Additional $300M Government Support to Moderate Fare Increase

10% reduction in prices for monthly concession passes 
New discounted monthly pass for Workfare Transport Concession cardholders
Public Transport Vouchers worth $50 each for lower-income households 

1.     The Public Transport Council (PTC), following the 2023 Fare Review Exercise (FRE), has decided to grant a fare increase of 7.0%. This is lower than the maximum allowable fare adjustment quantum of 22.6% – which comprises last year’s deferred increase of 10.6% and this year’s 12.0% fare formula output. In doing so, the PTC sought to ensure that fares remain affordable for commuters.

2.     The 2023 fare formula output of 12.0% was mainly driven by the sustained increase in energy prices in 2022 (contributing 6.2%-points), as well as core inflation and strong wage growth. 

Bulk of Fare Increase will be Deferred 

3.     The Government will provide $300 million in additional subsidies to cover the cost of deferring the remaining 15.6%-points of allowable fare adjustment to future FREs. This is 50% higher than the subsidy of $200 million for the 2022 FRE. This subsidy is in addition to the more than $2 billion in public transport subsidies that the Government spends annually to keep bus and train services running.

Lower Fare Increase for Concession Groups

4.     Adult card fares will increase by up to 11 cents per journey, while the increase in concession card fares for students and seniors will be capped at 5 cents per journey. The Government will similarly cap the increase in concession card fares for lower-wage workers (LWWs) and Persons with Disabilities (PwDs), which are funded by the Government. This means that around two million commuters, or half of all Singaporeans, will see a lower fare increase than adults, capped at 5 cents per journey. 

Lower Monthly Concession Pass Prices, new Monthly Concession Pass for Lower-Wage Workers

5.     The Government will also match the PTC’s decision to reduce the price of hybrid (i.e. bus and train) monthly concession passes by up to 10%, by reducing the price of the hybrid monthly concession pass for PwDs from $64 to $58, similar to that for Seniors.

6.     The Government will also introduce a hybrid monthly concession pass for Workfare Transport Concession Scheme (WTCS) cardholders to better support LWWs who use public transport intensively and help them save on their monthly public transport expenses. The new monthly pass will be priced at $96, which is $32 less than an Adult Monthly Travel Pass, and commensurate with the discount enjoyed by WTCS cardholders for per journey card fares. The discounts for WTCS cardholders and PwDs will be funded by Government.  

7.     The changes to the monthly concession passes will benefit around 60,000 commuters in total, comprising both existing and expected new monthly pass users. These passes allow for unlimited travel on all modes of public transport (except express buses). Heavy users of public transport can purchase these passes at the lower prices, to reduce their monthly travel expenses. 

Public Transport Vouchers for Lower-Income Households

8.     Finally, the Government will provide Public Transport Vouchers (PTVs) worth $50 each, to lower-income households. These PTVs will be made available to resident households with monthly household income per person of not more than $1,600. PTVs can be used to top up fare cards or buy monthly passes.

9.     The Government recognises the concerns over higher cost of living. That is why the Government supports PTC’s decision not to pass through the full increase in fares, and will provide significantly increased subsidies this year to moderate the fare increase. Maintaining a high-quality and financially sustainable public transport system is a shared responsibility. As commuters bear a 7.0% increase in fares, the Government will bear the remaining 15.6%-points of deferred fare adjustment through an additional subsidy of $300 million. At the same time, operators will have to manage their costs tightly, do more with less and continue to pay fair wages to their workers. 

10.    The new fares will take effect from 23 December 2023. 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