Hike capped at 4 cents per trip for 1 in 2 Singaporeans
Enhanced Concessions for Polytechnic and other Diploma Students; Increased Assistance for Lower-Income Groups
By Christopher Tan, Senior Transport Correspondent, The Straits Times, 8 Oct 2019
Bus and train fares will rise by 7 per cent from Dec 28, although the hike will be cushioned for more than one in two Singaporeans who are eligible for concessionary fares.
For the first time, this group will include polytechnic students, who will enjoy student concessions.
The rise is the maximum allowed in this year's formula, and the biggest percentage jump since 1998 - driven largely by a spike in fuel and energy costs.
Adult card fares will rise by nine cents per trip.
Senior citizens, low-wage workers, persons with disabilities and school students will see the smallest rise of four cents, the Public Transport Council (PTC) said yesterday.
On the other hand, those who pay by cash or buy single-trip tickets - mostly visitors or infrequent users - will pay 20 cents more per trip, believed to be the single biggest increase so far.
The majority who use adult ez-link cards - accounting for nearly two-thirds of all trips - will see each ride costing nine cents more. Those who buy monthly concession passes will fork out $1 to $5.50 more, while frequent users who buy adult monthly passes will incur $8 more per month.
Polytechnic students will, however, see their commuting cost fall. After years of lobbying, polytechnic students will now have student concessions. They will now save up to $1.54 per trip.
In total, PTC chairman Richard Magnus pointed out that "close to two million people, or more than one in two Singaporeans, enjoy concessionary fares on our public transport system".
He said this was 35.4 per cent more than in 2013, when there was a comprehensive review of the concession schemes.
Actual average travelling cost had also fallen because of better rail connectivity. For instance, a ride from Bukit Panjang to Bugis cost $1.93 in 2015 because of several transfers. But today, with the Downtown Line, the same trip will cost $1.72 from Dec 28.
Transport Minister Khaw Boon Wan said in a Facebook post yesterday that in any fare adjustment, the Government tries to keep the increase as low as possible so that it affects as few people as it can.
"Fortunately, more than half of Singaporeans receive substantial discounts from the normal fare," wrote Mr Khaw.
The Ministry of Transport will also step in to help lower-income families. Mr Khaw said that this year, the Government will extend 50 per cent more public transport vouchers and increase the value of each voucher to $50, from $30.
The 7 per cent fare rise translates to an increase of about $132.5 million in total fare revenue. Of this, SBS Transit will get $18.8 million, while SMRT Trains will get $40.2 million. Both are for train rides. SBS Transit and SMRT will contribute about $1.88 million and $2.01 million, respectively, to the Public Transport Fund, which helps needy families cope with fare rises.
The remaining $73.5 million in fare increase will go to the Land Transport Authority (LTA), which administers bus contracts. These contracts are up for periodic competitive tenders, and the winning operator is paid a fixed amount for a parcel of routes. All fare revenue then goes to LTA.
Singapore University of Social Sciences transport economist Walter Theseira said this year's increase was largely driven by a "sharp rebound in energy prices".
"That was somewhat expected because energy prices were depressed below their longer-term trends for a few years.
"But it does highlight the strength and weakness of our fare formula. The strength is that it tracks changes in operating costs continually, but the weakness is it can expose commuters to sharp fluctuations."
Enhanced Concessions for Polytechnic and other Diploma Students; Increased Assistance for Lower-Income Groups
By Christopher Tan, Senior Transport Correspondent, The Straits Times, 8 Oct 2019
For the first time, this group will include polytechnic students, who will enjoy student concessions.
The rise is the maximum allowed in this year's formula, and the biggest percentage jump since 1998 - driven largely by a spike in fuel and energy costs.
Adult card fares will rise by nine cents per trip.
Senior citizens, low-wage workers, persons with disabilities and school students will see the smallest rise of four cents, the Public Transport Council (PTC) said yesterday.
On the other hand, those who pay by cash or buy single-trip tickets - mostly visitors or infrequent users - will pay 20 cents more per trip, believed to be the single biggest increase so far.
The majority who use adult ez-link cards - accounting for nearly two-thirds of all trips - will see each ride costing nine cents more. Those who buy monthly concession passes will fork out $1 to $5.50 more, while frequent users who buy adult monthly passes will incur $8 more per month.
Polytechnic students will, however, see their commuting cost fall. After years of lobbying, polytechnic students will now have student concessions. They will now save up to $1.54 per trip.
In total, PTC chairman Richard Magnus pointed out that "close to two million people, or more than one in two Singaporeans, enjoy concessionary fares on our public transport system".
He said this was 35.4 per cent more than in 2013, when there was a comprehensive review of the concession schemes.
Transport Minister Khaw Boon Wan said in a Facebook post yesterday that in any fare adjustment, the Government tries to keep the increase as low as possible so that it affects as few people as it can.
"Fortunately, more than half of Singaporeans receive substantial discounts from the normal fare," wrote Mr Khaw.
The Ministry of Transport will also step in to help lower-income families. Mr Khaw said that this year, the Government will extend 50 per cent more public transport vouchers and increase the value of each voucher to $50, from $30.
The 7 per cent fare rise translates to an increase of about $132.5 million in total fare revenue. Of this, SBS Transit will get $18.8 million, while SMRT Trains will get $40.2 million. Both are for train rides. SBS Transit and SMRT will contribute about $1.88 million and $2.01 million, respectively, to the Public Transport Fund, which helps needy families cope with fare rises.
Singapore University of Social Sciences transport economist Walter Theseira said this year's increase was largely driven by a "sharp rebound in energy prices".
"That was somewhat expected because energy prices were depressed below their longer-term trends for a few years.
"But it does highlight the strength and weakness of our fare formula. The strength is that it tracks changes in operating costs continually, but the weakness is it can expose commuters to sharp fluctuations."
2019 Public Transport Voucher Exercise: Needy commuters to get more support
More households will qualify for vouchers, which will be worth $50 each, up from $30
By Toh Ting Wei, The Straits Times, 8 Oct 2019
Lower-income households will get more support for their public transport needs after the Government announced a $6 million top-up to the Public Transport Fund to support this year's Public Transport Voucher Exercise.
A record total of 450,000 vouchers, worth $50 each, will be available to these households. This is up from the 300,000 vouchers, worth $30 each, set aside last year.
In addition, one in five households will be able to qualify for public transport vouchers, up from one in 10 previously, following revisions to the eligibility criteria.
The measures aim to help buffer the impact of increased public transport fares on needy commuters.
"The Government will ensure that sufficient assistance is available for commuters in need," the Ministry of Transport said in a statement yesterday.
It said that the public transport vouchers will also benefit eligible lower-wage workers and persons with disabilities.
Under new guidelines, which the Transport Ministry said makes more residents eligible, households with monthly income - from all sources - of not more than $1,200 per person can qualify for the vouchers.
Sources of income could refer to regular employment income, or income from rentals and pensions.
In contrast, under the 2018 Public Transport Voucher Exercise, only households with an income of $1,900 or below, or per capita income of not more than $650, are eligible for the vouchers.
The 2018 exercise, which commenced on Nov 12 last year, will remain open for applications until the end of this month.
The next cycle with the $50 vouchers will start from Nov 11 this year and end on Oct 31 next year.
Those who qualify for the vouchers can apply for them at their local community centre or club.
Mr Ang Hin Kee, an MP for Ang Mo Kio GRC and deputy chairman of the Government Parliamentary Committee for Transport, told The Straits Times: "My primary concern is with workers who may have to deal with higher costs.
"This has been mitigated by higher transport voucher quantum and eligibility."
Lower-wage workers will also get a 25 per cent discount off adult fares on public transport, up from 20 per cent.
The Transport Ministry said this will help keep average fares for them below 2015 levels.
Transport economist Walter Theseira said the way the fare increase was buffered for needy commuters suggested a move towards differentiated fares.
Associate Professor Theseira said: "The idea behind differentiated fares is that people who have the ability to pay will pay a bit more. And for those more vulnerable groups, the fare increase will be held down more.
"This is a good idea because we only have so much money to subsidise the system, and it makes sense to spend more of the subsidies on more vulnerable commuters."
More households will qualify for vouchers, which will be worth $50 each, up from $30
By Toh Ting Wei, The Straits Times, 8 Oct 2019
A record total of 450,000 vouchers, worth $50 each, will be available to these households. This is up from the 300,000 vouchers, worth $30 each, set aside last year.
In addition, one in five households will be able to qualify for public transport vouchers, up from one in 10 previously, following revisions to the eligibility criteria.
The measures aim to help buffer the impact of increased public transport fares on needy commuters.
"The Government will ensure that sufficient assistance is available for commuters in need," the Ministry of Transport said in a statement yesterday.
It said that the public transport vouchers will also benefit eligible lower-wage workers and persons with disabilities.
Sources of income could refer to regular employment income, or income from rentals and pensions.
In contrast, under the 2018 Public Transport Voucher Exercise, only households with an income of $1,900 or below, or per capita income of not more than $650, are eligible for the vouchers.
The 2018 exercise, which commenced on Nov 12 last year, will remain open for applications until the end of this month.
Those who qualify for the vouchers can apply for them at their local community centre or club.
Mr Ang Hin Kee, an MP for Ang Mo Kio GRC and deputy chairman of the Government Parliamentary Committee for Transport, told The Straits Times: "My primary concern is with workers who may have to deal with higher costs.
"This has been mitigated by higher transport voucher quantum and eligibility."
Lower-wage workers will also get a 25 per cent discount off adult fares on public transport, up from 20 per cent.
The Transport Ministry said this will help keep average fares for them below 2015 levels.
Transport economist Walter Theseira said the way the fare increase was buffered for needy commuters suggested a move towards differentiated fares.
Associate Professor Theseira said: "The idea behind differentiated fares is that people who have the ability to pay will pay a bit more. And for those more vulnerable groups, the fare increase will be held down more.
"This is a good idea because we only have so much money to subsidise the system, and it makes sense to spend more of the subsidies on more vulnerable commuters."
Bus, train fares to rise by 7%: Poly students welcome extension of travel fare concessions
By Toh Ting Wei, The Straits Times, 8 Oct 2019
The extension of student concessionary fares to polytechnic and other diploma students will particularly benefit those who do not travel enough to justify getting a monthly concession pass, said students who welcomed the move.
Nanyang Polytechnic student Shanon Koh, 20, who is pursuing a diploma in biologics and process technology, said: "Currently, we have to opt for either the monthly concession or pay adult fees, which are very expensive for frequent commuters like us, especially since we are yet to become working adults."
Under the current system, students can pay up to $2.17 for a trip. With the new fare structure from Dec 28, fares for individual trips will be capped at $0.63, similar to that for students such as those in secondary schools. This means savings of up to $1.54 for each ride.
A monthly concession pass, which offers unlimited bus and train rides, currently costs $51. This will rise to $54 on Dec 28. Such passes tend to benefit heavy users, whereas moderate users are likely to gain from the lower cap for individual trips.
Ms Koh said: "This new fare structure will give students more flexibility to choose between concession and single trip fares. It will especially help those students who don't travel often to save a lot more."
However, Temasek Polytechnic student Filbert Lim, 20, said he was unsure if many students would benefit, with most of his friends already using concession passes.
"If the price for the monthly concession decreases as well, it would benefit more students," he added.
Nanyang Technological University transport economist Michael Li said the new measure will be financially viable to implement as trips taken by the students form only a small percentage of all the trips taken daily.
He added: "Students don't earn an income, they rely on their families. This is a policy that will help to relieve the pressure on families."
Other than polytechnic students, rail operators SBS Transit and SMRT Trains also welcomed the results of the review exercise.
Both had earlier applied to the Public Transport Council to increase train fares, on the back of mounting losses in recent financial years.
SMRT Trains chief executive officer Lee Ling Wee said the firm "appreciates the support".
Meanwhile, SBS Transit's senior vice-president for corporate communications Tammy Tan said the fare adjustment would help to mitigate cost pressures faced from increased repairs and maintenance.
Singapore University of Social Sciences transport economist Walter Theseira said this round of fare review would significantly help stem operators' losses.
He added that the fare formula will have to be modified in the future to take into account maintenance costs borne by operators so as to ensure sustainability.
But adult commuters such as postgraduate student Lydia Teo, 24, were frustrated at the increased fares they would have to pay.
"I think the nine cents increment will add up over time to become quite a burden for the average commuter," she said. "I would feel like the prices are more justified if they came with very visible benefits, such as the completion of the new Thomson-East Coast Line, but that hasn't happened yet."
By Toh Ting Wei, The Straits Times, 8 Oct 2019
The extension of student concessionary fares to polytechnic and other diploma students will particularly benefit those who do not travel enough to justify getting a monthly concession pass, said students who welcomed the move.
Nanyang Polytechnic student Shanon Koh, 20, who is pursuing a diploma in biologics and process technology, said: "Currently, we have to opt for either the monthly concession or pay adult fees, which are very expensive for frequent commuters like us, especially since we are yet to become working adults."
Under the current system, students can pay up to $2.17 for a trip. With the new fare structure from Dec 28, fares for individual trips will be capped at $0.63, similar to that for students such as those in secondary schools. This means savings of up to $1.54 for each ride.
A monthly concession pass, which offers unlimited bus and train rides, currently costs $51. This will rise to $54 on Dec 28. Such passes tend to benefit heavy users, whereas moderate users are likely to gain from the lower cap for individual trips.
Ms Koh said: "This new fare structure will give students more flexibility to choose between concession and single trip fares. It will especially help those students who don't travel often to save a lot more."
However, Temasek Polytechnic student Filbert Lim, 20, said he was unsure if many students would benefit, with most of his friends already using concession passes.
"If the price for the monthly concession decreases as well, it would benefit more students," he added.
Nanyang Technological University transport economist Michael Li said the new measure will be financially viable to implement as trips taken by the students form only a small percentage of all the trips taken daily.
He added: "Students don't earn an income, they rely on their families. This is a policy that will help to relieve the pressure on families."
Other than polytechnic students, rail operators SBS Transit and SMRT Trains also welcomed the results of the review exercise.
Both had earlier applied to the Public Transport Council to increase train fares, on the back of mounting losses in recent financial years.
SMRT Trains chief executive officer Lee Ling Wee said the firm "appreciates the support".
Meanwhile, SBS Transit's senior vice-president for corporate communications Tammy Tan said the fare adjustment would help to mitigate cost pressures faced from increased repairs and maintenance.
Singapore University of Social Sciences transport economist Walter Theseira said this round of fare review would significantly help stem operators' losses.
He added that the fare formula will have to be modified in the future to take into account maintenance costs borne by operators so as to ensure sustainability.
But adult commuters such as postgraduate student Lydia Teo, 24, were frustrated at the increased fares they would have to pay.
"I think the nine cents increment will add up over time to become quite a burden for the average commuter," she said. "I would feel like the prices are more justified if they came with very visible benefits, such as the completion of the new Thomson-East Coast Line, but that hasn't happened yet."
Related
2019 Fare Review Exercise: Enhanced Concessions for Polytechnic and other Diploma Students; Increased Assistance for Lower-Income Groups -8 Oct 2019
Public Transport Fares to Remain Affordable -8 Oct 2019
1 in 5 Resident Households to Benefit from Largest Public Transport Voucher Exercise to Date -8 Oct 2019
2019 Fare Review Exercise: Enhanced Concessions for Polytechnic and other Diploma Students; Increased Assistance for Lower-Income Groups -8 Oct 2019
Public Transport Fares to Remain Affordable -8 Oct 2019
1 in 5 Resident Households to Benefit from Largest Public Transport Voucher Exercise to Date -8 Oct 2019
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