Productivity Extraction Factor for Fare Revision Framework to Consider Operating Profits from Retail Operations of Public Transport Operators

Mr Dennis Tan Lip Fong asked the Minister for Transport whether the current Productivity Extraction Factor for the Fare Revision Framework takes into consideration operating profits from retail operations of the public transport operators.

The Productivity Extraction factor in the fare formula is designed to allow the productivity gains of the public transport operators (PTOs) to be shared with commuters through lower fare adjustments. Productivity gains are measured in terms of the change in value-add per employee, and takes into consideration the PTOs' operating profits, including the profits from their retail operations.