State media Straits Times published an article on Sunday (Jan 21) revealing that Prime Minister’s Lee Hsien Loong’s latest pet project is going to be the most expensive ever:
“The total bill for Changi East is unclear, but it is expected to dwarf the billions spent so far – on T4, commercial development Jewel, which opens next year, and the multiple upgrades of the other three terminals in the last two decades.”
Poor planning and inaccurate estimation has afflicted Singapore’s aerospace infrastructures, with several exorbitant projects all aimed to meet passenger load. The small island state one-tenth the size of Sydney has already 4 airport terminals and is now considering it’s fifth. Project Jewel, an extension of Terminal 1, cost S$1.7 billion and it is not completed until 2019.
Terminal 5 is estimated to cost S$5 billion, and it was considered immediately after Terminal 4, which opened on 31 Oct 2017, proved to be a failed project. Some airlines like TigerAir and Scoot refused to move to the new terminal.
The state media papers also wrote in their propaganda article that Singaporeans should help to pay more taxes to support funding, and pay about S$10 to S$15 more each they fly out of Singapore. The new tax will be implement by this year, on top of the existing taxes amounting to S$34 collected by the Civil Aviation Authority of Singapore.
Changi Airport Group, a state-owned company under Temasek Holdings, make a profit of about S$660 million each year. The state-owned company however complained about not having enough money for the construction of the new terminal, and has appealed to the government to fund it’s profits with taxes.