Sunday, January 27, 2013

20130128 Temasek Chief - An Enabler to Revive Singapore

20130128 Temasek Chief - An Enabler to Revive Singapore Recovery
http://bettersingapore.blogspot.sg/2013/01/20130128-temasek-chief-enabler-to.html

Doing the right thing by the right person, for the wrong purpose will invite heartache, failures, disasters..

Concisely

An Engineer, if pursuing Profit, without improving efficiency, effectiveness, efficacy (relevance) will fail, must fail.
An Engineer, if innovate, continuously innovating better, handier, economical, elegant products and services for more people, this engineer will be noted, celebrated and modeled after by many, even down the history.

I feel very much offended when
"Singapore has nothing for its economy, except rental income from Temasek"

the President of a leading University Alumni Association told me:


Latter, a dynamic leader told me:
"My rental go up 80% when my factory building was transferred from JTC to Maple Tree"

Then a one man machine shop who is able to produce what most people cannot produce, told me:
"My workshop rental contract state that every year rental up more than 10%"

Other than rental, what can Temasek do?


For those who want to confirmed what they suspect Singapore is in, you may read and advise me
20130129 State Singapore is In
http://bettersingapore.blogspot.sg/2013/01/20130129-state-singapore-is-in.html


Temasek cannot count on M&A

M&A took a center stage during 80s and 90s when many inventions matured, ready to be mass produced, marketed. They need money to build factories, buy equipments, joint strength.

But we did not see great successes in M&A in the recent years, after economy comes to a stagnation - as predicted in 2001.

Those that tried to take short cut, Sony - Ericsson, HP's acquisition of Compaq did not pull them out from the wood and their endless failed acquisitions.
Facts stark naked in front of us told us that even world leader in their industries failed in making good value judgement, and none of them has brought profit, but great losses are many.

Those that employed foreigners, Olympus, Nissan, Sony... did they fair better?

Whereas, Samsung, Hua Wei, did they do the above (M&A, Foreigners Presidents), or strive with their best effort, improving their efficiency, effectiveness, efficacy to come up with elegant product.
They earned superior positioning, casting shadow on Apple, overtaking bigger, world famous telcos equipment suppliers....

To assist us to have a right scope...

....we have invested much more in mobile communications, our wireless communication lab was a huge team in a block of building in AMK, next to Motorola...
....we were world leading producer of display (Sony Spec)
....we were world largest data storage manufacturer with largest national research effort in Data Storage Institute...
....we invited the world leader in smart phone 3Coms

Where are we?
Today, which part of the computer, handphone, we can certainly said it is made by us, Singaporeans?
The key of our failing is we do not control our own destiny by having our own enterprises.
Which city produce bankers that are celebrated decades after they died? Singapore.
Which bankers we invited do the bank better?
We do not even cherish our own contract manufacturers... Foxcon now larger than our once pride electronics/plastics contract manufacturers.

PM's desire of more manufacturing cannot be real,

1 without investigating why mutli-storey factory buildings do not reduce factory rentals by one quarter if the building is more than 4 storey high? (he must start with Defu relocation.)
德福路的工厂会被多层工厂取代, 租金会大幅度降低吗?李总理说我们土地有限,但多层建筑比填海还能能增加更多可用面积。 如果多层不能降低我们的成本,干嘛费时费力费金钱牺牲选票牺牲厂商存活的几率!)

2. without investigating why we stop secondary school metal workshop, electrical workshop?
3 without realign Bio-tech industries years after our Great Founder want to recover the huge investment in Bio-tech?
4. without providing a way that we can benefit from bio-tech (this solutions i will provide)
5. without listing what are the industries we need to focus on
6. what are the key obstacles and enablers our businesses facing...... than political excuses, e.g. more foreigners...
    These are survival of today and tomorrow.
    These are more important than investigating on how Teo Ho Ping can do the AIMs without PMO informed, Party Secretary and Chairman's approval - those are doing of the past.


    Why M&A is not Profitable

    Above merely state the fact that M&A are not profitable, even domain expert of the industry failed in recent M&A (e.g. HP..)

    Why?
    2001, i wrote and informed a great engineer that this engineer will be leading Temasek, because:
    1. Technology innovation has come to a stagnation.
    2. Technology no longer able to drive world economy.
    3. Technology era has accumulated over abundance wealth (OAW, latter coined, Post Industrialization Dynamos PiD, Solvere, Autumn 2009, ISBN 9810833558)
    4. OAW found no real profitable project to invest in - plenty of cheap money, interest rate will go negative.
    5. Excessive brain will fabricate wars.
    6. The next war will be in Afghan (hand written note handed before 2001 Spe 11, after 20010401 Hainan incident between US and China military aircrafts)
    http://www.cts-ideas.com/20Works/Writings/20010601RealEconomy.pdf

    Wars and Negative interest rate are man's creation, it is not governed by law of nature, so the harm will be bottomless.
    Money too much, projects too few, what to merge?
    How can M&A produce wealth?
    if PM Lee is able to accept Singaporean's input, would he be so lost at making such frantic decisions that bring such chaos to Singapore?


    Detecting what is Profitable

    The only way to overcome these destruction is to create bigger industries than electronics to keep now world larger pool of brains and labors employed, employed in constructive work.

    2001, while i go and explore what are the new industries adequate to do the above, advising Temasek will hold the following industries:
    1. Retails
    2. Telcos Services
    3. Banking & Finance
    4. Media
    (Warren Buffet included rating agencies as his investment and a key instruments)

    These will provide us earliest information and in-depth knowledge of the world market, opportunities and threats, location and players...

    I thank Mr Dhanabalan for effecting the above.
    But with clear explanation of the state of world economy and obvious danger, it is beyond my expectation that such appointment was to gain more profit.
    Clearly stated in the article, that there is too much money, interest rate (for that matter profit) can be fabricated.
    Clearly stated holding banks, telcos is to feel the pulse of world economy. Do Thailand, Indonesia, Australia banks and telcos help you to feel the pulse of world economy?
    Is it we have no courage to invest in real big banks?
    or is it we are aiming for profits, even world largest Private Banker UBS?

    Long before the collapse of world market, i already kept 3PM Lee reminded of the coming of these crises, by placing the above article "Real Economy..."  in "Cognose" Winter 2005 ISBN 9810513757, hand delivered.
    http://www.cts-ideas.com/20Works/Writings/20010601RealEconomy.pdf

    This is again followed by series of articles... 

    What we can conclude here is
    Doing the right thing by the right person, for the wrong purpose will invite heartache, failures, disasters...


    What is Clearly Profitable

    Two stages are needed.

    Infrastructure and Public Services
    Infrastructure  (rail, bus, telecomms, power, water, city planning) are keys to the reliable, competitive operations of businesses.
    1. The lost of basic discipline in design, maintenance is one that must be addressed.
    2. Our public officers are paid higher salary, so there is no reason why state run infrastructure cannot attract good people.
    3. Duplication of infrastructure, manpower, (even competing for FA cup broadcast licence) do not justify there is cost saving in running these by private.
    4. Complex and wasteful management, (e.g. Starhub need to pay to use conduit of Singtel to run cables...)
    5. Poor Fault Tolerant (recent failures of M1 is just one more complex case. SMRT cannot mobilize SBS buses during breakdown is another.)
    The hottest competition for best performance is not between Singtel and M1, but two Vice Presidents competing to succeed a President. And Singtel, SMRT, Singapore Technologies, DBS Presidents have the hope to lead Temasek.

    So it is time for Temasek to take control, leadership to instill discipline, effectiveness, efficiency of all infrastructure operators of Singapore, so that we can be once again be the most reliable, cheapest, fastest provider for all businesses - utility, transportation, communication, town planning.

    It is these that will bring the world leading enterprises, NGOs, richest and most powerful persons to choose Singapore as one of their bases, or better the most critical office that is capable of crises handling and recovery.

    It is the only way that we can fraction our real estate cost, transport and communication cost to win over industries that create jobs for the highly educated Singaporeans, than chambermaids, drivers that we sacrifice our chaste, our over the grave promises to get casinos here.

    These is the first step for Temasek.
    This can be done without nationalizing bus companies, MRT.
    This is the key that nation becomes the biggest employer of voters.
    This will lay the platform for Temasek to be invited to sit on boards of world leading enterprises without paying money from our reserve.
    This will lead to a brilliant engineer leaving a trail for others to remember, follow.

    More will follow when this is done.



    Next will be
    MOT
    addressing why M MOT 400m walkway is a good solution but is a solution costing money, without improving economy.
    More than 500 m comfortable walking distance can be accomplished profitably, for residents, public transport operators - this again has been provided to LKY as Dotted G, which he converted to Global Dot Sg without follow up.

    MND
    How to design public housing by reducing land, material usage, improving lighting, ventilation, aesthetics, functions etc.
    How to increase use of low strength material for non-load bearing applications become possibilities.
    Recent use of wood for composite floor panel has been proven short life-span decade ago by civil engineer Professors in NUS when MND MOS Lee Yi Shyan was in NUS Chemical Engineering.
    I hope MOS MND cherish and remember those who mentored him.

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