//When such a question pops up in Singapore's most read English newspaper, one realises that despite the high GDP, there are significant sections of people who are well educated, but not up to scratch in their understanding of economics. How does a government deal with this? And if such issues exist in Singapore, how far worse they will be in every single other country on earth?
From Chua Soo Kiat
Updated 05:36 PM Dec 09, 2012
I refer to Transport Minister Lui Tuck Yew's comment that an increase in bus drivers' salaries would have to be taken into account when adjusting fares ("Bus drivers' salaries have to go up: Transport Minister", Dec 7).
Why should the transport operators continue to be listed entities, allowing private equity owners of SMRT to benefit from the provision of an essential service?
By delisting the company, SMRT would free up badly-needed capital to better pay those who matter most to the company and Singapore - the drivers and engineers. And SMRT would not need to peg their top management's pay to that of other listed companies.
SMRT would also be free of the compliance burden that comes along with a listing on the Singapore Exchange, which could mean substantial savings. It also would not have to pay dividends.
The Transport Minister also needs to be mindful of any impact the fare increase would have on persistent inflation in Singapore.
