THE TEMASEK TIMES

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Lui Tuck Yew: Public transport is ‘heavily subsidized’ by the government

Posted by temasektimes on September 12, 2012

Public transport in Singapore is ‘heavily subsidized’ by the government which helps to keep the fairs ‘affordable’ to Singaporeans, declared Transport Minister Lui Tuck Yew.

Responding to a question by PAP MP Gan Thiam Poh in parliament yesterday, Mr Lui explained that public transport operators bear the operational costs of running the system and these costs are recovered largely from fares while the government bears the cost of infrastructural development, including capital-intensive infrastructure such as MRT tunnels and bus interchanges.

“Such funding represents a significant subsidy to the public transport system and has helped ensure fares remain affordable,” he added.

Mr Lui also highlighted financial aid to help low-income Singaporeans cope with fare increases.

“The government has also provided targeted financial aid to low-income Singaporeans over the years, to help mitigate the impact of fare increases,” said Mr Lui. “In the last five years, more than 10 million dollars of such aid was disbursed.”

26 Responses to “Lui Tuck Yew: Public transport is ‘heavily subsidized’ by the government”

  1. oh really said

    Here’s a newsflash Minister Lui: Singaporeans subsidy 100% of your million dollar salary and all the bonuses of your inept cronies in GIC and Temasek.

  2. Chinese said

    Yes, we knew it is heavily subsidized but why is it failing all the time!!! You are diverting the question asked to something else.

  3. denzuko1 said

    You may claim that the public transport is heavily subsidized, but does it translate to benefits for the commutors or only maintain the profitability of the transport operators.

    Seems to me that with only subsidies and no formal directions, Sinkees are paying a lot more than they should for public transport. LTA’s performance is pale compare to Hong Kong’s with similar economical background. Hong Kongers are proud of their public transport, can Singaporeans be the same?

  4. Singkaypoh said

    Lee **** You & Lui **** You, thank you very much!

  5. cc chia said

    Is the minister referring to the $1Billion “subsidy” given to the bus companies for them to buy new buses recently?

    • Naivety said

      It is actually $1.1 Billions of our tax payer monies from the National Reserve which were given to both SBS Transit & SMRT to purchase new buses considered as new capital equipment & asset investment to them.

      Strange as both SBS Transit & SMRT are both publicly listed companies, how come they can tap government’s funds for their own capital asset investment? Shouldn’t they be raising their own funds for capital purchase & asset expansion?

      And yet this doesn’t seem to translate into any reduction of bus fares to benefit the commuters but the bus fares seem to be increasing year after year despite the fluctuation & reduction in oil & diesel prices over the years & it seems that the bus fares can only go up but never comes down whenever there is a big reduction in diesel pricing!

  6. Goondu said

    What nonsense is he talking about? The train operators have to tender for the right to operate the trains. The operators have to pay the price of the tender.Where is the money from the tender exercise? Back to the government! so where is the subsidy? I am sure the train operators factor the cost of the tender into their pricing. Please don’t kid us, we are not fools.

  7. welovesingapore said

    10 million divided into divided into 5 years is only 2 million. But the shareholder like GIC/TH investing arm agreed to pay her ex ceo 2 million yearly and allow her to sit on 14 company directorship for her direction of SMRT into the loss of revenue and pay fine. Helping the mass with 2 million a year is like super very big deal to them. But pay 1 person so much money they keep quiet. where is the poetic justice in this twisted business. wonder how the staff who are paid 0.08 percent of her salary feel.

  8. Babuseng said

    Singapore public transport is heavily subsidized – it is way cheaper than US or UK for example. That doesn’t say anything about it’s reliability, but price wise we can’t complain.

  9. Tuck Yew Logic said

    Citizens pay taxes to the Govt. The Govt use the taxpayers’ money to build public facilities and infrastructure. That’s they way it goes. So by using the peoples’ money to build PUBLIC transport infrastructures like MRT tunnels and Interchange means the Govt is subsidizing transport??? What kind of Tuck Yew logic is this????

  10. wtf said

    Did you forget to mention the $1 billion bail out is to protect Ho Ching, who would have faced massive dilution to SMRT shareprice , thereby hitting Temasek’s books badly?

  11. happy said

    let me you you monkey , that your million dollar salary is heavily subsidized by singaporea tax payers

    and you are not up to your job

  12. nb la said

    the 1b should be in terms of shares issued by smrt and sbs, held by LTA.

  13. ahboy said

    Affordable?? Wu Bo??
    Bring the fares back to the 90’s lor.. 1 feeder service 23cents onli
    Crude oil price up, u all say fuel inflation, transport fee must up.
    NB, when crude oil prices plunges, why the fuel inflation nv down? it futher foes up again.

    Affordable?? I think they needa check this word affordable means

  14. alamak said

    ‘subsidy’ he mean ‘handout to you beggers so u better b greatful 2 me’.
    then why got payout annual dividend to smrt and sbs shareholders, and also
    got baleout for them to run? sudah lah your reason.

  15. richard said

    Only in singapore we cannot even understand affordable means.Fare hike affordable,HDB price high up in the sky affordable take 36 years to pay loan or more 50 years loan.This call affordable in the end no money in CPF for retirement.Transport still rank in tons of profit for the share holders.Who pay for the loss.

  16. teo cheap buy said

    Another Tcss

  17. teo cheap buy said

    Alll night lone.Tcss

  18. animal farm said

    Funding of infrastructure comes directly and indrectly from taxation,, the government is to ensure the proper use and allocation of such money. these idiots behave as if the collection is for themselves and the people owe them the gratitude for their generosity…

  19. solaris8899 said

    another crap story.

  20. This idiot’s salary is 100% subsidised by all taxpayers.

  21. John said

    How is it heavily subsidised when it is managed by for profit companies listed on the stock exchange????

    • Naivety said

      I believe what he meant was Public Transport Operators such as SBS Transit & SMRT are heavily subsidized by the government such as the granting of $1.1 billions of tax payer monies by govt to fund their new buses purchase & fleet asset expansion.

      It is the other way round as the govt is heavily subsidizing the Public Transport Operators instead of Public Transport for the commuters in general.

  22. George Ng said

    What rubbish is he talking about? Obviously he hasn’t done his homework. In China, old folks and kids below a certain height do not have to pay a cent!
    In HK, old folks pay $2 flat (30 Singapore cents)!

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