http://www.channelnewsasia.com/news/singapore/from-april-a-2-8-hike-in/1605426.html
From Apr 5, adult card fares for buses and trains will increase by 2 to 5 cents, while student concessionary fares will increase by 1 cent. But some groups, including senior citizens, will be "insulated" from the hike, says the Public Transport Council.
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File photo of an SMRT bus and train in Singapore. (Photo: TODAY)
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SINGAPORE: There will be an overall increase of 2.8 per cent to public transport fares following the conclusion of the 2014 Fare Review Exercise, the Public Transport Council (PTC) announced on Wednesday (Jan 21).
This year's fare increase is "lower across the board", compared to last year, thanks in part to falling fuel prices in 2013. But energy costs are not the only consideration in the fare adjustment formula.
The Energy Index, which accounts for 20 per cent of the quantum, captures the cost changes in electricity and diesel. The formula also takes into account the Consumer Price Index and Wage Index - at 40 per cent each.
For this year's review, the Energy Index was -12.6 per cent, due to lower energy prices in 2013. But the Consumer Price Index went up by 1.7 per cent, while the Wage Index increased by 4.3 per cent.
This brings the fare adjustment quantum to -0.6 per cent. But taking into account a 3.4 per cent increase that was rolled over from the previous exercise, this year's fare adjustment is 2.8 per cent.
However, the PTC said more than 1.1 million commuters will not see any change to their fares. They include senior citizens, children below seven years old, low-wage workers, persons with disabilities and monthly concession pass holders.
Said PTC Chairman Mr Richard Magnus: “In approving the fare increase and deciding on the quantum, the Council made a concerted effort to minimise the impact on commuters, even to the extent of insulating some from the increase altogether. Overall, the fare adjustments for the 2014 fare exercise are lower than last year’s adjustments.”
He elaborated: "Is the fare affordable or not? Is the fare affordable for this category of persons or is the fare affordable for that category of persons? So we were very taken up with this particular question.
“The other aspect is we wanted to make sure that it is a balance with regard to looking at operators' cost. The reason for that is we also wanted to make sure that operations are sustainable, and the transport system in our country continues to be sustainable.
“We looked at last year's figures and the question was, 'Do we go up, keep the same, or can we go lower?' So we actually worked at it to see what would be the case. And we found in our calculations and looking at the various groups that we can go lower than last year. We can provide a lower across-the-board fare increase than last year.”
The Transport Ministry separately announced on Wednesday that fares for lower-wage workers and persons with disabilities will not increase, while the monthly concession pass for persons with disabilities will remain at S$60 per month.
FARE CHANGES FROM APRIL
From Apr 5 this year, adult card fares for buses and trains will increase by 2 to 5 cents, while student concessionary fares will increase by 1 cent, the PTC announced. Cash fares for adult bus and train rides will increase by 10 cents, while senior and student cash fares will remain unchanged.
The prices of all monthly concession passes for adults, National Servicemen and senior citizens will remain the same, it reiterated.
The PTC said bus and train fares will continue to be affordable, even for lower-income groups, as household income growth has generally outpaced household expenditure in public transport.
For instance, in 2013, the second quintile (the 21st to 40th income percentile) and second decile (11th to 20th income percentile) of households in Singapore spent 2.2 per cent and 3.1 per cent of their monthly income on public transport respectively. These were down from the 3.2 per cent and 4.6 percent respectively, in 2003, it said.
IMPACT ON OPERATORS
With the fare increments, the PTC said the two public transport operators - SBS Transit and SMRT - will have to contribute S$5.5 million and S$8 million respectively to the Public Transport Fund. The total of S$13.5 million is S$2 million more than their contribution last year, according to the press release.
The Government will utilise the Public Transport Fund to provide 250,000 Public Transport Vouchers to lower-income households to mitigate the increase in their travel expenditure, it added.
“I am always very concerned not only with making transport fares affordable, but making sure that our low-income families who need more assistance will be looked after,” Mr Magnus said. “The contributions to the Public Transport Fund by the operators will help defray the travel expenditure of these needy families.”
'PLEASED' VULNERABLE GROUPS NOT AFFECTED BY HIKES: LUI
Transport Minister Lui Tuck Yew said on Facebook that he was "pleased" that more than 1.1 million commuters, particularly more vulnerable groups like senior citizens and persons with disabilities, will not experience a fare increase.
"Looking at the overall outcome of this year’s fare adjustment exercise, I believe the Public Transport Council has achieved a good balance between keeping fares affordable for Singaporeans and maintaining the viability and sustainability of our public transport system," he wrote.
He added that the 250,000 public transport vouchers of S$30 will be provided to needy commuters, and the ministry aims to simplify the application process further.
"We also have other plans on the meaningful use of the Public Transport Fund and I will share these with you when we are ready," the minister said.
The Transport Ministry said that so far, there have been 207,000 applications for the previous batch of vouchers, of which 180,000 were redeemed. The public has until end-March to apply for these vouchers.
- CNA/kk/ms
From Apr 5, adult card fares for buses and trains will increase by 2 to 5 cents, while student concessionary fares will increase by 1 cent. But some groups, including senior citizens, will be "insulated" from the hike, says the Public Transport Council.
PHOTOS
VIDEOS
File photo of an SMRT bus and train in Singapore. (Photo: TODAY)
Enlarge
Caption
SINGAPORE: There will be an overall increase of 2.8 per cent to public transport fares following the conclusion of the 2014 Fare Review Exercise, the Public Transport Council (PTC) announced on Wednesday (Jan 21).
This year's fare increase is "lower across the board", compared to last year, thanks in part to falling fuel prices in 2013. But energy costs are not the only consideration in the fare adjustment formula.
The Energy Index, which accounts for 20 per cent of the quantum, captures the cost changes in electricity and diesel. The formula also takes into account the Consumer Price Index and Wage Index - at 40 per cent each.
For this year's review, the Energy Index was -12.6 per cent, due to lower energy prices in 2013. But the Consumer Price Index went up by 1.7 per cent, while the Wage Index increased by 4.3 per cent.
This brings the fare adjustment quantum to -0.6 per cent. But taking into account a 3.4 per cent increase that was rolled over from the previous exercise, this year's fare adjustment is 2.8 per cent.
However, the PTC said more than 1.1 million commuters will not see any change to their fares. They include senior citizens, children below seven years old, low-wage workers, persons with disabilities and monthly concession pass holders.
Said PTC Chairman Mr Richard Magnus: “In approving the fare increase and deciding on the quantum, the Council made a concerted effort to minimise the impact on commuters, even to the extent of insulating some from the increase altogether. Overall, the fare adjustments for the 2014 fare exercise are lower than last year’s adjustments.”
He elaborated: "Is the fare affordable or not? Is the fare affordable for this category of persons or is the fare affordable for that category of persons? So we were very taken up with this particular question.
“The other aspect is we wanted to make sure that it is a balance with regard to looking at operators' cost. The reason for that is we also wanted to make sure that operations are sustainable, and the transport system in our country continues to be sustainable.
“We looked at last year's figures and the question was, 'Do we go up, keep the same, or can we go lower?' So we actually worked at it to see what would be the case. And we found in our calculations and looking at the various groups that we can go lower than last year. We can provide a lower across-the-board fare increase than last year.”
The Transport Ministry separately announced on Wednesday that fares for lower-wage workers and persons with disabilities will not increase, while the monthly concession pass for persons with disabilities will remain at S$60 per month.
FARE CHANGES FROM APRIL
From Apr 5 this year, adult card fares for buses and trains will increase by 2 to 5 cents, while student concessionary fares will increase by 1 cent, the PTC announced. Cash fares for adult bus and train rides will increase by 10 cents, while senior and student cash fares will remain unchanged.
The prices of all monthly concession passes for adults, National Servicemen and senior citizens will remain the same, it reiterated.
The PTC said bus and train fares will continue to be affordable, even for lower-income groups, as household income growth has generally outpaced household expenditure in public transport.
For instance, in 2013, the second quintile (the 21st to 40th income percentile) and second decile (11th to 20th income percentile) of households in Singapore spent 2.2 per cent and 3.1 per cent of their monthly income on public transport respectively. These were down from the 3.2 per cent and 4.6 percent respectively, in 2003, it said.
IMPACT ON OPERATORS
With the fare increments, the PTC said the two public transport operators - SBS Transit and SMRT - will have to contribute S$5.5 million and S$8 million respectively to the Public Transport Fund. The total of S$13.5 million is S$2 million more than their contribution last year, according to the press release.
The Government will utilise the Public Transport Fund to provide 250,000 Public Transport Vouchers to lower-income households to mitigate the increase in their travel expenditure, it added.
“I am always very concerned not only with making transport fares affordable, but making sure that our low-income families who need more assistance will be looked after,” Mr Magnus said. “The contributions to the Public Transport Fund by the operators will help defray the travel expenditure of these needy families.”
'PLEASED' VULNERABLE GROUPS NOT AFFECTED BY HIKES: LUI
Transport Minister Lui Tuck Yew said on Facebook that he was "pleased" that more than 1.1 million commuters, particularly more vulnerable groups like senior citizens and persons with disabilities, will not experience a fare increase.
"Looking at the overall outcome of this year’s fare adjustment exercise, I believe the Public Transport Council has achieved a good balance between keeping fares affordable for Singaporeans and maintaining the viability and sustainability of our public transport system," he wrote.
He added that the 250,000 public transport vouchers of S$30 will be provided to needy commuters, and the ministry aims to simplify the application process further.
"We also have other plans on the meaningful use of the Public Transport Fund and I will share these with you when we are ready," the minister said.
The Transport Ministry said that so far, there have been 207,000 applications for the previous batch of vouchers, of which 180,000 were redeemed. The public has until end-March to apply for these vouchers.
- CNA/kk/ms
