Lui Tuck Yew and the Private Sector Delusion (and why you need to buy more personal accident insurance, now!)

Even after experiencing the worst public transport disruption in Singapore's history, minister for transport Mr Lui Tuck Yew is adamant that the government's public transport model is sound and that train and bus operations should stay in the hands of the private sector. The retired rear admiral yesterday reiterated the age-old PAP dogma that the profit incentive delivers the best outcomes for the public.

Public transport should stay a private matter: Tuck Yew

Business Times, March 8, 2012. By JOYCE HOOI

(SINGAPORE) Transport Minister Lui Tuck Yew yesterday defended the country's model of privately run public transport operators in Parliament. 'Our current model leaves the operations of trains and buses to commercial entities as we believe the long term public interest is best served this way.

'The profit incentive drives the operators towards higher efficiency and productivity, which keeps costs as low as possible . . . Otherwise, if the system is inefficiently run, the public will ultimately pay for the higher operating costs, either through higher fares, or greater government subsidies.'

Instead of launching into an abstract ideological rant about the pros and cons of private sector involvement in public transport, let me just recount the Singaporean experience with the PAP's so-called world-class transport framework.