SINGAPORE – Questions from minority investors have put the spotlight on whether public transport operator SBS Transit can hold on to its market position, after a mixed run in bus tenders and some operational hiccups in 2025.
Ahead of its April 23 annual general meeting, queries submitted by the Securities Investors Association (Singapore) and disclosed on the Singapore Exchange raised concerns about three main areas: whether the company can keep winning bus contracts, whether its board has the right expertise, and whether its rail business can stand on its own financially.
Sias president and chief executive David Gerald said such questions are meant to help shareholders and the board better understand each other and have more meaningful discussions.
Its questions for SBS come as the transport operator’s dominance in the bus segment has come under pressure, with its market share slipping to about 57 per cent in 2024 and 2025 from around 62 per cent in 2022 and 2023, a sign that price alone may no longer be enough to win contracts.
SBS now operates eight bus packages comprising 207 bus routes after the group lost two of the four most recent bus package tenders – Jurong West and Tampines – while retaining Bukit Merah and Seletar.
On the Tampines bus package tender, Sias asked whether SBS Transit’s board had assessed why its bid was unsuccessful despite offering a competitive price.
It also asked whether the board had directed management to strengthen its bid competitiveness and overall value proposition ahead of the upcoming Serangoon-Eunos tender and in preparation for future opportunities.
With electrification now central to Singapore’s public transport strategy, Sias sought clarity on SBS Transit’s ability to deploy and operate electric bus fleets at scale, and how the group is investing to build expertise and differentiate itself in this area.
In response, SBS said tender awards are based on a combination of quality and price, and that the winning bidder for Tampines had achieved a higher overall score under the evaluation framework set by the Land Transport Authority (LTA).
“Management continues to refine its approach to ensure future proposals will match LTA’s expectations,” it said.
The company added that it is stepping up efforts in areas such as electrification and innovation, pointing to the Sengkang West Bus Depot – Singapore’s first large multi-storey electric bus depot – as an example of its capabilities.
Sias wanted to know whether SBS’ rail operations can stand on its own financially.
SBS said its rail business is financially sustainable under Singapore’s rail financing framework launched in 2025, where LTA owns all rail operating assets, such as trains and signalling systems, while private operators focus solely on operations and maintenance.
The new system enables operators to receive a fixed service fee instead of depending on fare revenue.
The board added that Singapore One Rail – a joint venture between SBS and RATP Dev Asia – will operate the upcoming Jurong Region Line under this model.
SBS also said it is not exposed to any financial penalties for two service delays that lasted over 30 minutes in 2025.
“LTA has ascertained that the root causes of the delays on the Downtown Line and North East Line were related to “external factors beyond our control.”
It added: “The current reliability of our rail operations is benchmarked against leading global operators and our rail networks remain some of the most reliable in the world.”
Beyond operational performance, Sias questioned whether the board is qualified enough to oversee a complex rail business, particularly in areas such as maintenance, engineering, safety, electrification and emerging technologies including autonomous driving and articificial intelligence (AI).
It also asked how the board ensures it can properly bring management to task if it does not have deep technical knowledge itself.
The board said it looks at the team’s skills and experience as a whole, rather than whether each director is a technical expert.
It added that it relies on input from management, technical staff and independent experts to provide oversight and ensure it makes informed decisions.
A dedicated rail subsidiary board, which includes members with decades of operational experience, has also been formed to support the main board in handling technical matters.
