Friday, September 12, 2008 20:56
Much ado about nothing, PTC?
In Main Stories, Top Story, Uncle Leong, Uniquely Spore • 1,818 views • 33 Comments
Leong Sze Hian / Columnist
Senior citizens and poor may be hit most by fare hike
I refer to the Public Transport Council’s (PTC) press release on the increase in public transport fares from 1 October 2008.
The question that may perhaps be foremost on most people’s minds, seems to be absent from the 13-page report - What will be the projected increase in profits of the two transport operators ?
In this connection, since the “public transport operators will receive, an overall net adjustment of 0.7% (or about $ 10.1 million) to the public transport system’s total fare revenues”, does it mean that the projected increase in profits may only be just over a million dollars ?
I estimate this figure to be only about $ 1.6 million, based on SBS and SMRT ‘s Profit to Revenue Ratio of 7 and 19 per cent respectively.
In my view, one of the issues with the review of past fare increases, was that almost every time, the exhortations that costs were rising and would impact transport operators’ profits, ended up with ever increasing record profits for operators like SMRT, whose profits increased by 18 per cent per annum from 2002 to 2008.
Unless there is an estimate of the projected profits, there may in a sense, be no benchmark for profits pre and post-fare increase to be evaluated.
Looking at the details of the increase, I believe the brunt of the increases may be borne by senior citizens and the lower-income, as they are the ones who may more likely take feeder and direct bus services - these being the cheapest travel options. The four cents increase for feeder bus and senior citizen concession EZ-link fare (shortest distance), is an increase of six per cent, on top of the about 7 per cent per annum increase from 30 to 67 cents from 1995 to 2007 for feeder fares.
This translates to an increase of 137 per cent in feeder fares from 1995 to 2008.
So, perhaps the key question and statistic, may not be that “a majority of commuters (64%) will benefit directly from the transition to distance-based through fares”, but who are, and how much more the 36 per cent may be paying - senior citizens and the lower income ?
With regards to the ROTA (Net Profit after tax/Total Assets) comparison with various companies which ranged from 2.8% to 10.1%, why does a public transport company like SMRT have a ROTA of 11.1%, which is higher than all the other transport and non-transport companies ?
In fact, SMRT’s ROTA increased by 85 per cent, from 6.0% in 2004, to 11.1% in 2007.
Why do we only compare Singapore’s fares with cities that have some of the highest median incomes in the world, namely Hong Kong, London and New York ?
Moreover, cities like London and New York, have discounted multi-modal monthly unlimited ride passes for all including subsidies for senior citizens, which Singapore does not have.
So, average fare comparisons may not be very appropriate.
Finally, I am somewhat puzzled that the Transfer Rebate increase by 10 or 12 cents (SBS will bear 6 cents), and by 14 cents (SMRT will bear 7 cents), do not seem to match “the transport operators will absorb a larger share of the cost of the increase in transfer rebate (i.e. 10 cents).
Isn’t SBS’s absorbing 6 cents out of say 12 cents, and SMRT’s 7 cents out of 14 cents, equal to about half the 15 cent rebate, i.e. about 7.5 cents instead of “(i.e. 10 cents)” ?
So, are they absorbing about two-thirds (10 divided by 15 cents) or half (7.5 divided by 15 cents) of the transfer rebate ?
Furthermore, how does a rebate of 10 or 12 cents (SBS) and 14 cents (SMRT), become a 15 cents rebate ?
Given the above apparent anomaly, are the revenue increase and fare adjustment figures correct ?
(I stand corrected if I am wrong, as I am just an ordinary citizen, trying my best to analyse the complexities of the fare increase ?
By the way, since the projected increase in profits may be just over a million dollars, and motor vehicle revenues was about $ 3.4 billion, why not just take $1+ million and do away with the new fare increase, which may affect the lower-income and senior citizens more adversely ?
—————
Come join us at Hong Lim Park tomorrow (Saturday, Sept 13) at 5pm. Take the train to Clark Quay station and follow the signs in the station. Use “Exit A” and you’ll be right at Speakers’ Corner.
We will have six speakers who will share their views on the hike and on public transport.
Related posts:
33 Comments
ronin
red_dot
Three cents here five cents there we consumers are the pitiful lot.
How can one be a “charity” king(just because the father is one) when
he becomes heartless and merciless in making the poor and the
elderly pay- and- pay. He is no different from the NTUC chieftons.
Everything is AFFORDABLE the keyword of the government.
Daniel
It is Shit Times again.
You don’t call them Shitty Times for nothing.
DARTH VADER
When I retire, the first thing I want to do is leave this country. Why? I wont be able to afford to live here! The older you get the harder it is to survive. I rather go overseas pay a higher tax but know also that all my medical bills will be covered!
Transport on public transportation will be cheaper of even free! The usual thing is give you some cash and it is suppose to be okay! Then increase all the way!
At least i will be able to live without everyday reading inthe papers of this increase or that. In Singaapore better not be sick you wont be able to afford it! The rich have no problem increase no matter we can afford.
Sad so sad!
Andrew Loh
If anyone remembers, PTC Chairman Gerard Ee said the following in 2007, when the PTC approved the fare hike:
In the last one year, the CPI has risen to record high. Inflation is at a 26-year high. The wages of the lower 20% have not increased for 10 years. So, one may ask Gerard Ee: Since these two are “very important factors”, why do you still increase fares when the two factors indicate harder times for Singaporeans?
As for the so-called help for the poor, last year the two transport companies contributed “S$0.6 million.” ( See here.)This year, with record inflation and a darker economic outlook, their contribution have decreased to “S$0.45 million”. (See here.)
Why is this so – when SMRT made record profit of $135m and SBS Transit made $50m last year?
I think with the dizzying formula, only Gerard Ee would understand what he is saying. To the average Singaporean, it is so confusing trying to understand the formula.
But a simple fact remains:
In good times, fares are increased.
In bad times, fares are also increased.
It seems that the PTC – and by extension, the Govt – does not really care if Singaporeans are suffering record inflation.
Daniel
Their strategy: Give little but take back much more
Michael
The wirter is absolutely right in saying that senior citizens and lower-income may bear the brunt of the fare increase. This category of commuters partcularly senior citizens in particular usually travel short distances i.e point A to point B.
So it is no big deal in having a senior citizens’ “concession” Ez link card unless you intend to travel every day from either North to South or East to West of Singapore or travel long distances and do a lot of transfers on the way. Other than any these scenarios, the Senior Citizen Concession is quite BS in my opinion. I am a retired senior citizen. I know.
Gus
Darth Vader,
it is definitely a very good option -
if you go to places such as NZ –
elderly / retirees – get pension
concession for every thing
free medical for all (have to wait at times) – u can really retire without worrying
or have to depend on you children or on CPF which can dry quite fast
non working mothers(even if father is working), receives family support
free city shuttle service
free education if u go to govt sch
people in the 40s 50s can still apply and get job – no discrimination on age
with the price of a 3 bedroom flat – you can buy a 3 bedroom house sitting of a 800sq metre land(0n average) – grow you own fruit tree and veg – eat all organic
etc etc go fishing along any river for trout or snappers in the sea – plentiful.
but it will be easier if you migrate earlier while you are younger if possible- migration rules are all base on points, beyond certain age 50+ there is a cut off, etc.. unless you have $$$$$$$$$$$$ – no prob then
good luck.
observer
I am so grateful to the pap gov. The small increase is so affordable, and I am full of joys and thanksfulness. If not for the GST increase, the gov probably will not be able to effect such a small adjustment.
Thanks pap, once again, you have shown that you always have the welfare of the people at heart. You are marvellous, fantastic, god-sent from heaven!
Michael
Some comments to add:
Those of you who think that “the grass is greener in the other side” , please do a re-think. For the sake of airing our grouses, this is an excellent platform. Other than that emigration is not the solution a some might think. When you start to pay high taxes for that old man who drives his car along the same road as you do, who are you going to complaint to? when you have to wait in long queues for a critical surgical procedure to be performed, complaint to who?
those of us who have lived long enough on planet earth will know that this is an unfair world. We all did not ask to be born in Singapore. But let’s be thankful that ours is a unique city state which we ought to be thankful to our founding leaders for what we ahve today. Have a peek across the other side of Woodlands and you know what i mean. Get the picture?
Jackson
This is what singaporeans get for putting their 5yrs of future into the wrong hands. That’s why we should vote very carefully.
Hey, Michael. How are you ?
“10) Michael on September 13th, 2008 10.54 am
But let’s be thankful that ours is a unique city state which we ought to be thankful to our founding leaders for what we ahve today. Have a peek across the other side of Woodlands and you know what i mean. Get the picture?”
Thank you Michael for helping us get a better and clearer picture. As I am quite myopic, people like you have really helped me a lot by giving me some regular doses of good reminders.
“This is an unfair world” and we are quite naive to think it is otherwise and that even with enough effort, it can be a litte bit fair. Thank you once again for letting me know my position to be born in Singapore.
Last of all, I am always thankful that people like you are still around in the internet corner to expand your reach in helping people with serious myopia after having established the competence in the MSM areana. God bless you. May the force with be you for another millenium. Get the picture ?
korek2korek
I am not into advocacy. Just some thoughts.
I read somewhere that there are two types of price regulatiton — one is rate-of return model (or simply a cost-plus, ie with regulated profits) and the other is a price cap model (ie cost minus productivity extraction). I am quite sure there are pros and cons. This is the crux of the matter — which model should be applied on our public transport fares? We all have different views on this.
On the impact of the latest decision on the low income (the 1st quintle) and senior citizens, I think it is a valid concern. This is the concern too with other issues such as healthcare, etc, especially with widening income gap. How to best address this real bread and butter issue so that Singaporeans can have a better life in Singapore? Any views?
Chua Mui Bee of the hoon
9) observer on September 13th, 2008 10.34 am
Ya, they do it REGULARLY but a slice at a time.
It wont hurt as much. People forget the pain over time and once used to it, its like drinking water or coffee.
Pay And Pay today till forever more.
The people have spoken.
Status quo.
More good years!
Swiss standard!
Number 1!
Welcome FTs!
Show your gratitude to FTs.
They can cover your jobs.
12) Hey, Michael. How are you ? on September 13th, 2008 11.09 am
” Last of all, I am always thankful that people like you are still around in the internet corner to expand your reach in helping people with serious myopia after having established the competence in the MSM arena. God bless you. May the force with be you for another millenium. Get the picture ?”
Whoever put this comment, I hope your blessings are indeed sincere. Thanks for that! I do not write comments here (or anywhere for that matter wiithout factual backup). My son has an M.Sc (stats) from NUS and has gone over to to NZ thinking that “the grass is greener on the other side.” My uncle is a British (ang moh) UK citizen who condemns their own NHC (national health care) system.
In sum, I think the “4 cents” goes far beyond nationhood! I salute people like “Korek2korek” who speaks rationally and put forth real concerns.
In essence, let’s all begin to see the real BIG picture. Cheers!
Hi, mickey
“My son has an M.Sc (stats) from NUS and has gone over to to NZ thinking that “the grass is greener on the other side.” My uncle is a British (ang moh) UK citizen who condemns their own NHC (national health care) system. ”
Even your own son (mind you, a wonderful side venture of yourself and NUS) also thinks the grass is greener there. Never mind, your son can always can come back here. With a M.Sc (stats), he is definitely way in front of a lot of people.
Hey I have never thought that grass is always greener over the other side, but I do think that a lot of things have to improve here. Too many glaring nuisances unless you choose not to see it ?
As for your ang moh uncle, Singapore is always drooling very badly for people like them. No secret, it is all pasted in the air you breathe. Perhaps, he will begin to fall in love with our health care system after a few years here.
Hey, I also salute people like “Korek2korek” or any participant in so far as he can bring a different perspective to the table which can enrich my outlook, whether it is positive or negative.
Whoever can walk the talk prevails by setting good examples (not practising double standards). Not talk the talk with plenty of eloquent counter points.
What is going on in Singapore? I don’t really read it. Why? High fever !
My frail mother, age 78 years old, told me she don’t take taxi any more. She had complaint a short distance cost $5+. She can’t take a bus because of her health condition. Now, she walk 1km to Marsiling market and Woodlands Polyclinics to cut her living cost. So, what is going on when USA GDP 0.9% next year (an Ox Lunar Year!)?
[...] PS (Fares will be raised by 4c from October 1st onwards. Details and analysis from TOC can be found here.) [...]
Quo Vadis
A sad day -cometh Oct 1.
Reading all agruments carefully , there is no real reason to be found for the fare hike. Only conclusion is that it is a political and strategic move – the new urgent way of dealing with the people – pre-emption and then a little one off candy help to remind the people.
Sadder in that it has to come th this way – unclear to the policy makers is that by doing so – the great divide is becoming wider.
Thank you TOC – you guys are young and energetic – you deserve the best Singapore can give you. Do not be discouraged by what the PAP MP said as “underwhelmed” ; TOC – your collated suggestions whether workable or not are worth their weight in gold in your efforts in the present circumstances.
Michael
Some comments to share:
Reading all the comments here, I begin to wonder whether the 4 cents fare hike is indeed “much ado about nothing” – literally. I’ve not read complaints on blatant increase in the price of food at food courts or hawker centres. Why? A bowl of fishball knoodles used to cost $2 and now jumps to $2.50. Do you think it is justifiable? I may sound out of sync here but what is a 50 cents increase compared to 4 cents?
On emigration, China seems to be the best alternative to consider. You can rent an apartment for around S$120 p.m (2 bedrooms, one hall and a kitchen), very,very cheap fish, vegetables and other necessities. cab fare starts from around S$1.40 – too cheap! I wonder why no one talks about this alternative. The answer is quite obvious perhaps When China cut fuel subsidy why no big hooha? The answer again seems obvious.
Don’t get me wong. I’m not saying that the 4 cents fare hike come October 1st is fully justifiable (same for food price hike which is worst) but let’s be frank about one thing: There is some certainty here. There is PTC to oversee and keep public fare hike in check. Why isn’t there say a “FCC (Food Control Council)” in place to keep food prices in check as Singaporeans eat out often? I wonder.
I have an aged sick mother-in-law who is 83 years of age and has to travel by cab to Polyclinic which costs me almost $5 per trip per appointment in any one month.
My point is: (to give an analogy) one cannot expect to have fine dining at say Jade Crystal Restaurant and expect the bill to be below S$10.
The bottom line is really $$$ can get you somewhere (as one reader implied here). Get the point?
Cheers!
Michael: Do you think people are rallying together over a 4-cent hike alone?
Michael
Donaldson Tan: To be frank, whether it is alone or not, it is more like “much ado
about nothing” (similar to Article’s header). I cannot imagine how people who sell food at Food Court or Hawker Centres can get away with blatant profiteering. Nothing is being done about this. What’s the hooha about this 4 cents (no offense to TOC! you guys are good!) when others can get away with a 50 cents to $1.00 hike without batting an eyelid?
The Singapore Daily » Blog Archive » Daily SG: 15 Sel 2008
[...] Public Transport Forum at Hong Lim Park – TOC: Rethinking public transport – TOC: Bloggers speak up against public transport shortcomings at Speakers’ Corner – Gerald Giam: Thank you for attending TOC’s public transport forum – Things and experiences in my life: TOC at the Speakers’ Corner TOC – Against the Public Transport Price Hike – The Lionheart: Milestones – Jacob’s Weblog: The “Gomez Findings” should serve as a rallying wake-up call – TOC: Much ado about nothing, PTC? [...]
Hi Michael, you are back again.
20) Michael on September 15th, 2008 8.39 am
Can you tell clearly between :
1) Real free market competition (e.g fishball knoodles or mee siam or raw hums) in the private sector with a lot of market players to provide equivalent or substitution with maybe limited space as the most constraining variable. Currently, I do not see any GLCs providing fishball noodles and mee siam and yes hums also.
2) Essential PUBLIC service (monopoly ?) operating in a pseudo free market environment with ERP, COE, road tax, etc to inflate (artificially ?) the cost of alternative private travelling with limited space (for both roads & parking space) again as the worst constraining variable.
So do you think it is fun to increase your population to 6.5m.
Teo Kueh Liang
To some Singaporeans, if they can take direct bus to work and for other commitments, there will be zero discount for them when new fare system comes into effect in Oct 08′. Hence, it makes no sense for them to make trips of transfers for the public transport, in order to enjoy or taking advantage of the fare’s
discount/reduction.
Further, I find the bus operator, especially the SBS Transit, it needs to improve its frequency of bus fleet deployment and scheduling in order to cut the problem of bus bunching. I have always waited for bus 52 for about 30 minutes in the morning everyday, between 7.21 to 8.10am at the bus-stop opposite Sunset Way,
Hi Donaldson, you are back too!
Donaldson Tan:
I’m sure being a potential graduate of UofC, good for you, You’ll see things clearer by Sem 2.. Any government is somewhat an Enterprise of sorts. I’m sure you’ve read a lot on Sovereign Wealth Funds of late. Whether or not there are differentiating variables, factors or motives behind the increases, the end-game is still similar – PROFIT…or PROFIT-EERING. Can we honestly say that an increase of 50 cents to $1.00 per bowl of Fishball Noodles is justifiable when it gives a sudden pay rise of $1500-$3000 per month to hawkers’ pockets? Check out the price of noodles, fishballs and all the hums and you get the answer. I mean wholesale price.
As for 6.5m it’s an obvious rhetoric. Walk around HK. the answer is there.
Amused
So, if I take a Feeder Bus to the town centre, quickly order some take away and then take another Feeder Bus back home, how much will I be charged?
I’m like at most 10 metres away (the bus stop across the street) from the point of origin of my travel no?
xtrocious
Absolute hogwash – I take the direct train to work every day
Not only do I face deteriorating services – I have to wait until the 3rd train before I can squeeze myself on-board and it’s only 7am in the morning…
And to add insult to injury, I have to pay more come Oct 1?
Michael (#22) and Anonymous (#26):
There is one obvious primary culprit for the fare hikes in public transport, unlike the case of fish ball noodle price hike. Moreover, it is still possible to find fish ball noodle stalls charging less than $2.50. Given that one of you had mentioned Singaporeans are less vocal on fishball noodle price hike, has it not occurred to you that this shows that the service quality provided by the fish ball noodle stalls leave their customers more satisfied than commuters taking public transport in Singapore?
tiredsingaporean
You guys can say all you like here but does this going to change anything? Fat hope! Since when do they ever really listen? don’t forget they simply go ahead with anything that they can rip in alot of $$$ and do anything to stop the you guys from getting back your life savings, you think they bother? wait long long
Daniel
“Not only do I face deteriorating services – I have to wait until the 3rd train before I can squeeze myself on-board and it’s only 7am in the morning…”
Oh, better don’t tell this to the minister least the pathetic and world-class minister will proudly tell you that without the increment, you will have to wait for the fifth train !
Yi Long
There’s nothing much we the citizen can do about it. Year after year, they can come up with new reasons to make sure the fares are increased and the 2 companies have their revenues increased.
However, despite knowing that our voices will fall on deaf ears, if there’s any ears out there at all, we should still con’t to voice our views and discontent. Never go down without a fight.
aol166
Public transportation here is a joke. I was “trained” to think that we have a “world class transportation system”. Yes, we have. Compared to Malaysia, Indonesia, Phillipines, Brazil, Uganda, Nigeria, R.o.Congo and other third world countries. Yes, we are world class in the Third World sense of the word. Compared to First World countries which we should be comparing to, we are not even there. I used to believe this propaganda but eventually, I found out that it is not true. In Germany, public transportation is so comprehensive, you can find a train station, tram or bus any where. Their tram, bus and train system are integrated (one fare system) They have comprehensive season fare (75 Euros for one month for then entire Frankfurt encompassing buses, trams and train systems within Frankfurt) Wow, I was blown out of my mind. $150 to go anywhere, anytime. We don’t even have a season pass system in our not so comprehensive transportation system. Even if we have I can not imaging it being $150. I assume it will be more like $300.
Hurray to our “world class transportation system”…. Hurray to the PTC’s price increase. We should have price increase to compensate the “world class” system.
Also, lets not be disillusioned about SMRT and Delgro. They are here to make money, not to serve Singaporeans.
I heard a saying : Singapore is a selective democracy with concentrated capitalism.
It is the usual Straits Times trying to distort facts and figures!