GLCs are run commercially. Their managements are answerable to their boards, which in turn answer to shareholders, like any other company. They are subject to the same laws and regulations governing all companies, including the newly enacted Competition Law. They enjoy no privileges, nor does the government compel them to act against their commercial interests for political reasons.

Most major GLCs are publicly listed. Their minority shareholders include leading international fund managers and financial institutions. They follow the same disclosure and corporate governance rules as any other company listed on the Singapore Exchange. Major unlisted GLCs like PSA and Singapore Power also publish their financial statements. International financial journals like Asiamoney and The Asset regularly rate GLCs among the top Asian companies in terms of their financial transparency and good corporate governance. Where then is “the mounting friction over corporate governance” that Mr. Rodan alleges?

Mr Rodan cites an anonymous email which purported to list government officials involved in GLCs, to insinuate that the GLCs are a vehicle to further “the interests of the entire ruling elite.” Had he done his own research, he would have found that directors from the public sector make up less than 10% of the total directorship positions in GLCs, far fewer than would have been justified by the share of the government’s interests.

GLCs have on their boards not only leading Singaporeans from the private sector, but also eminent foreign directors such as Chumpol Nalamlieng, president of Siam Cement who is chairman of Singapore Telecom; Sir Brian Pitman, former chairman and CEO of Lloyds TSB; Gail Fosler, chief economist of the U.S. Conference Board; and Narayana Murthy, chairman and chief mentor of Infosys Technologies. Why should such people help GLCs to become instruments of the People’s Action Party’s “social control and political dominance”?

Mr Rodan quoted one estimate that “Singapore’s external economy could be valued at five times its gross domestic product by 2020,” without any apparent sense of discomfort or contradiction. If the GLCs were as poorly run as Mr Rodan maintains, how could this come about?

The new REVIEW claims “to seek the most incisive and provocative commentary from Asia’s thought leaders.” Mr. Rodan’s article shows how sharply the REVIEW’s rhetoric and reality diverge, to borrow Mr. Restall’s phrase.

Chen Hwai Liang
Press Secretary to Prime Minister
Republic of Singapore

                                                      Home