By Guo Wei, the General Office of DRC & Zhang Wenkui, Enterprise Research Institute, DRC

Research Report No.121, 2016 (Total 5004) 2016-9-9

Abstract: Restructuring the state-owned capital investment and operating company is a major initiative and pilot practice made in the new era by the CPC Central Committee and the State Council to deepen the reform of state-owned capital and state-owned enterprises (SOEs). Singapore Airlines, as a typical state-owned enterprise, is the only airline company among Fortune’s top 50 companies held in esteem all over the globe. Its achievements are inseparable from the special design of shareholding, scientific corporate governance and harmonious relationship between the government and enterprises. The shares of Singapore Airlines are highly concentrated, 56% of which are held by the government with the top five shareholders holding over 80% and independent directors from the elite of private sectors take up more than 3/4 of its board members. Temasek, on behalf of the Singapore government’s shareholdings, basically does not participate in the decision-making or business operations of the company. The experience and practice of Singapore Airlines are worth borrowing for China in advancing SOEs’ reform.

Key words: reform of SOEs, corporate governance, Temasek, Singapore Airlines