In the late 1970s, the Singapore government leaders debated whether Singapore should build an MRT system.
Most people, including me, were in favor of the MRT system. I had the experience of using the Underground in London and was convinced that it would be a better long-term solution.
The Finance Minister, Dr Goh Keng Swee, was in favor of an “all bus system”. He even commissioned a team of transport experts from America to carry out a study into this system and to submit a report on why the bus system could solve the public transport challenges faced by Singapore.
At that time, I disagreed with Dr Goh’s approach. I was glad that the Government finally decided to adopt the MRT system.
Looking back at this event, I marvel at the genius of Dr Goh Keng Swee. Like most people, I did not realize his thought process, three decades ago.
By proposing the all bus system, Dr Goh provided a benchmark on how much should be spent on the MRT system. If the “all bus system” could be implemented for $x billion dollars, then the MRT system could cost more, but not many times more. This is brilliant, but few people realized it.
The first two lines of the MRT system cost about $3 billion dollars in 1985. If we allow for inflation at 5% per annum (which is high), the cost today would be $12 billion.
The Thomson Line will cost an estimated $18 billion. It seems to be too high. I wish we have a Finance Minister like Dr Goh Keng Swee, who can put some sense into what is a reasonable amount to spend on our public works, and what is excessive.
Tan Kin Lian
*Kin Lian retired from NTUC Income on 28 February 2007, after heading the cooperative for 30 years. He was a candidate in the 2011 Presidential Election. He now runs a consultancy. He blogs at www.tankinlian.com on insurance, investment and financial planning for the benefit of consumers.