TRANSPORT VOUCHERS FOR LOW-INCOME HOUSEHOLDS
A total of 600,000 public transport vouchers worth S$30 each will be given to lower-income households to help them cope with the increase in bus and train fares.
The vouchers can be used to top up fare cards or buy monthly concession passes and must be redeemed by Mar 31, 2024.
Only resident households with a monthly household income per person of not more than S$1,600 will be eligible for the vouchers.
The disbursement of the vouchers will be done in two stages, starting end-December.
In the first stage, eligible households that received the vouchers in the previous year’s public transport voucher exercise will automatically receive a notification letter through the mail, without having to apply.
From early 2023, households that meet the income criteria but did not receive a voucher in the first stage will be able to apply for them online or in person at their local community centres or community clubs.
WHY ARE FARES GOING UP?
The fare hike is necessary to meet rising energy prices, which rose by 117 per cent last year, said the PTC. It also noted increased manpower costs and inflation.
These factors would have allowed for a maximum fare increase of 13.5 per cent under the current fare adjustment formula – the highest quantum since the formula was implemented in 2005.
Both transport operators had applied for a fare adjustment of 13.5 per cent, citing escalating costs as among the reasons.
After taking into account government support for COVID-19 in their latest financial year, SBS Transit’s train segment reported a loss of tens of millions of dollars while SMRT Trains recorded an operating profit of S$16 million.
However, the PTC said it decided to grant public transport operators a fare increase of just 2.9 per cent due to concerns over the rising cost of living. The remaining 10.6 per cent will be carried over to future fare review exercises.
While the fare increase will generate additional revenue of about S$50.3 million a year, PTC said this will not be enough to cover the costs of operating high-quality public transport services.
To cover the increased costs and shield commuters from the brunt of the fare increases, the Government will provide an additional S$200 million in subsidies in 2023. This is on top of the current subsidies of more than S$2 billion per year to run bus and train services.