Wednesday, November 29, 2006

In the name of competition...


Now countless pleas have gone unheeded. It's an argument that is old, but yet unanswered.

Is the privatisation of public transportation really for the good of Singapore?

The situation now is the rising prices for taking public transport. Now i'll just list down some of my observations.

What they say :
  • Rising oil prices and other operation costs.
What we see :
  • Duplication of resources. An MRT engineer at SMRT does almost exactly the same thing as an SBSTransit engineer.
  • Wasteful 'competition'.
    • A free shuttle service is provided for commuters between dhoby ghaut, little india and chinatown.
    • The route is already provided for by SBSTransit's north east line. Thus, adding a free shuttle service is a wasteful cost to SMRT.
What they say :
  • Introducing more than one service provider introduces competition, thereby forcing existing providers to become more efficient, and provide a greater level of service.
What we see :
  • Unique routes. To get from point to point, there are not really a lot of real alternatives to take. Hence, each company has a monopoly on their individual routes, so there really is no real incentive to improve efficincies.
  • This is a point I will not be able to prove. As a commuter, I see no tangible improvement in the service provided by either company. The grumpy impatient driver driving the bus I have take ten years ago is the same grumpy, impatient driver that he is, only a little grumpier and a little older. Previously, he was a TransIsland driver. Now, he's an SMRT driver. Same difference...

Before you think that I am blaming the 'gahmen' for wasting money etc... Let me try to balance the argument up a little.

The short term suffering of the middle to lower income aside, our 'gahmen' is once again guilty of nothing more than the usual foresight at 'doing what's best for the nation'.

Privatisation allows the companies to venture out of our tiny red dot, to do business.

Profit-motivated companies will face less restrictions at venturing than a stat board would. SingTel is doing this. SPServices is doing the same. DelGro Corporation, the parent company of SBS Transit is actively doing business overseas as well.

So, don't expect the gahmen to Nationalize (define :- Opposite of Privatize) our public transport companies, ever.

In the end, "LPPL"... Logic still works out for the greater good of singapore. Aiyah, poor people in Singapore, work harder la. Don't take bus lor, walk lah... GST increase? Work harder la. Don't eat lor. Charge us for air? Don't breathe lor.

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