Thursday, August 16, 2007

Bus and MRT fare rising again???

The Public Transport Council (PTC) has given public transport operators until August 2007 to apply for any fare revisions they wish to make. If approved, it will start in October and it will be the 7th Fare Hike in 8 years.
For a Chronology Fare Adjustment since 1990, you may see here.

Transporation Companies in many developed countries, including Singapore are run by private companies. Privatisation ensure competition, innovation and increased productivity.

Privatisation itself is good, but when it happens in a small country like Singapore, it seems to become monopolisation. Our Government tries to create competition by making SMRT running bus services and SBS Transit running the MRT. To me, it don't seems like competition for better services but rather competition of who makes better profit from the public.

I like to share the profits of SMRT and SBS Transit over the years with you today.

In the years 2003 to 2007, SMRT’s profit after tax are as follows:
FY 2007 = $135.8m
2006 = $103.6m
2005 = $126.6m
2004 = $90.2m
2003 = $72.2m

For SBS Transit, its profit after tax for the years 2003 to 2006 are as follows

2006 = $56.1m
2005 = $51.5m
2004 = $49.2m
2003 = $19m

So. Lets see if the fare hike will be approved next month.
If its not approved when the economy is good, when unemployment rate is low, then when will they approve it? Cannot be before election, rite?


Anonymous said...

Your advise would be to get people to buy SBS transit share. Increase in $$$. Means more $$ for SBS.

Khiat Han Hwee Adrian said...

If you are a shareholder of SMRT or SBSTransit, you will not be as gloomy as others when they raise fare.

You know your shares will go up. What an interesting way to hedge against rising transporation fare.

Think of it, govt is trying to encourage more people to use the public transport and population is bound to increase. Without keen competition, who will gain? Now, do you want to join me as their Shareholder?