The Singapore Traction Company was founded in 1925 under the management of the Shanghai Electric Construction Company (London). It enjoyed a monopoly of Singapore's trolley bus service and also dominated its motor bus routes.

In April 1971, it was given a sector of Singapore to operate as part of a national plan to consolidate the bus services in Singapore. Bus routes were rationalised and reorgnaised to avoid duplication of routes. However, the company ceased to operate by December as it was already incurring heavy losses.