Eaten by Singapore

Singapore-Lion

In less than a month, the tiny state of Singapore will seal a deal that will ensure it owns more commercial assets in Australia than the Federal government.

This means, to put it bluntly, that “While other nations such as China, Singapore, Russia, Korea, Kuwait and Norway build up huge sovereign funds, Australia, with its world-beating dowry of natural assets, still has a Federal Government with a negative net worth of $10 billion in the middle of an unprecedented commodities boom.”

The Melbourne Age has a lot more to say about the situation

When shareholders in Perth-based energy utility Alinta Ltd gather to vote on the $15 billion carve-up of the company on August 13, few of them will realise the remarkable historical event they will trigger.

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?