SMRT officially delisted from the Singapore Stock Exchange (SGX) on Oct 31 and is also subsequently removed from Asia300, Japan’s Nikkei newspaper’s list of biggest companies in Asia yesterday (Nov 15).
The troubled public transport company is now nationalised and fully-owned by the country’s sovereign wealth fund company, Temasek Holdings. SMRT look forward to passing the persistent train breakdown problems over to the government under the new finance contracting structure.
Costly physical assets including the train system will be transferred under the responsibility of the Land Transport Authority (LTA). The new financing model also ensures profitability of public transport companies, on a contract basis for labour-related railway services.
SMRT will hence take care only of the profitable labour contract, while undercutting salaries for the drivers and operation staffs. The move is unofficially an act of corruption on the Singapore government as the LTA avoid answering why isn’t the profitable aspect is not undertaken by the authority to offset the hefty costs of maintenance under asset ownership.