Friday, July 13, 2012

Mr Koh Yong Guan, may I have your view please?

the innovation after many incidents
Dear Mr Koh,

Good morning to you. As my basic intention is for reliable, safe and affordable public transport system, thus I presented the following for your review and action.

I cite from BT today. "SMRT chairman Koh Yong Guan told shareholders at the group's annual general meeting yesterday: "We do not see running an efficient and reliable MRT system and running SMRT profitably as a public company as contradictory.
"All leading public transport operators in the world strive for the same objectives, even though our market structures and revenue models may differ."

Edgar - May I say that the fact that our market structures and revenue models may differ from others could have contributed to the tension between being a public transport operator and meeting shareholders' aspiration?

I cite again. "We do not see the need to change our dividend policy for now," said Mr Koh.

Edgar - Well you have assured your shareholders who are concerned whether they will get their dividend. Actually as a part-time MRT commuter, I am thinking of whether to become a shareholder and collect the dividend.

I cite again. "Mr Koh committed to doing more in the way of beefing up SMRT's operational and engineering competence in running its rail systems."

"Moreover, two big-ticket capex projects within the $900 million spending programme have been brought forward."

Edgar - Mr Koh, we thank you for the commitment to deliver to your future commuters/"customers".

I cite again. "Already, because of the December disruptions, SMRT has spent $4.4 million on legal and professional fees."

Edgar - May I have more details on the expenses? Should these expenses been incurred before the occurrence of disruptions and the Capex had been done earlier, could the disruptions have been avoided? If so, these additional expenses would have lowered the profit of previous years? Performance review of key officers and the Board could have been different?

I cite again. Mr Koh, on the constitution of the Board, "More (board) members with technical experience will be added to SMRT's Trains Board, he said. It was started within SMRT last October, populated with engineers to scrutinise operational and maintenance issues.

Edgar - Mr Koh, the Board should be applauded for this initiative to bring into Board expertise on operational and maintenance issues. But should we consider "replaced" instead "added"?

I cite again. "SMRT, Singapore's largest rail service operator, committed to the massive renewal programme in the wake of two major train disruptions last Dec 15 and 17, which affected over 220,000 passengers."

Edgar - Mr Koh, can SMRT do something more tangible to the more than 220,000 passengers who were affected by the disruptions? Singtel took away 4 minutes of our joys that built up over 8 months. One month's subscription waiver was granted to those affected. Yes the SMRT Board, LTA and the Minister have apologised and the ex-CEO have resigned. You have addressed the future customers, the shareholders, can SMRT do something for the affected past customers?

Mr Koh, thank you for reading.

Reference - Business Times, July 13, 2012.

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