Tan Kin Lian - Perspectives Financial results for Land Transport Authority
Many people were surprised to learn that the Land Transport Authority will be spending $40 million to extend the use of the Ez Link system beyond June 2024.

They questioned if this money was caused by the reversal of the decision on Ez Link. They felt that it was a large sum of money.

They were not aware of a wider issue. The Land Transport Authority is running a deficit of about $3 billion a year. The revenue collected from public transport is about $3 billion lower than the expenses and depreciation.

Compared to $3 billion ($3,000 million) a year, the sum of $40 million is relatively small.
Furthermore, this sum can be spread over 6 years to 2030.

LTA and the transport minister should pay attention to the annual deficit of $3 billion. If this deficit is not reduced, the public transport fares may increase sharply over the years ahead.

The deficit has to be reduced by cost control and rationalization of the public transport system.
This is an urgent and priority task. It is my opinion. I may be wrong



Note. In other cities, public transport is also operated at a subsidy as it will be covered by the gain from property values near train stations.


Tan Kin Lian

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