Thai govt 'hands off' on ShinSat

The Sunday Times, February 25, 2007


BANGKOK - PRIME Minister Surayud Chulanont has said his government will not intervene in the dispute over a satellite operator owned by Temasek Holdings but will let the private sector decide whether to buy over Shin Satellite (ShinSat).

'If they want to buy, let them buy...We are not going to get involved,' he said in an interview with Bernama news agency.

'If they want to take a risk, that's fine. They have to make their own estimations of the risk assessment, whether it will be beneficial for them or not.'

His comments on ShinSat - Thailand's sole satellite operator - were in marked contrast to those made earlier this month by army chief Sonthi Boonyarataglin.

Gen Sonthi, the head of Thailand's ruling military council, said he intended to take back telecommunications giant Shin Corp or at least its satellites from Singapore's Temasek Holdings.

He has accused Singapore of using the satellites to spy on Thailand's military.

His accusations take place against a surge of Thai nationalist feelings provoked by the sale in January last year of Shin Corp, whose assets include ShinSat, a mobile phone operator and a television station.

The US$1.9 billion (S$2.9 billion) tax-free sale by members of then-prime minister Thaksin Shinawatra's family whipped up street protests over the loss of strategic assets to foreign buyers.

It led to Mr Thaksin's ouster last September in a military coup.

Bangkok has until now appeared unsure as to how to resolve the matter.

Initially, Thai officials said the government was thinking of buying back ShinSat but did not want to take any action that would rattle foreign investors.

Mr Sitthichai Pookaiyaudom, the Communications Minister, then said the government would conduct an opinion poll to see if there was enough public support for buying back the company.

ShinSat owns four satellites, including iPStar, the world's largest commercial satellite. Mr Sitthichai has said it would take about 10 billion baht (S$460 million) to buy it back. Three Thai companies - Dragon One, Samart and Loxley - are reportedly exploring buying Temasek's ShinSat shares. The Government Pension Fund, Thailand's largest institutional investor, has also indicated interest.

Responding to media queries yesterday on reports that Temasek was considering letting Thai firms buy into ShinSat to ease political tensions, Singapore's Foreign Minister George Yeo said he did not think that divestment by Temasek would be a problem - so long as it is a commercial transaction between willing parties.

In the interview with Bernama yesterday, Gen Surayud also said that diplomatic ties with Singapore remained unchanged despite the recent upheavals.

'There have been a lot of suggestions, a lot of concerns over various things, but for the government we still stick to our fundamental policy in foreign relations,' he said.

'I can assure you I don't see any conflict at the national level at the moment.'

Bernama, AFP