Thursday, July 21, 2016

Huge spending on transport infrastructure

Public transport infrastructure has cost the government several billion dollars. Here are some figures that come to my mind:

a) Bus Service Enhancement Program $1 billion
b) Purchase of rolling stock from SMRT - $1 billion
c) Privatization of SMRT - $1 billion
d) Satelite based ERP system - $556 million.

When it comes to new MRT lines, it is  $10 to $20 billion for each line.

$1 billion here, $1 billion here. $10 billion here. $10 billion there. We are talking of billions not  hundreds of dollars. This government spends billions as if they print money.

Actually, they print paper COE and collect billions (it is $5 billion in a year). That is a wonderful mechanism. The only problem is - it is wasteful, jacks up the cost of living and the cost of doing business.

No wonder. We are now the most expensive city in the world.

1 comment:

Yujuan said...

Taking a leaf from the Japs, spending on infrastructure to boost GDP and create employment.
Amazed at the modern road, rail and airport developments, connecting remote Japanese villages to towns and cities, all maintained/renovated periodically to pristine conditions.
Seems saturated now, not much to build any more.
Singapore has more leeway to go spending unnecessary public money, but could get irritated by the inconvenience caused, everyday there are some renovation activities, never ending one.
Small time contractors need jobs to survive, all the big ticket works go to local big and foreign players, so creating jobs now top priority.
Since Privatization of some GLCs a failure, better return to State control or sold to foreigners who could do better.

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