GOVERNMENT-OWNED COMPANIES (Situation Report)

Maj Fong Sip Chee asked the Minister for Finance, Minister for Education and Minister for Health (1) whether he will make public a comprehensive list of all wholly government-owned companies and their subsidiaries, and all companies in which the government has either majority or minority interests; (2) the amount of capital involved in each of these companies; (3) if he is satisfied that these companies are engaged in businesses or operations which the private sector has neither the financial means nor the technical capability for their operations; (4) how many of these companies have been wound up due to poor business or poor management and the amount of public funds lost; and (5) in his view, how many of these remaining companies have out-served their purposes, functions and usefulness and which should accordingly be wound-up.

Dr Tony Tan Keng Yam: The answers are as follows:

(1) & (2) The list of companies is attached (see Appendix II) (Cols. 345 - 348). Appendix II - LIST OF GOVERNMENT-OWNED COMPANIES (Cols. 345 - 348)

(3) Most of the companies were established during the first 15 years of our drive for accelerated growth. The private sector did not then have either the resources or the confidence to venture into areas of economic activity provided by the government. Foreign investors occasionally wanted government as a partner.

Since the mid-1970s, government investment in commerce and industry has been curtailed as the private sector is now capable of spearheading economic growth.

(4) During the last five years, four government-owned and related companies were wound up due to poor business. The estimated total loss by government was $4 million.

(5) It is government's declared intention to divest itself of as many of its investments in the economy as possible consistent with the need to safeguard national interests.