No problem if Temasek sells Shin Satellite, says George Yeo

The Sunday Times, February 25, 2007


FOREIGN Minister George Yeo does not think that it would be a problem if Temasek Holdings decides to divest Shin Satellite, Thailand's only satellite operator - as long as it is a commercial transaction between willing parties.

But he stressed that it is a decision to be made by Temasek and the buyers.

Mr Yeo was responding to media queries yesterday on recent news reports that Temasek was considering letting Thai firms buy into the satellite business to ease political tensions between the two countries.

He said: 'If this is a commercial transaction on the basis of both sides being willing parties, then I see no problem at all. This is for Temasek to consider and for the buyers to consider whether the price is right.'

When contacted, Temasek declined comment.

Shin Satellite is a unit of Thai telecom giant Shin Corp in which Temasek has a controlling stake.

Temasek's purchase of the Shin Corp stake from the family of former prime minister Thaksin Shinawatra in January last year had set off massive protests in Thailand which culminated in Mr Thaksin's ouster in a military coup in September.

The sale stirred up nationalist sentiments, prompting calls from as high up as the head of Thailand's National Security Council, General Sonthi Boonyarataglin, for a return of national assets.

Said Mr Yeo yesterday at Bedok Reservoir, where he and four fellow MPs of Aljunied GRC released 888 grass carps into the waters to celebrate Chinese New Year: 'In Thailand, I think they want to make sure that their economy continues to welcome foreign investment. We are all part of the global economy.

'I think they are very conscious that whatever they do with respect to Singapore, (it) must be something which they are prepared to do with any other country, so that all foreign investors are treated equally.'

At his constituency's Chinese New Year dinner on Friday night, Mr Yeo said that Singapore's foreign relations with major partners are good, despite some problems with Thailand and Indonesia.

But he noted that the problems are not big and the overall relations with the two countries remain good.