Collapse of government-linked companies not a question of if, but when

Top management of GLCs are all PAP-approved scholar types. Without prior relevant experience and no accountability, companies helmed by these jokers are destined to fail. Many have and more will follow. 😦

SIA recently surprised the market with Q4 losses which sent its shares free falling. Its net profit last year wasalmost 1/2 billion lower than the previous year.

A picture speaks a thousand words and SIA’s long-term chart confirms incompetence at the highest level.
Times have changed but SIA has continued to bask in past glory while being overtaken by Emirates and Qatar Airways.

SIA scholar-CEO Goh Choon Phong has been a disappointment as he is obviously clueless. ​To some netizens, Goh is “the man who is destroying SIA” while others insist he inherited the shitty job from former scholar-CEO Chew Choon Seng.

Perhaps it’s about time SIA hires a new CEO, not scholar types like Goh. Don’t wait too long or SIA may take up foreign citizenship, like NOL.


Although SPH does not face intense international competition like SIA, it has been busy digging its own grave. Despite its monopoly status and an increasing population, readership has declined. The reason for this is obvious: it has remained a government mouthpiece churning out propaganda as news.

Instead of addressing the issue of declining readership, SPH even published more propaganda to delude itself. What a joke.

The writing was on SPH’s wall years ago and it appears to have made some preparations by investing “in everything except journalism“, eg property investment, online trading portal, $164 million Orange Valley Healthcare, a nursing home operator, etc.

Orange Valley was only recently sold to PE firm, KV Asia Capital in April 2014. It appears SPH must have made a compelling offer for the PE firm to part with its investment after only 3 years, ie SPH likely to have overpaid.

Another picture speaks another thousand words and SPH’s long-term chart seems to be telling investors to expect a rough ride ahead.

​Does scholar-CEO Alan Chan, former civil servant, President’s Scholar and PPS to LKY, have any idea how to turn SPH around besides blaming “an increasingly tough economic and media environment”?

Keppel Corp

Coincidentally or not, Keppel’s CEO Loh Chin Hua is also a scholar.

In 2014, Keppel became the world’s largest rig manufacturer. Although oil inventory had been steadily building up, Keppel continued to accept rig orders as if oil prices would stay elevated forever. There was no plan B.

Largest rig manufacturer really something to shout about?
Since Keppel derives a big chunk of profits from its O&M segment, its shares have taken a beating after oil prices collapsed (chart below).

The rally in Keppel shares seems to have ended. Another GSS soon?

These are just a few examples. If not for the preferential treatment dished out by the government, many more GLCs would have folded.

​The PAP government should not anyhow assume book smarties make good leaders in the corporate world. In fact, these jokers have already cost taxpayers billions.

To confirm, look no further than the recent case of Neptune Orient Lines’ lelong sale under scholar-CEO Ng Yat Chung.

​​Less than 1 year after quitting, ie selling our national asset to CMA CGM, NOL turned in the first quarterly net profit since 2011.

Singaporeans should not overestimate our jiak liow bee scholars who have consistently underperformed. They have managed to get away with incompetence because PAP has covered up for them.

Many GLCs helmed by PAP-appointed CEOs will eventually go belly up. It has never been a question of if, but when.

This entry was posted in POLITICS. Bookmark the permalink.

6 Responses to Collapse of government-linked companies not a question of if, but when

  1. Francis says:

    We are concerned about our country as we have no where to go. Scholars have amassed a lot and can always find another place to go. We are concerned and worried not that we hate the PAP government. The more we criticize them the more we love our country. PAP built Singapore but that doesn’t mean they can destroy it also. I am really worried at the way GIC and Temasek are being run. Fellow Singaporeans please wake them up before it is too late.

    • Phillip Ang says:

      Thanks for reading and please help to share. As I have told many like-minded Singaporeans, I have nothing to gain personally from this blog but probably a lot to lose. 😦 No worries though cause I am going into this with open eyes. Will explain this more fully in another post. 🙂

  2. Desmond Koo says:

    I completely belittle shareholders ability to read P&L performances and conveniently forget they can exercise their voting rights to oust the leaders of these organizations
    are not well run.

    You use a simple broad brush to rubbish them during a weak business cycle . You forgot that there will always be ups and downs in business. Having the guts and boldness to re-map, re-scale and re-strategize is incompetent? Selling off NOL with a decent return for shareholders is wrong when the outlook continues to be bleak?

    Maybe we should hire you instead to run all corporations if it is so easy. Come on, don’t take laymen like us as completely ill-informed.. Just look at some companies who allowed the business to fail completely without shareholders protection. Hanjin is a recent one. Let’s be fair to the business leaders. Putting blame without basis is cheap shot.

    • Phillip Ang says:

      Why do you even consider a former military personnel – without any relevant business experience parachuted into the CEO role – a “business leader”? These book smarties helming GLCs are only doing well in the domestic market because they have the support of the government, ie legislations tweaked in their favour.
      Why is NOL failing in a weak business cycle but others doing well?

  3. Desmond Koo says:

    I am sure there are good CEOs and there are bad CEOs. We should leave the leadership selection process to the HR and Board of Directors, who would be looking for leadership, managerial maturity, decision making astuteness, personality, achievements, drive and many other finer elements.

    There many good military leaders who had run corporations successfully too. Likewise there are some who can’t make the cut. Hence stereotyping won’t help. We shouldn’t just cast aside their leadership competencies. Most of them have some finer quality to offer, when they are being assessed. The assessment is open to candidates from all walks of life.

    We have seen good leaders and bad leaders. They come from different fields. The fortunate thing is there is accountability and ownership to shareholders. So if they don’t do well, they are voted out at AGMs.

    I have benefitted much as a private investor from Keppel Corp, Singapore Technologies, NOL etc over the years. Dividends were good in good time and now that the GLOBAL economy is facing slow down challenges, I take comfort that some of these leaders made pragmatic and sensible moves to right scale the business, seek alternative solutions instead of doing nothing.

    The performance of these companies is subject to global competition and business sentiments. Making general assumptions and stereotyping their management quality, would be counter intuitive. We must all know that it is not Keppel Corp alone that is facing global oil and gas business crisis. It happens to all the players. Some have already gone bust why Keppel continues to reinvent itself. I don’t see investor pulling out their money. This surely means something.

    Many of us serve military services in Singapore. I am sure we benefitted much from the leadership training, to count the least. So I choose to follow other sensible investors by asking direct questions about the company performance and leadership versus the market, instead if looking to see if the CEO was an ex-military leader. We should be looking at current and future earning potentials, performance versus market, the business strategies employed and the track record of the company amongst other things.

    Just saying that they are no good simply because some of them are run my successful military leaders would be a little off skewed.

    • Phillip Ang says:

      No former paper general has left the military for a non GLC.
      I served in the RSAF for 6 years and saw first hand how these scholars were promoted. It has little to do with having leadership qualities. In fact, when you watch these clowns give a speech – mostly scripted – no thinking Singaporean will be inspired.
      Most GLCs are also backed by politicians who help open doors.
      Question you may want to ask: What is Ng Yat Chung bringing to the table?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s