PRIVATISATION OF GOVERNMENT-OWNED COMPANIES (Speeding up)

The following question stood in the name of Mr Chng Hee Kok -

Mr Chng Hee Kok: To ask the Minister for Finance if he will speed up the privatisation of Government-owned companies in view of the delisting of Malaysian companies from the Stock Exchange of Singapore.

Dr Vasoo: Question No. 9, Sir.

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, one of the objectives of privatisation in Singapore is indeed to enlarge and deepen the stock exchange by listing new counters and by increasing the volume of shares of existing counters. This process, however, should not be artificially speeded up. First, the companies to be privatised through a listing in the stock exchange must be ready for listing. They must not only meet all the listing requirements of the stock exchange but also must be free of major problems that might raise a doubt as to their future viability or profitability. Second, the timing of the listing or secondary offer of shares in the market must be opportune in relation to market conditions and other factors.

Since 1986, six Government-owned companies have been introduced to the stock exchange and shares of seven Government-linked listed companies have been sold through public offer or placement. Temasek Holdings has privatised almost all of its privatisable companies. MND Holdings has only two companies which it is contemplating to privatise. At lower levels, there are more companies which may be privatisable but their parent companies will have to make the commercial judgment as to the actual timing of their flotation.

However, I expect that the delisting of Malaysian companies from the SES will create a healthy appetite in the market for new issues and this will encourage good quality companies, including Government-linked companies, to seek listings earlier rather than later. In addition, the Telecommunications Authority of Singapore and the Public Utilities Board have both announced plans to privatise parts of their operations and other statutory boards are also studying their positions.