Eating Australia
Stephen Mayne is wary of the Singapore government’s disproportionately large stake in Australian businesses. How disproportionate, you ask? This disproportionate:
In accepting $4.5 billion of cash from Singapore Power for a suite of Australian electricity and gas distribution assets, Alinta shareholders will lift the total value of Australian business assets controlled by the Singapore Government to almost $30 billion.
This will exceed the value of commercial assets owned by our own Federal Government, which is surely an unprecedented situation for any First World country. How can a foreign power own more of Australia than our own government?
He follows that with a comprehensive account of the major takeovers of Australian businesses by Singapore’s government-linked companies, and raises concerns about Australian businesses being controlled by the “secretive, autocratic and undemocratic” Singapore government.
I’m no fan of the Singapore government, but I have to say that its autocratic and undemocratic nature is hardly relevant to its suitability as an investor in foreign assets. Secretiveness might be undesirable from Australia’s point of view, since there might come points at which Australians might want to look behind the scenes of their businesses, including the sources of their funds. But surely how the Singapore government treats its citizens has little, if anything, to do with how it would behave as a partner in or owner of an Australian business. Businesses are not democracies, and are not supposed to be democracies. Thus it is not clear how the Singapore government’s lack of democracy would count against its desirability as a business partner. Could it be that Mayne thinks a democratically elected government would somehow make better business decisions and would be more desirable as a business partner? But there is no evidence that the hoi polloi would tend to elect politicians who would make good business judgments.
The most robust objection I can think of to an undemocratic, autocratic foreign government investing in one’s country is that the objects of their investments would be indirectly abetting the continuation of autocratic rule. A moral objection, in other words. But given that Mayne’s entire article is framed to highlight the horror of Australia ‘losing control’ of its businesses, he seems to be mainly concerned about loss of power issues for Australia rather than the moral aspect of abetting a dictatorship. His concern is now likely to be shared by a signficant proportion of his readers, given that the article is No. 1 on the list of “Today’s Top 10 Articles” for The Age.
