Additional $200M Support from Government to Mitigate the Impact of Fare Increase on Commuters

Half of Singaporeans will see a small fare increase of 1 cent for every journey
Fare increase for adults capped at 5 cents for every journey
Public Transport Vouchers available for all lower- to lower-middle income households 

1.     Most Singaporeans take public transport to go to work, to school, or to meet with friends and family. A reliable, convenient, and affordable public transport system is essential to the connectivity and liveability of Singapore. To ensure that current and future generations of Singaporeans can continue to enjoy high-quality bus and train services, we must ensure that the system is financially sustainable.

2.     For the 2022 Fare Review Exercise (FRE), the Public Transport Council (PTC) has indicated that the maximum allowable fare adjustment quantum under the Fare Formula is 13.5%. This is primarily due to the global energy crunch, which caused energy prices to increase by 117% from 2020 to 2021, coupled with the increase in manpower costs and inflation.  

3.     Given concerns over the rising cost of living, the Public Transport Council (PTC) has decided to grant a fare increase of 2.9% for the 2022 FRE. The remaining 10.6%-points will be carried over to future FREs.  This is made possible by the Government’s provision of an additional $200 million in support for public transport, which is one of the three ways the Government will provide assistance to Singaporeans for public transport costs.  

Bulk of Fare Increase to be Deferred, with Additional $200M Government Support 

4.     To avoid a large fare increase for commuters and further support the public transport system, the Government will provide an additional subsidy of about $200 million in 2023, on top of the current subsidies of more than $2 billion annually to run bus and train services.  The $200 million support covers the carried-over quantum of 10.6%-points and shields commuters from the brunt of the fare increases, given the cost of living concerns. This additional subsidy will enable adult fare increases to be capped at 5 cents per journey. The price of the adult Monthly Travel Pass, at $128, will remain unchanged. 

Additional Help for Concession Groups 

5.     Second, in line with the PTC’s decision for student and senior citizen concession card fares, the Government will cap the increase for concession card fares for Lower-Wage Workers (LWWs) and Persons with Disabilities (PWDs) at 1 cent for this year’s FRE. These concession schemes were introduced by the Government in July 2014 to lower fares for LWWs and PWDs, and are funded by the Government. 

6.     LWWs will continue to enjoy discounts of up to 25% off adult fares. Fares of PWDs will continue to be pegged to those of seniors, who enjoy discounts of up to 55% off adult fares. The price of the Monthly Concession Pass for PWDs will remain unchanged at $64. 

7.     Therefore, all concession groups will see a fare increase per journey that is less than that for adults. Their fare increase will be capped at 1 cent per journey, and the price of all Monthly Concession Passes remain unchanged. As a result, half of Singaporeans will see a small fare increase, with some experiencing no fare increase.

Public Transport Vouchers for Lower-to Lower-Middle Income Households 

8.     Third, the Government will provide further assistance to lower- to lower-middle income households for public transport costs, and help them cope with the fare adjustment. Under the 2022 Public Transport Voucher (PTV) Exercise, the Government will again make available 600,000 PTVs for resident households with monthly household income per person of not more than $1,600. Each PTV is worth $30 and can be used to top up fare cards or buy Monthly Travel / Concession Passes. More details can be found

here

. 

9.     Ensuring a high-quality and financially sustainable public transport system is a shared responsibility across different stakeholders. While the Government will continue to support public transport operating costs with subsidies, as users of public transport services, commuters will also need to bear a fair share of operating costs. The Government will continue to ensure that commuters who need help with their public transport expenditure will get additional support.

10.    The new fares will take effect from 26 December 2022. Members of the public who have any queries regarding the concession schemes, including the application process and the eligibility criteria, can call 1800-2255-663 or visit

www.transitlink.com.sg

. 

Annex A - Concessionary Card Fare Structures for Lower-Wage Workers and Persons with Disabilities