Rail integration more important than privatising SMRT

I disagree with most of the analysts’ arguments quoted in “Privatisation will allow SMRT to sharpen focus on rail service: Analysts” (July 20). Most of SMRT’s minority shareholders are passive dividend seekers.

In hindsight, Temasek Holdings, SMRT’s majority shareholder, should have done a better job of engaging with the company management long before its current buyout offer. Privatisation is not a panacea either.

Transport Minister Khaw Boon Wan, in his blog post on Oct 9, referred to Hong Kong’s Mass Transit Railway’s track record.

The separation of the LTA as a builder and SMRT as an operator may not be ideal.

The Committee of Inquiry into the MRT service disruptions in December 2011 discovered the inadequacy of SMRT’s maintenance regime and incident management, as well as a lack of integration and coordination between SMRT and the Land Transport Authority.

The LTA made it clear last week, however, that the Government is not nationalising the rail sector, so I would like to see how the circle can be squared.