Tuesday, July 19, 2011

Fare Increase

Recently the two main public transport operators in Singapore, the SMRT and the SBS Transit, both applied to the National Transport Corporation (PTC) for a fare increase of 2.8%. Since no one seriously believes that the PTC will reject the applications, this means there will be another fare increase soon.

Singaporeans are angry with the increase because…well, the 2.8% increase is the maximum allowed by the law; last year there was a fare increase when Singapore went under the distance fare scheme; the increase comes shortly after the General Election; take your pick.

However I think what really get Singaporeans is the “explanation” for the fare increases. SMRT and SBS say that rising cost is the main reason behind their application for the fare increase. That is a reason no one in Singapore is buying.

In 2010, SBS Transit had a net profit of $54.278 million while SMRT’s net Profit was S$162.885 million. The companies made over $200 million in profit together and it seen that this is not enough.

Personally I feel this comes at a bad time for the ruling People’s Action Party (PAP). Wages remain stagnant in Singapore, property prices continue to climb and now a fare increase; not good for Tony Tan next month.

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