New leadership at MTR has its work cut out

For a listed public utility that has so often been in the news for the wrong reasons recently, the announcement of a new leadership at the MTR Corporation is perhaps one that the public can welcome cautiously. The change has paved the way for a much-needed management revamp that, hopefully, can put the embattled rail operator back on track.

Following its resolute move last summer to have the top management removed in the wake of a series of construction scandals, the government announced that the post of chairman, held by Frederick Ma Si-hang until June 30, would be taken over by insurance veteran Rex Auyeung Pak-kuen. In his second promotion in a year, MTR operations and mainland business managing director Jacob Kam Chak-pui will be promoted to chief executive officer on April 1, replacing Lincoln Leong Kwok-kuen.

Whether the new line-up – a lesser-known outsider and an old face – will make a difference will be closely watched by the government, politicians and the public. Concerns have been raised whether the new chairman can cope amid an increasingly politicised working environment. The 66 year-old Auyeung has more than 40 years of experience in insurance in Canada and Hong Kong. But unlike his predecessor, Auyeung is much more low profile and politically inexperienced. He gained media attention when he exchanged views with students in his capacity as the Lingnan University council chief at the height of a controversy in 2015 over the chief executive’s ex officio role as university chancellor. He needs to work closely with the new CEO to steer through the crisis.

Despite a 5 per cent drop in net profits to HK$16 billion last year, the MTR remains a valuable business. But it let down the public with construction delays, cost overruns and, recently, disturbing allegations of shoddy works at the Sha Tin-Central rail link. The mishaps have exposed serious management, supervision and accountability issues, and reinforced the perception of the corporation being “an independent kingdom”.

It is imperative that new leadership rises to the challenge, revamp the operation and help restore the MTR’s reputation as a world-class railway operator.