- Joined
- Dec 30, 2010
- Messages
- 12,730
- Points
- 113
...and see who would be a better minister. Shit Face Lui's "arguments" were from old school economics text books or googled responses and without much thought regurgitated them on his ShitFaceBook. At the last look-in, he had not responded to the numerous common sense remarks.
The "surprising" thing is that Straits Times had this published. So much for these talented ex-naval guys....
"To say that shareholder discipline will create such incentives is naïve at best, and wrong at worst. Shareholders seek higher profits, not better or more affordable services. The government must examine whether a public utility should be owned and operated by what are effectively private monopolists earning monopoly rents.
Mr Lui claims that the current regulatory regime is a “robust” one that does not allow operators to benefit at the expense of commuters. This is a remarkable assertion once we consider the profits of PTO’s—$215.4 million last year alone. The fines imposed for not meeting service standards pale in comparison to these profits.
SMRT and SBST have consistently enjoyed high returns on equity (ROE) of above 15 per cent. For SMRT, it has been above 20 per cent in most years. In contrast, the median ROE for a Singapore listed company is about 9.5 per cent."
http://wp.sg/2011/07/overhauling-singapore’s-public-transport-model/
The "surprising" thing is that Straits Times had this published. So much for these talented ex-naval guys....
"To say that shareholder discipline will create such incentives is naïve at best, and wrong at worst. Shareholders seek higher profits, not better or more affordable services. The government must examine whether a public utility should be owned and operated by what are effectively private monopolists earning monopoly rents.
Mr Lui claims that the current regulatory regime is a “robust” one that does not allow operators to benefit at the expense of commuters. This is a remarkable assertion once we consider the profits of PTO’s—$215.4 million last year alone. The fines imposed for not meeting service standards pale in comparison to these profits.
SMRT and SBST have consistently enjoyed high returns on equity (ROE) of above 15 per cent. For SMRT, it has been above 20 per cent in most years. In contrast, the median ROE for a Singapore listed company is about 9.5 per cent."
http://wp.sg/2011/07/overhauling-singapore’s-public-transport-model/
