Teo Chee Hean urges businesses, governments to avoid zero-sum mindset amid trying times

Amid the converging pressures of geopolitical rivalry, technological disruption and energy transitions, Singapore and businesses cannot afford to stand still. They must exercise steward leadership, reject short-term approaches, and expand shared gains with their partners, recognising that helping others also serves their own interests.

Temasek chairman Teo Chee Hean made these remarks in his keynote address and a fireside chat at the Steward Leadership Summit on Wednesday (28 October).

In his address, he said sweeping changes in politics, technology, energy and business were unfolding simultaneously and influencing one another. Tackling problems piecemeal was no longer enough. Whether in the Singapore government, where he served for many years, or at Temasek, which he now chairs, decision-makers must draw on four core principles: clarity of purpose, rigorous governance, enlightened self-interest and responsibility towards future generations.

On the interplay between “self-interest” and business, Teo stressed that while companies must create value for shareholders and employees, what matters is how they pursue success. If a company tries to use every means to squeeze the last penny out of its counterpart in every transaction, seeking to overpower the other side with a narrow, short-term, zero-sum mindset, it will ultimately lose its business partners and market share.

At the event’s fireside chat, he also revealed that Temasek chooses to “leave some room at the negotiating table” in many business deals, rather than push its partners to their limits.

Teo said, “If you are going for the last dollar, last cent every time, you may find that the only way that you can get into anything is by doing a hostile takeover, which is not really the happiest way to do business with people, and that's not the way that the market would like to do it.”

On corporate governance and long-term thinking, Teo pointed to Temasek’s purpose statement, “So Every Generation Prospers”. This core principle allows Temasek to pursue sustainable long-term returns across market cycles rather than overreact to short-term market fluctuations.

Teo also announced the Steward Leadership 25 (SL25) list at the summit.

SL25 was jointly established and selected by Stewardship Asia Centre, which is part of Temasek Trust, the INSEAD Hoffmann Institute, The Straits Times and WTW. It recognises projects in the Asia-Pacific that combine commercial viability with environmental and social benefits. Lianhe Zaobao and Money FM 89.3 are media partners of the summit.

Five Singapore companies and their projects made this year’s list: battery manufacturer Durapower Technology, climate technology company Arukah Capital, marine social enterprise Seven Clean Seas, innovative water filter manufacturer Wateroam, and engineering consultancy Witteveen+Bos South-East Asia.

Stewardship Asia Centre chief executive Rajeev Peshawaria said the leaders of the selected companies refused to compromise between purpose and profit, choosing instead to do well by doing good.

Arukah Capital chief executive Joanna Yeo said the company’s business involved converting agricultural waste into carbon credits and biofuel projects. “Many farmers lack the necessary resources and skills, and what we do is connect them with the market and help them escape poverty through various means,” she said.

Wateroam produces water filters for use in remote areas. Its founders, Lim Chong Tee and Vincent Loka, said people in many parts of the world still lacked access to clean drinking water. Through the company’s filters, they hoped to help them secure adequate supplies of clean drinking water.

ACEN Corporation (Philippines)

Aliet Green (Indonesia)

Amartha (Indonesia)

Anantara Resorts (Thailand)

Arukah Capital (Singapore)

Blue Alliance (France)

Blue Filter (Palestine)

Coral Catch (Indonesia)

Cypark Resources (Malaysia)

Digivriddhi Technologies (India)

Durapower Technology (Singapore)

Energy Development Corporation (Philippines)

Fun Lead Change (Taiwan)

Hemas Consumer Brands (Sri Lanka)

Kapture (Australia)

PT Peduli Alam Nusantara (Indonesia)

PT Siloam International Hospitals (Indonesia)

Sea Forest (Australia)

Seven Clean Seas (Singapore)

Steps Social Enterprise (Thailand)

Tata AutoComp Systems (India)

Torchit (India)

Vulcan Coalition (Thailand)

Wateroam (Singapore)

Witteveen+Bos South-East Asia (Singapore)