Singapore Government Press Release

Media Relations Division, Ministry of Information, Communications and the Arts,

MITA Building, 140 Hill Street, 2nd Storey, Singapore 179369

Tel: 6837-9666

Good morning Ladies and Gentlemen

Thank you for inviting me this morning to the launch of Trans-Cab Services. The launch of Trans-Cab�s taxi service is a significant milestone in the liberalization of the taxi industry in Singapore. As the second new player to launch its services, Trans-Cab�s entry into the taxi industry will inject greater competition and provide more choices for commuters.

Let me first highlight the key developments over the last five years that have redefined our taxi industry. In 1998, taxi fares were deregulated. This was a momentous step forward in the liberalization of the taxi industry as taxi companies could then set their own fares and better respond to changes in market conditions.

This was followed in 2003 by the introduction of the new taxi operator licensing framework and new Quality of Service standards to encourage improvements in taxi services. At the same time, LTA also freed up its control over taxi supply and the number of taxi operators to allow for greater competition. Under the new framework, any party interested in operating a taxi service can apply for a Taxi Operator Licence or TOL. I am happy to note that Trans-Cab was the first new company to apply for a TOL under this new framework. Of course, it was also the first new company to be granted the licence on 1 August 2003.

Since the introduction of the new taxi operator licensing framework, LTA has granted TOLs to the four incumbent taxi operators, namely Comfort, CityCab, TIBS and Yellow Top Cab, and three new licenses to Trans-Cab, Smart Automobile and Premier Taxis. This adds up to a total of seven players in the taxi industry.

The new taxi operator licensing framework has created a more dynamic and competitive playing field in the taxi industry. Apart from benefiting the commuters, taxi drivers also stand to benefit from the increased number of operators. With the entry of the 3 new taxi operators, taxi drivers can now choose to rent their taxis from a total of 7 operators! This has certainly provided greater impetus for the taxi companies to improve and innovate, in order to attract and retain the most committed and service-oriented team of drivers to carry their brand name.

Already, the competition between taxi companies has spurred some of them to introduce new initiatives for their taxi drivers. For example, some of the existing operators are planning to cut their taxi rental rates. I am glad to note that Trans-Cab has gone a step further to introduce loyalty benefits with a view to retaining a pool of experienced taxi drivers dedicated to providing excellent service to the commuters.

Today, Trans-Cab will launch its first 50 red-and-white taxis. It has also committed to increasing its fleet to 100 within a year, and to 400 over the next 4 years. This is a substantial investment and demonstrates Trans-Cab�s intention to make its presence felt in the industry. I would like to congratulate Trans-Cab on its successful entry into the taxi business and look forward to it making a difference to the commuting experience of its customers. I understand that the Trans-Cab has assembled a team of drivers who have been looking forward to go onto the roads and to start serving the commuters. I shall hold them back no further. It leaves me then with the pleasure to launch Trans-Cab Services.

Thank you.