Fare Review Exercise 2019: Bus, train fares to rise by 7% from 28 Dec 2019 but more to enjoy concessions

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."

Fare Review Exercise 2018: Bus and train fares to increase by 6 cents from 29 December 2018

Card fare hike for students, seniors capped at 1 cent; increase will bring in extra $78.2 million
By Christopher Tan, Senior Transport Correspondent, The Straits Times, 31 Oct 2018

Bus and train fares will rise by six cents per trip from Dec 29, when the latest annual revision approved by the Public Transport Council (PTC) kicks in.

Announcing the changes yesterday, the PTC said student and senior citizen card fare increases will be capped at one cent, while their cash fares will remain unchanged.

The rise for lower-wage workers and people with disabilities will also be capped at one cent.

Single-trip train fares and adult cash bus fares - which are paid by around 2 per cent of commuters - will rise by 10 cents.

The adjustments will translate to an increase of $78.2 million in fare revenue for public transport operators next year. Out of that, train revenue will rise by $35 million - with SBS Transit seeing a $10.9 million increase and SMRT seeing a $24.1 million hike.

The Land Transport Authority, which administers bus contracts, gets the remaining $43.2 million.

PTC chairman Richard Magnus pointed out that this additional revenue would not be enough to offset the $1 billion annual bus subsidy that the Government expects to pay for the next five years.

Even so, he said the council had sought to "narrow the gap between cost and revenue", while keeping in mind the interest of commuters.

He said fares had fallen by a total of 8.3 per cent between 2015 and last year. And based on feedback it gathered from 10,400 people, the PTC said 70 per cent of commuters found public transport fares to be affordable, and 60 per cent said they were willing to bear a higher fare increase to mitigate the impact on more vulnerable groups.

This year's fare adjustment took into account a new component: Network Capacity Factor (NCF), which calculates the difference between transport supply and commuter demand. This will tend to push fares higher if more transport capacity is created and demand does not catch up. Regular components include changes in core inflation, wages and energy cost.



This round, the NCF - which factored in additional buses pumped into the network last year and the first two stages of the Downtown MRT Line - contributed 3 percentage points to a 7.5 per cent increase the formula allowed. However, a carry-over reduction of 3.2 per cent from last year's adjustment means the latest increase comes up to 4.3 per cent, or six cents per trip for ez-link card users.

With Singapore's rail network doubling by 2030, Mr Magnus was asked if that meant commuters will have to brace themselves for larger fare increases in future. He said much depends on whether growth in demand matches growth in supply, but added: "I don't think there will be a fare reduction next year."

Transport Minister Khaw Boon Wan, in a Facebook post yesterday, said the PTC had a difficult job.

"PTC's decision on fares seldom pleases all," he said. "Commuters do not welcome fare increases; operators need fare adjustments to keep pace with their operating costs. Against such challenges, PTC has chosen the right strategy to be open, transparent and fair."

National University of Singapore transport researcher Lee Der-Horng described the latest increase as "manageable".

"The important thing is we have a workable mechanism for fare adjustments," he said, explaining that PTC's formula "is effective and able to reflect the interests of relevant stakeholders".

Singapore public transport system tops global list: McKinsey & Company; Fares 2nd most affordable among major cities: NTU study

McKinsey June 2018 report lauds system's affordability and efficiency, finds residents highly satisfied
By Derek Wong, The Straits Times, 23 Aug 2018

Singapore residents are highly satisfied with the public transport system, which is among the best in the world, based on a report by consulting firm McKinsey.

The June report, called Elements Of Success: Urban Transportation Systems Of 24 Global Cities, also lauded the transport system's affordability and efficiency.

The level of satisfaction with the public transport situation in Singapore was 86 per cent among those surveyed, added the report.

"The residents greatly appreciate their transport system and how it has evolved over the last (few) years - they are the most satisfied on 13 out of 14 aspects analysed," said the report. It added that electronic services such as trip planners are what residents in Singapore enjoy most.

The 24 major cities featured in the report include Shanghai, London, Seoul and New York, and were selected based on size, level of economic development, transportation system characteristics and data availability.

Four of them - Berlin, Hong Kong, Shanghai and Singapore - were chosen because their transportation systems are considered outstanding by external institutions such as the TomTom Traffic Index.

The five metrics used to measure the transportation systems were: availability of transportation, affordability, efficiency, convenience and sustainability.

Based on these metrics, Singapore's overall transport system was ranked first among the cities studied. Its public transport system was ranked second, after Hong Kong.

The report said: "If we were to derive the formula for an ideal transport system, it would be as available as in Paris, as affordable as in Singapore (where public transport is very affordable despite high barriers for car usage), as efficient as in Seoul, as convenient as in Toronto, and as safe and sustainable as in Hong Kong."

It added that the fare review and new measures introduced in Singapore in 2013 were a major step towards affordability. These included a 15 per cent discount on adult fares for low-wage workers, free travel for children and seven other concessions which benefited more than a million passengers, the report said.

It also lauded the convenience and flexibility of the ticketing system as another "outstanding feature", and made reference to the ez-link card.

The study conducted a survey of 400 people in each of the 24 cities, with respondents matched to the age-gender ratio of the cities.

It asked them how satisfied they were with their transportation system right now, and with the changes they have seen in the past three to five years.

Fare Review Exercise 2017: Tap-in at any rail station before 7.45am and get fare discount of up to 50 cents from 29 December 2017

Cheaper MRT rides for pre-peak weekday travel
Discount of up to 50 cents will apply from Dec 29 at all stations; two existing trials to end
By Sue-Ann Tan and Zhaki Abdullah, The Straits Times, 31 Oct 2017

From Dec 29, commuters who start their journeys at any of the 157 MRT and LRT stations before 7.45am on weekdays will see their fares discounted by up to 50 cents.

The Public Transport Council (PTC) announced this yesterday as part of its annual transport fare review. It also said other transport fares will not be adjusted for now.

Under the new initiative, a commuter who taps into Beauty World station before 7.45am to travel to Tan Kah Kee station will see his fare reduced from 87 cents to 37 cents.

A student with concession fares, who pays 42 cents for the same journey, will pay nothing for his ride from Dec 29. The same would apply to any commuter whose ride costs less than 50 cents.

The discount is also being extended to low-wage workers and people with disabilities, who already enjoy discounts under two concession schemes.

The new initiative will mark the end of two existing trials to encourage off-peak travel.

One of these is the Free Pre-Peak Travel scheme, which allows those who reach any of 18 MRT stations in the city area before 7.45am to have free rides. It is used by 65,000 commuters and has resulted in a sustained 7 per cent drop in peak-hour rail commutes.

Another 13,000 use the Off-Peak Pass, which, at $80 a month, allows adult commuters to have unlimited bus and train rides during off-peak hours on weekdays and all day on weekends and public holidays.

Both schemes end in December.

PTC chairman Richard Magnus said the move to reduce pre-peak fares across the board will benefit around 300,000 commuters - or about 10 per cent of all rail commuters - who already travel before the morning peak.

The council hopes it will encourage an additional 300,000 to start travelling earlier, said PTC chief executive Tan Kim Hong.

Mr Magnus added: "Spreading out travel demand in this way will also make more efficient use of our public transport system, as capacity during off-peak periods will be better utilised."



Mr Sitoh Yih Pin, chairman of the Government Parliamentary Committee for Transport, said that while any fare reduction was good, it was too early to say that it would make people change their travel patterns.

"Different commuters will have different considerations," he said, adding that he hoped peak-hour travel would be reduced.

Budget 2017 Committee of Supply Debate: MOH, MCCY, MOT, MEWR, MSF

$75.1 billion Budget passed; Budget debate breaks six-year record with 545 questions filed
By Charissa Yong, The Straits Times, 10 Mar 2017

The 2017 Budget debate ended yesterday with a record.

A total of 545 questions, or cuts in parliamentary parlance, were filed during the marathon debate - the most in six years.

It was also 9 per cent more than last year's 499 cuts, Leader of the House Grace Fu noted as she wrapped up the eight-day debate on the Government's financial plans for the year.

"This speaks to the scale of the challenges we face, and the dedication of the Members," she added.

Jobs, the economy and infrastructure topped MPs' concerns as the Budget was delivered amid an increasingly uncertain world economy affected by the rise of populism and protectionist sentiments.

Inevitably, the Manpower Ministry topped the list on total speech time for the cuts filed, followed closely by the Ministry of Trade and Industry. The National Development Ministry and Education Ministry were not far behind.

The order reflects the overriding issues of today - helping out-of-work Singaporeans find jobs as layoffs hit a seven-year high and job vacancies dipped last year, and being ready for tomorrow.

Said Ms Fu: "Preparing for the future economy does not only involve our businesses and workforce, it requires our young and our city to be resilient and future-ready."

Both she and Speaker of Parliament Halimah Yacob seemed struck by how MPs from both sides of the House championed the cause of the worker.

The two sides also stood united behind Singapore's foreign policy goals, prompting Madam Halimah, who has been Speaker for four years, to remark: "There was a noticeable convergence of views from both the Government and opposition when it came to protecting our sovereignty."

Both women observed how some MPs were visibly moved when relating the hardships of Singaporeans seeking work.

"Tears were shed, not once but three times," said Ms Fu, referring to how Manpower Minister Lim Swee Say struggled to compose himself as he described the challenges a single mother with brain tumour overcame to land a job.

But the sittings were not without levity, and many chuckled when Madam Halimah said: "If only Members could learn to do away with long preambles and go straight to the point raised in their questions and clarifications, they would not need to deliver their speeches at breakneck speed."

It appears to be an annual problem. Thanking the MPs, the Speaker added: "It is your contributions and understanding that have made this debate outstanding in many respects... although at times my deputies and I had to intervene to remind you of your allotted time.

"Very gently, most times."

Train fares in Singapore among the lowest in major cities worldwide: Public Transport Council

By Adrian Lim, The Straits Times, 6 Dec 2016

Train fares in Singapore are among the lowest, compared to other major cities worldwide.

For a 10km rail trip, commuters here pay $1.33, the sixth cheapest in a comparison of 36 cities across Asia, Australia, Europe and North America, according to a study. Only Shanghai, Beijing, Guangzhou and Shenzhen in China, and Taipei in Taiwan, have lower fares than Singapore for a train trip of the same distance.

The study, conducted by SIM University, was released by the Public Transport Council (PTC) on its blog yesterday.

PTC chairman Richard Magnus said in the post: "We will continue to conduct such comparison studies, to ensure that we are kept abreast of international fare trends and uphold PTC's commitment to keep fares affordable for our commuters, while ensuring the sustainability of our public transport system."

Besides comparing fares for a 10km train trip, the study also looked at the lowest rail fare in the 36 cities. Singapore's lowest train fare is $0.77, placing it fourth among the 36 cities. Only Guangzhou, Shenzhen and Taipei have a lower minimum fare.

Mr Magnus said of the findings: "Within Asia, the rail fares in Singapore are among the lowest, while rail fares in cities like Tokyo and Seoul lie on the higher end of the spectrum in Asia."

He added: "When compared to cities in Australia, Europe and North America, rail fares in Singapore are considerably lower."

With the exception of Taipei, fare levels for the cities were converted to Singapore dollars based on each city's purchasing power parity (PPP). This accounts for any differences in the strength of currency and cost of living across the region.

Bus, train fares to be cut by up to 27 cents from 30 Dec 2016

Annual fare review: Bus, train fares to go down 4.2% as system is simplified
Fares based on shortest route; no difference between underground and above-ground lines
By Adrian Lim, The Straits Times, 28 Oct 2016

Public transport fares will have their deepest cut in years from Dec 30, even as the system for calculating them is radically simplified.

Fares will be levelled down so commuters pay the same amount for the same distance, regardless of whether they hop on a train line that is underground or above-ground.

They will also be charged on the basis of the shortest route between boarding point and destination. Till now, fares have been based on the fastest travel path, not the shortest.

As a result of last year's falling oil prices, and calculated through the new system, bus and train commuters will enjoy an overall fare cut of 4.2 per cent from Dec 30, the Public Transport Council (PTC) announced yesterday. It is the biggest reduction in recent years, after 2009's fare cut of 4.6 per cent.

The last major change to the fare structure was in 2010, when distance-based fares were rolled out, helping those making transfers.

For adults using travel cards, the fare adjustments will mean savings of between one and 27 cents for a journey. Senior citizens will have their fares lowered by one to seven cents, and students by one cent across the board.

Fares for fully-underground rail lines, such as the North-East Line (NEL), Circle Line and Downtown Line, will be lowered to be the same as those for above-ground lines, such as the North-South and East-West lines.

Trips on fully underground lines currently cost five to 25 cents more for adult commuters, but this differential - to reflect higher operating costs such as air-conditioned station platforms - will be removed. This higher charge started in 2003, with the opening of the NEL.

PTC chairman Richard Magnus said commuters will benefit as more new fully underground lines are opened in the coming years.

The move will better distribute commuters across the MRT network, as some take above-ground lines only for savings, the PTC said.

"Commuters will enjoy more flexibility in choosing the most convenient travel path, without worrying they have to pay more," PTC said. This will result in commuters always paying the lowest fares possible.

The PTC is guided by a fare adjustment formula in its annual fare review. While the allowable fare reduction this year is 5.7 per cent, the PTC decided to grant only a 4.2 per cent cut out of prudence.

Downtown Line 2 starts 27 Dec 2015

MRT's Downtown Line 2 a step towards 'car-lite' Singapore, says PM Lee
Republic has invested heavily to make public transport world class and people's choice
By Janice Tai, The Sunday Times, 27 Dec 2015

The 12-station Downtown Line 2 (DTL2), which comes online today, has been described by Prime Minister Lee Hsien Loong as a step towards a "car-lite" Singapore.

Two million people already take the bus or train twice or more each day, according to the Land Transport Authority (LTA). That works out to about two out of every five people in Singapore.

"Public transport is the most efficient way for our people to get around in a compact city like ours," said PM Lee, as he opened the new line yesterday during a ceremony at Botanic Gardens Station, one of the stops on DTL2.

"Ultimately we aim to make Singapore a safe, green, car-lite city."

The country has been investing heavily to make public transport accessible and convenient in the last decade, said Mr Lee, so that it will become people's mode of choice for transport. With a new MRT line and extension to be opened almost annually from next year onwards, the rail network will double to 360km by 2030. It will be comparable to those in London, New York and Tokyo, he added. This means that eight in 10 homes will be within a 10-minute walk of a train station.

"From now till 2019, we are also adding 99 new trains. The Sengkang-Punggol LRT system is also currently being upgraded," said the Prime Minister. "And equally important, we are investing heavily in infrastructure and maintenance improvements to reduce train disruptions to make for a more reliable public transport system.

"We are good, notwithstanding the incidents we have from time to time, but we are far from as good as we want to be, as we can be and as some others are. We want to be world class and we are working hard to get there."

There will be free rides on the Downtown Line from Dec 27 to Jan 1, and to help with overcrowding, extra staff will be deployed to the stations, said Transport Minister Khaw Boon Wan. bit.ly/1makeqF(Video: Kenneth Lim)
Posted by Channel NewsAsia Singapore on Friday, December 25, 2015

Close to 30 schools are within a 10-minute walk of stations along DTL2's route, which starts in Bukit Panjang and passes through the Bukit Timah corridor towards Rochor before connecting to Downtown Line 1 at Bugis Station.

With the new line, PM Lee expressed his hope that morning jams along Bukit Timah Road will become a thing of the past.

Public transport concessions extended to private and home-school students

More students to enjoy transport concessions
Singaporeans taking tertiary courses, or pursuing N, O or A levels, at private schools can benefit
By Zhaki Abdullah, The Straits Times, 8 Dec 2015

Students taking tertiary courses at private schools such as the Singapore Institute of Management will soon enjoy the same public transport concessions as their peers in government institutions, following concessions to polytechnic students in 2014.

The concessions will be extended to Singapore citizens taking diploma or degree courses, with a course duration of at least 24 months, at private schools recognised by the Council for Private Education.

Also eligible for the concessions are Singapore citizens aged 20 and below who are pursuing their N, O or A levels, or the International Baccalaureate, at private schools.

Home-schooled students pursuing these qualifications are also eligible, as are those taking special education courses at private schools.

These concessions will be in the form of monthly passes for unlimited rides on buses and trains. These range from $27.50 a month for secondary-level students to $85 a month for undergraduates.

Even if they choose not to get the passes, secondary-level students can still enjoy lower prices for public transport trips via ez-link cards, though they will not enjoy unlimited rides.

TransitLink will update private schools on when students can apply for the concessions. Home-schooled students can contact TransitLink directly to apply.

There are currently 77,000 students pursuing tertiary education at private institutions, and 2,133 students sat their O levels last year as private candidates.

Concessionary fares were previously available mainly to students in government institutions, and to groups like primary-level pupils who are home-schooled or in private schools.

Lower bus, train fares from 27 Dec 2015 after latest review

Reduction is maximum 1.9% allowed and will coincide with opening of Downtown Line 2
By Christopher Tan, Senior Transport Correspondent, The Straits Times, 24 Oct 2015

Bus and train fares will drop by up to four cents per journey from Dec 27, the Public Transport Council (PTC) announced yesterday after its latest annual review.

The adjustment, which takes into account last year's drop in energy prices, is timed to coincide with the opening of Downtown Line 2, and is four months earlier than usual.

The reduction is the maximum 1.9 per cent allowed in a fare formula that weighs inflation, wages and fuel or energy prices. It will impact SBS Transit's revenue by $15.7 million, and SMRT's by $20.4 million.

The cut follows substantial rises granted in two previous adjustments, which saw fares rising by 3.2 and 2.8 per cent respectively.



From Dec 27, card-paying adults will see their fares drop by one to four cents per journey, while students and senior citizens will see cuts of one to two cents. A family of two adults and two school-going children could see its fare expenditure fall by more than $86 next year.

PTC chairman Richard Magnus said: "This year's decision to reduce fares for commuters is in line with the negative quantum yielded by the fare adjustment formula due to lower energy prices. We have decided to grant the full quantum of reduction to benefit commuters and to keep fares affordable."

Low-wage workers will pay one to four cents less, while people with disabilities will pay one to two cents less. But monthly concession and off-peak passes for the latter group will remain unchanged at $60 and $40 respectively. Both groups will continue to get 15 to 25 per cent fare concessions.

Commuters who pay cash, said to constitute merely 3 per cent of the total, will not see any reduction. Mr Magnus said this was to encourage people to pay by card.

12 stations of Downtown Line 2 to open on 27 December 2015

Phase 2 of Downtown Line to open on Dec 27
It will offer quicker access to CBD and Marina Bay for commuters in the north-west
By, Adrian Lim, The Straits Times, 7 Aug 2015

Commuters in the north-west, including Bukit Panjang, will have quicker access to the Central Business District and Marina Bay from Dec 27 with the opening of the second phase of the Downtown Line (DTL).

The 16.6km, 12-station stretch, operated by SBS Transit, will run through areas like Hillview, Beauty World, King Albert Park, Little India and Rochor, before connecting to the six-station DTL1, which opened in 2013. Travel time for commuters is expected to be cut by up to 40 per cent. For example, a trip from Bukit Panjang to Bugis, which now takes about 50 minutes, will be cut to 30 minutes.

Connectivity to other rail lines such as the Bukit Panjang LRT, Circle Line, North-East and North- South Lines, will also be boosted with four interchange stations at Bukit Panjang, Botanic Gardens, Little India and Newton.

Transport Minister Lui Tuck Yew, who announced the opening date yesterday during a visit to Gali Batu depot, which is the main stabling and maintenance facility for the DTL, said commuters will get to travel for free on the line for "a period of time" as they familiarise themselves with the new network.

Commuters can also expect bus and train fares to be reduced by up to 1.9 per cent from Dec 27.

Mr Lui had said on Monday that fares would be revised along with the opening of DTL2.

There will be a total of 45 trains running on the DTL network, up from six currently serving the first phase.

The six stations have an average daily ridership of 67,000 as of the first quarter of the year. The entire Downtown Line, with the third phase opening in 2017, is expected to have a daily ridership of 500,000.

Calling DTL2's opening a "major milestone", Mr Lui noted that it would mean the rail network would have grown by a third over the last four years.

There will be a total of 157 train stations, up from 117 stations at the end of 2010, Mr Lui said, adding that six in 10 households will be within a 10-minute walk to a station.

Bus, train fares to be lowered at end of year

Commuters will see fares cut by up to 1.9%, thanks to sliding fuel costs: Lui Tuck Yew
By Danson Cheong, The Straits Times, 4 Aug 2015

Bus and train fares will be reduced by up to 1.9 per cent in December, as a result of falling fuel costs.

Transport Minister Lui Tuck Yew, announcing this yesterday, said the annual fare revision, which is usually carried out in April, will be brought forward to coincide with the opening of the second phase of the Downtown Line.

"I've asked the Public Transport Council (PTC) to initiate the process of kicking off the fare exercise for 2015... I encourage the PTC to pass on the 1.9 per cent reduction fully to commuters so they can enjoy the benefits of it," said Mr Lui at One-North MRT station after taking a ride on one of seven new Circle Line trains deployed since June.

He added that he would leave it to the PTC to work out the specific reductions but expects every commuter group to pay lower fares.



This is the first time fares have been reduced since 2010. Earlier this year, fares went up by 2.8 per cent, with most adult commuters paying four or five cents more per ride, despite the fare formula allowing for a reduction of 0.6 per cent. This was because the fare increase from last year was split over two years to cushion the impact for commuters.

Mr Lui had indicated in January that fares could be reduced "in the region of negative 1 per cent", due to the drop in energy prices last year. In the last year alone, oil prices have plunged about 60 per cent.

The annual fare revision exercise is based on a formula that takes into account changes in inflation rate, wages and an energy index that charts oil and electricity costs. The first two components are given a 40 per cent weighting each, while energy has a 20 per cent weighting.

The reduction in fares comes as public transport operators have been battling a series of breakdowns, with the most severe one happening just last month, when two MRT lines were shut down for more than two hours.

Associate Professor Terence Fan, a transport specialist from the Singapore Management University, said it was "fortunate" that the timing of the fare revision was brought forward.

"I think this is a nice gesture in view of the latest disruptions," said Prof Fan, but he added that commuters faced a "trade-off" if fare adjustments were brought forward or done more regularly.

"If you want the fare adjustment to be reviewed more regularly, then if oil prices go up - the fare prices will go up quickly too," he said.

Off-Peak Pass for public transport starts 5 July 2015

Off-Peak Pass (OPP) Available for Purchase from 28 June 2015

Public transport fares to increase by 2 to 5 cents from 5 April 2015

Bus, train rides to cost a few cents more from April
2.8% overall rise in fares as part of 2014 hike is carried over to this year
By Christopher Tan, Senior Transport Correspondent, The Straits Times, 22 Jan 2015

MOST card-paying adult commuters will pay four or five cents more for each bus and train ride from April 5.

For short trips, the hikes are just two or three cents.

Those using cash will have to fork out 10 cents more per ride.

Students will pay one cent more while senior citizens, low-wage workers and persons with disabilities will have their fares frozen.

The revision is part of an overall 2.8 per cent rise in fares that the Public Transport Council announced yesterday.

Based on 2013 data alone, the fares would have been cut 0.6 per cent. But because 3.4 per cent of a 6.6 per cent rise approved last year was carried over to this year, the adjustment this year becomes a 2.8 per cent increase.

As before, it is based on a formula that takes into account changes in inflation rate, wages and an energy index that charts oil and electricity costs. The first two components are given a 40 per cent weighting each, while energy has a 20 per cent weighting.

A productivity extraction of 0.5 per cent is then deducted from the derived figure. This is to allow commuters to share in the transport operators' productivity gain.

The revision will result in the two transport companies raking in $48.5 million more in revenue a year.

But each will have to contribute to the Public Transport Fund to help needy families cope with the fare hikes. SBS Transit will have to contribute 25 per cent or $5.5 million of its $21.9 million revenue gain. SMRT Corp will have to give 30 per cent or $8 million of its $26.6 million foreseeable gain.

Council chairman Richard Magnus said the size of the clawback hinges on the firms' profitability.

"It's a judgment call," the former senior district judge said. "The formula allows for a clawback of up to 50 per cent."

Besides the Public Transport Fund, which helps those with a household income of less than $1,500 a month, three other concessions remain in place.

Families that do not earn more than $1,900 a month, commuters with handicaps and senior citizens are among 1.1 million people who will not see a fare rise.

That aside, a government-funded Off-peak Monthly Travel Pass will also be rolled out from July 5. On trial for two years, this is another scheme to get commuters to travel outside peak periods.

Adult citizens and permanent residents can buy the monthly pass at $80, which allows them unlimited travel outside the peak hours of 6.30am to 9am and 5pm to 7.30pm on weekdays. There are no restrictions on weekends and public holidays. The pass costs $40 for persons with disabilities and senior citizens.

Perception v reality in public transport fare hike

By Christopher Tan, Senior Transport Correspondent, The Straits Times, 22 Jan 2015

HOW will the latest public transport fare revision affect you?

The Public Transport Council (PTC) yesterday said it had decided on an overall fare increase of 2.8 per cent. But fares for more than 1.1 million commuters won't change, as fares were frozen for senior citizens and concession pass holders.

So the actual impact of fare increases will depend on the profile of your family.

A typical household with two working adults and two school-going children who each make two trips a day is likely to see a $7.20 rise in monthly transport expenditure. While that may not sound like much, it is sizeable for a one-year rise when you compare it to the average increase experienced by households between 2007/8 and 2012/13.

According to the Department of Statistics, the increase in transport expenditure over that five-year period was merely $10 - from $160 to $170 a month.

That would work out to be an average increase of only $2 per year.

But of course averages do not always tell the whole story. For instance, if a household consists of two retirees and their unmarried son who earns less than $1,900 a month, it would see zero increase in bus and train fares this year, thanks to fare concessions.

If the policy to help vulnerable groups continues, it is possible that low-wage workers and persons with disabilities will not have to incur more on transport fares for many more years to come.

Of course, their cost will be borne by other commuters. Well, mainly able-bodied adults holding down relatively well-paying jobs.

Public transport companies - which pay their shareholders millions in dividends a year - are also required to share the social responsibility.

Up to half of their revenue gains from a fare increase will be clawed back and put into a fund to help the poorest commuters defray the cost of a fare hike.

This stronger social safety net was put in place two years ago by the Fare Review Mechanism Committee headed by Mr Richard Magnus, under the direction of Transport Minister Lui Tuck Yew.

That is why going forward, adult fares are likely to rise by bigger quantums than in the past.

It may sound unfair, but it is actually more socially equitable than previously, when a fare increase cut across a wide spectrum of the community.

Keep public transport affordable, urges Transport Minister Lui Tuck Yew ahead of 2015 fare review

Cushion vulnerable groups from impact of hikes, urges minister ahead of fare review
By Lester Hio, The Straits Times, 20 Nov 2014

PUBLIC transport must remain affordable to all Singaporeans, Transport Minister Lui Tuck Yew said last night at the start of this year's fare review exercise.

Mr Lui wrote in a Facebook post that he hopes the Public Transport Council (PTC) will study whether it is possible to insulate vulnerable groups such as senior citizens from a fare increase - or at least mitigate the impact on them.



He also said the Land Transport Authority has been tasked with studying ongoing travel demand management efforts and encouraging more commuters to travel during off-peak hours.

To achieve the latter, he suggested: "Perhaps the Government can introduce off-peak monthly passes which should also help reduce the travel expenditure for this group of commuters."

Public transport operators may submit fare review applications to the council for consideration by Dec 19.

Results will be announced in the first quarter of next year.

A PTC spokesman said that evaluations will be guided by the fare review mechanism and fare adjustment formula recommended by the Fare Review Mechanism Committee, and accepted by the Government, in November last year.

These include lower fares for lower-wage workers and the disabled, concessions for polytechnic students, free travel for children below seven years old, and the introduction of an adult monthly travel pass which offers unlimited travel for $120.

However, last year's changes also increased fares by 6.6 per cent in two phases - 3.2 per cent from April this year, and 3.4 per cent next year. The forthcoming review could further revise next year's prices.

SBS, SMRT raising fares for premium services

Higher operating costs cited as reason; three private firms set to follow suit
By Royston Sim, The Straits Times, 12 Jul 2014

COMMUTERS using non-basic bus services run by SBS Transit and SMRT can expect higher bus fares from Aug 3.

The two public transport operators announced yesterday that they will be raising prices to reflect higher operating costs.

And at least three private operators that run premium buses have also applied to the Public Transport Council (PTC) to raise fares, while two others said they do not intend to do so for now.

SBS Transit will lift fares on 41 non-basic bus routes - its Nite Owl, Parks, Chinatown Direct and premium services. The increase will range from 10 cents to 70 cents, depending on the route.

SMRT will increase adult fares by 50 cents to $1 on 15 of its premium, Bus-Plus and Weekend Bus services.

SBS Transit spokesman Tammy Tan said: "The revision comes amid rising operating costs including higher manpower, repairs and maintenance and depreciation costs."

Fares on SBS Transit's 31 premium bus services will go up by 20 to 70 cents. For instance, service 538 from Pasir Ris will cost $4.50, up from $3.80.

Senior citizens with concession cards will have to pay five to 10 cents more on park service 408 as well as Nite Owl and Chinatown Direct routes. The student concession fare is five cents more.

However, one group of commuters will pay less. Children under seven will enjoy free travel on those 10 SBS Transit services, but those taller than 0.9m will need a valid child concession card.