At the same time, there is a tendency for state companies to copy the winning strategy of one of their number. The head of one sees his friend who heads another GLC making money in property, so every GLC goes into property. It is wasting time, money and other resources trying something that entrepreneurs can do far better. I'd like to see more true privatization, not just a cosmetic selling down of equity stakes in some high-profile companies. That, he adds, may require letting foreigners own sizable percentages.
Many officials probably have little confidence in private firms, especially small ones.
But the assumption of the government is that these world-class companies will be GLCs. The problem is partly historical, Tay explains. For decades, state companies were the main economic players, providing many essential goods and services which businesses just could not deliver. Small enterprises, moreover, have long been excluded from major economic and business policy-making. Others believe GLCs and the rest of Singapore Inc. are part of the government's patriarchal control.