Under his charge, ex-army officer Desmond Kuek, president and chief executive officer, SMRT has just fired a shot across the bow: SMRT warned that its profitability will be further eroded in the next 12 months by the "continuing misalignment between fares and operating costs". That has to be cryptic military code for justifying another round of fare increases.
Although revenue increased 5.9 per cent to $1.1 billion, the company's net profit declined 30.5 per cent to $83.3 million. SMRT's operational costs in the first three months of this year rose 12.9 per cent from the same quarter last year, due to higher train and staff costs. Imagine, staff costs taking as significant a bite of the operating revenue as train costs. How much are the ex-officers paid anyway?
|A real cheap G-clamp|
The guys in charge are maintaining that the crack in the MRT rail is "no risk to safety". Let's hope they don't have to eat their own words any time soon, public lives are at stake.