Less govt ownership, better management
If govt sells off stock in companies it owns, management will improve & stock market become important source of funding once again.
If govt sells off stock in companies it owns, management will improve & stock market become important source of funding once again.
Click button to listen to Government Cut Stakes in State Enterprises download
Economics
Ministry urged to cut stakes
24/09/2012
Nuntawun Polkuamdee
The Finance Ministry should reduce its shareholdings in listed state enterprises to help boost trading liquidity and strengthen transparency in management, according to a proposal by the Federation of Thai Capital Market Organisations (Fetco).
Paiboon Nalinthrangkurn, the Fetco chairman, said reducing the shareholding held by the state in listed state enterprises would help these companies shift their management systems towards private-sector best practices.
This in turn would not only help increase their flexibility in operations, but also increase their competitiveness and potential profitability, he said.
The Finance Ministry currently holds shares in 31 listed companies, including majority stakes in five and major shareholdings in another six firms.
Fetco, an umbrella organisation that represents listed companies, local brokers, fund managers and investors, wants the Finance Ministry to consider divesting its shareholdings in listed companies and also list other state enterprises on the Stock Exchange of Thailand.
Mr Paiboon, who is also chairman of the Securities Analysts Association and managing director of Tisco Securities, said many listed state enterprises are large companies with strong performance records that attracted investors.
In terms of executive appointments, companies that are majority-controlled by the Finance Ministry are treated as state enterprises and must follow regulations set by the government.
Mr Paiboon added that poor management or outright wrongdoing by state enterprise management should be considered the responsibility of search committees established under the law for appointing senior executives.
Fetco's position is that reducing state holdings in listed companies would lower the possibility of "interference" in management operations and lead to an improvement in overall transparency.
(Source: Bangkok Post, Economics, Ministry urged to cut stakes, 24/09/2012, Nuntawun Polkuamdee, link)
Privatisation Vocabulary
privatisation - to sell a government-owned company so that it a business owned and operated by businessmen and investors, "the process of transferring ownership of a business, enterprise, agency, public service or public property from the public sector (a government) to the private sector, either to a business that operate for a profit or to a non-profit organization. The term can also mean government outsourcing of services or functions to private firms, e.g. revenue collection, law enforcement, and prison management" (See Wikipedia)
ministry - a government department dealing with an area of activity กระทรวง
urged - requested to do, advised someone very strongly about what action should be taken วิงวอน
stakes - part of a company owned by someone
cut stakes - reduce the amount of a company (that an investor owns)
majority - more than 50 percent ส่วนมาก เสียงส่วนมาก
majority stakes
ministry urged to cut stakes
state - government รัฐ
enterprises - an organizations, especially companies, businesses กิจการ, บริษัท,อุตสาหกิจ,วิสาหกิจ
state enterprises - companies owned by the government
shareholdings - owning the stock shares of a company
reduce its shareholdings
listed companies - a company that has stock shares that are traded by people on the stock exchange (so be open and provide much information to the public)
listed state enterprises
listed companies
holds shares in 31 listed companies
reduce its shareholdings in listed state enterprises
reducing the shareholdings held by the state in listed state enterprises
major
major shareholdings
liquidity - having cash and money that can be used to buy things (or assets that can turned into money quickly) สภาพคล่อง
trading liquidity - when a stock market (or other market for assets) has a lot of buying and selling (so can quickly sell your asset and turn it into cash)
boost - to increase; to strengthen เพิ่ม; ทำให้มีกำลังมากขึ้น
help boost trading liquidity
transparency - an honest way of doing things that allows other people to know exactly what you are doing ความโปร่งใส
strengthen transparency in management
proposal - a plan or suggestion for a group to consider ข้อเสนอ
Federation of Thai Capital Market Organisations (Fetco) - (See Facebook and website)
The Finance Ministry should reduce its shareholdings in listed state enterprises to help boost trading liquidity and strengthen transparency in management, according to a proposal by the Federation of Thai Capital Market Organisations (Fetco).
practices - common ways of doing things; ways of doing commonly repeated tasks
best-practices - the best way of doing common things (accepted by many) (See Wikipedia)
sector - a part of the economy ภาคเศรษฐกิจของประเทศ (public sector = government, private sector = all businesses, household sector = families and consumers, banking sector,...) (See Wikipedia)
private-sector - all the businesses in a country (not owned by the government)
private-sector best practices
shift - to change เคลื่อนย้าย โยกย้าย
shift their management systems towards private-sector best practices
flexibility - can change easily and adapt to new situations and conditions as they occur ความยืดหยุ่น
operations - the daily activities of a business
flexibility in operations
increase their flexibility in operations
competitiveness - how well a company is able to maintain or gain customers in a market; how well a business can do compared to other firms (does it have lower price or higher quality?) การแข่งขัน
increase their competitiveness
potential - what is possible, what could possibly happen; might happen in the future ความเป็นไปได้ ที่มีศักยภาพ ที่เป็นไปได้
profitability - making money (what a business is supposed to do)
increase potential profitability
Paiboon Nalinthrangkurn, the Fetco chairman, said reducing the shareholding held by the state in listed state enterprises would help these companies shift their management systems towards private-sector best practices. This in turn would not only help increase their flexibility in operations, but also increase their competitiveness and potential profitability, he said. The Finance Ministry currently holds shares in 31 listed companies, including majority stakes in five and major shareholdings in another six firms.
an umbrella organisation - an organization that has under it and controls other smaller organizations
broker - a person or company that buys and sells things for people (here stock shares)
local brokers - brokers in this country (Thailand)
fund - money provided for some purpose เงินทุน กองทุน
fund managers a
divesting
divesting its shareholdings in listed companies
performance - how well or badly something works (or whether an investment provides a reasonable return)
records - pieces of information describing something written down or stored on a computer บันทึุก
performance records
attract
attract investors
large companies with strong performance records that attracted investors.
Fetco, an umbrella organisation that represents listed companies, local brokers, fund managers and investors, wants the Finance Ministry to consider divesting its shareholdings in listed companies and also list other state enterprises on the Stock Exchange of Thailand. Mr Paiboon, who is also chairman of the Securities Analysts Association and managing director of Tisco Securities, said many listed state enterprises are large companies with strong performance records that attracted investors.
appointments - people who are chosen to serve in a special position (appointed)
executive appointments
company majority-controlled by ... - has most of its stock shares owned by ....
companies that are majority-controlled by the Finance Ministry
regulations - official rules that control the way that things are done ระเบียบปฏิบัติ
regulations - official rules that control the way things are done ระเบียบ ข้อบังคับ
regulations - rules made by the government to control how some activity is done กฎระเบียบ
must follow regulations set by the government
outright - completely and totally, open and direct (not hidden)
wrongdoing - behaviour that is illegal or immoral
outright wrongdoing
outright wrongdoing by state enterprise management
search - to look somewhere carefully in order to find something ค้นหา
search committees - a group of people searching for people to work in an important position in the company
established - created
executives - a high level manager in a company (making plans and ensuring they executed successfully) ผู้บริหาร
appointing senior executives
responsibility - having to take care of some task as part of your job
the responsibility of search committees established under the law for appointing senior executives
In terms of - as measured by ...
In terms of executive appointments, companies that are majority-controlled by the Finance Ministry are treated as state enterprises and must follow regulations set by the government. Mr Paiboon added that poor management or outright wrongdoing by state enterprise management should be considered the responsibility of search committees established under the law for appointing senior executives.
position - official opinion (what a person or organisation officially believes about some issue)
Fetco's position is ...
holdings - things that you own
state holdings - stock shares in companies owned by the government
reducing state holdings in listed companies
interference - the process of deliberately becoming involved in a situation and trying to influence the way that it develops การเข้าแทรกแซง
interference in management operations
overall - including everything, for all, for the whole
transparency - can see activities; can se what is happening (what people are doing is not hidden, less opportunity for corruption)
overall transparency
improvement - when something gets better or when you make it better การปรับปรุง, การทำให้ดีขึ้น
improvement in overall transparency
Fetco's position is that reducing state holdings in listed companies would lower the possibility of "interference" in management operations and lead to an improvement in overall transparency.
