The upcoming deadline to sell SingTel shares through the post office interestingly strikes a chord in me, particularly in terms of local governance and policies executed by those in power at the time.
For those not in the know, you have up to end March to sell ur Government-gifted ST shares through the local post office. After that, you can only sell them through a stock broker.
What you might not know is that if and when you do intend to sell ur ST shares via a stock broker, know that brokers only deal with share amounts in lots. Each lot equals 1000 shares. Anything less than 1000 share allotments, you gotta top up before even contemplating selling them through the broker.
The policy of giving pre-1976ers ST shares was the first inception of the profit-sharing of Singapore Inc. Good idea bad execution from the government of Goh Chok Tong. It is reflective of the ignorance of the doings of the stock market, vis-a-vis the understandings of the populace. Frankly, how many can and are willing to negotiate through the minefields of the stock market to deal with this?
Years later, the GCT government learns from its mistakes, by coming up with the NSS and then the ERS. Monies straight from the coffers of Singapore Inc., handled and dispersed by the Government, it made for easy transactions. Interestingly it gave a few local IT SMEs an opportunity to earn millions from developing the PSI and E-Citizen websites and accompanying infrastructure.
At around the same time, Temasek Holdings under the “leadership” of the GCT government, decided to broker deals with the then leader of Thailand as well as billionaire businessman, Thaksin Shinawatra. You can give us the whole song and dance about Temasek being a private entity, but you know what, the world already treats Temasek as a Government entity, don’t treat me like a kid and tell me ad nauseum it’s not! Are monkeys running Temasek?
In any case, Temasek and by extension the PAP would have been extremely foolish to believe other countries can support dynasties like Singapore. Could Thaksin retain power indefinitely? Hell no! As such, then any business deal with Thaksin the businessman and Thaksin the Prime Minister, must be conducted in a professional and particularly political manner. Not doing so is pure stupidity. Can Temasek and Singapore argue on grounds of good faith, that it was ignorant of local laws? Yeah right. Dealing with Malaysia, we dot every I and cross every T and even exchange letters. You mean to say a multi-billion dollar corporation didn’t know the laws of the land you’re doing business in? Are monkeys running Temasek?
Thai law is thai law. No majority shareholder stake by foreign investors, period. Who was Temasek and the GCT government trying to kid by brokering a deal with Thaksin to own more than 90% of Shin Corp? Without a concession to operate, ShinSat is as good as a write-off. Whether it’s an issue of law or ego and pride, it matters not really, if the current Thai regime intends to play hard ball. Next will be ShinCorp and $3 billion.
Singapore Inc., are we learning yet?
