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[h=1]PM'S FACEBOOK - BUSES DON'T MAKE MONEY: $600M TRANSPORT PROFITS?[/h]
Post date:
25 Jan 2015 - 10:33am
SBS bus operations not making money
According to the Straits Times news report “PM tackles a range of personal questions, and some political ones, in Facebook chat” (Jan 24) – “”It is not true that SBS Transit earns huge profits. In fact in recent years their bus operations have not been making money,” he said. “The government subsidises public transport heavily – we are spending billions every year building MRT lines, and also spending almost a billion on the BSEP (bus services enhancement programme). But commuters too have to pay a fair share.”
SBS does make money?
According to SBS Transit’s web site – it’s 9 months’ profits for Fy2014 was $14 million – a 47 per cent increase over the same period the previous year.
With the huge drop in oil prices – it’s anybody’s guess what their full- year profits will be.
SMRT’s profits for the first half of FY2015 was $62.6 million – an increase of 48.3 per cent over the same period the previous year.
$200m profits?
Similarly, with the fall in oil prices, the combined profits of SMRT and SBS Transit for the full year is expected to be about $200 million.
$600m profits?
Public transport should be considered in its entirety – including taxis. If we include ComfortDelgro’s profits of $327 million in FY2013 – the entire public transport sector is expected to have a full-year combined profits of about $600 million.
So, where is the justification to increase fares once again?
Most countries also do not fund transport infrastructure from fares, but rather from the general state revenue.
In this regard, even after transport infrastructure spending – Singapore had a Budget surplus of $36.1 billion in FY2012 using IMF fiscal reporting guidelines.
Win battles lose war
TRS Contributor
Post date:
25 Jan 2015 - 10:33am
SBS bus operations not making money
According to the Straits Times news report “PM tackles a range of personal questions, and some political ones, in Facebook chat” (Jan 24) – “”It is not true that SBS Transit earns huge profits. In fact in recent years their bus operations have not been making money,” he said. “The government subsidises public transport heavily – we are spending billions every year building MRT lines, and also spending almost a billion on the BSEP (bus services enhancement programme). But commuters too have to pay a fair share.”
SBS does make money?
According to SBS Transit’s web site – it’s 9 months’ profits for Fy2014 was $14 million – a 47 per cent increase over the same period the previous year.
With the huge drop in oil prices – it’s anybody’s guess what their full- year profits will be.
SMRT’s profits for the first half of FY2015 was $62.6 million – an increase of 48.3 per cent over the same period the previous year.
$200m profits?
Similarly, with the fall in oil prices, the combined profits of SMRT and SBS Transit for the full year is expected to be about $200 million.
$600m profits?
Public transport should be considered in its entirety – including taxis. If we include ComfortDelgro’s profits of $327 million in FY2013 – the entire public transport sector is expected to have a full-year combined profits of about $600 million.
So, where is the justification to increase fares once again?
Most countries also do not fund transport infrastructure from fares, but rather from the general state revenue.
In this regard, even after transport infrastructure spending – Singapore had a Budget surplus of $36.1 billion in FY2012 using IMF fiscal reporting guidelines.
Win battles lose war
TRS Contributor
