Keppel Limited

[ghchua]

Hi weijian,

Not every asset heavy company have the intention to go asset light, and even if they do have the intention, you have to understand that do they have the reputation or track record to attract funds to build onto those asset light platforms like Keppel Limited and manage them for recurring income?

After all, after you have realized those assets, you have to find ways to replace those lost income. Otherwise, the company will just becomes smaller and smaller. Some do ride on partnerships and JVs to build those platforms, but it comes at a "price" as profits had to be shared. Yes, it is easy to talk about being asset light, but practically, it takes time to build up experience in scaling up and running asset light platforms. The learning curve might be steep, especially for asset heavy companies which just own assets and not into running and managing them.