Govt providing S$250M in subsidies to moderate increase in bus & MRT fares
After an annual review, the Public Transport Council (PTC) has approved an increase in bus and MRT fares by S$0.10 per journey.
It announced this in a news release on Monday (9 Sept), adding that this would take effect on 28 Dec.
Bus & MRT fares will go up by S$0.04 for concession holders
While adult card fares will increase by S$0.10, concession card fares will have a smaller increase of S$0.04.
This will benefit about two million concession card holders, comprising students, seniors, national servicemen, persons with disabilities and Workfare Transport Concession Scheme card holders, PTC said.
The prices of monthly passes, as well as fares paid in cash, will not increase.
Adjustment driven by core inflation & wage growth in 2023
Overall, bus and MRT fares will increase by 6.0% this year — less than a third of the 18.9% maximum adjustment allowed, PTC said.
While the 2024 Fare Review Exercise (FRE) derived a 3.3% adjustment for this year, an additional 15.6% was deferred from previous years, causing the maximum adjustment to be 18.9%.
Source: Ministry of Transport, Singapore on Facebook
The 3.3% quantum for 2024 was driven by core inflation and wage growth in 2023, PTC noted.
It was partially moderated by a decrease in energy prices from a peak in 2022.
On 23 Dec 2023, public transport fares rose by 7%.
Govt to provide S$250M in subsidies
The good news is that the Government will help commuters moderate the fare increase.
In a press release on Monday (9 Sept), the Ministry of Transport (MOT) said it would provide an additional S$250 million in subsidies.
This will cover the cost of “deferring the remaining 12.9%-points of allowable fare adjustment to next year’s FRE”, it added.
The Government will also disburse Public Transport Vouchers (PTVs) worth S$60 each to lower-income households.
These may be used to top up fare cards or buy monthly passes, and will be worth more than the S$50 PTVs given out last year.
60,000 more households will also qualify for PTVs as the monthly household income limit will be raised to S$1,800 from S$1,600.
Concessions for graduating students extended by 4 months
Additionally, the period that graduating students can enjoy concessionary fares will be extended by four months, PTC said.
Currently, students who have graduated from secondary schools, ITEs, junior colleges, tertiary institutions and private schools may have to pay adult fares before they’re enrolled in another school.
The batch of students graduating after 28 Dec will now be eligible for concessionary fares for four months from the end of their course of study.
To extend the validity of their concessionary cards, eligible graduating students can tap their existing concessionary card at any ticketing machine in MRT stations and bus interchanges or visit a ticketing counter from 1 Oct.
About 75,000 graduating students are expected to benefit each year, and this will help them and their families manage the transition out of or between concession schemes, PTC said.
Also read: Bus & Train Fares Will Increase By Up To 11 Cents In 2023, More Hikes Expected In Future Years
Bus & Train Fares Will Increase By Up To 11 Cents In 2023, More Hikes Expected In Future Years
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Featured image from MS News.
