Lunch is still on for SGX!!

a building which will house many remisiers?

Mr Bocker, you have tried to buy ASX on behalf of Singapore but failed. That was certainly a bold attempt which I, with my humble knowledge of markets and financial instruments, am fully appreciative of. Everyone knew that SGX would face many hurdles and objections but it definitely worth a go.

I have a vague idea that you have spent millions on hardwares and softwares in an attempt to increase capacity and processing speed for transactions. I have yet to see the potential of that upgrades being translated to the bottomline.

You then tried to take away the 90-min lunch break of hundreds of remisiers and supporting staff but failed again. While you may have a target to boost the sagging volume of SGX by lengthening trading hours at the expense of lunch, you have perhaps misunderstand the value of lunch time in Singapore.

Firstly, many of them did not have a proper breakfast, thus lunch break is really something for them to look forward to. (yes.. a cheeky one) Secondly, lunch is perhaps when most of the business is done in this Asian society. Thirdly, is the pre- and post-lunch so overwhelming now that we need to spread the overflowing transactions into that special 90 minutes of the day? I don't think so.

Mr Bocker, you have definitely scored on trying. But let's try to lock in some success! Cheers!

Is SIA flying out of idea?

By the way its shareholders have structured the company, SIA has a single nature of business ie. to focus on transporting human and cargo. On a more subtle and yet important level, SIA (as also in all govt-linked entities) must represent Singapore as a symbol of excellence with a profitability level to match.

In today's Straits Times, it is reported that SIA is again the 2nd best airline in the world for the last 3 years. SIA even lagged behind in rating for its renowned inflight entertainment system.

SIA has been where it has been over the last 20 years based on a strategy that is deemed impossible as per Michael Porter's Theory of Competitive Advantage. SIA has been able to beat its competitors with innovations and service standards. Innovations and service standards have allowed SIA to achieve highest revenue per passenger delivered at a lowest passenger unit cost. Its passenger unit cost is said to be even lower than that of budget airlines. But the key limiting factor to SIA's growth, in my humble opinion, is the landing rights agreed between two countries. But Airbus A380s helped SIA overcome this limitation by allowing SIA to carry largest number of passengers on the more profitable routes.

Should SIA focus on mergers and acquisition to fuel its growth? SIA does not aim to be largest airline in the world but rather excel in profitability and service quality. But having said that, SIA did attempt some M&A but failed miserably. May I cite ANZ? I am still not sure about the 49% in Virgin but as per SIA's books, the investment has been written off long time ago. We also tried to buy a Chinese airline, an Indian airline.. etc but BLOCKED.

But SIA must continue to be ahead of the curve!! But how?? Under the new CEO, SIA has announced recently that it will enter the budget airline foray officially and wholeheartedly. Could it be a pre-response to AirAsia's massive order placed with Airbus recently? Did SIA hear in the grapevine that AirAsia has a plan to conquer the budget airline world? We will wait and see as the story continues to unfold.