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SMRT Fare Hike

by Chong Jun on July 15, 2011

SMRT, Singapore’s sole train transport service provider is a listed company and just like every other listed company, they aim to maximize shareholders’ value. To do so, a company would have to fulfill criteria such as maintaining good profit margin and positive net cash flow. As a defensive and government backed counter, SMRT has been able to generate dividends on a constant basis to allow investors to invest for its dividend albeit the low yield.

However, the image of SMRT to the general public seemed to be a company that belonged to the Singapore government which should operate in the best interest of the general public and will, can and shall do so by providing cheap and affordable fare. I think this should be made known clearly to the public once and for all. SMRT works independently as a company by itself. It is backed by the government, not government …

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