UPDATE 2-Temasek's new firm may give greater say to Singaporeans
* Firm may allow co-investments by Singaporeans - sources
* Temasek chief strategist Charles Ong to head new firm
* Temasek says in process of building up Seatown Holdings (Recasts with Temasek confirmation; adds quotes)
By Kevin Lim and Saeed Azhar
SINGAPORE, Feb 10 (Reuters) - Temasek [TEM.UL] has set up a multi-billion dollar investment company, in what may be a small step towards allowing ordinary Singaporeans greater say in the affairs of the city-state's wealth fund as co-investors.
The shift for tightly controlled Temasek comes after it faced a barrage of criticism last year on soured investments in the West, where it lost billions backing banks such as Merrill Lynch (BAC.N: Cotización) and Barclays (BARC.L: Cotización).
Temasek's CEO Ho Ching, the wife of Singapore Prime Minister Lee Hsien Loong, had said in July that the fund may ultimately allow the public to jointly invest with it in projects. [ID:nSIN474700]
Sources briefed on the plans told Reuters that the firm, to be called Seatown Holdings, will invest in a wide range of assets including stocks and bonds. It may eventually allow ordinary Singaporeans to co-invest with Temasek, they said.
"Seatown will have to compete against other listed corporate entities and investment firms for investments from the man-on-the-street," said Eugene Tan, an assistant professor of law at Singapore Management University (SMU). Continuación...