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.
Watch the Debate
Video by Inconvenient
Questions (IQ):
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:
Related Posts:
2 comments:
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!!!
It's privatised. So yeah, they can do whatever they deem necessary.
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