Reader's Response Final

In the article “Dubbed the ‘best in class’: 6 things about Hong Kong's MTR rail system”, Lee (2015) stated that Transport Minister Khaw Boon Wan claims that Hong Kong’s Mass transit railway (MTR) is the ‘best in class’. Mr Khaw recommended that SMRT and SBS use MTR as a parameter for “reliability standard”. According to Lee (2015), here are 6 points to note about MTR. Firstly, MTR is amongst the most lucrative rail system globally, in 2014 MTR generated S$2.82 billion of revenue from transportation and property. Secondly, Hong Kong’s whole railway system is 55km longer than that of Singapore’s. Thirdly, MTR trains are punctual 99.9% of the time which is 3.9% better than Singapore although both countries experience similar number of serious train disruptions. Fourthly, MTRC allocated 37% of their profits to rail “maintenance, renewals and service improvements”, compared to Singapore’s 19%. On top of that, MTR conducts maintenance routines once every 3 days, which is more frequent than Singapore’s. Last but not least, MTRC also has an Operations Control Centre (OCC) that monitors the entire system which is paramount to the organisation’s prompt response to emergencies.

The article expresses that for Singapore’s railway transportation’s reliability to match Hong Kong’s MTR, local rail operators need to use MTR as a guide to achieve better reliability. However, due to the differences in business model of the railway operators and number of rail operators varying in each country, it is impractical to just copy Hong Kong’s MTR systems without careful analysis.

First and foremost, the business model of Hong Kong’s MTR is a rail plus property whereas for Singapore, its rail operators function under a business model based solely on transportations. As stated by Hoe (2016), a rail plus property model means profits made comes from both the operation of the train systems and the development of property. Reported by Lim (2015) that in 2014, of all the profit generated by MTR, only one-third, about 7 billion came from its’ transport operations. Thus, according to Leong (2016), with this financial advantage MTR can implement railway projects quickly without having to fight for public funds. Whereas in Singapore, there is a need to wait for approval of funds and plans by the government as stated by Tan (2016). Therefore, it is impractical for SMRT and SBS to directly adopt MTR 's practices without careful analysis of the financial capabilities of each rail operators.

On top of that will be the number of operators varying in each country, Singapore having two rail operators (SMRT and SBS) while MTR monopolized the railway in Hong Kong. According to the Hong Kong government (2013) in 2007, MTR and Kowloon–Canton Railway Corporation merged to form MTR. The merger helped MTR to reduced cost through the removal of replicated rail works which created a sole superior rail operator. By being the sole operator acquiring new rail projects from the government will be of ease as compared to having two companies compete against each other for projects, according to Zannia (2016). Therefore, Singapore’s management of its rail operators will naturally differ from Hong Kong’s.

In conclusion, I feel that the government ought to be selective when attempting to implement practices taken from other countries, as there are many variables that will alter the efficiency and effectiveness when it is integrated into Singapore’s context. Therefore, it is impractical to just copy Hong Kong’s MTR practices without the proper analysis of the whole situation.


575 words

References
Hoe. PS (30 December 2016). The model behind HK MTR's gold standard. Retrieved 27 September 2017, from http://www.businesstimes.com.sg/transport/the-model-behind-hk-mtrs-gold-standard
Lim. K. (20 December 2015). Singapore's train system: What needs to be done to ensure a smoother ride? Retrieved 27 September 2017, from http://www.channelnewsasia.com/news/singapore/singapore-s-train-system-what-needs-to-be-done-to-ensure-a-smoot-8246388. Retrieved September 27, 2017
Leong. L. (2016, June). The ‘Rail plus Property’ model: Hong Kong’s successful self-financing formula. Retrieved 27 September 2017, from https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/the-rail-plus-property-model
Lee M. K. (29 October 2015). Dubbed 'the best in class':6 things about Hong Kong's MTR rail system. Retrieved 15 September 2017, from http://www.straitstimes.com/asia/east-asia/dubbed-the-best-in-class-6-things-about-hong-kongs-mtr-rail-system#xtor=CS1-10
Hong Kong Government (02 November 2013). Merger of MTR and KCR Systems. Retrieved 01 October 2017, from http://www.thb.gov.hk/eng/policy/transport/issues/pmmks.htm
Tan. C. (15 July 2016). LTA to buy $1b of SMRT assets under new rail financing framework. Retrieved 08 October 2017, from http://www.straitstimes.com/singapore/transport/government-and-smrt-reach-agreement-on-new-rail-financing-framework
Zannia. N. (05 November 2016). LTA: Only SMRT Trains and SBS Transit to be allowed participation in limited tender on Thomson-East Coast Line. Retrieved 08 October 2017, from https://www.theonlinecitizen.com/2016/11/05/lta-only-smrt-trains-and-sbs-transit-to-be-allowed-participation-in-limited-tender-on-thomson-east-coast-line/

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