“Our interest is not to help the transport companies make big profits. There is no reason for us to do that,” so said the PM on Saturday.
Correct if the cabinet is wearing its politicial hat. SMRT and Comfort Delgro making big profits by gorging commuters lose the PAP votes. Ask Raymond Lim.
But if the cabinet is wearing its shareholder hat, then it is in the interest of the government to allow these companies to squueze the last cent from the commuting public.
SMRT is a TLC, Temasek owning 54%. “Temasek is an active value-oriented investor … to create and maximise shareholder value,” says its charter.
The S’pore Labour Foundation, a statutory board linked to the NTUC, holds 12% of Comfort Delgro. SLF is Delgro’s single largest shareholder. We all know how stat boards and NTUC affiliates try to maximise their profits.
Whether the PM and his cabinet want the companies to make big profits or not, depends on which hat they are wearing.