Long-Term Cost-Benefit Effects of Singapore’s Electrification Efforts on Bus Fares

Written Reply to Parliamentary Question 

Mr Low Wu Yang Andre asked the Acting Minister for Transport with the Government’s increasing emphasis on electric vehicle fleet expertise in public bus tenders,

a.     what is the Ministry’s long-term cost-benefit analysis of accelerating this green transition; and

b.     what safeguards are in place to ensure that the capital costs associated with electrification do not translate into significant fare increases for commuters over the next decade.

Reply by Acting Minister for Transport Jeffrey Siow: 

1.     Besides contributing to Singapore’s net zero emissions commitment, the transition of our public bus fleet to cleaner energy vehicles will improve air quality and public health of commuters. Currently, we are replacing only buses nearing end of life with electric buses. The life cycle costs of electric buses is similar to that of diesel buses, with higher procurement cost offset by lower fuel and maintenance expenses. As technology improves and costs continue to come down, we may be able to accelerate the transition to electric buses without a significant impact on the cost of providing public bus services or public transport fares.