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ermm, over 3 yrs in power, somebody has managed to sell something in order to improve our economy

I suppose Utusan have not heard of the term "reverse takeover". ultimately, the decision to grants operating license wrest with the government. Therefore by buying these stakes, Singapore GLC's are the ones taking risk. Maybe it is a case of, "if you can't join em, buy em up."

Simple lah - don't sell.

Willing seller, willing buyer.

A look at the porfolio around the world tells me that SIngapore being the closest country has not invested enough in Malayisia. Even Indonesia just opened up the Batam and Bintaan to allow Singapore to build and operate Free Trade Economic Zones aka. China Suzhou Industrial Park, Wuxi Industrial Park and now Dalian.

Key investments and effective shareholdings (% share)
         
• SingTel 56
• SingTel Optus (Aus) 56
• MediaCorp 100
• Telekom Malaysia 
• ST Telemedia 100
• Starhub 63
• Global Crossing 71
• PT IndoSat 41
• Equinix 35
• Shin Corp 96
• DBS  28
• Bank Danamon (indo)  60
• ICICI Bank   8
• Hana Financial (korea)   10
• Bank Internasional
  Indonesia 35
• Alliance Bank 15
• China Minsheng Bank  4
• NIB Bank 71
• China Construction Bank   7
• Bank of China  5
• E.Sun Financial Holdings  6
• Fullerton Fund
  Management  100

• CapitaLand   43
• Australand Holdings   234
• Raffles Holdings 274
• Ascott 294
• Keppel Land 145
• Mapletree
  Investments  100
• Surbana Corporation 100


• SIA  57
• NOL 67
• PSA 100
• SMRT 55

• Singapore Power  100
• Sembcorp Utilities  515
• PowerSeraya 100
• Senoko Power 100
• Tuas Power 100
   
   
 
• Keppel Corp 32
• Keppel Offshore &
  Marine  325
• SembCorp Industries 51
• SembCorp Marine  326
• ST Engineering 55
• Chartered   Semiconductor
  Manufacturing  60
• STATS ChipPAC Ltd 36
• Mahindra & Mahindra 5
 
Biopharma & Healthcare  
Others
Notes
 
• Quintiles Transnational   Corp  17
• Matrix Laboratories 13
• Apollo Hospital Enterprise 7
• Temasek Life Sciences   Laboratories 33
• Bumrungrad Hospital 6
• Wildlife Reserves
  Singapore   88
• Aetos Security
  Management 100
• Cisco Security 100

SINGAPORE EXPANDS INTO INDONESIA...an extension of Singapore economic reach.

BATAM, Indonesia : Prime Minister Lee Hsien Loong says Singapore and Indonesia have entered into a new phase of economic cooperation with the signing of a Special Economic Zone agreement that will oversee the development of Batam, Bintan and Karimun in Indonesia.

The agreement will attempt to make foreign investments more attractive and help create jobs.

Several areas have been identified to make conditions ideal for investors.

The formal signing on Sunday by the trade ministers from Singapore and Indonesia was witnessed by PM Lee and Indonesian President Susilo Bambang Yudhoyuno.

The Indonesian leader described the signing of the agreement as a historic event.

It is hoped that Batam, Bintan and Karimun will regain its status as the thriving hub of business activity that it once was.

With keener competition from China, India and Vietnam, many companies moved their operations away from places like Batam, and the business climate there began to freeze in early 2000.

The new framework will cover several key areas including taxation and manpower needs that will make it conducive for businesses to invest.

Efforts will also be made to streamline regulatory procedures.

A Joint Steering Committee will be set up, to implement the measures for the Economic Zone.

The committee will be co-chaired by Trade and Industry Minister Lim Hng Kiang, and it will comprise of relevant ministers from both countries reporting directly to PM Lee and President Yudhoyuno.

PM Lee said: "Singapore will have three main roles in this collaboration. Firstly advisory - because we are close to the investors, we know what they want, we know what their problems are. We will communicate these requirements to Indonesia, and suggest ways how Indonesia can change its rules to be more investor friendly. And we can draw on our experience with other SEZs in Suzhou, Vietnam."

Singapore will also help with investment outreach, using the Economic Development Board's network to match potential investors to Batam and even help train workers.

This signing is also a significant signal to the business and investment communities.

Both countries say they're committed in revitalising the business environment and opportunities in Batam, Bintan and the Karimun regions and this commitment is driven from the very top of the leadership from both countries.

Mr Lee said this economic zone is unlike the project in Suzhou where Singapore companies poured in a significant amount of money to build a township from scratch.

He said: "In Batam and Bintan, there is a pre-requisite for an SEZ, including infrastructure and skilled workers and strong name recognition among investors. This combination was successful in attracting investors in the early years, but recently there have been problems. Existing investors left and new ones have not come in.

"Indonesia has made it clear that they want to overcome these problems, and has passed a new law to set up SEZs, improve the investment climate. Singapore will help Indonesia to tackle problem areas like customs and excise taxation, or regulatory issues."

But both countries agree the signing is just the first step in what has been described as a long process to make the economic zone a success.

This cooperation between Singapore and Indonesia also underlines the close bilateral relationship, one which is hoped will bring mutually economic benefits.

A closed-door meeting between the two leaders also touched on many issues.

President Yudhoyuno said: "We also discussed the current security and safety in the Strait of Malacca. I am pleased to observe that the trilateral cooperation are showing positive results as clearly indicated by a significant drop in the number of piracy attacks in those strategic waterway. We are committed to enhance the existing cooperation on maritime security, including safety of navigation and protecting marine environment."

During the meeting, the Prime Minister and President also discussed the ongoing negotiation of Singapore and Indonesia's extradition treaty.

The current political situation in Timor Leste was also of deep concern for the two leaders.

They expressed hope of a complete restoration of law and order and a peaceful political resolution to the conflict there. - CNA/ch

i would really like to hear as to what people will say now about selling out the local stakes to foreigners ...

there has been considerable comment that malaysians ought to dump nationalised project such as PROTON since these ppl can't make proper cars that everlast the JAPANESE and blah blah blah alongside the usual rants about broken door handles ...

now that singapore is buying into proton and also things like air asia and alongside other money-minting industries from bolehland ... I am really being envious of the singaporeans ...

whilst most of the bolehlanders have been embroiled in emotional outburst and disgust over what has been done 22 years ago over Tun's mistakes in trusting wrong people for the jobs, it is really nice for ppl like the Lees to start buying into these money-minting entities of bolehland ...

what else can they buy ? Petronas / DiGi / PNB / Danaharta / Avenue Capital / local banking institutions / YTL ?

Since Singapore seems to be investing a heck of a lot of money in our national-interst companies, perhaps we ought to invest in some of theirs. Just last week Petronas recorded some of its highest profits ever, why can't we do the same? I am worried abt. this creeping Singaporean invasion into our national-interest companies, because this is the exact same thing that Singapore did to Indonesia after the 97/98 Economic Crisis; i.e. try to buy as much assets from the neighboring country and profit from it.

Temasek Goes Shopping to Build a New Singapore
-Temasek's shopping list will only become longer, and more exotic.

Aug. 6 (Bloomberg) -- Look closely at the shopping list of Temasek Holdings Pte, and you'll find the Singapore government's investment arm is busy scripting a future for the city-state dramatically different from its past.

Temasek is feverishly buying into South Korean, Indian, Indonesian and Malaysian companies. Since June 2003, it has purchased 9.1 percent of Korea's Hana Bank, 5 percent of India's ICICI Bank Ltd., a similar stake in Telekom Malaysia Bhd., the country's biggest phone company, and chunks of PT Bank Danamon Indonesia and PT Bank Internasional Indonesia.

That it isn't abandoning Singapore is evident from its $1.6 billion takeover bid this week for Neptune Orient Lines Ltd., the port-city's largest shipping company. Still, the predominant theme for Temasek, as outlined by Chief Executive Ho Ching to employees in June, is ``to become a formidable Asian equity-house, operating in Asia, as well as the world.''
………………….

Graying Population
A preponderance of old dependents will bring down the savings rate, currently a high 45 percent. If the city's aging population has to stay wealthy, the state must invest its past and current savings in ``younger'' countries like China, India and Pakistan, so it can collect dividend checks later.
The island-state will have an ``external economy'' worth US$500 billion by 2020, according to Daniel Lian, a Morgan Stanley economist in Singapore, who expects overseas earnings to account for 25 percent to 30 percent of national income.

``No other economy on earth,'' says Lian, ``will own such large external assets relative to its domestic economic size.''
A part of the thrust overseas will come from Government of Singapore Investment Corp., a financial investor that recycles the island's current-account surpluses in overseas stocks and bonds. (Surpluses over the past decade amounted to S$272 billion.) Temasek, a direct investor, will also play a role.

Not Big Enough

Singapore's draw as a country that guards private property, allows imports of most goods at no tariffs, and has little corruption or crime, isn't enough to secure investments at a time China and India, with 2.3 billion consumers and 1.3 billion workers between them, are opening to the world economy.
China doesn't need Hong Kong as much as it did in the past, for financial and trade intermediation. It needs Singapore even less. India's service providers are offering to do anything Singapore can, and cheaper.

The $91 billion economy, a city without a hinterland, ``is not optimally sized,'' says Manu Bhaskaran, the Singapore-based head of economic research at Centennial Group Inc., an advisory group based in Washington D.C. ``It did well when its neighbors were much less developed. Now, things don't automatically gravitate to us anymore.''
If business is not going to come to Singapore, then Singapore must go where the business is.
That means Temasek going to China for a slice of state-run companies as they privatize, to Indonesia and Korea for stakes in their banks as they restructure, and to India, where Apollo Hospitals Enterprise Ltd., a local company in which Temasek plans to buy a stake, recently announced plans to set up an outpatient center in London to bring people to India for low-cost surgeries.

Following Its Companies
It's logical for Temasek to want a footprint in countries that are driving the value of its Singapore investments.

CapitaLand Ltd., a Singapore property company owned by Temasek, now earns two-thirds of its profit overseas. The group has invested 5 billion yuan ($604 million) in China, where it has 1000 employees.

Temasek's shopping list will only become longer, and more exotic. If its bets pay off, several decades from now, Singapore won't ``sink into abbreviation,'' a fate Morgan Stanley's Lian predicts for Asia's other city economy, Hong Kong.

Malaysia still has syndrome takut dijajah especially by singapore.

On the other hand I see UK and Middle East which has open up their market and allow foreign investment and takeover has benefit greatly.

When you know that because of the Malaysian culture of managing its own assets underperforms and is inefficient and therefore undervalued you take it over and run it yourself for a profit. Another thing is what is so immoral about foreigners buying up our national assets when our own politicians rob us blind all the time?

JEFF OOI says: "... what is so immoral about foreigners buying up our national assets when our own politicians rob us blind all the time?" NICE GOOD POINTS...

Malaysia also bought Sing companies. TM bought into M1 and CIMB bought GK Goh. Southern Bank was supposed to buy a Sing company as well. Malaysia also buying companies in Indonesia and India. Even bought Lotus, a British icon.

From the comments here, I wonder how deep is Malaysian xenophobia and hatred for Singapore.

creative: "there has been considerable comment that malaysians ought to dump nationalised project such as PROTON since these ppl can't make proper cars that everlast the JAPANESE and blah blah blah alongside the usual rants about broken door handles ..."

__________

Oh please - the reason they are interested in Proton is that Proton operates in a protected market and thus was able to show some profits. If Proton was to compete in an open market -let's see whether they will even touch it with a barge pole.

But their interest in Air Asia is understandable. Only 4 years old and already a regional powerhouse.

Self serving protectionist policies disguised as economic nationalism.

I'd rather the heartless Singaporean capitalists take over Malaysian "strategic interests" and turn them around into profitable ventures and efficient operations and customer oriented services,

than let the incompetent, greedy well-connected Bumiputera and his non-Bumi crony friends mismanage and plunder the country's wealth.

I say let Singapore come in. What's the big deal? We tried to manufacture Bumi businessmen from the kampungs, Tajuddin Ramli et al, and failed. In general, I dont see any Bumi entrepreneurs other than the Ramli burger chaps...oh,hang on, they might have got MARA loans too...

Who cares who owns the business? End of the day, its based in Malaysia, paying Malaysian taxes and hiring Malaysian workers.

Dear Mr Ooi: It is not immoral for foreigners to buy into our assets. In fact, some may argue "assets (or is it liability?)" like Proton are better shelved off in its entirety. HOWEVER, it would be more interesting to see who benefits most from these deals. Some say we can trace it all the way back to a certain KJ. Why am I not surprised when a certain "Indian God/Muslim Priest" and sidekick (Mr Brendan) hails from S'pore - with access to "power brokers" in the tiny replublic. Thus, I cannot but view the influx of "investments" in the past 2 years with a little suspicion on its REAL benefactors.

Now, on to the supposed egomaniac projects of TDM. I would like to see some armchair economists work out the value of the "multiplier effects" that these spending and projects produced. Sure, it probably did not benefit all of us directly, but hey, spending RM20 billion on infrastructure beats spending RM20 billion on agriculture anytime.

Ah, need to get back to my day job. Signing out.

pardon me, but it takes them two years to find out their assets been bought by TEMASEK ? and now they feel threaten, because ??

are they feeling the pinch by losing their control of their prized possesion or has it finally strucked them that singapore need more land ?

/// I would like to see some armchair economists work out the value of the "multiplier effects" that these spending and projects produced. Sure, it probably did not benefit all of us directly, but hey, spending RM20 billion on infrastructure beats spending RM20 billion on agriculture anytime. ///

AverageJoe - looks like I fit the bill as an armchair economist - and a couch potato World Cup fan as well.

One example will suffice - and the results may not be what you think.

Take spending RM20 billion on Proton. What is the strategic value of Proton? Next to kosong. Will knowing car technology lead to space technology? Malaysia must be the only country in the world which has "progressed" from car technology to motor-cycle technology (Augutus). Very soon we should be buying a bicycle company for its technology.

Yes, your query - what's the multiplier effect? What is the core of car manufacturing? The highest value added - the engine of course. And this is imported wholesale from Japan. So where is the multiplier effect? Only a small percentage of the car parts are manufactured locally and these are the low value added and low-technology bits like tyres, windows, lights, car bumpers etc.

Another huge chunk of the expenditure is on APs - and we all know where the money goes. The buck literally stops at the AP holders - so where is the multiplier effect again. Yes, the multiplier effect will come from expenditure from those instant millionaires - luxury items like Ferraris, Lambourghini and helicopters. But these are all imported items - very little multiplier effect on the local economy.

Next, consider spending RM20 billion on agriculture. Who will clear the land? Locals. Who will till the land? Locals, or cheap foreign labourers (whose kepalas are all locals). Transporting the palm oils, rice, durians, rubber, etc - all local people and companies. Who service these people, the lorries, the fertilizers, the palm oil factories, etc? All locals.

My own arm-chair estimate of the multiplier effect? For those egomanical and megalomanical projects such as Proton, KLIA, Putrajaya, Perwaja Steel, Petronas Twin Tower - multiplier of about 0.2 to 0.5.

For agriculture - multiplier of 2.0 - 3.0

So, AverageJoe - give me agriculture anytime. It may not be sexy or high-tech - but it has huge multiplier effect and it benefits literally millions of Malaysians, instead of just a handful.

Wow,another conspiracy theory made its appearence.

I cann't forget the conspiracy that made me laugh till my teeth dropped,that was made by TDM,that the leaders of the West were out to conspired for some things or other things most of the time,well,as far as I know,most of those leaders are fighting for their daily survival,tell me which leader in those countries are as solid as our AAB,not to mention the Tun himslef for 22 years.

Talking about "multiplier effects",I am in no position to predict whether it would be better to spend 20 billions RM on infrastructure or development of agriculture,in any case,it is not the job of government to pick winners,did any President in USA tell Bill Gates to create "Window" or did they tell Warren Buffett to run a investment fund?I doubt it.

Any money spent on the local ecomony would definitely a "multiplier effect",unless the money goes direct to the Swiss banks.The question here is whether the fud has been invested wisely so as to achieve the Maximum effect,that is what I am after.

Simple: Paranoia of the Malaysian politicians!

why they don't want to sell?

Simple reason..once you have foreign investors..they will look for bottom line..and cut away all the waste..crony suppliers, high spare parts cost..etc etc..and who are these beneficiaries..???

This is the only reason.

come on, we have so many MNC here. Are we invaded?

China has so many foreign companies, is China invaded?

Even Google had to censor its data to open market in China.

My point is, if you fear about the invasion, why don't you look into your country's policies, whether it could counter invasion?

Are these leaders even uncertain about this country's system?

Dear Wrath of Grapes:

I was comparing between spending in infrastructure and agriculture. So, perhaps using Proton (automotive) is not very fair on your part.

But on the spending of infrastructure - firstly, professionals such as architects, engineers and quantity surveyors will be mobilised to come up with construction concepts. Not to mention bankers, lawyers and corporate officers will be needed to formalise contracts and agreements. Let us not forget these professionals form a large chunck of our upper middle class - thus if they are better off, the cascading effect will flow to maid services, drivers, etc.

During construction, we will have unskilled/skilled workers labouring on site. SME contractors will be in job. Not to mention construction insurers. Material suppliers will be required plus logistics and transportation. After construction, you will mobilise interior designers and buy furnitures and fittings (and probably less furniture malls will burn down!). Revonation contactors will then find work. Town councils gets to collect assessment rates and others.

And these are just a few of the direct multipliers. Take NSE for example, the multipliers can still be felt today. For without it, it may be free for me to get to Penang from KL, but it sure hell is going to take me the whole on chinese new year to get there! ha

People always say that we have first class infra but 3rd class mentality. Imagine if Goventment didn't spend on the infra, we would just be 3rd rate through and through. Now, between the two, I rather be 1st rate infra, 3rd rate mentality.

Of Proton, I shall say this. It is a very noble idea by TDM. Start up high tech industry using foreign expertise, like what China did with Volkswagon - hoping to eventually fully produce our own. I would not have wanted in anyway. Unfortunately, while the vision was there, the implementation was lacking. Perhaps, we just have to accept the fact that the failure of Proton (to produce real quality products and be independent ASAP) is a result of a myriad of policy failures. At the end of the day, we failed to take the next big step despite the heads up.

Regarding APs, if I am not mistaken, it seems the person getting richer by the day is a cousin of KJ. Check it out. I hope I am proven wrong here. By the way, I don't think the Government spends on APs. Only thing is the Government gets ripped off when people under-declare APs. Then again, I am no expert in this as whatever the system is, I do not think I will stand to gain. So no brain power should be wasted on this.

AverageJoe, now you are changing your position.

Okay. Even for infrastructure projects, the multiplier effect, dollar for dollar, ringgit for ringgit, will never be higher than for agriculture. Agricultre - which was specifically singled out by you - will always win hands down simply because of the much higher local content.

Take your N-S Highway example. If I remember correctly, the original contract sum ballooned to a few times its original number. Yes, there is sum multiplier effect, but given the huge cost overrun, it might be simpler just to distribute those billions direct to the people - either as tax grants, rebates or lower taxes.

Another example - the Petronas Twin Towers. where are the biggest expenditure? The architect is Ceasar Pelli - so the bulk of the fees went there and not to local architects or engineers. The contractors? If I remember correctly - one is Japanese and the other Korean. Again, the bulk of the money went overseas. Only the sub sub sub contractors are locals. Net net, multiplier effect is very diluted.

Perwaja Steel is also an infrastructure project, no? Where are the billions?

oh banjaran

u misunderstood my point,

i have no problem with DiGi which is partly owned by Telenor to come up with all sorts of ideas to spur competition ...

FDIs are good ...

my only concern is that if you look at how the decision to sell MV Augusta / Pantai Holdings was made ...

were the decisions being made in the good business sense or is it akin to the scenario where someone is out there to sell whatever they have like there's no tomorrow just to make a few quick $$$ ?

buying into Air Asia is good, no doubt now Tony is getting pissed with MAS who wants back certain *profitable* domestic routes and the wasted effort to develop Senai, why not just land the planes into Singapore ?

It is rather sad to see whilst Air Asia has been struggling to suceed without any billions of subsidies that have been enjoyed by MAS - the first airline child of the government and the way in which the LCCT has been twisted to make life difficult for commuters/consumers, how many more billions of tax payers' money would have to be spent in order to resuscitate the MAS airlines ?

probably key stakes of certain government assests were not being sold yet because they still generate a certain level/amount of cash for somebody ...

it is rather disheartning to hear about rumours as to how key supplies into the airlines were won by certain ppl/companies in which they have to pay thru their nose when no-frills airlines like AirAsia can make money even without such overkill/extravaganza ...

i'm all for the idea of ridding such rent-seekers in the system but before that happens I hope that the piece of whatever valuable assets would not have to be sold at the public's expense just to finance somebody's political war-chest for furtherance of their whatsoever's political ambition ...

Dear Wrath: I did not change my position.

I believe I have stated my opinion and I shall not repeat it.

I respect your opinion. I hope you find success in the Agricultural business.

Malaysia is part of the "free market" system , also a memmber of WTO and signatory to various Free Trade Agreements like AFTA,etc.
Singapore is in the same league, as with UK

What's WRONG with Singpore corporations buying into Malaysian companies -- as one commenter said: Willing buyer- willing seller. It's when Govts interfrfere with such sales -- remember Time Engineering? and more recentlyy South Bank's proposed buy into a Spre insurance company -- that's what investors don't like! FDIs will continue to decline the way some Malaysians wish their Govt to perform national service in the corporate world. For that, pls join Tan Si Lee LT and Datuk Si Najib TR's baby, okay!