Government Accepts Recommendations by the Public Transport Council for 2023 Fare Adjustment Formula & Mechanism Review

1.     The Government accepts the Public Transport Council’s (PTC) recommendations for the 2023 Fare Adjustment Formula and Mechanism Review, including its proposed fare formula. 

2.     In August 2022, Minister for Transport, Mr S Iswaran, appointed the PTC to review the effectiveness of the fare adjustment formula and mechanism. The PTC subsequently formed a 10-member Workgroup to undertake the review. As part of its review, the Workgroup conducted extensive engagements before finalising its recommendations. The PTC submitted its report¹ to the Government on 21 April 2023. 

3.     The Government has studied the PTC’s recommendations and accepts them. The recommendations considered a range of perspectives from stakeholders, and the uncertainties that will be faced by the public transport sector in the coming years, such as the inflationary environment and changing ridership trends after the COVID-19 pandemic. 

4.     The recommendations also affirm that an affordable, high-quality and financially sustainable public transport system is a shared responsibility among public transport operators, commuters, and the Government. With the new formula, the PTC will continue to adjust public transport fares to keep pace with operating costs, while ensuring that fares remain affordable for commuters. On their part, public transport operators must continue to strive for greater efficiency in their operations and derive cost savings.  

5.     The Government will also do its part to ensure that public transport remains affordable. On top of funding public transport infrastructure as the network expands, the Government will continue to subsidise part of operating costs, which currently stand at more than $2 billion annually. This works out to more than $1 subsidy per journey. 

6.     In addition, vulnerable groups will continue to pay concessionary fares and receive support from the Government, such as Public Transport Vouchers, when fares increase. 

7.     Minister for Transport, Mr S Iswaran, said, “Maintaining a high-quality, affordable, and financially sustainable public transport system is the shared responsibility of the Government, public transport operators, and commuters. The PTC’s recommendations aim to maintain the balance between fare affordability and the financial sustainability of the public transport system, and help reduce volatility for both public transport operators and commuters. I thank the Public Transport Council for undertaking this important review amidst an uncertain operating environment.”

¹ Links to PTC’s

report

 and

press release