4/04/2015

Transport Fare Hikes – Still Necessary Now?


Are You Ready for the Ride?

As expected, the two public transport operators (PTOs) in Singapore, ComfortDelGro (CDG) and SMRT had achieved unprecedented profits due mostly to the more than 60% drop in oil prices over most of their past financial operating year.  It was reported that CDG’s FY14 revenue rose 8.1% while its PATMI (post-tax profits minus interests) grew 7.7%.  Its PATMI was attributed to broad-based revenue growth across bus, rail and taxi segments.  Similarly for SMRT, its 3QFY15 PATMI jumped 58.4% year-on-year as revenue rose 6.8% on both non-fare and fare businesses recorded huge broad-based growth due to vastly improved operating margins also in the fourth consecutive quarters.

Even without the impending transport fare increase, both CDG and SMRT enjoy continually low and lower oil prices as well as huge Singapore Government subsidies.  Their stock prices have soared through the roof and huge profitability are eagerly expected in 2015 and possibility 2016 by their private shareholders as they milk the public and docile cash-cow. 

So, are the Transport Fare Hikes for 2015 still necessary?    

The 2015 transport fare hikes which is effective from 5 April 2015 is highly controversial, for reasons unlike previous transport fare hikes which were deemed necessary to maintain the “economic viability” of the PTOs.  As evident above, the PTO are enjoying unprecedented windfall profits and very remote from becoming “un-viable”. In view of falling oil prices, the increase in public transport fares has sparked an outcry in Singapore. Many raised questions about why falling oil prices did not translate into lower commuter fares. Despite numerous responses and explanations from the PTC, the general public sentiment has been one of dissatisfaction, where for some the government broke a “social contract” in the provision of public transport services.


In the Video, you would hear many reasons for the public frustrations towards our transport system, not least the impending fare hike in 5 April 2015. 

The IQ Team has also selected a reading list focusing on various aspects of Singapore’s public transport system, including a statement from the Public Transport Council.

GoTo:
 

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2 comments:

Virgo 49 said...

Tomorrow 05 of April, be prepared to pay more for your rides.

Also, please cooperate lah, do not take trains, buses at the same time lah, Will costs breakdowns you know.-.famous quote by Ms Josephine Teo, minister to Mr Lui (monies)

APRIL 05 Huat ah!!!

Matilah_Singapura said...

It's privatised. So yeah, they can do whatever they deem necessary.