SMRT

[GPD]

Hi Ben,
I use the term Bleeding in general sense aka money will be spend more aggressively.

Exactly how it's to be spend, at this time I had yet look into SMRT expenses but you can guess as good as mine.

Hi DW,
not just the General mentality but also the "cost-minus" model will encourage him to spend more.

A short/medium term overspend is very likely and of course, we all hope that it's for the good of long term substainability.

Because, if SMRT is not financially viable, then GOV will introduce new player to bridge the gap.

All these concessions that GOV is subsidizing, do they account for under revenue in term of GOV compensating SMRT (or PTOs) for making them providing these concessions or GOV sharing PTO's cost?

In the end it is still the price-cap model so upside is still limited and I agree that profitability or the level of is not at the top of the CEO agenda and may not be at all given the major SH is TMS. Also this is a fare review, so it mainly if not solely dealt with SMRT's topline. SMRT still need to sort out their operation, maintenance issues. Even though they are going to review fare annually and are considering fuel prices, because it is still based on price-cap, I am on the conservative side.

Also with more new lines coming, wouldn't it dilute their demand (revenue) if they are not the operator and if they are, unless the new demand matches the new supply, the new assets may well results in cost greater than the revenue generated.

Lastly, with technology, will SG one day have more people having flexible work places or people shopping from home and reduce the need to travel? A bit far into the future but technology can change human behaviors in span of years.