Govt eyes private investors for six struggling state-owned companies

Engaging private companies to invest in low-performing state-owned entities (SOEs) will help sustain profits and ensure income stability, says Minister for Public Enterprises Charan Jeath Singh.

Mr Singh confirmed six state-owned companies earning minimal or limited income were being considered for private investment.

He said the model would allow the companies to access sufficient capital to grow and develop, while Government retained majority ownership.

Mr Singh said he had met with the boards of the six entities and discussed reviewing operational structures to improve productivity.

He cited Pacific Fishing Company Pte Limited (PAFCO) in Levuka, Ovalau, and Yaqara Pastoral Company Pte Limited in Rakiraki as examples.

“PAFCO is a lifeline for the Levuka economy, so we cannot close it. Government must continue to provide financial support and recruit the right personnel to improve operations,” he said.

“For Yaqara Pastoral Company, it is currently loss-making. We recognise the issue and have appointed new management to drive positive change.”

Mr Singh said discussions also focused on reducing operational costs to improve profitability.

“What I have also learnt is the need to bring private companies in as financial partners alongside public enterprises,” he said.

He said public-private partnerships could be a “gamechanger” in making state-owned businesses financially sustainable.

Mr Singh said the six companies would be grouped into two clusters of three companies each, with one board overseeing each cluster.

He said the move would reduce costs associated with maintaining six separate boards.

When asked whether any private companies had shown interest, Mr Singh said several local and overseas companies were interested in investing.

He said the proposed shareholding structure would see Government retain 70 per cent ownership, while private investors would hold 30 per cent.

“Once we complete the documentation for this plan and all conditions are met, we will call for expressions of interest and move from there,” he said.

Mr Singh said he observed successful public-private partnerships during a recent trip to the Philippines.

“I have seen many state-owned companies enter into public-private partnerships where governments were losing money, and private companies injected funds and ideas to turn things around,” he said.

Mr Singh also rejected claims that Government assets would be sold under the proposal.

He said the arrangement would involve a shareholding model in which Government maintained 70 per cent ownership, while private investors temporarily held a 30 per cent stake for an agreed period.

He added that annual performance indicators would be used to assess public enterprise companies, with a focus on profitability and financial stability.