In the latest presentation of ComfortDelgro’s financial result for Q2 of 2017, the group owner of SBS Transit thanks the Singapore government for making the company more profitable than ever:
“Increase in SBS Transit’s Bus revenue following the transition to the BCM (Bus Contracting Model) effective 1 Sep 2016”
In Sep 2016, the Singapore government spent S$7.1 billion to buy over the depreciating physical assets (trains, buses and etc.) of SBS Transit and SMRT. SBS Transit and SMRT will only need to provide manpower and management services of the public transport, and the Singapore government will ensure them make a comfortable margin of profit to “survive”.
Through the Public Transport Council, the Singapore government raised public transport fares to make SMRT and SBS Transit – both companies belong to Temasek Holdings, where the Prime Minister’s wife Ho Ching is CEO – ultra-profitable.
Comfortdelgro today posted S$586.3 million revenue for the second quarter of 2017, S$5.7 million higher than a year ago. The Temasek Holdings-owned transport conglomerate said that the Downtown Line is especially profitable due to the higher ridership. However’s its profits, at S$91.7 million for 2Q2017, were dragged by England-based businesses affected by exchange rate losses from the falling English pounds.
Despite the healthy profits in SMRT and SBS Transit, Singapore’s Transport Minister Khaw Boon Wan said that transport fares will likely increase this year.