Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on Expected Fare Revenue Increase for Public Transport Operators from Commuters Fare Hike and Impact on Operators’ Service Delivery

Mr Murali Pillai asked the Minister for Transport whether the expected increase in fare revenue for MRT operators amounting to $132.5 million a year arising from the fee hike announced by the Public Transport Council to deal with the cost pressures highlighted by the operators in their applications to the Public Transport Authority is sufficient to ensure that there will be no performance degradation by these operators.

Reply by Minister for Transport Khaw Boon Wan:

1.     There are existing mechanisms in place to guard against performance degradation. Rail services are regulated through operating licences, which set out the minimum performance standards, while bus operators are contractually required to meet service standards. 

2.     The Government will continue to invest significant resources to support a reliable and high quality public transport system, while keeping fares affordable for all. Over the next five years, the Government expects to put in close to $1 billion to renew rail operating assets, and another $1 billion to subsidise bus operations every year. The heavy subsidies by Government, together with the estimated increase in fare revenue of $132.5 million from the 2019 Fare Review Exercise, will help sustain public transport service levels for both bus and rail.