FARES DECIDED BY DEMAND AND SUPPLY ,
According to Dr. Khor, the government do not set tickets because they are determined by transport users based on market competition, despite carefully monitoring developments in the point-to-point business.  ,
” We also do not cap the number of P2P ( point-to-point ) drivers, but instead allow the supply of P2P drivers to move in tandem with commuter demand and price signals”, she said.  ,
Therefore, the ideal level of supply for the business depends on passenger demand and the charges they are willing to spend, she said.  ,
” When demand is higher and charges improve, we can expect more individuals to enter the market. Likewise, when there is excess source of drivers, fares will fall and some drivers may decide to leave the business”, she added.
MP Desmond Choo ( PAP-Tampines ) asked Dr Khor on her ministry’s views on how they can support drivers during periods of contracted low fares, where anecdotally, some drivers have reported an over 30 per cent drop in earnings in the past six months.  ,
She responded that this decline in revenue must be taken “into environment,” that there were times when demand was high and individuals made more money, such as at the conclusion of the COVID-19 crisis in 2022, as well as during festive times and concerts earlier this month.  ,
She said,” I believe it is really important to actually look at the total revenue across time rather than just lower fare intervals.”  ,
Dr. Khor added that the Land Transport Authority ( LTA ) will continue to look for ways to ensure” the market’s smooth and effective functioning.”  ,
These include steps to lower operating expenses, such as the earlier this year’s announcement that the legal duration for cars would be extended.  ,
” The operators should go through these cost discounts to individuals through lower leases,” she said.  ,
LTA has also , stepped up enforcement against international vehicles providing improper point-to-point service which affect need.  ,