The MTR Corporation will not raise subway's ticket fare as promised last December during merger with KCRC till June this year, said Chairman Raymond Ch'ien after the company's annual general meeting.

Facing the high inflation, Ch'ien did not comment whether MTR will raise ticket fare after June but the company respects the adjustable mechanism suggested by the government.

"The reduction of ticket fare in December has reflected the efficiency of the merger. The company is satisfied with MTR's current market share of 40 percent," said Ch'ien.

Meanwhile, with the satisfactory sales of company's property development projects, namely the Palazzo and LOHAS Park, Ch'ien said MTR will decide whether to open the tender for two projects in West Tsuen Wan depends on the basis of market condition.

Describing MTR's business model of operating railway system and property development, as very successful, Ch'ien said: "The company will try to keep the flexibility between the two businesses in order to keep its global reputation."

For overseas growth, MTR is still in talks with the Shenzhen municipal government regarding the construction and operation of SZL4, a subway project in the city.

Ch'ien said the government must build the railway line. But according to mainland's regulation, the government may support the project through other means instead of property development rights. Hence, it takes longer for the project to be approved.

"The company will strive for the best proposal acceptable to the government," he added.

Meanwhile, MTR and its staff members have donated a total of HK$11.6 million to the quake-hit areas in Sichuan.

The company has also received HK$2.5 million donations from the public by placing collection boxes in shopping malls it manages. The money will be donated through Red Cross and World Vision.

(HK Edition 05/30/2008 page2)