Chris K one of the few sane bloggers in alternative media, on matters economics and financial (Actually he’s the sanest voice on these topics in alternative media) speculates:
Watch for it. There may be a new GLC. And being one means it will at least initially be 100% owned by Temasek. And being 100% owned by Temaseek means, to use Senior Minister Josephine Teo’s words in Parliament a couple of years back, it will generate “good risk adjusted returns”. Like most GLCs, its business model will capitalise on its connectivity with the government and its unique insights into government policy choices to earn profits from Singaporeans and maybe foreigners.
As a GLC, a scholar preferably a high ranking officer in the SAF will be appointed CEO. As this GLC will be a pioneer in a new type of industry, a regulatory agency will be set to be headed by another scholar, preferably another high ranking officer in the SAF.
[I]ts business? To run a chain of love hotels situated in discrete areas in every part of Singapore in order to provide space for Singaporeans to have sex and hopefully produce babies. Like its fellow GLC, this newcomer to the stable of Temasek will derive its profits from Singaporeans through rent seeking. it is expected that its revenue stream is recession proof.
It is too early to to forecast if this new GLC will do an IPO.
Seriously, it lools like he’s turning stand-up comic like Tharman and other PAP ministers. Let’s wish him better luck. At least they have their million dollar salaries to fall back on when they flop. He’s only got his savings.
But he has serious message: how our GLCs make money,
Like most GLCs, its business model will capitalise on its connectivity with the government and its unique insights into government policy choices to earn profits from Singaporeans and maybe foreigners.
Only three S’porean GLCs make serious money overseas: Keppel (rig building), SembCorp (rig building and industrial parks in Vietnam) and SIA. And the first also has a big local property arm.
Cynical Investor blogs at Thoughts of a Cynical Investor.