It was not so long ago, that the sale of a massive telecommunication empire to a foreign investor, led to a military coup and the ouster of a government and its Prime Minister. The privacy and sovereignty of its telecommunication system and satellites was the reason the usurpers used to start the domino effect that led to the coup.
More recently, forays by the foreign investor into two telecommunication companies of another country, has caused its anti-monopoly agency to cry foul and demand that stakes in one of the companies have to be divested, naturally at a huge loss.
Of course, there are much more underlying motives that have led to the above situations. But the reason for lifting the stick is the same, national strategic assets should not be owned by foreigners. Even the least educated of one’s citizens can grasp that concept and raise their fists in defiance. Perhaps particularly the less educated citizens.
Having been successful in the Sovereign Wealth Fund (SWF) business for many decades, Singapore has found itself in the situation that large nations, particularly the U.S.A and in Europe, are uncomfortable that extremely wealthier SWF from the Middle East and East Asia, their age old “enemies”, are attempting to buy up their strategic assets like ports and banks. Of course Singapore, being a loyal West-leaning country, and more transparent to boot, does not worry these big nations, who have to play a double standards game by welcoming the cash that Temasek Holdings brings, while turning away other bigger sharks.
It has caused Singapore to have to take the lead to instituting some sort of governance principles for SWF, in order to placate the West. Ironically, Temasek Holdings also claimed in another article in the Straits Times on the same day that it is not a SWF. So much for that policy then. Sovereign Wealth Fund Policy
In light of all of these events, I found it rather strange that not a sound was heard after Temasek Holdings announced its sale of Tuas Power to a China company. Sure it is not a sale to an SWF but to a corporatation, but it is a sale of a national strategic asset to a foreign company. It plans to sell the remaining power stations which powers 90% of the country. Sale of Tuas Power
Perhaps it is a gesture they have had to make in order not to appear to have double standards. “There, I have sold a national strategic asset to a foreigner, that gives me a right to buy yours.” A reason for the lack of comments could well be that Singaporeans are quite confident about the shrewdness of Temasek Holdings, and that the buyer must have been hoodwinked somehow. That would have been all well and good if Singapore Power did not announce a hike in its electricity tariffs a few short days after the announcement of the sale. Coincedence? I think not. Singapore Power Tariff Hike
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