Public transport fares to rise by 10 cents from 28 Dec: PTC grants overall 6% fare hike

Bus and train fares will increase by 10 cents per journey for adult commuters starting from 28 December 2024, following the Public Transport Council’s (PTC) announcement after its annual fare review exercise on Monday (9 September).

Concession card holders, including students, seniors, and people with disabilities, will see a smaller increase of 4 cents per trip. Commuters using monthly passes will not see any fare changes.

The overall fare adjustment is 6 per cent, lower than the maximum allowable 18.9 per cent increase. This marks a slightly smaller increase compared to last year’s hike. Despite this, a deferred fare quantum of 12.9 per cent remains, which will be addressed in future reviews.

Justification for the Fare Increase

The PTC explained that the fare hike was driven by factors such as core inflation, wage growth in 2023, and a drop in energy prices from their peak in 2022. The fare adjustment formula, which considers these factors, produced a 3.3 per cent increase.

However, adding the deferred quantum from previous years brought the maximum allowable fare adjustment to 18.9 per cent. To cushion commuters, the PTC decided to grant only a 6 per cent fare increase.

"The Public Transport Council understands Singaporeans’ concerns about cost of living. For the past few years, PTC has not granted the maximum allowable fare quantum because, as much as we can, we want to moderate the financial impact of fare increases on commuters," said Ms Janet Ang, Chairperson of the PTC.

"By granting a 6 per cent fare increment this year, we are reducing the deferred quantum from previous years, to narrow the gap between cost and fares where we can to maintain the financial sustainability of our public transport system."

Government Subsidy and Support for Rail Operators

To help offset the cost of the deferred fare quantum, the Singapore government has agreed to provide an additional subsidy of S$250 million in the coming year.

This is on top of the annual S$2 billion in operating subsidies already provided to maintain the public transport system and an additional S$900 million over eight years for the Bus Connectivity Enhancement Programme.

Both rail operators, SBS Transit Rail and SMRT Trains, had applied for the full 18.9 per cent fare increase, citing cost pressures due to inflation and the slow recovery of public transport ridership following the COVID-19 pandemic.

SBS Transit reported a loss of "several million dollars" in its train segment despite government support, while SMRT Trains posted an operating profit of S$6.2 million, which was also achieved with the aid of government subsidies.

As part of the fare review, SBS Transit Rail and SMRT Trains are required to contribute S$13.01 million of their expected revenue increase—S$3.05 million from SBS Transit Rail and S$9.96 million from SMRT Trains—to the Public Transport Fund.

This fund will provide Public Transport Vouchers (PTVs) to assist lower-income households in coping with the fare increases.

Extended Concession Period for Graduating Students

In addition to moderating the fare hike, the PTC introduced an extension of the student concession validity period by four months for graduating students.

This move, which follows feedback from parents and students, will help around 75,000 graduating students annually by allowing them to continue enjoying concessionary fares after completing their studies.

"We hope this will help families with graduating students save on their public transport expenses," Ms Ang said. "PTC will continue to ensure that fare adjustments are gradual and the impact on commuters is manageable, while keeping the public transport system financially sustainable."

Balancing Fare Affordability and Sustainability

While balancing the financial sustainability of the public transport system, the PTC emphasized the importance of keeping fares affordable.

The council encouraged frequent commuters, including those in concession groups such as students, seniors, and people with disabilities, to consider purchasing monthly passes to cap their transport expenses.

Looking ahead, the PTC said it will continue to weigh fare adjustments against operating costs to ensure a fair balance between fare affordability and the financial sustainability of Singapore’s public transport system.