Keeping Public Transport Fares Affordable Beyond Vouchers and Concession Passes for Commuters

Written Reply to Parliamentary Question

Mr Cai Yinzhou asked the Acting Minister for Transport beyond public transport vouchers and concession passes

a.      whether structural approaches are being explored to ensure public transport affordability; and

b.      what further targeted support for public transport costs is planned for vulnerable groups such as Progressive Wage Model workers, single-parent households, seniors without CPF, and persons with disabilities.

Mr Cai Yinzhou asked the Acting Minister for Transport whether the Ministry will consider introducing a published affordability threshold, such as a cap on the proportion of monthly household income spent on public transport, as a binding parameter in the Public Transport Council's fare review framework, so that commuter affordability is structurally and transparently embedded in fare adjustment decisions balanced against operator recovery.

Reply by Acting Minister for Transport Jeffrey Siow:

1.      The Public Transport Council (PTC) considers the affordability of public transport, as measured by the proportion of household income spent on public transport, in determining the fare adjustments every year. It also has the discretion to defer part of the fare formula output to ensure that fares remain affordable for most households. For lower-income households, the proportion of household income spent on public transport has fallen from 3.1% in 2015 to 2.4% in 2024. For average public transport users, the figure has also fallen from 2.2% in 2015 to 1.7% in 2024.

2.      The existing concession pass schemes and Public Transport Vouchers (PTVs) already provide significant levels of support for vulnerable groups. Seniors, lower-wage workers and Persons with Disabilities enjoy discounts of up to 55% off adult per-journey fares. Heavy public transport users can purchase monthly passes which cap their monthly public transport expenditure. PTVs cover roughly half a year of fare increases for a typical household of two adults and two concession cardholders. Households who require more support can request for additional vouchers through their Community Centres or Clubs.

3.      The Government provides more than $2 billion in annual subsidies to keep bus and train services running, and provided an additional $200 million of subsidies to cover the cost of PTC deferring part of the fare increase during the 2025 Fare Review Exercise. Introducing an affordability cap in the fare review exercise that is unrelated to the cost of providing public transport may cause fares to diverge further from costs over time. This will mean additional subsidies to be borne by all tax payers.