Gov’t Gets Tough on SOE Restructuring

The Prime Minister has approved a master plan for restructuring State-owned enterprises (SOEs) in the 2011-2015 period, considering it a top priority over the next four years.

 

The restructuring will focus on key sectors supplying essential products and public services to society, as well as serving security and national defence.

 

SOEs will continue to be the mainstay of the national economy in order to help the State regulate and stabilise the macroeconomy.

 

The restructuring also aims to increase the competitiveness and Return on Equity (ROE) of equitised businesses.

 

The Prime Minister has asked ministries, sectors, localities, economic groups, and State corporations to work out their equitisation plans for businesses that will hold 100 percent, 75 percent +, 65-75 percent, and 50-65 percent of their registered capital in the newly established entities.

 

He asked SOEs to stop investing in areas beyond their scope until 2015 so they can concentrate on their primary business.

 

He also asked designated agencies to consider merging or dissolving businesses that operate inefficiently, have recorded losses over a long period of time, or are unable to pay their debts on time.