SINGAPORE (AFX) - Prime Minister Lee Hsien Loong has dismissed suggestions of government interference in state-linked companies such as Temasek Holdings and Singapore Airlines (SIA).
The government 'does not dictate the pace of expansion for individual companies,' Lee said during a debate in parliament.
'This must be a commercial decision driven by opportunity and taken independently by GLCs (government-linked companies).'
Lee cited the example of state-linked investment company Temasek which he said is aiming for the longer term to reduce its exposure to Singapore to about one-third from the current proportion of about half.
Temasek, which is headed by Lee's wife Ho Ching, has been buying stakes in companies in Asia and other parts of the world as it expands beyond the small domestic market.
It currently manages a global portfolio worth 103 bln sgd which includes SIA and other corporate icons in the city-state, as well as companies in Australia, China and India.
Lee also denied suggestions by one MP that his father Lee Kuan Yew's involvement in settling a labor dispute at SIA and comments on the need for the carrier to trim its business amounted to interference.
The elder Lee's comments for Singapore Airlines to sell its catering and maintenance subsidiaries to allow it to focus on its core business amid tougher competition 'was not a directive,' the prime minister said.
'The specific restructuring and adjustment to deal with the future will have to be determined by the SIA board and management based on what makes commercial sense,' he said.
SIA, one of Asia's biggest carriers, holds an 85 pct stake in SIA Engineering Co and 83 pct in Singapore Airport Terminal Services (SATS).
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