03 Aug '11, 1am

The Govt needs to intervene in the public transport system for commuters' benefit, says our reader.

THE National Solidarity Party's (NSP) proposal for greater competition in public transport ("NSP rebuts criticism on bus competition", yesterday; "NSP calls for more competition in sector", last Thursday), while well meaning, is likely to discourage greater integration within Singapore's public transport system. Although capacity may expand in the short run with the entry of more operators, the long-run result may be a patchwork of ill-coordinated systems, each vying for the most profitable routes while neglecting less lucrative ones. Furthermore, public transport is characterised by high initial investment and decreasing costs of distribution thereafter. Known as a natural monopoly, such a market structure can sustain only a few operators with minimal competition. An example can be seen in Singapore's past liberalisation of the media industry, which saw the short-lived Me...

Full article: http://www.straitstimes.com/STForum/OnlineStory/STIStory_...

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