SMRT Corporation
SMRT Corporation is a multi-modal public transport operator in Singapore, providing rail and bus services. Established on 6 August 1987, it is a subsidiary of Temasek Holdings, Singapore’s state-owned investment company.
SMRT was listed on the Singapore Exchange (SGX) from 26 July 2000 until its delisting on 31 October 2016, when it was nationalized and returned to full government control.
Together with SBS Transit, SMRT is one of the two major operators of Singapore’s public rail services.
In addition to its transport services, SMRT also manages advertising and commercial leasing within its network and provides operations, maintenance, and consultancy services domestically and internationally. Its subsidiary, Strides, operates other transport services, including taxis.
History and Development
The Beginnings of Singapore’s Rail System
The idea for a rail-based urban transport system emerged in 1967, as city planners forecasted the need for an MRT system by 1992. Initial proposals faced opposition from key ministers, including Finance Minister Goh Keng Swee and Trades and Industry Minister Tony Tan, who supported an all-bus system for its lower cost.
However, Ong Teng Cheong, then Communications Minister and a trained architect, championed the MRT system, arguing it was essential for Singapore’s land-scarce environment. His efforts led to the eventual approval and construction of the MRT system.
The Mass Rapid Transit Corporation (MRTC) was established on 14 October 1983 to oversee the development and operation of the MRT system. The first MRT line opened on 7 November 1987, connecting Yio Chu Kang to Toa Payoh.
Privatization and Expansion
In 1998, the MRT’s operations were transferred to SMRT Limited, a state-owned enterprise under Temasek Holdings. SMRT was listed on the Singapore Exchange on 26 July 2000, with Temasek selling 33% of its shares to public investors.
In 2001, SMRT acquired Trans-Island Bus Services (TIBS), which became SMRT Buses in 2004. This acquisition expanded SMRT’s operations to include bus services, making it a multi-modal operator.
Nationalization
In 2016, Temasek Holdings initiated a buyout of SMRT, purchasing the 46% of shares it did not already own. The move was driven by the need to improve operational reliability and focus on service standards.
As part of the New Rail Financing Framework (NRFF), SMRT sold all its rail operating assets to the Land Transport Authority (LTA). The bus operations were also transferred under LTA’s Bus Contracting Model. These changes allowed SMRT to become an “asset-light” company, focusing on operational reliability rather than asset ownership.
SMRT was delisted from SGX on 18 October 2016, officially becoming a fully government-owned entity.
Post-Nationalization Developments
- Operational Focus: SMRT has prioritized enhancing operational reliability and maintenance efficiency since its nationalization.
- Taxi Merger: In 2023, SMRT merged its taxi operations under Strides Taxi with Premier Taxis, forming Strides Premier to streamline its taxi services.
- Overseas Ventures: SMRT continues to engage in international consultancy and engineering projects to leverage its expertise in transport operations.
Key Operations
Rail Services
SMRT operates several key rail lines as part of Singapore’s MRT network:
- North-South Line
- East-West Line
- Circle Line
- Thomson-East Coast Line
- Bukit Panjang LRT
As of 2024, SMRT manages 119 MRT stations and 13 LRT stations.
Bus Services
- SMRT Buses operates a fleet of approximately 1,200 buses, covering housing estates in the northern, northwestern, and western regions of Singapore.
Leasing and Advertising
SMRT generates additional revenue by leasing advertising spaces and managing commercial properties within its transport network.
Governance and Challenges
Governance
SMRT is overseen by Temasek Holdings, with a focus on public accountability. Its operations are aligned with regulatory frameworks established by the Land Transport Authority.
Operational Challenges
SMRT has faced scrutiny over service disruptions and safety lapses in the past, leading to government interventions and stricter maintenance standards. Nationalization was seen as a pivotal move to address these challenges and restore public confidence.