SINGAPORE: From January 2024, school bus operators will be allowed to increase the pricing cap of bus fares under existing contracts by up to 13 per cent, said the Ministry of Education (MOE) on Thursday (Aug 24).
This marks an increase in fees for the second year running. The pricing cap for school bus fares last rose by 7 per cent in January this year.
“With the continued rising cost pressures experienced by school bus operators, further adjustment to the school bus fares in 2024 would be necessary,” said MOE.
MOE added that the pricing cap increase of up to 13 per cent will give current school bus operators the “flexibility” to raise their fares up to the revised cap if needed to “support their provision of school bus services to students who need them”.
“This will significantly minimise the risk of disruptions and inconvenience to families should these incumbent operators be unable to sustain their operations,” it said.
Parents and guardians will be informed of any fare revisions by the school bus operators from September this year.
Primary school students under the Financial Assistance Scheme will receive school bus subsidies that will cover 65 per cent of their monthly school bus fares. The subsidy level was raised from 60 per cent in January this year.
Those who require more support can continue to approach their schools for assistance, said MOE.
The ministry added it will continue to monitor the situation, and work closely with schools and bus operators to ensure a sustainable school bus service model.
In June, MOE announced measures to address issues faced by school bus operators, such as allowing selected ones to hire more foreign drivers to ease manpower shortage, and giving operators greater flexibility in discussing their service provisions with schools and parents.