SBS Transit Ltd has released detailed responses to questions from shareholders and the Securities Investors Association (Singapore) before its 33rd Annual General Meeting, scheduled for Apr, 23 2026.
The board said the Land Transport Authority’s tender evaluations, which weigh both price and quality, led to mixed outcomes in recent bus contract bids. While SBS Transit retained the Bukit Merah (PT218A) and Seletar (PT219) packages, it lost the Jurong West (PT218B) and Tampines (PT220) contracts to competitors. Management is refining tender strategies to enhance alignment with evaluation criteria and strengthen future bids, including the ongoing Serangoon-Eunos package.
On fleet electrification, the company highlighted its operational experience with electric buses and the successful launch of Singapore’s first large-scale multi-storey electric bus depot at Sengkang West. Electrification is now considered a core capability supporting national sustainability goals.
Addressing rail operations, the board noted that service delays on the Downtown Line and North East Line in 2025 did not result in financial penalties, as the Land Transport Authority found the causes were external. Despite lower mean kilometres between failure (MKBF) on these lines, performance remained above the overall Singapore MRT network average. A dedicated rail subsidiary board with technical expertise oversees reliability, maintenance and safety.
The company confirmed its rail business was financially sustainable in 2025 following fare adjustments and the adoption of the New Rail Financing Framework. It will operate the upcoming Jurong Region Line under an asset-light service-fee model, requiring capital injections only to cover steady-state operating expenses.
Regarding capital allocation, SBS Transit said it will prioritise its minimum 50% ordinary dividend payout while considering opportunistic share buybacks. The announced special dividend reflects excess cash and does not signal a change in payout policy.
Management also reiterated that bus accident rates remain below the Land Transport Authority’s threshold of 0.50 accidents per 100,000 bus-kilometres per month and confirmed its role in operating autonomous buses on routes 191 and 400 once testing is complete.