Before privatising SOEs

June, 2023

  • What’s the core issue with the SOE? – loss-making or not maximising market profitability?
  •  What’s the opportunity at stake? – quantify via a long term cashflow forecast, comparing it to market/business potential
  •  What’s the root cause? – is it with the business model/strategy or the execution of it? (customised to each SOE)
  •  How should the SOE be turned around? – evaluate multiple routes via cost-benefit analysis to the people (the ultimate owners)
  •  Privatisation is one option, but should not be the starting point. Neither stick with State ownership/management because it’s the status quo. Think laterally