Public Transport Fare Increases

Mr Gerald Giam Yean Song asked the Minister for Transport (a) what is the quantum of MRT and bus fare increases sought by each public transport operator in their latest submission; (b) whether the new fare subsidy schemes

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recommended by the Fare Review Mechanism Committee will be rolled out before any fare increases take place and all eligible commuters given ample time to apply for the subsidy schemes; and (c) how the Ministry will reach out to all commuters to ensure that they benefit from the subsidies they are eligible for.

The Public Transport Council (PTC) announced its decision on the 2013 fare adjustment last week. Although both public transport operators had applied for a fare increase of 6.6%, which is the combined fare cap for 2012 and 2013, the PTC approved an overall net fare increase of 3.2%, and rolled over the remaining 3.4% to the 2014 fare review exercise.

I would like to thank the Council for taking into consideration my earlier request during the November 2013 parliamentary sitting for the fare increase not to exceed the average national wage increase for 2013, which should come in at about 4-5%. The 3.2% fare increase is well below this and, hence, public transport fares will continue to be affordable for the average commuter.

At the same time, the PTC decided to implement several enhancements to existing fare concession schemes as recommended by the Fare Review Mechanism Committee (FRMC). Up to half a million commuters stand to benefit. These include young children, students, in particular, Polytechnic students, senior citizens and adult commuters who are heavy users of public transport.

The PTC decided that these enhancements will come into effect on the same day as the fare increase, that is, 6 April 2014.

On its part, the Government has decided to implement fare concession schemes for two groups of commuters who may be most impacted by the fare increase, that is lower-wage workers who are under MOM's Workfare Income Supplement (WIS) Scheme, and persons with disabilities.

Eligible recipients will be notified around 6 April to apply for the two concession schemes, which will take effect from 6 July 2014. Transport vouchers will be provided to help them for the interim period between the fare increase on 6 April, and 6 July when the concessions take effect. These being new schemes, we need more time to set up the frameworks and processes, and to cater to potentially half a million applicants.

Let me assure the Member that my Ministry, the public transport operators and TransitLink will extensively publicise the enhanced and new concession

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schemes in the coming weeks, so that potential beneficiaries are made aware and can apply for and enjoy the concessions.