SINGAPORE MASS RAPID TRANSIT PTE LTD (Publication of financial statement and annual report)

Mr Low Thia Khiang asked the Minister for Communications whether the Singapore Mass Rapid Transit Pte Ltd has published its financial statement and annual report.

Mr Mah Bow Tan: Mr Speaker, Sir, as the Singapore Mass Rapid Transit Pte Ltd (SMRT) is not a publicly listed company, it is not required to publish its annual report and financial statements for public information. However, it is the practice of SMRT to release its financial results to the press after the end of each financial year, covering the period from April to March the following year.

Mr Low Thia Khiang (Hougang): Sir, does the SMRT release the whole set of the financial accounts or is it released in the form of only a press statement?

Mr Mah Bow Tan: Sir, the financial results are contained in the annual report and copies of the annual report are circulated widely, including, I believe, grassroots advisers as well as all statutory boards. Of course, copies are available in the libraries.

Mr Low Thia Khiang: Is SMRT Pte Ltd part of Government's investment or is it solely owned by private individuals?

Mr Mah Bow Tan: The shareholders of SMRT at the moment are 100% Government.

Mr Low Thia Khiang: Since it is 100% Government-owned and according to the annual report of MRTC it is an investment, why were the accounts not incorporated into the MRTC's annual report?

Mr Mah Bow Tan: Sir, I am not quite familiar with what the Member is driving at but MRTC, if I hear the Member correctly, was actually a statutory board. SMRT, on the other hand, is a company that has been set up to run the mass rapid transit system. The two entities are quite separate and distinct. SMRT, which is the subject of the Member's question in this case, is a public company but not listed at the moment and therefore it has to comply with all the rules and regulations pertaining thereto. It publishes an annual report and all the financial statements that are required under the law are contained in that report.

Mr Low Thia Khiang: Should MRTC, which is solely owned by the Government as the Minister has said, be considered as a subsidiary of the Government?

Mr Mah Bow Tan: The Member has got the wrong information. MRTC was a statutory board until recently when it was ---

Mr Low Thia Khiang: SMRT.

Mr Mah Bow Tan: SMRT is a company. MRTC was actually a statutory board. So there is really no reason why the SMRT accounts should be contained in MRTC's report.

Mr Low Thia Khiang: Is the investment of SMRT through the MRTC which holds a special rights share?

Mr Mah Bow Tan: No, Sir. The MRTC is not the shareholder of SMRT. The shareholder of SMRT is actually the Government, mainly through Temasek Holdings.

Mr Low Thia Khiang: Since the shareholder is the Government, where is the investment reflected in the Government's financial report, if it is not MRTC?

Mr Mah Bow Tan: As I said earlier, the shareholder of SMRT is Temasek Holdings.

Mr Low Thia Khiang: Can I take it that it should be reflected in Temasek Holdings' report?

Mr Mah Bow Tan: It should be reflected in the report of Temasek Holdings in the same way that Temasek's other investments in other companies, such as SIA, etc. are reflected.

Mr Low Thia Khiang: Does SMRT lodge its report with the Registry of Companies and Businesses (RCB)?

Mr Mah Bow Tan: As the SMRT publishes an annual report and the annual report contains financial statements, the answer is that if the RCB requires such reports, then the SMRT will comply.

Mr Low Thia Khiang: Since SMRT is of importance to the public because it operates the public transportation system, would the Minister require the SMRT to submit its report to Parliament as well?

Mr Mah Bow Tan: I do not know what the Member is driving at. As I said earlier, the SMRT, as a company, publishes an annual report. Copies of the annual report are available to Members of Parliament, all Government statutory boards and, in fact, to any member of the public who wishes to get a copy of it. It is publicly available. There is nothing that the SMRT wishes to hide and those reports are available to the Member himself if he so wishes. There is no question of the SMRT making extra efforts to publish its report. All the requirements of a company are complied with by the SMRT and copies of the report are available.