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55. Still on local enterprises, Inderjit Singh has
asked about efforts by Temasek companies to become
globalised Singapore enterprises, as recommended
by the ERC. Our companies have expanded overseas
over the years, but these are decisions which
the companies have to make - with their boards
and their managements. The Government cannot
dictate the pace of expansion for individual
companies. In fact, Inderjit also reminded us
that we should not get involved in dictating
things for these companies. In the long term,
Temasek's aim is to reduce exposure in Singapore
from half, which it presently is, to about one-third.
The companies are moving. Sometimes, we give
them an encouraging nudge.
56. The Minister Mentor (MM) once in a while gives
a very encouraging nudge. Members will have read
that he has been talking to SIA and its management
and unions. Mr Inderjit Singh raised an eyebrow
and suggested that we have failed to observe
the ERC's recommendation to ensure that GLCs
are commercially-run without interference by
the Government. I think without interference
does not mean without encouragement.
57. MM's involvement has been chiefly in resolving
the labour relations situation in SIA. It reflects
his long association with the tripartite process
and his standing as a trusted and well-intentioned
neutral party by all the players. It is also
driven by the Government's larger strategic interest
to safeguard our status as an air hub and to
help SIA restructure to face a new landscape
while it is still doing well.
58. So MM's comments to SIA that it needs to consider
trimming its businesses was not a directive.
The specific restructuring and adjustment to
deal with the future will have to be decided
by SIA management and its board, based on what
makes commercial sense. But sometimes it is helpful
to paint a broader picture of the industry trends
and state clearly where the Government sees a
strategic national advantage - in this case,
in being an air hub rather than keeping out competition
in order to protect Singapore Airlines; so that
managements and unions recognise that tough changes
are necessary. As Inderjit Singh pointed out,
the comments may have preceded an upward tick
in the SIA stock price. So maybe the market took
it positively.
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