Nomura gives these 3 key growth boosters.
Nomura expects recent measures announced in Singapore’s Budget 2013 to benefit Singapore land transport operators in various aspects.
Increased demand. The measures will likely increase demand for public transport and in particular taxis due to the reduced affordability of car ownership.
One-time earnings uplift. A one-time road tax rebate on buses and taxis should provide a one-time boost to profits, which could be meaningful, in our view.
Mitigating cost pressures. The Wage Credit Scheme will likely help mitigate wage pressures and attract more workers to the transport industry and alleviate the labour shortage supply situation.
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