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Additional $250m in Government Support to Moderate Fare Increase for Commuters

09 Sep 2024Press Releases

 

  • Public Transport Vouchers (PTVs) worth $60 each for lower-income households, higher than the PTV worth $50 in last Fare Review Exercise
  • Income eligibility criteria for PTVs to be raised; 60,000 more households to qualify 
  • Concession groups will have their fare increase capped at 4 cents per journey 
  • The additional $250m to cover the cost of deferring this year’s fare increases is on top of the more than $2 billion in annual public transport subsidies 

 

1.     The Government understands Singaporeans’ concerns about costs of living. As such, the Government supports the Public Transport Council (PTC)’s decision for the 2024 Fare Review Exercise (FRE), to not pass through most of the allowable fare adjustment quantum to commuters, and to grant a fare increase of 6.0%, less than a third of the maximum allowable fare adjustment quantum of 18.9%.

  2.     The majority of Singaporeans rely on our public transport system to travel conveniently around the island. The Government is committed to ensuring that our public transport system remains affordable and reliable, while continuing to improve connectivity to meet growing needs. Over the past year, we have continued to expand our rail network, with the launch of seven new stations along the Thomson-East Coast Line. Recently, we launched the Bus Connectivity Enhancement Programme with a funding commitment of up to $900 million over 8 years to improve the connectivity of our bus network. 

3.     Maintaining the reliability and service standards of a growing bus and rail network requires us to ensure that our public transport system is financially sustainable, to support higher operating and maintenance costs. At the same time, we expect operators to manage their costs tightly, do more with less, and continue to pay fair wages to their workers. This will allow us to provide high-quality bus and train services for Singaporeans in years to come in a sustainable manner. 

4.     The Government will support the PTC’s decision to moderate the fare increase and keep public transport costs affordable for Singaporeans in a few ways.

Continued Government Subsidies to Defer Bulk of Fare Increase 

5.     The Government will provide an additional $250 million in subsidies to cover the cost of deferring the remaining 12.9%-points of allowable fare adjustment to next year’s FRE. This additional subsidy is on top of the more than $2 billion annual public transport subsidies to keep bus and train services running, as well as the additional funding of up to $900 million over 8 years for the Bus Connectivity Enhancement Programme. In total, this equates to more than $1 in subsidies for every journey taken on public transport.

Lower Fare Increase for Concession Groups

6.     Next, in line with the PTC’s decision to cap the increase in concession card fares for students and seniors at 4 cents per journey, the Government will similarly cap the fare increase for lower-wage workers and Persons with Disabilities at 4 cents per journey. These concession schemes are funded by the Government. 

7.     In total, this means that around two million commuters, or about half of all Singaporeans, will see a lower fare increase than adult commuters, capped at 4 cents per journey, as they pay subsidised fares of up to 70% compared to adult commuters. 

8.     MOT is glad that the PTC has agreed to Minister Chee’s suggestion and decided that graduating students who are eligible for concessionary fares will continue to enjoy concessionary fares for an extended period of four months upon the end of their course of study. This will benefit about 75,000 students and their families every year.

More Households to Qualify for Public Transport Vouchers 

9.     Thirdly, the Government will also make available Public Transport Vouchers (PTVs) worth $60 each, to lower-income households. This is higher than the $50 PTVs that were provided in the 2023 PTV Exercise. PTVs can be used to top up fare cards or buy monthly passes.

10.    The Government will raise the income eligibility criterion for PTVs. With this move, PTVs will be made available to resident households with a monthly household income per person of not more than $1,800, up from $1,600. With this increase, an additional 60,000 households will qualify for a PTV in this exercise. The first stage of this PTV exercise will commence by the end of 2024.

11.    The new fares will take effect from 28 December 2024. 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.simplygo.com.sg



Annex A - Concessionary Card Fare Structures for Lower-Wage Workers and Persons with Disabilities
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