Resignation of SBS Transit's Executive Director

SBS Transit has announced the resignation of Executive Director Mr Ong Boon Leong, who has only been appointed as executive director in 2005. This should be a sudden news for most people. His departure could also be sensitive in view of the ongoing public transport industry review and the rumoured merger between the two land transport rivals, ComfortDelGro and SMRT.

However, the news should be less shocking to investors, as there were already some telling signs about a month earlier. Ong Boon Leong is one of the top 20 shareholders of SBS Transit Ltd, ranked 16th with 289,500 shares (0.1%). In the past month, many non-executive directors of the company exercised their share options and buy in substantial shares. Other investors are also showing strong interest in the company's stock, which explains why the share prices went up 20% within the past month. However, the only blip amidst the flurry of buying action is the sale of Ong Boon Leong's share, which he reduced from 289,500 shares to a mere 500 shares in end March through sales in the open market at his own discretion.

SBS Transit Ltd regrets to announce the resignation of Mr Ong Boon Leong, Executive Director with effect from 27 April 2007. Mr Ong will be leaving to pursue a Masters in Divinity in Vancouver, Canada. The Company is grateful to Mr Ong for his invaluable contributions and the good stewardship that he provided as Executive Director.

Source: SBS Transit

SBS Transit will lose a key driving force for the company. From my understanding, he was the one who pushed for the aggressive expansion of the bus network, which saw SBS Transit introducing a record number of 21 new services in year 2005. Under his leadership, he has pushed for an all-out-attack strategy that challenge every front of SMRT bus and train services, so much so that they are pressed to introduce more bus services at the expense of their profitability to counter the negative publicity they received for their laggard bus services initiatives.

The press release on Mr Ong Boon Leong's departure was clear and definitive in pointing out that he left the company for a higher calling -- he will be pursuing Masters in Divinity in Vancouver. For those who are unaware, a Masters in Divinity is a prerequisite for full time church ministry, and one of the best seminary, Regent College, happens to be in Vancouver.

Mr Gan Juay Kiat will be appointed as the Chief Operating Officer a day after Mr Ong Boon Leong departs. Godspeed, Mr Ong Boon Leong!

Mr Ong Boon Leong
Executive Director, SBS Transit

Mr Ong Boon Leong was appointed Executive Director of SBS Transit Ltd in 2005. Mr Ong first joined DelGro Corporation Limited in 1994 as Senior Manager, Corporate Development where he was responsible for business development, corporate planning and corporate communications. From 1998, he was concurrently appointed Group Chief Financial Officer.

On his promotion to Executive Vice President in 2000, Mr Ong assumed the position of Chief Executive Officer (CEO) Europe Business, a position which oversees the DelGro Corporation Limited’s operations in United Kingdom and Ireland. Subsequently, in 2001, he was concurrently appointed as Deputy CEO of SBS Transit Ltd. In 2003, Mr Ong assumed the position of Chief Operating Officer. He oversees the day-to-day operations of both the bus and rail businesses.

Prior to joining the ComfortDelGro Group, Mr Ong served in the Administrative Service with stints in the Ministry of Communications and Ministry of Home Affairs. He also worked as an Investment Analyst at Standard Chartered Securities Pte Ltd.

Mr Ong was a Monbusho scholar and holds a degree in Economics from Hitosubashi University, Japan.

Mr Ong was last re-elected a Director of the Company pursuant to Article 103 of the Company’s Articles of Association at the Annual General Meeting held on 27 April 2006. He is a non-independent Director of the Company.