Privatization of Singapore telecom : process and effects.

The purpose of this Applied Research Project was to do a detailed analysis of the privatization of Singapore Telecom. This research covers the seven years span, beginning in 1989 when the Government first announced its intention to privatize Singapore Telecom until 1995, which is about two years after Singapore Telecom’s privatization in 1993. The first half of this project covers the background of Singapore Telecom before privatization. Firstly, an introduction to Singapore Telecom will assist the reader to understand Singapore Telecom’s history and who the members of the Singapore Telecom Group are. A literature review is also presented to enable the reader to understand what privatization is. Secondly, a detailed study of the reasons why the Singapore Government privatized Singapore Telecom and of the economic theories of privatization will deepen the reader’s knowledge of the issue. Thirdly, a thorough report of the privatization process, especially emphasizing the different groups of shares, the issue and the market sentiments before and after the issue is presented. The second half of the project is devoted to discuss the effects of privatization, i.e. issues resulted after the privatization. These issues include share ownership and Singapore stock market, management reorganization, management decision process, employees, shareholders’ versus public interest, globalization, competition and liberalization. Towards the end of this project, we have also presented information about Singapore Telecom’s performance after privatization. The basis for this project is research from public sources such as newspaper clippings, magazines , economic journals, economic textbooks, Singapore Telecom’s internal magazines and materials from the STA Library cum interviews with the various significant staff from Singapore Telecom and Telecommunication Authority of Singapore.ACCOUNTANC