This article provides an Institutional Political Economy analysis of Singapore's approach to state ownership. It argues that, since this country's independence in the 1960s, its state-owned enterprises (SOEs) have both been run in a manner conducive to commercial viability and highly aligned with governmental economic priorities. This ‘commercially viable strategic alignment’, largely absent in SOEs worldwide, has favored cautious privatization and thus the maintenance of a strong SOE sector in Singapore. While recent political backlash from investing abroad has led the government to apparently distance itself from SOEs and Temasek – the SOE-holding-company-turned-investment-fund – their role in developing venture capital and entrepreneurship – both governmental priorities – suggests that a ‘strategic alignment’ remains. Drawing from their substantial financial resources, these entities complement other government efforts in terms of funding, being important players in the Singaporean venture capital markets and have even directly and indirectly invested in Singapore's most successful high-growth companies. In addition, due to their presence in global networks and the complimentary assets they possess, such as access to customers and intellectual property, they provide investees with resources that facilitate their growth and increase their likelihood of succeeding.

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State-owned enterprises,State capitalism,Sovereign wealth funds,Developmental state,Industrial Policy,Venture Capital,Singapore

• Economics and Business - Social Sciences