22

Nov

2008

Singapore … Powerless by 2010

Temasek is set to sell its last Singapore power generation company by 2010, PowerSeraya. They have separately sold off Tuas Power to the Chinese and Senoko Power to the Japanese. Together, these 3 companies make up 90% of the electricity generation in SIngapore.

http://www.temasekholdings.com.sg/media_centre_news_releases_071008.htm

So by 2010, Singapore electricity prices are at the mercy of the electricity seller. I cannot understand the wisdom in Temasek’s move to sell key installations like electricity generation. Yes, utility companies are not as attractive as financial services companies when it comes to investment returns. But for heaven sake, just look at how much Merrill Lynch share price has fallen since the 2 times Temasek invested into them.

Merrill Lynch & Co Inc (New York Stock Exchange) - USD8.34 (21 Nov 2008 close)

Electricity is a basic necessity in our daily lives, I doubt any Singaporean can dispute that. In troubled times like this, what can be more important? By holding at least one of these companies, Singapore will still be able to regulate and control the prices of electricity. Selling all of them to foreign companies is like letting others hold us by our testicles. Of course, I do not have the enlightened foresight of the leaders at Temasek. But as an average Singaporean, I just hope their decision is right and they have considered our citizens’ welfare before making such a move.
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Filed under: Social Posted by Kopi-Cek

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