Starting from December 28, adult commuters paying by card can expect a 10-cent increase in their train and bus fares as public transport fares are set to rise by 6 per cent, according to the Public Transport Council (PTC).
In addition, concessionary fares for seniors, students, people with disabilities, and low-wage workers who pay by card will also increase by four cents per journey. This adjustment will affect approximately two million commuters falling under this category.
The fare revision translates to an increase in the cost of a train ride, with an adult passenger traveling from Tampines to Raffles Place set to pay $2.02 from the current fare of $1.92.
The recent hike marks a continued pattern of fare adjustments. In 2023, fares saw a 7 per cent increase for adults paying by card, which was the highest increase on record. On the other hand, fares rose by 2.9 per cent in 2022 and 2.2 per cent in 2021. The year 2020 witnessed a fare freeze to assist the public in coping with the impact of the Covid-19 pandemic.
PTC, responsible for regulating fares and ticket payment services, justified the 6 per cent increase as being less than a third of the allowable increase of 18.9 per cent for 2024. This consists of a 3.3 per cent adjustment for 2024 and a 15.6 per cent hike deferred from the 2023 exercise.
Explaining the 2024 adjustment, the council highlighted that it was influenced by the growth in core inflation and wages in 2023, moderated partially by a 18.6 per cent drop in energy prices from their peak in 2022.
Furthermore, the council emphasized its awareness of the public’s concerns about the cost of living and attributed the 6 per cent hike to cushion commuters from the full fare increase, with the remaining increase of 12.9 per cent to be carried forward to future fare review exercises.
During a press conference on September 9, PTC chairwoman Janet Ang justified their decision not to clear more of the deferred hike from the previous exercise in this round. She underlined the need to balance affordability and reduce the gap between fares and costs, affirming PTC’s mission.
The Government has pledged an additional $250 million in subsidies to cover the deferred increase. This is in addition to the more than $2 billion in subsidies provided yearly to keep public transport services running, and an additional funding of up to $900 million over the next eight years to improve the bus network under the new Bus Connectivity Enhancement Programme.
PTC also announced that there will be no change to fares paid in cash on buses, as less than 1 per cent of public transport rides are paid for in cash. In addition, adult monthly travel passes and monthly concession passes will remain unchanged to help heavy public transport users cap their expenses.
SBS Transit Rail and SMRT Trains, the operators, had applied for the full 18.9 per cent hike in 2024, citing reasons such as cost pressures arising from inflation and higher labour costs. Additionally, the Ministry of Transport and the People’s Association stated that the Government will provide public transport vouchers worth $60 each to resident households with a monthly income of up to $1,800 per person.
PTC emphasized that households in the 21st to 40th percentile spent an average of 1.7 per cent of their monthly income on public transport in 2023, while lower-income households in the 11th to 20th percentile spent about 2.4 per cent of their income on public transport in 2023.
Public transport users expressed varied perspectives on the fare increase: while some believed it was somewhat justified due to improving MRT connectivity, others emphasized the importance of corresponding improvements in service levels.
Transport economist Walter Theseira highlighted the rising cost of operating public transport services and emphasized the hope for moderate inflation to provide some breathing room in the next few years. Partnering these viewpoints, PTC aims to balance affordability and minimize the gap between fares and costs, exemplifying its mission to cushion commuters from the full fare increase while addressing concerns about the cost of living.
