30 May 2003 - Speech by Mr Lim Boon Heng, Minister, Prime Minister's Office and NTUC Secretary General at the ComfortDelgro Corporate Identity Launch.
Distinguished guests
Ladies and GentlemenÂ
I am extremely pleased to be able to join all of you to celebrate and witness a very significant event for the ComfortDelgro Group. Why? Today we see how the labour movement, government and the private sector join hands to create a more secure job environment. The ComfortDelgro Group is financially stronger. As a multi-modal transport enterprise, it contributes to the overall social of Singapore.
Comfort Delgro is a model responsive corporate entity. It has demonstrated this in its recent initiatives to re-instil confidence in our taxi and bus commuter public in the wake of the SARS outbreak.
Comfort, CityCab and Yellow Top, the three taxi companies operated by ComfortDelGro, responded swiftly and positively to the call by the Government to provide assistance to those affected by SARS. A slew of measures were introduced by the taxi companies to alleviate the financial burden of the taxi drivers and tide them through these difficult times. These measures included extending a $10 daily rental reduction to the drivers, passing on the Government diesel tax rebate to them and giving further diesel price discounts. To help with the drivers' cashflow, taxi drivers were also allowed to defer payment of $10 of their daily taxi rental. With a central management in ComfortDelGro, the three taxi companies in the Group were able to display a concerted and co-ordinated effort in the fight against SARS. Setting up of temperature check stations and regular disinfecting of the taxis are just some of the actions taken that have helped regain public confidence that taxis are a safe mode of transport. In doing so, ComfortDelGro has shown itself to be as a responsive corporate citizen.
Some of you may remember the pirate taxi days of old Singapore in the 1960s. Singapore's taxi industry was then controlled by a few people. Taxi drivers were charged high rentals and exploited. Those who could not get legal taxis to drive became pirate taxi operators. The system was unreliable and passengers were unprotected. To provide taxi drivers with a stable and legitimate livelihood and to provide a quality taxi service, a taxi co-operative called NTUC Comfort was formed in 1970. In 1993, NTUC Comfort was corporatised and subsequently listed as Comfort Group Ltd on the Singapore Stock Exchange in 1994.
DelGro also had its humble beginnings as a bus company in 1973, formed through an amalgamation of three bus companies when Singapore's public transportation system underwent a major government-led revamp. The company was listed on the Singapore Stock Exchange as Singapore Bus Service (1978) Limited after 5 years. In November 1997, Singapore Bus Service (1978) Limited was renamed DelGro Corporation Limited and its subsidiary Singapore Bus Services Limited (now called SBS Transit), was separately listed on the Singapore Stock Exchange. The process also marked the transition of DelGro from just a bus company to a multi-modal land transport operator.
For over three decades, Comfort and DelGro made tremendous progress, both as listed companies in their own rights and as responsible public transport operators. Indeed, the two companies have played vital roles in the elevation of overall public transport standards in Singapore. Today, we expect a safe, reliable and comfortable ride on our public transport system. But this is not pre-ordained. The Government, the operators and the employees and their Unions worked very hard over a long period of time to achieve it. Such high standards are not only befitting of a modern metropolis like Singapore, they are also comparable to the best in the world. These improvements in the public transport system are crucial to Singapore's economic and social development.
But challenging times lie ahead of us now. The world today is experiencing some of the most dramatic market and economic changes ever seen. The Iraqi war and the onset of SARS, against the backdrop of an already difficult economic environment, have created a ripple effect affecting many businesses, including the transport industry.
On 1 April 2003, the two companies merged to form ComfortDelGro Corporation Limited. Straightaway, it leap-frogged into the league of the top five largest public listed passenger land transport companies in the world, with a fleet of some 35,000 vehicles. With the North East MRT line commencing revenue service soon, ComfortDelGro will become a multi-modal land transport operator with a wide portfolio of services. As a market leader in the transport industry, ComfortDelGro is an important part of our economy.
Apart from enjoying economies of scale, the merged entity can also leverage on its combined strengths and resources, synergise operations, and gain additional efficiencies from the integration. The merger not only makes good commercial sense, but is also beneficial for the transport industry as a whole. Such is the embodiment of the spirit of how we should embrace change to better meet new challenges.
Size matters for transport players such as ComfortDelGro, in order for it to compete effectively in the open domestic market and the global arena. Apart from Singapore, the Group also has operations in the United Kingdom, Ireland, China, Vietnam and Malaysia. I understand that the management of ComfortDelGro is committed to expand the group's overseas presence. The target is to have 50% of its contribution coming from overseas in 5 to 7 years. This is a good example of how Singapore companies should dream big and boldly venture overseas. As the environment changes rapidly, a broader revenue base can shelter the company from changing market conditions affecting any one country or industry. Venturing overseas carries risks. It requires a strong team of people and strong financial resources. Being a bigger merged entity with greater financial strength and muscle, the group is well placed to expand its overseas businesses and achieve a wider geographical reach.
The merger has also opened up new opportunities for service initiatives that can further enhance the commuters' travelling experience. Comfort and DelGro have played pioneering roles in adapting new technologies to transportation needs, such as the use of GPS taxi dispatching and the EZ-link card. A larger group will now enable information technology systems to be harnessed even more effectively to improve operational efficiencies and customer service. I urge ComfortDelGro to tap into such opportunities and continue to find new and innovative ways to improve customer service and encourage greater public transport usage. But introducing new systems that enhance service delivery is the easy part. The more difficult and critical element is how to sustain and improve the supporting 'software'. Service excellence can only come about with a group of committed staff. Therefore, it is important that ComfortDelGro continues to emphasise on the training and development of its people to their fullest potential. I am heartened to note that several companies under the ComfortDelGro umbrella, including SBS Transit, Comfort Transportation, CityCab, Comfort Automotive Services and General Automotive Services have attained the People Developer Standard, a mark of distinction for dynamic, forward-looking and nurturing organisations that seek to scale greater heights through its people. As one of the biggest employers with over 10,000 employees in Singapore, tripartism must remain the cornerstone to build the enterprise and enhance economic growth for the nation.
As we gather together this evening to unveil the new corporate identity of ComfortDelGro and herald the commencement of new beginnings, I realise that some things remain constant. The new ComfortDelGro inherits the strong legacy and rich heritage of its predecessors. The same sense of professionalism, dedication and service excellence is still very much its hallmark. I hope that ComfortDelGro will continue to introduce new business models and technology know-how that can be exported overseas and will put Singapore on the world map. I have much confidence that the company will continue to grow from strength-to-strength in the years to come.
On that note, let me end by wishing ComfortDelGro every success. It is now my pleasure to officially launch the new corporate identity of ComfortDelGro Corporation Limited.
Thank you.
