Privatisation: Global trends and implications of the Singapore experience

This paper begins by describing the trends and drivers of privatisation, as well as the benefits derived from privatisation programmes. It then considers the ownership debate, i.e. whether superior performance of state‐owned enterprises (SOEs) can be achieved under state ownership. While empirical work shows that private ownership is associated with superior performance, the experience of Singapore is a clear example to the contrary. Singapore Telecom is described as a case where state ownership combined with several contextual factors has led to sustained world‐class performance, in spite of global trends such as deregulation and technological advancement which create turmoil and reduce profitability in the telecommunications industry. These contextual factors include a clear corporate strategy combined with an efficiency focus by Singapore Telecom, a long‐term national policy of infrastructure improvement as a strategic resource for national economic development, and a robust economic and regulatory environment. The implications of the Singapore experience are then discussed.