A hefty fine against SMRT will do Singapore’s rail system more harm than good, says OCBC

It will impede SMRT's investigations.

Although many inconvenienced commuters would be glad to see SMRT fined over the July 7 services breakdown, OCBC Investment Research warned that a hefty fine might do more harm than good to the country’s rail system.

“We think it is unlikely LTA will charge SMRT with the maximum fine as such large financial penalty may impede SMRT’s ability to resolve the root cause, doing more harm than good,” said the report, written by Eugene Chua and Andy Wong.

The report noted that based on the amendments to the Rapid Transit Systems Bill in 2014, SMRT could face a maximum fine of up to 10% of its annual fare revenue received from the operation of the affected rapid transit system, which translates to around $64.4m in this case.

In 2014, SMRT was fined a total of $1.6m for four rail disruptions in 2013-14. In 2012, it was fined $1m for two massive breakdowns in Dec 2011.