Cost of Providing Free Transport for Older Singaporeans

Debated in Parliament on 20 Jan 2015.

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Seah Kian Peng asked the cost of providing free MRT and bus rides for Singaporeans aged 60, 65, and 67, and whether free transport could be considered for those 67 and older.
Lui Tuck Yew estimated annual costs at $200 million for all 580,000 senior cardholders aged 60+, $125 million for those 65+, and $95 million for those 67+, noting these are conservative as they exclude non-cardholders and could rise with increased travel demand.
Lui highlighted that seniors already receive discounts of 25–59% off adult fares and a monthly concession pass at $60, and expressed reservations about moving to completely free transport due to the significant additional cost to taxpayers and other commuters, though the issue would be revisited periodically.

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Seah Kian Peng

Mr Seah Kian Peng asked the Minister for Transport (a) what is the cost of providing free MRT and bus rides to all Singaporeans above 60 years old, 65 years old and 67 years old respectively; and (b) whether the Ministry will consider providing free transport to all Singaporeans above 67 years old.

Lui Tuck Yew

It is difficult to estimate the costs as the travel patterns of the senior citizen group can vary considerably with different policies in place and because we only have the data of those who hold the senior citizen concession card and not that of the entire senior citizen population.

That said, to give an idea of the costs for which the Member has requested, the annual cost of travel incurred by the 580,000 senior citizen card holders, all of whom are Singaporeans 60 years old and above, is about $200 million annually. If we look only at the card holders who are 65 years old and above, and 67 years old and above, the cost is about $125 million and $95 million respectively. With free travel, the travel patterns may change and the estimates may rise due to induced travel demand. Furthermore, the population of all Singaporeans 60 years old and above is about 660,000 today and rising, more than the 580,000 senior citizen card holders and, therefore, the estimates are on the low side.

Another consideration would be that all senior citizens who are 60 years old and above already enjoy today, generous discounts of 25% to 59% off adult fares, depending on the distance they travel. Senior citizens who travel frequently can also cap their public transport expenditure by using the monthly concession pass priced at $60.

Given these generous discounts and the significant additional cost taxpayers and other commuters will have to foot, I am not sure we need or should move to completely free travel for our senior citizens at this time. We will, however, revisit this issue from time to time and continue to pay very close attention to fare affordability for vulnerable groups of Singaporeans, including senior citizens.

Summary written by AI (learn more)

Seah Kian Peng asked the cost of providing free MRT and bus rides for Singaporeans aged 60, 65, and 67, and whether free transport could be considered for those 67 and older.
Lui Tuck Yew estimated annual costs at $200 million for all 580,000 senior cardholders aged 60+, $125 million for those 65+, and $95 million for those 67+, noting these are conservative as they exclude non-cardholders and could rise with increased travel demand.
Lui highlighted that seniors already receive discounts of 25–59% off adult fares and a monthly concession pass at $60, and expressed reservations about moving to completely free transport due to the significant additional cost to taxpayers and other commuters, though the issue would be revisited periodically.

Questions identified by AI (learn more)

Cost of Providing Free Transport for Older Singaporeans | PAPERCUTS

Cost of Providing Free Transport for Older Singaporeans

Debated in Parliament on 20 Jan 2015.

Summary written by AI (learn more)

Seah Kian Peng asked the cost of providing free MRT and bus rides for Singaporeans aged 60, 65, and 67, and whether free transport could be considered for those 67 and older.
Lui Tuck Yew estimated annual costs at $200 million for all 580,000 senior cardholders aged 60+, $125 million for those 65+, and $95 million for those 67+, noting these are conservative as they exclude non-cardholders and could rise with increased travel demand.
Lui highlighted that seniors already receive discounts of 25–59% off adult fares and a monthly concession pass at $60, and expressed reservations about moving to completely free transport due to the significant additional cost to taxpayers and other commuters, though the issue would be revisited periodically.

Questions identified by AI (learn more)

Full Transcript

Seah Kian Peng

Lui Tuck Yew

Summary written by AI (learn more)

Seah Kian Peng asked the cost of providing free MRT and bus rides for Singaporeans aged 60, 65, and 67, and whether free transport could be considered for those 67 and older.
Lui Tuck Yew estimated annual costs at $200 million for all 580,000 senior cardholders aged 60+, $125 million for those 65+, and $95 million for those 67+, noting these are conservative as they exclude non-cardholders and could rise with increased travel demand.
Lui highlighted that seniors already receive discounts of 25–59% off adult fares and a monthly concession pass at $60, and expressed reservations about moving to completely free transport due to the significant additional cost to taxpayers and other commuters, though the issue would be revisited periodically.

Questions identified by AI (learn more)

Cost of Providing Free Transport for Older Singaporeans

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Seah Kian Peng

Lui Tuck Yew

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Cost of Providing Free Transport for Older Singaporeans

Summary

Questions Identified

Full Transcript

Seah Kian Peng

Lui Tuck Yew

Summary

Questions Identified