Adult concession pass offers modest S$12 monthly savings on average, reveals Transport Minister

Workers’ Party Member of Parliament for Sengkang GRC, Mr Chua Kheng Wee Louis, raised questions in Parliament on 13 November 2024 about public transport costs borne by Singaporeans.

His inquiry focused on the monthly public transport expenditure of adult commuters, the criteria behind the Adult Monthly Travel Pass (AMTP) pricing, and the average savings the pass offers its users. The inquiry coincides with an impending fare adjustment announcement set to take effect from 28 December 2024.

Transport Minister Chee Hong Tat, in a written response, noted that public transport in Singapore receives significant government subsidies to maintain affordability for residents.

According to Minister Chee, the average monthly public transport expenditure for adult commuters is approximately S$45, based on per-card usage.

In contrast, adult commuters who hold the AMTP, which is priced at S$128, would have an average monthly expenditure of S$140 without the pass.

According to Chee, the AMTP is designed for regular, heavy users of public transport, and its pricing is reviewed annually by the Public Transport Council (PTC) as part of its routine Fare Review Exercises.

For the upcoming fare review, the AMTP cost will remain at S$128.

6 per cent fare hike from 28 December

Following the recent fare review completed by the PTC on 9 September 2024, new fare adjustments were announced.

Starting 28 December, bus and train fares for adult commuters will increase by 10 cents per journey. This hike forms part of a broader fare adjustment initiative, amounting to an overall increase of 6 per cent, which remains below the maximum allowable hike of 18.9 per cent.

For concession card holders, including students, senior citizens, and persons with disabilities, fares will rise by a lesser amount of 4 cents per trip. Notably, commuters who hold monthly passes, such as the AMTP, will not experience any fare changes due to the current review.

The PTC explained that the fare increase is partly driven by economic factors, including Singapore’s core inflation and wage growth in 2023, alongside a decline in energy prices from the previous peak levels seen in 2022.

The PTC’s fare adjustment formula, which integrates these factors, indicated a potential increase of 3.3 per cent. However, incorporating deferred fare adjustments from past years allowed for a maximum fare increment of 18.9 per cent.

The PTC chose to limit the fare increase to 6 per cent to mitigate the impact on commuters, leaving a remaining deferred fare quantum of 12.9 per cent to be reviewed in future assessments.

Ms Janet Ang, Chairperson of the PTC, commented on the fare adjustment process, stating, “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.”

Ms Ang, a former Nominated Member of Parliament, further explained that this year’s fare increment aims to gradually address the financial gap between operational costs and fare prices. She stressed the importance of financial sustainability in ensuring the viability of Singapore’s public transport system.