Increase in Public Transport Operators' Operating Costs

Mr Gan Thiam Poh asked the Minister for Transport (a) whether there is an increase in the public transport operators' operating costs last year; and (b) what will be the projected increase for the next two years.

The Parliamentary Secretary to the Minister for Transport (Assoc Prof Dr Muhammad Faishal Ibrahim) (for the Minister for Transport): Mdm Speaker, both operators had seen higher operating expenses last year as can be seen from their most recent quarterly reports. For SBS Transit, for the period January 2014 to December 2014, operating costs increased by 11.8% or $98.6 million over the same period in 2013. SMRT's operating costs during the period April 2014 to December 2014 increased by 3.3% or $27.6 million, over the same period one year ago.

It is not appropriate for my Ministry to project the two operators' costs, given that they are publicly listed companies. However, generally speaking, while public transport operators are seeing lower energy costs today, other operating costs such as salaries for bus drivers and other public transport workers may continue to rise. We also expect their operating and maintenance costs to rise when LTA tightens the operating standards from 2016.