National asset sales - weighing economics, strategy and pride

THE sale of Neptune Orient Lines (NOL) by Temasek Holdings to French shipping company CMA CGM has elicited mixed reactions.

Questions are raised on whether Temasek is selling at a low, or whether the sale will affect Singapore's standing as a global shipping hub. Further questions can be asked on which Temasek-linked companies are integral to Singapore's place in the world, and which are not.

Knowing when to sell is often harder than knowing when to buy. A sovereign wealth fund such as Temasek acts on commercial principles, but it also has wider stakeholder interests. Other sensitivities inevitably come into play. The sale of any company in Singapore, no matter how global, will affect jobs held by Singaporeans, for example. Also, sovereign wealth funds around the world often grapple with the broader strategic issues faced by their stakeholder governments. This can include whether it should hold on to a company due to national interests, such as food security.