The private-hire car market has surged in the last year and a half, powered by ride-hailing apps like Uber and Grab, and looks set to grow even more.

The number of rental cars has nearly doubled from 18,847 at the start of last year to 36,002 by the end of last month, according to Land Transport Authority (LTA) figures.

The big jump is twice the total growth of the preceding five years.

Besides Uber and Grab, others that have jumped onto the bandwagon, such as taxi operators SMRT and Prime, as well as motor distributor Tan Chong, have also added to the expansion.

Such companies account for an estimated 21,000 or 60 per cent of the total rental car population.

Private-hire vehicles are increasingly seen by commuters and drivers as a viable alternative to taxis.

The 21,000 or so rental cars used for picking up paying fares is quickly catching up with the total number of taxis owned by cab firms – 28,211.

This is 2 per cent fewer cabs than two years ago.

Industry players said the number of cabs being hired out has fallen more sharply.

The sizzling popularity of private-hire vehicles has prompted players to bid aggressively for certificates of entitlement (COEs).

Before LTA blocked free access to bidders’ information last week, The Straits Times found that Uber-owned Lion City Rental alone had secured nearly 2,000 COEs in just two months.

Several of the newly registered cars awaiting drivers were spotted in a multi-storey carpark near Beach Road this week.

These were mainly Toyotas, Hondas and Mitsubishis bought from authorised dealers as well as parallel importers.

Uber was not reachable for comment, but head of Grab Singapore Lim Kell Jay said yesterday that “the private-hire car industry will continue to grow” as there are not enough taxis to meet peak demand.

Mirroring Uber’s strategy in targeting those who want to defray the cost of motoring, Mr Lim said Grab is also “driving initiatives to reduce the cost of car ownership by enabling our drivers to have access to affordable rental cars for personal and commercial use”.

The incumbents are not thrilled by these “disruptors”, though.

Vehicle Rental Association secretary Jivin Tan said Uber and the like are attracting mainly people who normally would not be able to afford a car.

The National Private Hire Vehicles Association estimates there are only 6,000 to 8,000 private-hire drivers here.

Hence, Mr Tan said many private-hire cars will end up being primarily for personal use, and commuters are unlikely to be served well.

National Taxi Association (NTA) executive adviser Ang Hin Kee believes taxi operators will have to up the ante to compete.

He said: “Taxis with their transparent pricing, rigorous regime and wide coverage are an attractive option. A level playing field will enable them to remain the choice of commuters.”

In April, the Government announced that private-hire drivers will be subject to medical and background screenings.

They will have to attain a vocational licence through a course and be put under a demerit point system.

Some of the NTA’s recommendations were rejected, such as having uniform service quality standards for both sides.

But even as more rental fleet owners join Uber and Grab, some prefer not to.

Mr Vincent Tan, general manager of RMG Rent-A-Car, said: “The mileage of these cars will be very high, so maintenance cost will be high. We would also have to pay more for insurance.”

christan@sph.com.sg

This article was first published on June 17, 2016.
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The independent accountant appointed by the Workers’ Party-run Aljunied-Hougang Town Council (AHTC) has started reviewing past payments made by the town council to determine if they were improper.

Audit firm KPMG said in its third monthly report on the town council that it will study AHTC’s accounting records for the period of May 27, 2011 to Nov 27 last year for the review. The records contain 6,738,319 entries.

AHTC chairman Pritam Singh on Wednesday said his town council has given KPMG specific instructions to identify all transactions involving its former managing agent companies – FM Solutions and Services and FM Solutions and Integrated Services.

He added that the town council had submitted the 32-page report to the Housing Board on Wednesday, as required by the Court of Appeal.

The apex court had directed AHTC to appoint a Big Four accounting firm to help fix governance and financial lapses at the town council, and ensure compliance with the laws.

This came in the wake of a special audit by the Auditor-General of the town council’s finances.

So far, AHTC has resolved three out of 17 lapses that were still outstanding when KPMG was hired in March.

In its latest report, KPMG highlighted one lapse that was recently fixed.

It said the town council had implemented a process to monitor, investigate and address differences between bank statements and its accounting records.

Steps were also taken by the town council to fix other lapses, the report said.

For instance, the town council has started monitoring and investigating the flow of funds in and out of its temporary clearing accounts, which are used for transactions with external parties.

It has also corrected a duplicate transfer of $157,141.01 to its sinking fund, which was highlighted in the previous progress report.

KPMG said it is in the process of verifying AHTC’s calculation of how much it transferred to its sinking fund for financial years 2011/2012 to 2013/2014. AHTC said it had transferred $50,176,747.

KPMG also pointed out several issues it had observed since it put out the last report last month.

It found that data for service and conservancy charges (S&CC) arrears could not be fully generated automatically, even though AHTC said its system was capable of doing so.

In addition, S&CC data for April was incorrectly extracted from a May report, resulting in an understatement of $11,400.22 due for collection.

KPMG said AHTC will have to perform a detailed test to make sure its system works properly.

It added that it had also looked into the 13 unresolved opening balances of AHTC’s accounts that have been flagged by the town council’s own auditors over the years.

The town council has said in the past that these issues were the reason its accounts have not been given a clean bill of health.

KPMG said 10 of these issues can be resolved by adjusting entries that were incorrectly posted.

Of the remaining three issues, two have to do with related-party transactions and one has to do with the town council’s financial statements from FY 2011/2012, said KPMG.

AHTC has provided a list of entries to be adjusted, and KPMG has asked for the supporting documents.

ziliang@sph.com.sg

This article was first published on June 17, 2016.
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Civil servants will get a mid-year bonus of 0.45 of a month’s pay this year, lower than the half-month payouts they received for the last two years.

The lower bonus is significant because it affects a large number of workers across various industries.

The reason? As Singapore’s biggest employer with 84,000 workers, the civil service and its payouts are watched closely by the private sector as a guide for its own bonus payments.

But more importantly, the announcement on Tuesday by the Public Service Division (PSD) drives home the message that tougher times are ahead with a slowing Singapore economy. It also reinforces the signs economists have been flagging.

In the first quarter of this year, the economy grew by 1.8 per cent and is likely to continue growing sluggishly for the rest of the year.

This is cause for concern because the service sector, a key engine of growth, is in a slump. It grew at 1.4 per cent in the first quarter, the slowest pace since the 2009 financial crisis.

With a weaker global economic outlook, trade cannot be counted on to pull up growth either.

The Government has forecast growth of 1 per cent to 3 per cent for the full year. But private sector economists are predicting 1.8 per cent growth, down from an earlier forecast of 1.9 per cent.

In turn, employment growth has slowed.

The PSD has said that labour demand is expected to be uneven across sectors, and also warned of possible layoffs in some sectors as the economy restructures.

While the average worker may not immediately grasp the significance of the economic and employment figures, the lower mid-year bonus is a clear and early warning to moderate expectations. It will also help to drive home the need to stay relevant by learning the right skills.

For job-seekers, it is a wake-up call that there may be fewer openings. For companies, it is a sign from the Government that there is no need to shrink bonuses or salaries drastically for now, even as they take measures to deal with the economic slowdown.

This article was first published on Jun 17, 2016.
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He killed a motorcyclist and a pillion rider while driving a minibus without a proper licence.

Yesterday, Nigel John Retnam, 22, was sentenced to a total of eight weeks’ jail and banned from driving all classes of vehicles for five years.

In asking for a custodial sentence of between eight and 10 weeks, Deputy Public Prosecutor (DPP) Sarah Ong said Retnam’s “degree of negligence is high”.

There were two fatalities and Retnam had driven without the requisite licence, she said.

The court heard that Retnam had borrowed an 11-seater minibus on July 19 to visit his father at the Institute of Mental Health that afternoon.

After meeting at Race Course Road, a friend gave Retnam the keys to the minibus despite the latter not having a vocational driving licence.

Retnam, who was then a National Serviceman, possessed only a Class 3 driving licence.

While driving the minibus alone along Yishun Avenue 2, Retnam had switched from the second lane on the four-lane road to the left-most lane with deadly consequences. He had failed to keep a proper lookout.

The manoeuvre caused the minibus to collide into the rear of Mr Wong Sang Min’s motorcycle, flinging Mr Wong and his wife, Madam Ng Soo Kiew, 60, onto the ground.

The impact also sent the motorcycle crashing into the back of a car, hurting a female passenger.

Mr Wong, 63, was pronounced dead on the spot while Madam Ng died a few days later in hospital.

Both had died due to multiple injuries, an autopsy report stated.

Retnam’s lawyer, Mr S. S. Dhillon, had pleaded for leniency with the judge as it was his client’s first brush with the law.

In mitigation, he said his client had trouble sleeping due to recurring nightmares.

He said that for the past 11 months, Retnam has continued to think about the accident he caused which resulted in the deaths.

Mr Dhillon said Retnam was deeply remorseful and that the tragic accident was “pure human error”.

Said the defence lawyer: “This is not a case where the accused was speeding, drink driving or asleep (at the time of the offence)… such accidents can happen to anyone.”

After the fatal collision, Retnam stayed to check on the injured and he cooperated with the police investigation, said Mr Dhillon.

But DPP Ong said there was no reason for Retnam to have driven the minibus.

“There were clearly alternative transport options available.”

zaihan@sph.com.sg

This article was first published on June 17, 2016.
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One month ago, his 77-year-old father died in an accident after a lift malfunctioned at his block.

Mr Lim Keng Swee, 45, the youngest son, is still looking for closure over his father’s death, which happened just four days shy of his 78th birthday.

Mr Lim said he has been frustrated that there has been no answer so far as to why the lift malfunctioned that day.

His father, Mr Lim Hang Chiang, had toppled out of his mobility scooter as he reversed, suffering fatal head injuries on May 16.

Elderly man dies after toppling over lift gap in Pasir Ris

Click on thumbnail to view photos. Source: 

Lianhe Wanbao, Shin Min

The elder Mr Lim had been trying to get out of the lift at Block 247, Pasir Ris Street 21, but the lift was 15cm higher than the floor, so the scooter toppled over.

Related: Man dies after falling on his head in lift mishap

A frustrated Mr Lim said that he was told at his father’s wake that the authorities would give him a report about the case by the end of May, but he has yet to receive it.

“I just want some answers, why are they taking so long, and why don’t we have displays of when the lifts are last serviced? It just makes me wonder.”

Mr Lim, who works in the construction industry, said when he was interviewed during the investigation, he asked the investigators about the frequency of lift maintenance and the person-in-charge of overseeing lift maintenance.

Separately, he has wondered whether the lift uses original parts or third-party parts.

The answer to one of his questions – regarding the person in charge of overseeing lift maintenance – will be displayed in all lifts under BCA’s new Permit-to-Operate System, which was introduced yesterday and may be implemented as early as next month.

Related: Wife was frying beehoon for his birthday

NEW MEASURES

This requires all owners to display the permit in the lift, indicating the lift contractor responsible for maintenance and the name of the Authorised Examiner (AE) who inspected and certified the lift.

Mr Lim also wants to know the criteria that Pasir Ris-Punggol Town Council uses to ensure that the lift is properly maintained.

Under BCA’s new measures, outcome-based maintenance will provide more specific criteria and checklists for lift maintenance works.

(See report below.)

In the meantime, his family has been mourning the loss of the elder Mr Lim, who was in hospital on the day of his family’s planned birthday celebration for him.

Things have not been the same at home, said his son.

“I just feel this emptiness in my heart. I am still trying to cope with the loss of my father.”

His mother, Madam Kwek Sar Moi, 77, chose to move out from the bedroom that she has shared with her husband to another room in the flat, because she finds staying in the room a painful reminder.

Granddaughter Angelina Lim, six, still asks for her grandfather, saying: “Ah gong go where?”.

Mr Lim said his family, comprising older brother Lim Keng Meng, 51, and older sister Lim Lee Meng, 50, as well as his widowed mother, has not been the same since the incident.

He said: “My mother looks okay on the surface, but I don’t really think that she’s okay. Her husband is gone.”

Current versus new requirements

MAINTENANCE

CURRENT REQUIREMENTS

• Lift equipment, including settings and adjustments, should be inspected and should function properly.
• Lift car doors and lift landing doors must be operational at all times and reopen upon activation of door protective devices.
• Lift equipment must be lubricated and cleaned.

* These requirements are for compliance with Singapore Standard 550 (SS 550).

NEW REQUIREMENTS

• The emergency power supply for lift car lighting and ventilation fans must remain functioning when normal power supply to the lift car is disrupted.
• Brakes or lift parts should not contain any oil or grease contamination.
• Sufficient oil in the buffer – in accordance with the manufacturer’s recommendation, as indicated by the oil level gauge.
• For every non-compliance of the regulations, the lift contractor, if convicted, could face a fine of up to $5,000.

INTRODUCTION OF A PERMIT-TO-OPERATE SYSTEM

CURRENT REQUIREMENTS:

• All lift owners are required to engage an Authorised Examiner (AE) to conduct a full commissioning inspection and tests to ensure compliance with the Singapore Standard 550 (SS 550).
• A Certificate of Lift Maintenance and Testing will be issued by the AE to the lift owners and it is valid for a period of one year.

NEW REQUIREMENTS:

• Under the new Permit-to-Operate (PTO) System, in addition to the current checks and certifications done by AEs, every lift will require a permit to be issued by BCA before it can be operated. Audit checks will be carried out by BCA.
• The permit also has to be renewed annually, with certification done by an independent AE.
• For greater transparency and accountability, BCA also reinstated the display of information within the lift.
• The new permit, which replaces the old certificate, will indicate the lift contractor responsible for maintenance and the name of the AE who inspected and certified the lift

Expert: New measures will improve safety

Dr John Keung, Building and Construction Authority (BCA) chief executive officer, said BCA takes a serious view of lift safety.

“We have been engaging the industry and reviewing the lift regulations over the past year, and are ready to make these changes. We will continue to update and implement new measures to enhance lift safety in the short and longer term,” he said.

Mr Ng Wee Keong, the head of Operations and Technical Services Division of Mitsubishi Elevator (Singapore), said the new measures by the BCA “will improve lift safety for the whole industry and provide better safety to users”.

Mr Ng said the current inspection measures are outcome-based, but the new measures help to make the requirements even more specific.

He said a potential hurdle of the Permit-to-Operate System is the amount of paperwork and manpower needed to install the permits and the resources needed for the audit checks.

He added that the reintroduction of the display of permits in the lifts will help passengers to “feel more safe and assured”.

RECENT LIFT ACCIDENTS

WHEN: June 11, 2016

WHERE: 15th level of Block 299A, Compassvale Street

AGE OF LIFT: About 15 years

BRAND OF LIFT: LG

LIFT MAINTAINED BY: Sigma

WHAT HAPPENED: Mr Tan Joo Jin, 45, entered the lift on the 15th level.

Later, five others entered the lift on the eighth floor.

The lift then suddenly jerked and stopped between levels three and four for a few seconds.

It suddenly shot downwards and stopped between levels 2 and 3 before landing hard on the ground floor.

LIFT LAST MAINTAINED: A spokesman for the Pasir Ris-Punggol Town Council said due to investigations it will not reveal when the lift was last maintained.

It however said that it last sent a lift engineer and contractor to test the lift last Friday, Saturday and Sunday, after reports were first made by residents last Friday regarding the faulty lift.

On Monday morning, they tested the lift again and experienced a jerk.

The lift stopped for a while and continued to move again.

The Town Council is now trouble-shooting and trying to trace and fix the fault.

They are also investigating all other lifts with similar feedback from residents as a precautionary measure.

WHEN: May 16, 2016

WHERE: Block 247, Pasir Ris Street 21

AGE OF LIFT: About 24 years

BRAND OF LIFT: Fujitec

LIFT MAINTAINED BY: Fujitec

LIFT LAST MAINTAINED: Essential Maintenance Service Unit indicates servicing period as May 15 to June 20 but it is not clear if it has been inspected.

WHAT HAPPENED: Mr Lim Hang Chiang, 77, died after he fell from his mobility scooter and hit his head while reversing out of the lift exiting the lift backwards.

There was a 15cm height difference between the lift and the floor, which caused his scooter to topple.

Mr Lim Keng Swee, 45, son of the deceased Mr Lim Hang Chiang told TNP: “It has been about a month since my father died.

“They said they’ll investigate the reason behind the lift malfunction but they have not got back to me.”

vivlmy@sph.com.sg

This article was first published on June 17, 2016.
Get The New Paper for more stories.

At least one car has been badly crushed after a lorry crane crashed into a sheltered walkway at Bukit Batok West Avenue 6 at around 9.30am on Friday (June 17).

Photos of the toppled shelter at the Block 118 carpark were sent in to citizen journalism site Stomp.

The photos showed that one black car was crushed by the weight of the shelter’s roof.

According to Stomp contributors, the lorry crane had knocked down the shelter’s roof, sending it crashing onto the road.

The force of the crash had also uprooted the pillars of the roof from the ground, damaging the concrete path of the walkway.

Singapore Civil Defence Force (SCDF) personnel arrived at the scene shortly after.

According to Channel NewsAsia, no one was injured in the incident.

It is believed that the driver of the lorry had forgotten to lower the crank when driving through the carpark.

ljessica@sph.com.sg