of change. Meanwhile, those who strayed from the straight and narrow were brought to account as the law took its course.

One of Singapore's biggest financial scandals finally came to a conclusion when former China Aviation Oil head Chen Jiulin was jailed for four years and three months and fined $335,000 for insider trading. Likewise, former corporate poster boy Victor Tan, founder of Accord Customer Care Solutions, was jailed for four years and three months for his role in trying to cheat Nokia in 2003 and 2004. And former National Kidney Foundation boss TT Durai was charged under the Anti-Graft Act for having tried to deceive the NKF while he was its chief executive.

But a sense of stability prevailed when the ruling People's Action Party won 66.6 per cent of the vote in the May general election and was returned to power.

Big buys also made the news, led by Temasek Holdings' $6.5 billion purchase of an 11.55 per cent stake in Standard Chartered Bank from the family of the late Khoo Teck Puat, who was Singapore's richest man, and $3 billion spent on former Thai prime minister Thaksin Shinawatra's family stake in Shin Corp.

Apple's US$100 million payout for a licence to use Creative Technology's patent in its iPod ended legal disputes between them. The battle hit Creative's profits badly, but the settlement looks like a win-win result, and the local firm will focus more on making sound chips and accessories for Apple and other companies.

Waves of interest and winds of change from abroad came in through the course of the year. In May, Las Vegas Sands won the right to build Singapore's first integrated resort (IR) and casino at Marina Bay. And six months later, Asian gaming outfit Genting International/Star Cruises won the Sentosa bid. The year's foreign buzz culminated in the 16,000 visitors and delegates coming to Singapore during the International Monetary Fund and World Bank meetings in September.

The buoyant economic mood was infectious and spread to the property market, which finally got some reprieve from a decade of gloom when the luxury residential segment saw record prices, led by Marina Bay Residences which commanded up to $3,500 per sq ft in December.

Movements in the boardroom also created a stir. Robinson's chairman Michael Wong Pakshong was voted off the board at the company's annual general meeting, prompting the resignation of three other independent directors and sparking a debate on the role of independent directors. SingTel CEO Lee Hsien Yang surprised markets in July when he announced that he would step down after 12 years with the company.

Finally, the year closed with an ominous reminder of our vulnerability in the Information Age, when a post-Christmas quake off Taiwan damaged vital undersea cables and disrupted telecommunications in and out of Singapore and throughout East Asia.

March 27: Temasek hogs headlines
Singapore investment company Temasek Holdings spends almost $10 billion on two big buys. On March 27, it announces an estimated $6.5 billion purchase of Khoo Teck Puat's estate's 11.55 per cent stake in Standard Chartered. Earlier in January, Temasek paid $3 billion for Thai Prime Minister Thaksin Shinawatra's family stake in Shin Corporation. The Shin deal sparked unexpected events that eventually led to a military coup that ousted Mr Thaksin.

April 18: TT Durai charged with graft at NKF
Former National Kidney Foundation (NKF) chief TT Durai is slapped with two charges over alleged false claims with intent to deceive the foundation. The NKF fiasco has brought about unprecedented scrutiny of charitable organisations and their accountability.

May 6: PAP returned to power
The People's Action Party is returned to power with two-thirds of the valid vote at the general election. The closest fight is in Aljunied GRC, where the PAP wins 56.1 per cent of the vote in a contest with the Workers' Party. The opposition retains Hougang and Potong Pasir.

May 26 and Dec 8: Singapore hands out casino licences
Singapore awards two integrated resort and casino licences after a 40-year ban on casinos. The first licence, at Marina Bay, goes to Las Vegas Sands, controlled by Sheldon Adelson, who has roped in architect Moshe Safdie (top) for the project. The second, at Sentosa, goes to Malaysia's Genting group, controlled by Lim Kok Thay and family.

July 21: Lee Hsien Yang announces decision to step down
Lee Hsien Yang surprises the markets by announcing that he will step down as SingTel's chief executive officer after 12 years with the company. After a two-month global search, SingTel appointed its chief financial officer Chua Sock Koong as CEO.


Aug 23: Creative versus Apple
Apple agrees to pay US$100 million for a licence to use Creative Technology's patent in its iPod. And as part of the settlement, Creative, founded by Singapore businessman Sim Wong Hoo, joined the ''Made for iPod'' programme to produce accessories for Apple's mp3 player.


Dec 13: Irrational exuberance reigns at Marina Bay Residences
After a downturn that lasted a decade, the upper end of the property market rebounds. The best performer is Marina Bay Residences, where all 422 units were quickly sold at unprecedented prices of up to $3,500 per sq ft. Prices at the 99-year leasehold project, located near Las Vegas Sands' upcoming integrated resort and casino, even surpassed those of some units at the 999-year leasehold St Regis Residences in the Tanglin area.


Sept 10-20: IMF and World Bank meetings bring in 16,000 visitors
With a campaign of four million smiles, and tens of thousands of flowers lining the route to Suntec City convention centre, Singapore lays on a grand welcome for visitors and delegates to the IMF/World Bank annual meetings.

Temasek's Thai Blunder, Part 3

Singapore government investment arm Temasek Holdings has suffered another setback in Thailand following its disastrous foray in acquiring Shin Corp from former Thai prime minister Thaksin Shinawatra this year.

The highest court in Thailand today ordered iTV, which is under Shin, to pay unspecified fines that could lead to the bankruptcy of the country's sole private TV station.

From the website of Bangkok Post today:
iTV loses case - faces fine, bankruptcy
(dpa) - The Supreme Administrative Court this afternoon ruled against iTV - the country's sole private TV channel - in forcing the now Singapore-owned company to pay a higher concession fee and fines. The ruling is likely to bankrupt the operation.

The verdict upheld a decision by the Central Administrative Court of May 9, 2006, that forces iTV to change the news content to 70 per cent, up from 65 per cent, and pay a higher concession fee to the government.

The decision, which was not appealed by iTV, could force the company to pay a fine of up to 94 billion baht ($2.6 billion), effectively bankrupting the company which is now majority-owned by Temasek Holdings, the investment arm of the Singapore government.

ITV was previously owned by Shin Corp, the family-held business conglomerate of former Thai prime minister Thaksin Shinawatra, which sold its 49 per cent holding in Shin Corp to Temasek Holdings for 1.9 billion dollars, tax free, on January 23 of this year.

The purchase outraged many Thais who saw the Shin Corp sale as handing over sensitive nationals assets to a foreign company. Besides iTV, Shin Corp also ran the country's largest mobile phone service and the national satellite network.

Four months after the Temasek purchase of Shin Corp, when the political tide was moving against Thaksin, Thailand's Central Administrative Court overturned an arbitration panel's 2004 decision to lower iTV's concession fee and its news content to 65 per cent. Entertainment shows earn higher advertisement revenue in Thailand.

The iTV saga is rich in recent Thai political history. The channel was intended to be an independent news station providing the public with unbiased reporting. All other TV stations in Thailand are owned by the state.

However, after running into financial difficulties in the wake of the 1997 economic crisis iTV was snapped up by Shin Corp and turned into a pro-government station when Thaksin came to power in 2001.

Please see earlier postings on Temasek's blunders in Thailand. Some observers reckon that the series of missteps in Thailand may have cost Temasek's top deal maker his job.

The Straits Times, 7 Dec 2006
Temasek changes chief investment officer
By BRYAN LEE

TEMASEK Holdings has replaced its all-important chief investment officer, who oversees all of the Singapore firm’s investment decisions.

A check by The Straits Times on Temasek’s corporate website shows that senior managing director Jimmy Phoon has taken the reins from Mr Charles Ong. Mr Ong, also a senior managing director, has assumed the newly-created role of chief strategist.

The move comes as Temasek continues to grapple with its controversy-hit US$3.8 billion (S$5.87 billion) takeover of Thailand’s Shin Corp earlier this year.

It led a group of Thai investors to buy a 50 per cent stake in the telecoms company from the family of former Thai premier Thaksin Shinawatra. The transaction eventually led to a mandatory general offer which saw Temasek and its partners emerge with 96 per cent of Shin.

The acquisition, seen by many Thais as a sell-out of strategic national assets to foreigners, was at the heart of widespread protests in the country. These culminated in a September military coup that toppled Mr Thaksin.

Temasek said yesterday that the senior management moves were not related at all to the Shin deal but were “part of regular and ongoing corporate development efforts”.

The iTV problem is definitely not the end of Temasek's woes in Thailand although Singapore politicians have been trying to defend Temasek and mend fences with Thailand following the Shin debacle.