Quora Answer: Why Does the PAP Want Singaporeans to Buy Electricity from the Private Sector?

The following is my answer to a Quora question: “Why does the PAP want Singaporeans to buy electricity from the private sector?”

By opening the retail sales of electricity to the private sector, it promotes efficiency and the lowering of costs, which benefits the people.  The government then consolidates its side of the operations into electricity generation only, which is also much more efficient.  Spawning a retail electrical sector spreads the wealth and stimulates growth, which ultimately benefits the economy by increasing GDP.  Singapore is a capitalist economy.  After spending time laying the groundwork for growth and setting the standards, it is government policy to eventually privatise non-core services, converting cost centres into profit centres.