Posted by: bigtalksingapore | July 8, 2008

Temasak Holding Selling Senoko Power Station

We all know that there’s an energy crisis going around the whole world.

By logical deduction, the business of providing power supply to people looks to be very profitable.
The question is that why did Temasak Holding want to sell off its share in the three main Power plant in Singapore ?

Attachment #1: Today 8 July 2008, Page B2

I like to offer some alternative views on the “Why”…

  1. Utilities (Electric and Water) used to be a public goods supplied by government to people so that it is affordable. With the energy crisis, increasing the cost of these goods is inevitable. Doing so may create an impression that the government is inhuman to citizen suffering and create social protest. We have already seen many cases in other countries where increased in fuel price sparked outright protest from its people. Therefore, by selling off Temasak Holding shares in Singapore power station, they may be trying to de-link it (Electricity supply) from government completely. And when there is a electricity price hike that generate strong public outcry, they can always say “There’s nothing we can do because it’s a private enterprise and we got zero share in it.
  2. Temasak Holding may have lost too much money in their recent investment in foreign banks that speculated in sub-prime products. To reduce their paper-losses, they have to sell something.

Seems that my assumption#2 ties in with the recent profit statement by Temasak Holding, or is it just coincidence ?
Look at Attachment#4 (By BBC) and compare its report by Singapore local media (Attachment #5 to 9) to see the difference in perspective. [Re-updated on 27 August 2008]

Below are some related newspaper cutting..

(From Today 26 June 2008, Page 26)

Attachment #2: Today 16 April 2008, Page 26

Attachment #3: Today 15 March 2008, Page 24

Attachment #4: BBC Website
(http://news.bbc.co.uk/2/hi/business/7581568.stm)

Attachment #5: My Paper, 27 August 2008, Page A14

Attachment #6: My Paper, 27 August 2008, Page B4

Attachment #7: Today, 27 August 2008, Page B3

Attachment #8: Today, 27 August 2008, Page B2

Attachment #9: Today, 27 August 2008, Page B1

Attachment #10: Today, 3 Sep 2008, Page B2

Attachment #11: Today, 6 Sep 2008, Page 32

Attachment #12: Today, 15 Sep 2008, Page B3

Attachment #13: Today, 23 Sep 2008, Page 22

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: