11 Cents profit may not sound a lot. Numbers do not lie but the ways it is put forward to the mass can be very deceptive.
I am paying $1.60 per trip + $0.50 feeder service = $2.10 per trip x 2 for return = $4.20 per day. I earn $50 per day after tax and CPF deduction. The transportation cost is 8.4% of my salary. This figure has not taken into account additional trips done over the weekends and on leisure.
Privatizing a public service is not always a good thing. For example, if we privatize our power supply service and get a second provider, we, the consumer, might end up paying more. The capital outlay is huge and the over capacity of the power plant will eventually translate into cost and it will be passed on to you and me. The separation and re-meager of our media industry is a good example of such failure. Does it make economical sense to have two authorities to run SMRT and the NorthEast line separately? Both have the same nature of business and serving the public in our 70 km sq of land. How many positions are duplicated in these two offices? Does it increase operating costs?
Cost cutting is essential to all businesses, but so far have you seen any cost cutting measures from them? I guess not! What I see and hear so far is operating costs are raising and fares have to increase to keep pace.
Ohh! I almost forget to mention, all the non profitable routes are already taken off service at the expense of commuters. That is reality of privatizing a public service company, the bottom line of a private company is still the profit margin. So is this good or bad?
If you live in the rural area and the power company finds that there are no benefits to lay power cable to you and your few neighbors. Therefore you will have to live in darkness and without electricity, what would you say?