For SMRT which is part of GLC, I believe... Because SMRT does not have any overseas biz, making it limited for any growthOriginally posted by robertteh:I would rather think that the reason why minister will intervene in supporting transport fare increases is to protect GLCs like SMRT to make profits. Temasek has a lot of clout in such matter or decision because of government being into business. It is no longer a localized issue like SBS bus drivers going across to work for Johore transport companies.
Why do you claim there is a cartel? The Straits Times report indicated that there are more than one private bus company and not all of them are raising fares at this stage. If the fare increase is not reasonable, clients can move to other suppliers...let the market decide.Originally posted by robertteh:On their own private transport companies in Singapore history have never succeeded in convincing CASE of cartel or collective fare increases. Such increases like the other cartels e.g. insurances are actually easily subjected to supply and demand equations or market conditions..
By the fact that suddenly transport association representing them seems so strong in imposing fare increases, there is obviously a power or cartel behind pushing for collective fare increases. After what SBS has increased its fare, it seems justifiable for private transport companies to do likewise. Minister naturally will sympathise with such increases as that in a way will justify his pro-SBS fare hikes approved by him earlier which was done without any good supportive reason.Originally posted by oxford mushroom:Why do you claim there is a cartel? The Straits Times report indicated that there are more than one private bus company and not all of them are raising fares at this stage. If the fare increase is not reasonable, clients can move to other suppliers...let the market decide.
Pte and Public bus svs they do their own businessOriginally posted by robertteh:By the fact that suddenly transport association representing them seems so strong in imposing fare increases, there is obviously a power or cartel behind pushing for collective fare increases. After what SBS has increased its fare, it seems justifiable for private transport companies to do likewise. Minister naturally will sympathise with such increases as that in a way will justify his pro-SBS fare hikes approved by him earlier which was done without any good supportive reason.
Put in aother way, if minister did not push for SBS fare increases in 2003/2004 to create opportunities for SMRT to enjoy its own fare increases and Temasek to make more monies on its SBS holdings, then the private bus operators might not feel the urge to go for their own rounds of fare increases and leave the matter to market supply and demand.Originally posted by sbst275:Pte and Public bus svs they do their own business
Even if SBS raises their fares, private operators at times do not. That's why the Scheme B services raised in Aug aft 11 years. Yet, because of the time lag, the hike went up by 20 cents per trip overnight
But if we put it to another way, even if there is no fare hike from public operator, external factors might (I am just saying might) have pushed them to raise fares as well...Originally posted by robertteh:Put in aother way, if minister did not push for SBS fare increases in 2003/2004 to create opportunities for SMRT to enjoy its own fare increases and Temasek to make more monies on its SBS holdings, then the private bus operators might not feel the urge to go for their own rounds of fare increases and leave the matter to market supply and demand.
CASE will have a role to play in ensuring there is no monopoly in raising of public or private transport charges. But when faced with GLCs or government's fee increases, CASE will keep quiet or try to justify the government's stand.
CASE has done maginficently in the face of adversity ober the past few years, but their position is extremely untenable. It's like david trying to broker a deal with the giants and goliaths. Ultimately, if the private bus companies refuse to negotiate, what can they do? Issue a meaningless statement? There are two sides of the fence they are aiming to please. It's an almost impossible task, given the huge demands on both sides.Originally posted by robertteh:Put in aother way, if minister did not push for SBS fare increases in 2003/2004 to create opportunities for SMRT to enjoy its own fare increases and Temasek to make more monies on its SBS holdings, then the private bus operators might not feel the urge to go for their own rounds of fare increases and leave the matter to market supply and demand.
CASE will have a role to play in ensuring there is no monopoly in raising of public or private transport charges. But when faced with GLCs or government's fee increases, CASE will keep quiet or try to justify the government's stand.