Ministry of National Dev Essential goods and services best run as public operations
Free market economics cannot work effectively in a small captive market, particularly the energy market, in which all raw materials are imported and processing costs are constrained by technology and supply chain limitations (No disruption in power supply as some electricity retailers end ops, Oct 17).

Essential goods and services are best run as government-owned public operations.

Segmentation of a small market just gives the impression of free market competition. The downside of such segmentation is the duplication of overheads, especially unproductive management overheads.

There would be executive personnel doing essentially the same jobs, when one set of executives under one roof could have handled it cost-efficiently and very effectively.

The Government should also review similar public goods and services enterprises where such economies of scale are lacking and consider reintegrating them into a larger whole entity.

Thomas Lee Hock Seng

Source: https://www.straitstimes.com/opinion/forum/forum-essential-goods-and-services-best-run-as-public-operations

Add Comment

---