MTR Corp buy-back is the government’s best shot at solving Hong Kong’s transport problems

The MTR Corporation has been embroiled in one scandal after another over the past few years. First, it was the delay and cost overruns of the express rail link project, followed by the spate of revelations about defective construction work at several stations on the Sha Tin to Central Link.

The scandals have eroded public trust in MTR management, resulting in a revamp. Project director Philco Wong Nai-keung resigned with immediate effect, along with three other general managers. CEO Lincoln Leong Kwok-kuen will retire earlier than expected, while chairman Frederick Ma Si-hang will also leave as soon as a new chief executive is in place.

Lawmaker Michael Tien Puk-sun has called on the government, which is already the MTR’s majority shareholder with about 75 per cent of the shares, to take the rail operator into full public ownership. This way, the MTR need only consider the public interest, rather than making a profit in its daily operation. Of course, to prevent red tape and inefficiencies, the new statutory body should be managed by non-civil-servants and run according to market principles.