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PTC in danger of losing credibility and public’s trust

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Public Transport Council

Public Transport Council

By Andrew Loh
While its approval of the public transport operators’ (PTO) application to hike fares may draw criticisms, it is the Public Transport Council’s (PTC) inability to convince the public of the reason for the hike that is erasing the credibility of the 16-member council.
The operators had submitted their applications on 19 December 2013.
They were approved on 16 January 2014, less than a month later.
The PTC’s thumbs up for the 3.2 per cent hike in public transport fares, and coupled with a slew of concessions for various groups of people, was praised by the Transport Minister for having “struck a good balance” in its decision.
The PTC had also apparently sought to assuage the expected public backlash by not approving the full 6.6 per cent rise in fares which the PTOs had applied for.
However, the public backlash was more pronounced than perhaps the PTC had expected, with many members of the public flooding the Transport Minister’s Facebook page with more than 860 comments since the announcement was made on 16 January. [See here.] The majority of the comments, like those elsewhere on theInternet, expressed how commuters were aghast that despite the frequent breakdowns and lapses in service, and the healthy profits that the PTOs continue to make along with generous billion-dollar government handouts, the PTC had still allowed the fare hike.
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In response to the widespread unhappiness which, incidentally, mostly went unreported and ignored by the local mainstream media, the PTC tried to explain its decision and to address the criticisms.
On 21 January, 5 days after the hike was announced, the PTC said that the “fare hike and breakdowns are separate issues”.
fare hike
Chairman of the PTC, Gerard Ee, was reported to have said that while the operators are still profitable, “their finances would need to be healthy to maintain service reliability.”
Yet, at the same time, Mr Ee insists that the “fare hike and breakdowns are separate issues.” Some commentators have found this puzzling, given that the fare hike apparently is to sustain the profitability of the PTOs, which then would enable them to improve or “maintain service reliability” – as Mr Ee himself said: “… their finances would need to be healthy to maintain service reliability.”
Indeed, entrepreneur Nanz Chong-Komo, the founder of the ONE.99shop chain in 1997, took a dig at Mr Ee’s gaffe.
In a Facebook post, Ms Chong-Komo said:

“Someone has difficulty understanding the close relationship between consumer satisfaction, quality execution & price strategy in business. I am not “For or against” fare hike in this context but to say “separate issues” is not align with my understanding of practical business principle.”
Nanz Chong

It is quite clear that ComfortDelgro, the parent company of SBS Transit, and SMRT are both profitable and have, generally, always been so.
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What is not profitable is a component of their overall business – the bus operations.
Indeed, in a report on TODAY on 17 January, it said that the bulk of the profits from the fare hike – which will total some S$53m – will go to fund the “financially ailing” bus operations.
“Bus operations will receive a S$48 million boost from the hike, while S$5.5 million will be allocated to MRT operations, under a new weightage in revenue allocation applied by the PTC,” the newspaper revealed.
today hike
In a report on 11 January 2013, the Straits Times reported that all of the various business aspects of the PTOs – except the bus operations – are profitable. [See here.] “As a group, there is no doubt the companies are profitable,” the paper said. But their bus operations “are certainly loss-making.”

“SBS Transit, which runs about 70 per cent of the bus routes, ended its last financial year at $6 million in the red for its Singapore core bus operations. This excludes revenue from advertising.
“SMRT fared worse.
“It had an operating loss of $11.6 million for its local bus operations at the end of its last financial year.”

The argument from the PTOs is that the public should not confuse the companies with the individual component parts, and that the public should see each one separately.
However, as the Straits Times reported:

“National University of Singapore’s transport economist Anthony Chin points out that it is not possible to separate bus operations from the group’s overall operations.
“Bus operations are meant to feed into the train system which forms the backbone of Singapore’s transport network. They are not intended to be profitable on their own, he said.”

The PTC (and the government, for that matter) seems to see it differently from Mr Chin. The Council’s view seems to be that each part of the business must be profitable, or self-sustaining, in and of itself.
This is quite clear from its approval of the fare hike and decreeing to the PTOs that the bulk of the profits from it must go to the bus operations. It is also for the same reason, apparently, that the government last year gave the PTOs a S$1.1 billion handout to help them purchase hundreds more buses as part of the Bus Service Enhancement Programme (BSEP) – and also to help fund their operations for the next 10 years.
CNA BSEP
What all these say is that whenever any part of the PTOs’ business is not profitable, the commuting public will be asked to prop it up, through fare hikes.
This is, perhaps, what riles the public most as it is seen to be an issue of greed more than anything else. The public becomes the easy target.
What the PTC should be looking at is why the bus operations themselves are bleeding red – and what really the problem is. Is it a simple case of higher fuel or manpower costs? Or is it bad or incompetent management?
To always turn to commuters to bail out, as it were, the PTOs is not the solution.
For then there will be no incentive for the PTOs to do better, and resolve the problem at the root.
In the meantime, the PTC should, if it doesn’t want to lose credibility, stand firmly on the side of commuters and – more importantly – be able to explain convincingly its reasons for any hikes.
Fare hikes and breakdowns are, in fact, not separate issues.
Why should commuters continue to pay higher fares for bad service?

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Chee Soon Juan questions Shanmugam’s $88 million property sale amid silence from Mainstream Media

Dr Chee Soon Juan of the SDP raised concerns about the S$88 million sale of Mr K Shanmugam’s Good Class Bungalow at Astrid Hill, questioning transparency and the lack of mainstream media coverage. He called for clarity on the buyer, valuation, and potential conflicts of interest.

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On Sunday (22 Sep), Dr Chee Soon Juan, Secretary General of the Singapore Democratic Party (SDP), issued a public statement on Facebook, expressing concerns regarding the sale of Minister for Home Affairs and Law, Mr K Shanmugam’s Good Class Bungalow (GCB) at Astrid Hill.

Dr Chee questioned the transparency of the S$88 million transaction and the absence of mainstream media coverage despite widespread discussion online.

According to multiple reports cited by Dr Chee, Mr Shanmugam’s property was transferred in August 2023 to UBS Trustees (Singapore) Pte Ltd, which holds the property in trust under the Jasmine Villa Settlement.

Dr Chee’s statement focused on two primary concerns: the lack of response from Mr Shanmugam regarding the transaction and the silence of major media outlets, including Singapore Press Holdings and Mediacorp.

He argued that, given the ongoing public discourse and the relevance of property prices in Singapore, the sale of a high-value asset by a public official warranted further scrutiny.

In his Facebook post, Dr Chee posed several questions directed at Mr Shanmugam and the government:

  1. Who purchased the property, and is the buyer a Singaporean citizen?
  2. Who owns Jasmine Villa Settlement?
  3. Were former Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong informed of the transaction, and what were their responses?
  4. How was it ensured that the funds were not linked to money laundering?
  5. How was the property’s valuation determined, and by whom?

The Astrid Hill property, originally purchased by Mr Shanmugam in 2003 for S$7.95 million, saw a significant increase in value, aligning with the high-end status of District 10, where it is located. The 3,170.7 square-meter property was sold for S$88 million in August 2023.

Dr Chee highlighted that, despite Mr Shanmugam’s detailed responses regarding the Ridout Road property, no such transparency had been offered in relation to the Astrid Hill sale.

He argued that the lack of mainstream media coverage was particularly concerning, as public interest in the sale is high. Dr Chee emphasized that property prices and housing affordability are critical issues in Singapore, and transparency from public officials is essential to maintain trust.

Dr Chee emphasized that the Ministerial Code of Conduct unambiguously states: “A Minister must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

He concluded his statement by reiterating the need for Mr Shanmugam to address the questions raised, as the matter involves not only the Minister himself but also the integrity of the government and its responsibility to the public.

The supposed sale of Mr Shamugam’s Astrid Hill property took place just a month after Mr Shanmugam spoke in Parliament over his rental of a state-owned bungalow at Ridout Road via a ministerial statement addressing potential conflicts of interest.

At that time, Mr Shanmugam explained that his decision to sell his home was due to concerns about over-investment in a single asset, noting that his financial planning prompted him to sell the property and move into rental accommodation.

The Ridout Road saga last year centred on concerns about Mr Shanmugam’s rental of a sprawling black-and-white colonial bungalow, occupying a massive plot of land, managed by the Singapore Land Authority (SLA), which he oversees in his capacity as Minister for Law. Minister for Foreign Affairs, Dr Vivian Balakrishnan, also rented a similarly expansive property nearby.

Mr Shanmugam is said to have recused himself from the decision-making process, and a subsequent investigation by the Corrupt Practices Investigation Bureau (CPIB) found no wrongdoing while Senior Minister Teo Chee Hean confirmed in Parliament that Mr Shanmugam had removed himself from any decisions involving the property.

As of now, Mr Shanmugam has not commented publicly on the sale of his Astrid Hill property.

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Redditors question support for PAP over perceived arrogance and authoritarian attitude

Despite Senior Minister Lee Hsien Loong’s warning that slimmer electoral margins would limit the government’s political space “to do the right things”, many Redditors questioned their support for the ruling PAP, criticising its perceived arrogance. They argued that SM Lee’s remarks show the party has ‘lost its ways’ and acts as if it alone can determine what is right. Others noted that the PAP’s supermajority allows for the passage of unfavourable policies without adequate scrutiny.

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In a recent speech, Senior Minister Lee Hsien Loong warned that “if electoral margins get slimmer, the government will have less political space to do the right things.”

Mr Lee, who served as Prime Minister for 20 years, highlighted the risks associated with increasingly competitive politics.

“It will become harder to disregard short-term considerations in decision-making. The political dynamics will become very different,” he stated during his speech at the Annual Public Service Leadership Ceremony 2024 on 17 September.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed.

SM Lee pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens.

As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.”

He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

Critique of PAP’s Arrogance and Disconnect from Singaporeans

The People’s Action Party (PAP) experienced a notable decline in its vote share during the 2020 General Election, securing 61.24% of the votes and winning 83 out of 93 seats, a drop from 69.9% in 2015.

A significant loss was in Sengkang GRC, where the PAP team, led by former Minister Ng Chee Meng, was defeated by the Workers’ Party (WP).

In discussions on Reddit, some users questioned why they should support the ruling PAP, criticising the party’s perceived arrogance.

They pointed out that SM Lee’s recent remarks illustrate that the party has strayed from effectively serving Singaporeans and seems to believe it has the sole authority to decide what is right.

Others highlighted that the PAP’s super-majority in Parliament enables the passage of unfavourable policies without sufficient scrutiny.

One comment acknowledged that while many older Singaporeans remain loyal to the PAP due to its past achievements, younger generations feel the party has failed to deliver similar results.

There is significant frustration that essentials like housing and the cost of living have become less affordable compared to previous generations.

The comment emphasised the importance of the 2011 election results, which they believe compelled the PAP to reassess its policies, especially concerning foreign labor and job security.

He suggested that to retain voter support, the PAP must continue to ensure a good material standard of living.

“Then, I ask you, vote PAP for what? They deserve to lose a supermajority. Or else why would they continue to deliver the same promises they delivered to our parents? What else would get a bunch of clueless bureaucrats to recognise their problems?”

Emphasising Government Accountability to the Public

Another Redditor argued that it is the government’s responsibility to be accountable to the people.

He further challenged SM Lee’s assertion about having less political space to do the right things, questioning his authority to define what is “right” for Singapore.

The comment criticised initiatives like the Founder’s Memorial and the NS Square, suggesting they may serve to boost the egos of a few rather than benefit the broader population. The Redditor also questioned the justification for GST hikes amid rising living costs.

“Policies should always be enacted to the benefit of the people, and it should always be the people who decide what is the best course of action for our country. No one should decide that other than us.”

The comment called for an end to narratives that present the PAP as the only party capable of rescuing Singapore from crises, stating that the country has moved past the existential challenges of its founding era and that innovative ideas can come from beyond a single political party.

Another comment echoed this sentiment, noting that by stating this, SM Lee seemingly expects Singaporeans to accept the PAP’s assumption that they—and by extension, the government and public service—will generally do the “right things.”

“What is conveniently overlooked is that the point of having elections is to have us examine for ourselves if we accept that very premise, and vote accordingly.”

A comment further argued that simply losing a supermajority does not equate to a lack of political space for the government to make the right decisions.

The Redditor express frustration with SM Lee’s rhetoric, suggesting that he is manipulating public perception to justify arbitrary changes to the constitution.

Concerns Over PAP’s Supermajority in Parliament

Another comment pointed out that the PAP’s supermajority in Parliament enables the passage of questionable and controversial policies, bypassing robust debate and discussion.

The comment highlighted the contentious constitutional amendments made in late 2016, which reserved the elected presidency for candidates from a specific racial group if no president from that group had served in the previous five terms.

A comment highlighted the contrast: in the past, the PAP enjoyed a wide electoral margin because citizens believed they governed effectively. Now, the PAP claims that without a substantial electoral margin, they cannot govern well.

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