Transport Minister Khaw Boon Wan recently warned of higher public transportation fares. This was to reflect the increasing costs of operating Singapore’s MRT system, especially with SMRT Trains and SBS Transit’s train division losing $86 million and “tens of millions” of dollars respectively in the latest reported financial year. I am both puzzled and concerned by this. My puzzlement is due to SBST having posted earlier this year a 23.3 per cent net profit increase to $20.7 million for the first quarter ended Mar 31, which it partially attributed to higher ridership for its DTL and NEL as well as, coupled with a 4.3 per cent fare adjustment that recently took effect from Dec 29 last year. Given the statistics above, how did Mr Khaw conclude that SBST’s train division lost “tens of millions” of dollars in its last reported financial year? If they are privatised, then they should still depend on revenue from other avenues, such as shop space within stations, so as to still provide public transportation that is as affordable as possible.... Continue Reading
Train operators, as public service providers, should not be focusing on profits
The Straits Times
July 12, 2019
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Transport Minister Khaw Boon Wan recently warned of higher public transportation fares. This was to reflect the increasing costs of operating Singapore’s MRT system, especially with SMRT Trains and SBS Transit’s train division losing $86 million and “tens of millions” of dollars respectively in the latest reported financial year. I am both puzzled and concerned by this. My puzzlement is due to SBST having posted earlier this year a 23.3 per cent net profit increase to $20.7 million for the first quarter ended Mar 31, which it partially attributed to higher ridership for its DTL and NEL as well as, coupled with a 4.3 per cent fare adjustment that recently took effect from Dec 29 last year. Given the statistics above, how did Mr Khaw conclude that SBST’s train division lost “tens of millions” of dollars in its last reported financial year? If they are privatised, then they should still depend on revenue from other avenues, such as shop space within stations, so as to still provide public transportation that is as affordable as possible.... Continue Reading