SMRT’s margins at risk from extremely low bus package tender

Is it willing to sacrifice margins to gain market share?

Analysts warn that SMRT’s extremely low tender for the Land Transport Authority’s first public bus contract could put its already thin operating margins at risk.

CIMB noted that SMRT is an outlier among the eight shortlisted bidders. Its tender price was 25% below the 2nd lowest bid price by SBS Transit, and 38% below the highest bid price submitted by Britain’s Go-Ahead.

“A plausible explanation could be that SMRT is willing to gain market share at the expense of margins. SMRT has around 25% market share of Singapore’s public bus business vs. CDG’s around 75%. If SMRT is awarded the Bulim contract, there could be ripple effects such as more competitive bidding and lower margins for future public bus packages,” stated CIMB.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia