Debated in Parliament on 5 Feb 2024.
Mr Saktiandi Supaat asked the Minister for Transport (a) what enhancements has LTA made to SimplyGo since its launch in 2019; (b) whether LTA is aware that SimplyGo does not display fare deductions and card balances since 2019 and how has LTA tried to address this; (c) what public consultation was done before LTA’s initial decision for public transport fare payments to transit to SimplyGo by 1 June 2024; and (d) how do the public transport payment options in Singapore compare to those of other developed countries.
Dr Lim Wee Kiak asked the Minister for Transport (a) in the past three years, how many reports of overcharged trips have been received from SimplyGo card users; (b) whether enhancements can be made for card balances to be displayed on public transport fare readers; (c) what is being done to improve the reliability of the SimplyGo app; and (d) whether the mandatory upgrade to SimplyGo can be postponed till it is made compatible with in-vehicle units of motorcars so that it can also be used for motoring-related payments.
Ms Joan Pereira asked the Minister for Transport regarding the SimplyGo public transport fare platform (a) what measures are implemented to ensure the reliability and security of the platform and backend system; (b) whether LTA will consider integrating an additional function to allow a card’s balance to be displayed at the MRT fare gate or bus card reader; and (c) whether LTA is able to continue to accept the use of older EZ-Link cards until such functionality can be achieved.
Mr Lim Biow Chuan asked the Minister for Transport (a) to facilitate the transition to the SimplyGo EZ-Link card, whether LTA can extend the validity of the NETS FlashPay card for payment by commuters of buses and trains until the expiry of the card; and (b) whether LTA has considered the impact of compelling seniors who are less IT savvy to switch to the SimplyGo EZ-Link card system.
Ms Hazel Poa asked the Minister for Transport (a) what is the reason for choosing a transport payment system like SimplyGo that does not show commuters the fares and deductions; and (b) what are the benefits that justify this trade-off.
Mr Leong Mun Wai asked the Minister for Transport (a) whether the Smart Nation and Digital Government Office (SNDGO) has been consulted by the Land Transport Authority before the full transition to the SimplyGo system is announced; and (b) whether SNDGO will conduct a review to draw lessons from this incident regarding digital inclusivity.
Mr Don Wee asked the Minister for Transport (a) why is there a need to spend an additional $40 million so that commuters can continue to use the present EZ-Link card-based ticketing system; and (b) what is the estimated shelf life of this proposed upgraded solution.
Mr Xie Yao Quan asked the Minister for Transport what is the operational lifespan of the extended card-based ticketing system that was announced by the Land Transport Authority on 22 January 2024.
Ms Hazel Poa asked the Minister for Transport (a) whether the cost of $40 million to renew the present card-based ticketing system and continuing to run it alongside the SimplyGo system is a one-off or recurring expenditure; (b) how much has been spent or committed to be spent in (i) the development of the SimplyGo system and (ii) this conversion attempt, including time, manpower and other expenses.
Mr Xie Yao Quan asked the Minister for Transport what lessons can be drawn from the change in decision to phase out card-based ticketing system on public transport for adult commuters as announced on 22 January 2024.
Mr Ang Wei Neng asked the Minister for Transport (a) whether there is a plan to integrate adult and concession cards in the card-based ticketing system; (b) how many commuters have converted to SimplyGo cards after 9 January 2024; (c) how can SimplyGo be enhanced so as to enable public transport fare readers to display fares charged and card balances; (d) whether there are plans to install more fare readers at MRT stations and bus stops for SimplyGo users to check their card balances in the interim.
Mr Yip Hon Weng asked the Minister for Transport (a) what is the estimated remaining operational lifespan of the current EZ-Link system; (b) what specific lessons has the Ministry learned from the reversal of the EZ-Link system phase-out, particularly regarding technology integration and public communication; and (c) what concrete steps will be taken in future to ensure similar technology upgrade projects do not incur significant public expenditure waste.
Mr Gerald Giam Yean Song asked the Minister for Transport (a) whether the card-based ticketing (CBT) system for public transport will continue to indefinitely operate in parallel with the SimplyGo's account-based ticketing system; and (b) if not, when does LTA plan for the CBT system to be fully decommissioned, including the concession cards for students, seniors and people with disabilities.
Mr Gerald Giam Yean Song asked the Minister for Transport (a) what is the total government expenditure to-date in developing the SimplyGo system for public transport; (b) what are LTA’s projected annual savings from the use of only the SimplyGo system on public transport as compared to the current simultaneous use of both SimplyGo and card-based ticketing (CBT) systems; and (c) whether LTA plans to pass these cost savings on to commuters in the form of fare rebates when the CBT systems are eventually decommissioned.
Mr Melvin Yong Yik Chye asked the Minister for Transport (a) what lessons has the Land Transport Authority learnt from the rollback of the decision to transit to the SimplyGo system; and (b) how long will the current card-based ticketing system be maintained before LTA considers another system transition.
Ms He Ting Ru asked the Minister for Transport (a) what are the learning points from the reversal of the initial decision which mandated that SimplyGo will replace the card-based ticketing system in mid-2024 for fare payments on public transport; and (b) what steps will be taken to ensure that similar issues will be avoided in the future.
Miss Cheryl Chan Wei Ling asked the Minister for Transport (a) what were the decision factors used when considering a switch of the public transport ticketing system; (b) how will the cost of maintaining or enhancing any future systems be viewed in respect of administrative efficiency and ease of convenience for commuters.
Mr Chua Kheng Wee Louis asked the Minister for Transport (a) whether plans to enhance the SimplyGo system will include the functionality to support a universal card that can be used for public transport, retail and motoring, such as that of the current EZ-Link and NETS FlashPay cards; and (b) whether such cards and the SimplyGo system will be made compatible with the new on-board units on vehicles under ERP 2.0.
Mr Dennis Tan Lip Fong asked the Minister for Transport (a) what are LTA’s longer term plans for the SimplyGo system, including in conjunction with the continual operation of the non-SimplyGo EZ-Link and NETS FlashPay cards; and (b) with the latest change of plans, what is the period of time for which LTA is expected to utilise the $40 million estimated expenditure for hardware replacement and system maintenance.
Mr Saktiandi Supaat asked the Minister for Transport (a) what are the additional features of SimplyGo compared to the EZ-Link and NETS FlashPay cards; (b) between 2019 and 2023, what are the number and percentage of commuters that utilised these additional features; (c) how many commuters have switched back to card-based ticketing (CBT) cards free-of-charge after the Ministry’s announcement on 22 January 2024 to operate CBT cards in parallel with the SimplyGo system; and (d) what efforts will be made to educate commuters more about SimplyGo going forward.
Ms Yeo Wan Ling asked the Minister for Transport in view of the extension of the card-based ticketing system which allows the use of NETS FlashPay cards on public transport, whether motorists and drivers can expect to still use NETS FlashPay cards in parallel with NETS CashCards for carpark and Electronic Road Pricing charges.
Mr Speaker, may I have your permission to take Question Nos 2 to 22 together? My reply will also address Written Question Nos 56 to 59 for today’s Sitting and related questions from Mr Christopher de Souza1,2, Mr Edward Chia3, Mr Mohd Fahmi4,5 and Mr Zhulkarnain Abdul Rahim6 for subsequent Sittings.
Yes, you may. Please proceed.
Thank you, Sir. Mr Speaker, I will first provide a background on why we implemented the SimplyGo account-based ticketing (ABT) system since 2019. Next, I will go through the considerations for the Land Transport Authority (LTA)’s announcement on 9 January 2024 to sunset the card-based ticketing (CBT) system for adult commuters. Finally, I will explain why we decided on 22 January not to proceed with this original plan and how we move forward from here.
Before we had SimplyGo, commuters used stored value cards like EZ-Link cards and NETS FlashPay cards to pay their public transport fares. These cards work on a CBT system, where information like the card balance is stored on the card itself.
In 2016, LTA observed that more commuters were using contactless bank cards and mobile wallets for retail payments. Other major public transport systems were also starting to offer commuters the option of using these payment modes.
Our existing CBT system is unable to support bank cards and mobile wallets because these do not hold stored value, and transactions cannot be processed on the CBT card reader. To enable such payments, we needed an ABT system. In an ABT system, when commuters tap their card or smart device, their fares are computed at the backend, and not at the fare gates or bus card readers.
LTA started a pilot in March 2017 to allow payments by bank card via a new ABT system, which was subsequently scaled up into the SimplyGo system in 2019.
Since its launch in 2019, more commuters used SimplyGo over time. In December 2023, 41% of adult commuters were using bank cards and mobile wallets for public transport, while another 23% of adult commuters were using SimplyGo ABT stored value cards. In total, 64% or about two-thirds of adult commuters were using the SimplyGo ABT system in December 2023.
The proportion of adult commuters using SimplyGo has continued to increase after our announcement on 22 January 2024, when the public was informed that LTA would extend the CBT system for adult commuters till at least 2030. From 23 to 31 January 2024, about 9,000 adult commuters, or around 1,000 per day, have converted their CBT cards to the SimplyGo system. We now have close to 70% of adult commuters using SimplyGo in end January, with 44% using bank cards and mobile wallets and 25% using SimplyGo stored value cards.
Many commuters chose to use SimplyGo because of its benefits. For example, it allows commuters to use bank cards and mobile wallets for public transport, instead of carrying an additional card. If a registered user loses his SimplyGo stored value card, he can block it and protect the value in his account. Users can also top-up their SimplyGo cards for their family members via the app, without having the card physically present.
However, SimplyGo has its limitations too. It operates on the ABT system and hence it cannot display the fare deduction and card balance information at the fare gates and bus card readers, without causing delays to the flow of commuters. Commuters are able to view their transactions and balance by using the SimplyGo app or the ticketing machines at train stations and bus interchanges.
LTA is not aware of any current technical solutions to overcome the latency problem for ABT cards. Other public transport systems around the world, such as London and Hong Kong, face the same limitation with their ABT systems. Like us, their CBT systems can display fare deductions and card balances, but their ABT systems are currently unable to do so.
Sir, I will now explain the considerations for LTA's 9 January 2024 announcement to sunset the CBT system for adult commuters from 1 June 2024.
LTA is currently operating three systems: the SimplyGo ABT system and two separate CBT systems developed at different times to support the adult cards and concession cards respectively. The two CBT systems are separate and the cards on each system are not compatible.
Like all IT systems, our CBT systems have a finite shelf-life. As the CBT system for adult commuters would reach end-of-life in 2024, LTA had to make a decision whether to extend the system, or to stop operating it after it reaches end-of-life.
To extend the system until at least 2030, LTA would need to spend an estimated $40 million to buy new hardware and equipment, and then operate and maintain the system over the next few years. This is a cost that LTA had wanted to avoid incurring by sunsetting the CBT system for adult commuters.
Between 2020 and 2023, LTA consulted different groups of commuters to gauge their readiness to transit to an ABT system. LTA also issued SimplyGo ABT cards to seniors, adults and students and gathered their feedback after they used the card for a few months. In total, LTA engaged over 1,000 commuters.
During these engagements, one of the feedback we received from seniors in particular, was that they were not very familiar with using the SimplyGo app and preferred to continue viewing fare deductions and card balances at fare gates and bus card readers. Based on this feedback, LTA decided not to shift concession card holders over to SimplyGo and instead retain the concession card CBT system for these commuters.
LTA also took on board feedback to improve the user experience for the app, such as enabling push notifications to alert app users when they make fare transactions and when their card balance is low. We also ensured that commuters who are not using the app could check their transactions and account balance using the ticketing machines at bus interchanges and train stations.
After observing that more adult commuters were coming on board the SimplyGo ABT system – I have mentioned earlier, two-thirds by December 2023 – LTA assessed that it could proceed to announce its plan to sunset the CBT system for adult commuters by 1 June 2024. It made the announcement on 9 January, with the intention of giving commuters sufficient time to make the transition before 1 June.
The 9 January announcement was met with strong reactions from commuters. While many have switched to using SimplyGo, LTA had under-estimated the strong preference of some commuters who wanted to continue seeing their fare deductions and card balances immediately at fare gates and bus card readers. After listening to the feedback from commuters, we understand their concerns and respect their preferences. We therefore decided not to proceed with the earlier decision to sunset the CBT system for adult commuters, so that commuters who prefer to have the option of using CBT EZ-Link cards or NETS FlashPay cards to pay for public transport can still do so.
With this change, there is no need for commuters to convert to SimplyGo. Those who find SimplyGo useful can switch over to the ABT system, while those who want to retain their current CBT cards can continue to do so. Commuters have a choice and can decide which system they prefer.
In making this decision, we will not be able to avoid the estimated cost of $40 million to maintain the adult CBT system till at least 2030. However, we will have an extended CBT system that can serve the needs of adult commuters who want to continue viewing their fares and balances at fare gates and bus card readers. The estimated cost of $40 million will be borne by the Government and will not affect public transport fares. We will also find ways to integrate the two CBT systems over time without affecting commuters and to reduce overall costs where possible.
I have tasked LTA to improve the features and user experience of SimplyGo and to find ways to overcome the technical challenge so that it could display fare deductions and card balances at the fare gates and bus card readers without slowing down the flow of commuters. There is currently no solution at the moment, but we will try our best. We will work with other Government agencies and we will work with industry experts to explore possible solutions.
Dr Lim Wee Kiak asked about fare errors. Sir, these can occur with both CBT and ABT cards, though the error rate is very low. When commuters encounter fare errors, they can surface their fare disputes to claim a refund.
With the extension of the concession card and adult CBT systems, both systems will be able to operate till at least 2030. And we retain the option for adult commuters and concession card holders to remain on the CBT system if they wish to do so. We do not have to make a decision now on whether to extend these systems beyond 2030.
In making the decision subsequently, important factors would include whether we can overcome the current technical limitations of the ABT system and which system commuters prefer to use. We will consult widely to understand the needs of different groups of commuters and carefully assess the costs and benefits.
In planning and implementing our next steps, the Ministry of Transport (MOT) and LTA will continue to spend public funds prudently. In areas where we can save money, we will try to reduce costs as much as possible. But where it is necessary to spend, we will do so.
Mr Saktiandi Supaat.
First of all, I would like to thank the Minister for coming out with the announcement not to sunset the CBT system for adult commuters. I think a lot of my residents have indicated the need to thank you for that.
I have two supplementary questions. The first is the variegated approach in other countries – he mentioned Hong Kong and the UK on the CBT and ABT systems.
Second, is, in terms of technology of the ABT system, to show fare or card balance, the Minister mentioned that there is no technology at the moment. Will it be possible in the future, at the very start, at the minimal, to allow commuters on the SimplyGo platform to at least tap at the interchanges first –systems where you can actually tap and just see the balance for SimplyGo at one place in the interchange after they get off the bus?
Mr Speaker, I first want to thank Mr Saktiandi for speaking on this issue. Very early on, after LTA made the 9 January announcement, I remember Mr Saktiandi shared his views, representing the concerns of his residents. I thank him and also other Members for the feedback.
Sir, the systems in Hong Kong and London and many other cities around the world who are starting to offer ABT or who have implemented ABT systems, show that there is currently no solution to be able to display the fare deductions and card balances in a very short time at the fare gates or bus card readers. This latency limitation of the system makes it difficult for us to present that feature to commuters at this point in time, because by doing so, you can imagine especially during peak periods, it will slow down the flow of commuters and lead to long queues and delays.
Because of that, the trade-off is that they maintain two systems. So, in Hong Kong, for example, there is the ABT system that can support bank cards, but they also have what they call the Octopus card, which is a card-based ticketing or CBT system, similar to our EZ-Link stored value card. London, I believe, has a similar arrangement. There is an ABT system and then there is a CBT system. This is also what we will do. By having SimplyGo ABT, to support bank cards, mobile wallets and the ABT stored value cards, and we will also have the CBT system for concession card holders and for adult commuters. So, commuters can choose which system they prefer and which system will best meet their needs.
As I mentioned in my main reply, if over time, we are able to find a solution to be able to display fare deductions and card balances at the fare gates and bus card readers, then this trade-off can be resolved. Then, I think it will be easier to convince commuters to be able to switch over to the new system.
Sir, Mr Saktiandi's second question, is whether we can put more card readers for people to check their balances at MRT stations and bus interchanges. We currently have such ticketing machines at the MRT stations and at bus interchanges. I have asked LTA to introduce and to add more of such readers so as to make it more convenient for commuters who are not using the SimplyGo app, but who would like to check their card balances to be able to use these readers more conveniently.
Ms Joan Pereira.
Sir, I have two supplementary questions. I would like to know, what is the breakdown of the $40 million required to continue to maintain the existing card-based EZ-Link system, alongside the SimplyGo.
The second question is, during LTA's initial announcement on 15 June last year, regarding the consolidation of EZ-Link and Transit Link under the SimplyGo branding, was it already known that it planned to phase out the EZ-Link system? And if so, why was it not announced publicly at that point in time?
Mr Speaker, to Ms Pereira's first question, the $40 million is an estimate. This is the estimated cost to purchase new hardware and equipment, software and also to operate and maintain the CBT system for adult commuters till at least 2030. In implementing the system extension, LTA will spend prudently and we will try to reduce the cost as much as possible.
There is also the CBT system for concession card holders, which LTA had earlier decided to retain after getting feedback from commuters during its consultation with more than 1,000 commuters. LTA will look at ways to be able to progressively integrate these two CBT systems over time and without inconveniencing commuters, so that we can work towards, if possible, having one CBT system in future rather than two. And I believe this will help to reduce overall costs.
Sir, Ms Pereira's second question – the merger of EZ-Link and TransitLink is to enable the two organisations to be able to work more closely together and it is not linked to the decision of whether or not to sunset the CBT system for adult commuters. I had explained in my main reply the key considerations behind LTA's announcement on 9 January. It is really to try and avoid incurring the cost of extending the system when it reaches end-of-life in 2024. And also, LTA observed that by December 2023, about two-thirds of adult commuters have switched over to using SimplyGo, whether bank cards, mobile wallets, or the SimplyGo stored value ABT cards.
But we had under-estimated the strong preference of commuters who would like to continue seeing the fare deductions and the card balances at the fare gates and at the bus card readers. And so, this is why after hearing this feedback and understanding the concerns, we decided not to proceed with the original plan to sunset the CBT system for adult commuters.
Mr Lim Biow Chuan.
Thank you, Speaker. May I ask the Minister: I understand the Minister said that we are retaining the concession-based system for the CBT system. So, has LTA considered the possibility of persuading the one-third CBT ticket holders who are not on the ABT system, to go into the concession-base system which is being retained?
The second question is whether LTA has considered using the $40 million to incentivise existing CBT holders to convert to the ABT? They may be happier to join them if you offer them a credit to their account when they sign up for the ABT system.
Mr Speaker, to Mr Lim's first question, indeed, I think that is the plan that we have, to progressively be able to integrate the two CBT systems. But because the two systems and the two types of cards – as in the cards for the adult commuters and the cards for concession card holders – are currently not compatible, we cannot make this change overnight.
But as Members are aware, these stored value cards, EZ-Link cards, for example, have an expiry date. So, when the current cards expire, if we are able to then issue a new card under the integrated system, then in the future, we can gradually and progressively work towards having one CBT system. That is part of our plan. We intend to move towards that direction. Between having two systems versus having one CBT system, I think it is better to have one CBT system.
Sir, the second point that Mr Lim brought up, I think it is a good idea that we will certainly consider – how to encourage commuters who wish to switch over to SimplyGo to be able to do so. But I want to explain that the important thing here is to retain the option for commuters to choose because of the trade-off between the two systems.
At the moment, ABT systems are still unable to display fare deductions and card balances at the fare gates and at the bus card readers quickly. So, because of this limitation, we feel it is important to give commuters both options so that they can choose which system they prefer. Those who prefer to use the CBT system because they want to retain this feature can do so. Those who do not mind switching over to SimplyGo, because there are some benefits of SimplyGo as I explained in my main reply, they can also have the option to do so. And we will, over time, hopefully be able to improve the user experience and the features of SimplyGo. I think that will be an important factor in trying to encourage more people to switch over.
Mr Gerald Giam.
Thank you, Mr Speaker. Sir, I use public transport for the vast majority of my journeys and I have been using SimplyGo for the past few years. It has always bothered me slightly that I cannot see the fare charge at the gates because I do not know if I am being overcharged. However, I am able to see the fare charge on the SimplyGo app almost immediately after I exited the fare gate. And the fact that the fare game can open immediately after the SimplyGo card is placed on the reader means that the signals are able to make a round trip to the server and back in a reasonable amount of time. So,
Secondly, many commuters were upset that their user experience was being downgraded without the public consultation or benefit in return and that SimplyGo also cannot be used for motoring. So, instead of spending $40 million to extend the life of the card-based ticketing system for another six years, can LTA instead use that money to upgrade the SimplyGo system to overcome these technical constraints? LTA could, for example, extend the contract by just one more year while it irons out the usability issues and transitions the remaining 30% of users to the SimplyGo system.
And finally, could the Minister please answer my Parliamentary Question No 15 Parts (b) and (c), and share how much cost savings will be gained by having a fully ABT system and whether it can return these cost savings to commuters in a form of rebates?
Mr Speaker, the issue about the fare gates, I had explained in my main reply that at the moment, the ABT technology does not allow the card balances and the fare deductions to be shown quickly. So, if you use a CBT card, because the information is stored on the card, you can tap it and then it will process it and it will show within half a second.
But with an ABT system – and this is not just in Singapore; this is so true in places like London and Hong Kong – you have to check with the backend what the information, is to be able to calculate what is the fare deduction and what is the balance. So, if you were to then wait for the information to be transmitted back to the fare gates or to the bus card readers, it could take several seconds. And this may be okay if the flow of commuters is very light, but it is going to cause delays and it is going to add to the queues, especially during periods when the volumes are higher, peak periods, for example.
So, because of that constraint, the ABT systems – not just in Singapore, but also elsewhere – are designed such that they do not display the balance information at the fare gate. I hope that answers Mr Giam's question.
He has a second part to the question, which is then how come the person can tap and go out, and do we not then have information about the fares at the point of tapping? Sir, this is something which is a bit technical here. LTA would let the person tap out and then compute the balances at the backend and that will then be reflected on the app, as Mr Giam mentioned, with a short delay; not immediately. But the next time when the user taps in and assuming that user does not have sufficient balance after the last journey, this card will then be blocked. So, the user would be able to exit but if he or she does not top up the card before the next trip, then this card would not be able to be used for the next journey.
I do not want to go into too much technical details but I hope that answers Mr Giam's question as to how this system operates. The whole purpose is to avoid causing a congestion and to slow down the flow of commuters because I think efficiency is very important for our commuters.
Sir, the consultation process that LTA has gone through, I had mentioned in my interview with the media that one lesson that we learned is we should have consulted more widely and hear the views of a wider group of commuters, and in particular, I think people who have concerns about this feature of being able to view their fare deductions and card balances at the fare gates and bus card readers, being taken away.
LTA did do some consultation with more than 1,000 commuters. Part of the exercise also involved giving adult commuters, seniors and students ABT cards for them to try and then to get their feedback after they have used it for a few months. So, this process did throw up some very useful feedback. I mentioned some of the changes that were made in my main reply, after we got the feedback from the commuters. So, I thank our commuters who participated in this exercise for sharing their views with us. But I think we under-estimated the strong preference of some commuters who want to retain this feature. So, I do acknowledge that if we had consulted more widely, we would have come across these views earlier on in the process.
Sir, the plan is not to stop here. Currently, the SimplyGo system indeed cannot be used for motoring, but we want to work towards enhancing the features and the user experience for SimplyGo. So that over time, just like today, your EZ-Link card can be used for retail, can be used for motoring and can be used for public transport, we also want to work towards SimplyGo being able to be used for all three – retail, public transport and also monitoring. But the process will take some time and that is why we need to extend the CBT system for adult commuters at this point in time because the system is reaching end-of-life in 2024.
We could, of course, extend by one year, as Mr Giam suggested, but I am not very confident that we will be able to find a solution in one year and having put in the hardware and the necessary equipment, we thought it is more prudent to plan, for the purposes of budgeting and planning, for it to run for at least a few years until at least 2030. That will give us time to be able to explore possible solutions together with industry experts and other Government agencies.
Mr Xie Yao Quan.
Thank you, Speaker. I would like to ask the Minister, for the CBT system for concession card holders, I note that the plan is to hopefully integrate that over time with the CBT system for adult commuters as well. I would like to ask the Minister what the current assessment is of how technically feasible it is to do this integration? And ultimately, if it turns out that it is not possible or not feasible to integrate, can I get the Minister to confirm that the CBT system for concession card holders will also be maintained until at least 2030?
Mr Speaker, to Mr Xie Yao Quan's question, we currently plan for both the CBT systems – the CBT system for adult commuters and also the CBT system for concession card holders – to both run till at least 2030. Of course, if we are able to find a good solution before that, we can always make a decision whether to integrate earlier or to switch over earlier. But as I mentioned, one key consideration for us would be the user experience and the features of SimplyGo. So, likewise for the concession card holders, if we are able to integrate the system and to be able to have the two CBT systems come together earlier than 2030, we will certainly find ways to do so.
Mr Speaker, may I also seek your permission to answer a question from Mr Giam that I missed out earlier. My apologies, Mr Giam. Mr Giam had asked if we have savings, can we give back to commuters as rebates? Sorry, I did not answer the Member's question earlier.
Mr Speaker, the costs of implementing the ABT and CBT systems, including this estimated $40 million that I mentioned for the CBT system for adult commuters, will be borne by the Government. It does not go into the fare formula and it does not affect the fares to be paid for by commuters. So, I think in the same vein, if there are some savings that LTA is able to have through cost avoidance, some cost savings in implementing the project, I think we also would not then flow it back directly to commuters in the form of fares. Because it did not affect the fares in the first place. So, any cost savings, I think we would then be able to save on behalf of all taxpayers.
Ms Hazel Poa.
I understood the Minister's explanation about the latency in the ABT because the information has to be retrieved from the server. So, my question is: can the Minister explain why it is not possible to store the balance information on the card as well? By duplicating the information on the card, we will be able to retrieve the information faster.
My next clarification is on the focus group consultations. Is the Minister saying that for the more than a thousand users that LTA has consulted, there was no or minimal feedback regarding this desire to have their card balances shown on their cards?
Mr Speaker, the information for ABT is not stored in the card, because, for example, if you have credit cards, there is no card balance to talk about because it is a credit card, bank card or mobile wallet. So, because of that design in the ABT system and the majority of ABT users are actually using bank cards and mobile wallets, as Ms Poa would have heard from my main reply earlier. This is currently not in the ABT system not just here, but also in other cities. Whether we can find a solution to overcome the latency problem, we will try our best.
At the moment, we are not aware of any solutions that can be applied at scale to the whole public transport system, both here and overseas. But we will work with our industry experts and other Government agencies and, if we can find a solution to overcome this latency problem, that would be a plus to enhance the usability and the features of SimplyGo.
The second question, just to clarify, Mr Speaker, I did not say that there was no feedback from the 1,000 commuters with regard to the concerns of not being able to view the fare deductions and card balances at the fare gates and bus card readers. In fact, that was one of the first feedback that came to LTA, especially from seniors. And based on that feedback, LTA then decided not to proceed with the plan to sunset the CBT system for concession cardholders because we understand that, for seniors, many of them told us that they are not familiar with using the app, so, that is why we decided to retain the CBT system for concession cardholders.
For adult commuters, there was some feedback, but we also heard positive comments about the benefits. So, I think, in the end, the decision taken was based on an important consideration, which is, until we can resolve the technical limitations, it is good to give commuters choices and options so that those who prefer the features of SimplyGo can choose to use SimplyGo, if they wish to; those who prefer the features of the CBT system can continue to use these cards, if they wish to.
Mr Louis Chua.
Mr Speaker, two supplementary questions for the Minister.
The first is whether LTA has looked into this public transport system, such as that in Japan, which, as I understand, allows locals and foreigners to use travel cards integrated with the mobile wallet. And speaking from personal experience, I was able to use my phone, which is integrated with my mobile wallet, and it actually allows me to view the fare details instantaneously without any lag and, as I understand, this is even compatible with the express mode, meaning you do not even need a charge phone to use it.
The second question is actually on my Parliamentary Question No 19, that is, whether the plans to enhance the SimplyGo system include plans for a universal card which allows one to use it for public transport, retail, motoring, just as what the current EZ-Link and Flashpay cards can do and, importantly, whether it is compatible with the new onboard unit for ERP 2.0?
Mr Speaker, I will start with the second question from Mr Chua. I had answered Mr Giam earlier on a similar point, that, over time, we do want to work towards having the SimplyGo card being able to be used for retail, public transport and also motoring.
On the first question, we do support mobile wallets, too. Under our SimplyGo, you can use your smart device, your phone, to be able to pay for public transport using SimplyGo. We will be interested to find out a bit more about the system in Japan. If there is a solution there and we can borrow some good ideas, we will be happy to do so.
Mr Yip Hon Weng.
Mr Speaker, I thank the Minister for his reply and the commitment to consult wider on such issues. Can I ask the Minister how LTA intends to get more feedback and views from seniors and other segments of society who may not be au fait with technology? And how can LTA ensure that such segments of our society are well-represented in these feedback sessions on salient issues that affect the public?
Mr Speaker, I thank Mr Yip for raising this very important point. Indeed, when we move to digital solutions, we must also make sure that we do not leave our seniors, some of whom may not be so familiar with technology, behind.
And it is precisely because of this consideration that we had reached out and included seniors in our consultation exercise with the more than 1,000 commuters. Seniors were an important stakeholder group that we consulted early on and, based on their feedback, LTA then decided not to sunset the concession cards' CBT system because we are mindful that some of the senior commuters may find it difficult to make the switch because they may not be so familiar in using the app.
So, I just want to reassure Mr Yip and this House that we do pay a lot of attention to taking into account the needs of different groups of commuters when we implement some of these solutions. In this particular instance, we would have been able to do better if we had consulted more widely and would be able to garner a wider range of views that would have helped with our decision-making. We underestimated the strong preference of some commuters to view the card balance and fare deductions at the fare gates and bus card readers. But we will learn from this and we hope to do better next time.
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