SBS are raising the price of travel again.
Surprisingly, profits are up SGD$4 million from last quarter although profit compare to the same quarter 2004, it is down by SGD$0.5 million. Another noticable profit line is that there is an incrase of 158% increase of profits for the year 2004 compared to 2003 which is a staggering SGD$30 million.
SBS is now a private company with government's interest in it. It does not really face a competitive market since it is a close and protected market. SBS provides the basic public transport in Singapore, so I gather it is towards the interests of the public rather than their shareholders. True, it is a private company and we should not let it be operating at a loss but with it operating at a bigger profit, shouldn't this excess profits be channelled back to those who need it? Prime examples are the hardworking bus captains and the poor and needy.
An increase in fares will suffocate the lower incomes and slowly strangle the middle class. Profits for shareholders are looked after but not the needy. Yes, SBS does provide transport vouchers for the needy but it is only for those who knows where to get them and able to get them.
Has SBS improved its services to the public? Better timing? more buses? Able to provide a general schedule for all to refer to? I have yet to see any improvement in these. Bus fleets are actually smaller now due to SBS down-sizing to increase profits. Timing is getting worse. Schedule is non-existent. What is worse? More bus services are trimmed away to force people to take its North-East Line which resultant in higher waiting time, travelling time and travelling costs.
SBS did selective comparison with other statistics and claims that cost of an average ride is about 65 cents which is more lower than some developed and neighbouring countries. However, most Singaporeans commuting on public transport takes an average of 2 rides to reach their destinations which bring the average costs of a trip to about $1.30. If the chosen countries by SBS, has an average of 1 ride per trip, the average cost per trip will be much lower than ours even if the average cost per ride is up to $1. This is also poor comparision as it is a selective and not representative comparision. We can certainly choose poorer countries with poorer exchange rate to show the opposite that our average cost per ride is much higher.
Even though the increase will be capped by 2.4%, multiple increases will make this cap invalid. Who knows when will be the next increase?
SBS financial reports
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