PROGRESS REPORT ON THE CONSTRUCTION OF THE MRT SYSTEM

11.30 am

Dr Yeo Ning Hong: Sir, I would like to give Members of the House a progress report on the construction of the MRT. Barring unforeseen circumstances, the MRT will be completed ahead of original schedule and within budget. Nine months from now, just in time for Christmas, the first MRT train will begin its public service. Land transport in Singapore will take a quantum leap forward. We will join the many cities in the developed world with a mass rapid transit system that will provide fast, convenient and comfortable travel.

Construction so far

The first pile was driven into the ground in October 1983, barely 3 1/2 years ago. Today, construction of the MRT system is progressing well. The 20 stations in Phase 1 and Phase 1A, that is, the section stretching from Yio Chu Kang all the way to Clementi, has been wholly completed structurally, as far as the 20 stations are concerned. The tunnels and the viaducts along this route have also been completed. The laying of track is about three-quarters completed and the work on Phase 2 stations, all the way to Yishun, Bukit Panjang, Lakeside, Marina Bay and Pasir Ris, these are all well in hand.

So far seven trains have been delivered. More are undergoing testing and a total of 25 trains will be delivered by the end of the year for the first operation of the MRT trains.

Operating dates

Targetted operating dates for the MRT system are as follows:

Yio Chu Kang to Toa Payoh - early December 1987.

From Toa Payoh to Outram Park - end December 1987.

Outram Park on to Clementi - April 1988.

And the various Phase 2 routes to Yishun, Bukit Panjang, Lakeside, Marina Bay and Pasir Panjang, all to be completed by June 1990.

Privatization

Sir, last year in June, in line with our overall privatization programme, the Government decided to privatize the operation of the MRT system. The objective is to ensure that the MRT will be run efficiently and that they will be able to meet and be more responsive to the changing needs of the travelling public. To enable as many Singaporeans as possible to participate in the ownership of the MRT system, funds in the CPF will be allowed to be used for the purchase of the shares in the MRT company when it is floated. This will be similar to the SBS case.

In September last year the Singapore International Merchant Bankers' Ltd. (SIMBL) was appointed consultant to advise on the privatization exercise of the MRT system. At the moment the consultants are about half-way through their studies. Preliminary studies by the merchant banker consultants have confirmed earlier findings that the operation of the MRT will be economically viable. The new company is expected to be called the Singapore MRT Ltd. (SMRT for short). Detailed studies are currently underway looking into all aspects of the operations of the system by the new company, including the three major areas of legislation, financial operations and flotation.

MRT - Bus integration

Next, I come to the MRT bus integration. Sir, the next nine months are going to be intensive and trying times for all concerned with land transportation as we seek to bring the MRT in, phase it in gradually and smoothly with the rest of our land transport network. When Phase 1 and Phase 1A of the system are completely operational by April 1988, it is expected that the trains will carry about one-eighth of all public transport passenger trips. Two years later, by 1990, when Phase 2 is brought in, the MRT trains will carry about a quarter of all public transport passenger trips. If the bus system remains unchanged, then total public transport operating cost must go up because we are adding operating cost of the MRT trains on to the existing bus networks. The cost will go up by about 15% and 30% respectively, for Phases 1 and 1A and Phase 2, that is, if bus routes are not changed at all. Why is that so? Because this will result in the duplication of routes with both buses and MRT trains running parallel to one another. It means that there will be wastages and that wastage has got to be paid for by the commuters in terms of higher fares. So we cannot allow duplications to take place. And if it is at all possible, this duplication of routes will have to be kept to a minimum. The objective, of course, is to lower operating cost so that fares will not go up. The bus companies and MRTC are very conscious of this problem. They have been working together closely in efforts to keep the cost and hence the fares down. They have also been working very closely with the assistance of public transport consultants who have experience with these kinds of problems in other countries.

Sir, there are three major areas of integration that are being studied in detail at the moment. Firstly, the integration of routes. Secondly, the integration of physical infrastructure. And thirdly, the integration of fares.

I shall deal with them briefly. Firstly, the integration of routes. The principle behind the restructuring of routes in response to changes in traffic demand is not new. Indeed, each year, imperceptibly between 30 and 100 bus routes are changed, modified, added or removed.

The average for the past four years is about 60 route changes per year. Why is that so? This is because on the average about 40,000 families move house each year, ie, about 150,000 people move house each year. New routes obviously have got to be added to new housing estates. Old routes have got to be modified and removed completely from areas where demand has diminished drastically.

The difference between the coming exercise with the introduction of MRT system and the changes in the past is one of pace of change. With the opening of each section of the MRT system, the bus routes will have to be changed quickly because the demand for buses will change practically overnight. The travel pattern will be different. People will want to go differently to work or to do their other activities. And people will also want to have good links to the MRT stations once the trains begin to run. As with the existing slow pace of change, some initial inconvenience to some people may be unavoidable. But these inconveniences will be kept to a minimum. Adjustments will obviously have to be called for, and if we work together, residents together with grassroots leaders, and together with the operators of the MRT trains and the bus operators, we can bring these inconveniences down to a minimum. The details of these changes are presently being studied in great detail and they will be announced in the latter half of the year.

Sir, I come now to the second point, the integration of physical infrastructure. As far as is practicable, the MRT stations will be integrated with bus interchanges and terminals to make it easy for commuters to switch from a bus to a train or from a train to a bus. This is similar to systems operated in other countries.

A working group chaired by the Public Works Department with representatives from the Traffic Police, bus operators, MRTC, as well as taxi operators, have been at work on this, making regular site visits, seeing for themselves how best to integrate this infrastructure. They will ensure that physical facilities such as bus stops, taxi stands, pedestrian crossings, etc, will be in place when the MRT system is ready to go.

Thirdly, the integration of fares. Sir, with the integration of routes, it is necessary to have a single ticket that can be used for both MRT train rides as well as bus rides. In other words, through-ticketing. A simple fare structure that depends on the distance travelled regardless of the number of transfers between bus-and-bus or bus- and-train is actively being worked at. This will make it convenient for the commuter and it would also help to keep fares down.

Sir, for Phase 1 and Phase 1A, a simple form of through-ticketing for regular commuters will be used initially. This will be in the form of a distance-related travel pass or a season ticket which can be used for both the MRT trains and buses. When the technology improves and it is possible to have a very comprehensive through-ticketing for all phases of bus and train interchanges, the equipment will be installed in buses. We expect this to be available by the time we get to Phase 2. For through-ticketing to work, the present bus fare structure will have to be simplified to suit the new circumstances.

Sir, nine months is a very short time. A lot of work remains to be done and a lot of questions remain to be answered. Three questions that have been asked of me most frequently in my meetings with community leaders and Singaporeans over the past months are:

(1) What are the fares of the MRT trains going to be like?

(2) Will there be through-ticketing, ie, a single ticket for MRT train as well as bus rides?

(3) If so, what are the changes in bus fares?

Sir, I have touched on the second question of through-ticketing. Let me take the other two questions, the first and the third. Sir, the consultants and the MRTC-Bus Integration Committee are presently at work looking for answers to those two questions. At the moment, changes in the fare structure for buses are in the final stages of study and presentation to the Ministry. The new fare structure is expected to be simpler and more equitable than the present. I expect the bus companies to make the details available to the public sometime in May. The bus companies will also explain in detail how this simplified fare structure will work. Overall, for the population as a whole, the simplification of the fare structure for buses will not result in any increase in revenue for the bus com- panies. In other words, it means that, for the average family, the bill for bus fares will be the same before and after the simplification of the fare structure. The average trip will work out to be very similar. This simplification of bus fares will take place in June and will be carried out without any route changes at all in order to minimize inconvenience to commuters.

The fares for the MRT trains are going to take a little longer to finalize. The merchant banker consultants have been working on it. They are looking at the financial implications, taking into account the replacement cost of equipment and the rate of exchange between the various currencies. The consultants have nevertheless confirmed that fares for the MRT trains will be competitive with buses taking into account the speed, the comfort and the convenience of the train rides.

Sir, in conclusion, I would like to pay tribute to the Chairman, the board members, staff and contractors of the MRTC. They have worked diligently over the past 3 1/2 years at an exceptionally fast pace. At the same time, they have maintained a high quality of performance with a high level of safety. I am told by those familiar with MRT systems in other countries that no similar system has been built in so short a time as four years. Sir, I would also like to thank the many Members of this House and the numerous community leaders who have helped the MRTC in the very difficult task of explaining to the residents and constituents the implications of the MRT construction as well as helping to minimize the impact and the inconvenience caused by all these works.

Finally, Sir, I would like to thank all Singaporeans for their understanding and support, bearing with great patience the inevitable inconvenience caused by the construction work. Each in his own way has contributed to the overall progress of the project thus far. We all look forward to another few more months of hard and intensive work, confident that this understanding and support will continue to be forthcoming. In nine months' time, we shall together enjoy the fruits of our labour.

Mr Teo Chong Tee (Changi): Mr Speaker, Sir, I would like to congratulate the Minister and the MRTC for the excellent job in speedily bringing about a modern mode of travel for Singaporeans. In my question No. 5 for Oral Answer today, there are two parts. As far as the second part is concerned, the Minister has not touched on it. May I ask of the Hon. Minister whether he would enlighten the House on the second part of my question?

[Mr Deputy Speaker in the Chair]

11.50 am

Encik Ibrahim Othman (Tanah Merah): Sir, may I ask the Minister whether he would also consider concessional fares for school children?

Mr Ng Kah Ting: Mr Deputy Speaker, Sir, can I ask of the Hon. Minister for Communications and Information that, in making so drastic a change to the land transport system, how will the Government convince the people of the need to accept such a change and at the price for both the users and the non-users, as it seems to me in his Ministerial statement?

Dr Arthur Beng Kian Lam (Fengshan): Mr Deputy Speaker, Sir, I would like to ask the Minister three questions. Firstly, as the MRT trains will come into operation only in December 1987 and even then only on the north-south track from Yio Chu Kang to Toa Payoh to Outram Park, why is there a need to change bus fare structure as early as June and throughout Singapore? Can this not be done nearer the date and also in phases, complementing the MRT implementation?

Secondly, in the restructuring of bus routes, will a choice be left to the bus commuter should he decide that he finds the MRT unaffordable?

Thirdly, is there a body or committee which oversees integration? If so, who are the members of this committee and to whom do they report?

Dr Wang Kai Yuen (Bukit Timah): Question for the Minister, Mr Deputy Speaker, Sir. In the integration exercise of the various modes of land transport with the advent of MRT, has the role of taxis been taken into consideration? And would the Minister foresee the need to adjust the taxi fare to tie-in with the new fare structures for buses and MRT?

Dr Ow Chin Hock (Leng Kee): Three questions for the Minister. First, will the MRT fare system result in a higher fare for all bus commuters, including those who will not be served by the MRT? Second, whether bus commuters will have a choice between air-con and non air-con buses? Third, will MRTC consider peak-load pricing?

The Parliamentary Secretary to the Minister for Education (Mr Tang Guan Seng): Mr Deputy Speaker, Sir, when the Minister said that nine months from now, land transport in Singapore will take a quantum leap forward, does the Minister imply that road tax will be increased?

Mr Eric Cheong Yuen Chee (Toa Payoh): Mr Deputy Speaker, Sir, among the various reasons given by the Hon. Minister on the proposed privatization of the MRT, he has said that it would be more efficient and viable. I thought it is a bit strange. I thought the one cardinal principle of any enterprise would be good and sound management, whether it is a private company or a statutory board. Let me give, for instance, the Telecoms. Postage rates have remained constant for so many years and many of the services provided by Telecoms have been reduced and yet Telecoms have accumulated a hefty surplus each year. I would have thought that the fundamental principle is public participation rather than privatization to achieve efficiency and profitability.

Mr Lai Tha Chai (Henderson): May I ask the Minister whether the private hire buses, including the Scheme A and Scheme B buses and the City Shuttle Service, will still have a role to play in the future when the MRT comes into operation at the end of the year?

Mr Deputy Speaker: Dr Yeo, would you like to take these questions first?

Dr Yeo Ning Hong: Yes. Sir, I will take the questions as they were raised. The Member for Changi asked about concessions for certain groups of people. So did the Member for Tanah Merah who asked for concessions for school children. These are being looked into in the overall consideration of fares for the MRT trains.

The Member for Punggol talked about a drastic change and the need for the MRT. The Member for Punggol, together with other Members of the House, will probably recall that recently the Ministry of National Development announced a massive road building programme. Sir, on the average, we are spending a few hundred million dollars each year on the building of roads. I believe the figure for this year is in the order of $300 million. It would be good if we can continue to have enough land to build more and more roads, but unfortunately that is not possible. I have talked about that subject extensively in years past. We are coming to the end of our road building programme. If we had not started work on our MRT, come the end of the road building programme, we would be faced with massive traffic congestions which would have severe implications for our economy. That is why, taking a long-term point of view, it is important and prudent on our part that we started with the building of the MRT some 3 1/2 years ago.

The Member for Fengshan asked: why restructure the bus fares at the moment? Why not do it in phases? Sir, in contrast with the restructuring of routes, it would not be possible to do the restructuring of bus fares in phases because it would be extremely confusing as the bus routes form a massive network that goes all over the island. It is not possible to say a particular bus will run a certain section of the way using this fare structure and the rest of the way using a different structure. To keep inconvenience down to a minimum, we do it altogether, all at once. It will be simpler after a period of initial adjustment and I think people will get used to it and it will be better for all.

The Member for Fengshan also asked whether commuters will continue to have a choice. Yes, commuters will always have a choice in the mode of transportation that they wish. But it is important, as I mentioned in my Ministerial statement earlier, that we keep the duplication of routes of both the bus and the MRT train down to a minimum. Otherwise there will be wastage. In any duplication there will be additional operating costs, and this must be borne eventually by the commuters.

The Member asked about the Committee for Integration. Sir, I do not have the list of names of the members in the Committee. But the Committee is chaired by the Chairman of the MRTC, jointly with the Chairman of the SBS. I will be happy to provide the list of names to the Member later on.

The Member for Bukit Timah asked about the role of taxis. Taxis provide point to point transportation, personalized transportation. There is no question at all about the reorganization of its routes because no fixed routes are involved. As for taxi fares, these have been decided by the taxi operators and they will continue to be decided by the taxi operators.

The Member for Leng Kee asked whether the restructuring will result in higher bus fares for all. Sir, I have given the assurance earlier in the statement that it will not be. Fares will be changed a little but overall it should remain the same. Will the MRTC consider peak load pricing? That is an interesting idea that other countries have looked at. We are also currently looking at it.

The Member for Khe Bong asked whether there will be road tax increases. Sir, road tax has got very little to do with the MRT system. Road tax has been increased in years past whenever the rate of increase in car population goes well past the rate of increase in roads as it would inevitably, unless curbed, lead to massive traffic jams. Those were the occasions which prompted the increase in road tax. As long as the growth of cars in Singapore continues to be at a low and moderate rate, it would not be necessary for road tax to be increased.

Sir, the Member for Toa Payoh asked about privatization. The objective of privatization, as has been stated in the report released by the privatization committee, is to induce a higher level of efficiency as well as to encourage and to make it possible for more Singaporeans to be able to own some of the more profitable and more important infrastructural companies and organizations in Singapore.

And finally, the Member for Henderson asked about the role of the supplementary bus services. These will continue to have a role to play. The supplementary bus services serve to augment the peak loads of the scheduled buses, like the SBS and TIBS. They will continue to be useful and they can continue to play a useful role in all the routes where the MRT trains are not running.

Mr Ng Kah Ting: Point of clarification, Mr Deputy Speaker, Sir. I am aware of the limits of the land that we can have for building roads. But I think the Hon. Minister has missed my question, and that is, how will the Government convince the people, because of this drastic change in the land transport system? In other words, will a committee be set up and persuade the people to accept the change - that it is necessary and that there is a price to pay for both the users as well as the non-users, as it seems to imply in his Ministerial Statement earlier?

Mr Deputy Speaker: Mr Chiam.

Dr Ow Chin Hock: The Minister missed one point of my question, that is, whether the bus commuter has a choice between air-con and non air-con buses.

Mr Chiam See Tong: My name has been called first.

Dr Ow Chin Hock: No. But the Minister has missed a point ---

Mr Deputy Speaker: But he has already stood up.

Dr Ow Chin Hock: --- whether there is a choice between air-con and non air-con buses because MRT will be air-con.

Mr Deputy Speaker: Mr Chiam.

Mr Chiam See Tong: I am much obliged to you, Mr Deputy Speaker. May I bring up the point of privatization? The reason is that it will be more efficient. But would there not be a conflict of interest? MRT trains are for public service and once it becomes a private company, shareholders want a profit from it. So there will be a conflict of interest. On the one hand, there is the public service to be given; on the other hand, there is the interest of the shareholders - they want a profit. In the case of Singapore Bus Service, the Prime Minister assured the shareholders that there would be a minimum dividend paid each year. So members of the public, especially those using their CPF, are willing to buy SBS shares. But in the case of the MRT, the Minister has said that those with CPF can buy the shares. But I am just wondering whether they are putting money into a company which may not see any profits made.

According to what has been announced, the total transport cost will go up by 15% when Phase 1A is completed, and later on when Phase 2 comes in, total transport costs will go up something like 30%. If transport cost is going to go up when the MRT gets more and more into function, naturally either ---

Mr Deputy Speaker: Mr Chiam, are you making a speech?

Mr Chiam See Tong: I have got to bring up all these points and then I will ask the questions.

Mr Deputy Speaker: Can you frame your questions?

Mr Chiam See Tong: All right. They are not doing their work, up to now.

Mr Dhanabalan: You are not following Standing Orders.

Mr Chiam See Tong: If you want to talk about Standing Orders, I would not like to mention it but since the former Leader has mentioned it, I want to bring up a point of order. According to Standing Orders, those who want to ask questions must catch the eye of the Speaker. Everybody is rushing up. That is not the way to catch the eye. They must put up their hands, isn't it?

Mr Deputy Speaker: But what are you complaining about? You have caught my eye already. You are on the floor.

Mr Chiam See Tong: Yes. In fact, I think I caught your eye right at the beginning. So I think this Standing Order must be put into practice. Let's put up our hands in an orderly fashion instead of everybody, like school kids, rushing for sweets.

Mr Deputy Speaker: Mr Chiam, can you ask your questions, please?

Mr Chiam See Tong: Yes. I am going to ask the Minister: how is he going to assure members of the public who put their money into this MRT that they are not putting it into something which they would not see any dividends paid at all? Because No. 1 he says operating costs are going up by 30%. The other thing is that the MRT, when it functions under Phase 1 and 1A, the trains will only carry something like one-eighth, am I right, of all public transport passenger trips? And then by 1990 ---

Mr Deputy Speaker: Mr Chiam, what is your question? If you persist in making a speech, I shall ask you to sit down. Ask your questions now.

Mr Chiam See Tong: All right. That is the first question - whether or not money put into MRT ---

Mr Deputy Speaker: Okay. Ask your next question.

Mr Chiam See Tong: Yes. The other thing is: what has the Minister got to say as regards parking fees? I believe taxi fares and road tax have been covered. What about parking fees? Will that go up, or will there be legislation made whereby certain routes are monopolized by the MRT and not other means of public transport?

Mr S. Chandra Das: Parking fees for what? [Interruption]

Mr Chiam See Tong: I think these Members are intelligent enough to know that when I talk of parking fees, it means car parking fees.

Mr Deputy Speaker: Mr Chiam, have you finished?

Mr Chiam See Tong: These are the points I would like the Minister to comment on.

Dr Koh Lam Son: Mr Deputy Speaker, I thought I caught your eye before the Member for Potong Pasir did when he rushed to the mike. I would like to ask the Minister on those bus routes which run parallel with the MRT. If those bus routes are taken off, is that not depriving bus commuters from using the bus and forcing them to use the MRT and therefore incurring extra cost?

Mr Goh Choon Kang (Braddell Heights): Sir, can I ask the Minister how many SBS employees have been retrenched as a result of trimming down its operations in anticipation of the MRT service? Are they given any kind of assistance in securing alternative jobs?

Dr Yeo Ning Hong: Sir, the Member for Punggol asked whether a committee will be set up to explain the details of the MRT to the people, to convince them of the need for the MRT. Sir, we have spent a lot of time, many years in fact, explaining the importance of having the MRT. Long debates were held in years past and when the decision was finally made, detailed explanations were made then. The Committee on the MRTC-bus integration will undertake to explain to the people how the two systems can work together. The MRTC itself has a public relations division. Its role will be to continue to explain to those who are still unconvinced of the importance of having an MRT system in Singapore providing a faster, more comfortable and more convenient service in addition to our present land transportation network.

As regards the price to be paid for by users as well as non-users, non-users of the MRTC will not have to pay a price. There will be an adjustment in the bus fares but, on balance, overall, for the average family it should not represent any increase in bus fares.

Sir, the Member for Leng Kee asked about the choice between air-con buses and non air-con buses. This is a matter for the bus companies to decide. They will have to assess which are the routes where there is a viable demand for air-conditioned buses and provide buses to meet that demand.

The Member for Potong Pasir said that total operating cost for land transport will go up by 15% and 30% when the MRT trains commence operation, Phase 1, 1A as well as Phase 2. That is not true at all. I said that if - and here I want to emphasize if there is no integration of bus and train, in other words, if everything remains as it is with buses and the MRT system is brought in, then that means that the operating costs will go up. But if we do not want to have duplication, if we do not want to have wastage, we will have to make the adjustments. That is the rationale, that is the reason for the integration of bus and train. That way we can keep the operating costs down, as close to the present operating cost as possible. So there will not be that increase in operating costs because it is our intention to integrate both bus and train.

Sir, the Member asked about parking fees. Car parking fee is a matter under the purview of the Ministry of National Development. I suggest he take it up with the Minister when he comes to the Committee of Supply for National Development.

Mr Chiam See Tong: Is that part of integration?

Dr Yeo Ning Hong: Sir, I cannot see how the car parking fee is part of integration of the MRT and buses. The Member also mentioned another point about the new company being non-profitable. Sir, again I do not understand because I mentioned in my statement that the consultants have confirmed earlier studies that the new company will be economically viable.

Mr Chiam See Tong: Well, you gave one assurance on taxi fares. But it did not work out.

Dr Yeo Ning Hong: Yes. Would you like to continue the debate on that subject? I would be quite happy to take it up in the Committee of Supply if you wish to.

Mr Chiam See Tong: Point of clarification.

Dr Yeo Ning Hong: Mr Deputy Speaker, Sir, if you could permit me to answer the questions of the other Members.

Mr Deputy Speaker: Please proceed.

Dr Yeo Ning Hong: Sir, the Member for Telok Blangah asked whether the removal or the modification of bus routes parallel to those of the MRT would not deprive commuters of a choice of routes. Sir, we have to look seriously at whether we want to have extensive duplication, in that sense providing everybody with a choice but having buses to be half-full and hence having the commuters to bear the cost which will eventually be factored into higher fares, or whether we prefer to look at the duplication carefully and provide alternatives. Just as it is not practical right now to have both SBS and TIBS run identical services without taking into account the buses already provided by the other company, and hence leading to duplication, wastage, higher costs and higher fares. We have to do exactly the same. Otherwise, it must mean much higher cost for everybody.

Sir, I think I have covered all the questions raised so far.

Mr Goh Choon Kang: What about the retrenchment of SBS workers?

Dr Yeo Ning Hong: I am sorry, Sir. The Member for Braddell Heights asked about the retrenchment of SBS workers. To the best of my knowledge, I am not aware of any retrenchment in SBS. What they have been doing is to be very careful in the employment of additional workers so that they do not have to end up with a large surplus of workers when the MRT system is phased in. So careful management of manpower at the moment will minimize that problem.