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| Meta Title | Singapore Raises Public Transport Fees By 10 cent - BusinessToday |
| Meta Description | The Public Transport Council (PTC) has announced that bus and train fares will increase by 10 cents per journey for adult commuters starting December 28. This adjustment follows the council's annual fare review exercise, which was disclosed on Monday (Sep 9). For concession card holders, including students, seniors, and individuals… |
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| Boilerpipe Text | The Public Transport Council (PTC) has announced that bus and train fares will increase by 10 cents per journey for adult commuters starting December 28. This adjustment follows the council’s annual fare review exercise, which was disclosed on Monday (Sep 9).
For concession card holders, including students, seniors, and individuals with disabilities, fares will rise by 4 cents per trip. There will be no changes to fares for those using monthly passes. Overall, fares will increase by 6 per cent, a decrease from the 7 per cent hike last year when adult fares rose by 10 to 11 cents per journey.
In response to rising costs, lower-income households will receive public transport vouchers worth S$60 each this year, an increase from the S$50 vouchers provided last year. The eligibility criteria for these vouchers will also be adjusted to include households with a monthly income per person of up to S$1,800, up from S$1,600 previously. This change will benefit an additional 60,000 households.
Explaining the fare increase, the PTC noted that the decision was influenced by core inflation and wage growth in 2023, although these factors were partially offset by a decrease in energy prices from their peak in 2022. The PTC’s fare adjustment formula, which takes into account inflation, wages, and energy prices, suggested a 3.3 per cent increase in fares. However, the council opted for a 6 per cent rise, which is less than one-third of the maximum allowable increase of 18.9 per cent, including a deferred fare adjustment of 15.6 per cent from previous years.
Chairperson of the PTC, Janet Ang, explained that the deferred fare quantum of 15.6 per cent accumulated due to sharp increases in energy prices and elevated core inflation in 2021 and 2022. The PTC’s decision aims to mitigate the impact on commuters while ensuring the financial sustainability of the public transport system.
The current fare review marks the second under the new fare adjustment formula introduced in April last year, designed to keep fares affordable and less volatile by fixing certain components. The revised formula, applicable from 2023 to 2027, includes a fixed productivity contribution of -0.1 per cent and a capacity adjustment factor of 1.1 per cent. The core consumer price index (cCPI) and wage index (WI) both increased by 2.1 per cent, while the energy index (EI) decreased by 1.9 per cent, leading to a 3.3 per cent fare adjustment. This adjustment is added to the 15.6 per cent deferred adjustment from previous fare reviews, resulting in a maximum allowable increase of 18.9 per cent.
To address the deferred fare quantum, which will be carried over to the next review, the government will provide an additional S$250 million subsidy in the coming year to moderate the fare increase while accounting for higher transport costs.
Both SBS Transit Rail and SMRT Trains had requested the full 18.9 per cent fare increase, citing inflationary pressures and slow recovery in ridership. SBS Transit’s train segment reported a significant loss despite government support, while SMRT Trains achieved an operating profit of S$6.2 million with the same support.
The PTC encourages frequent travellers, including both adults and concession card holders, to consider monthly passes to manage their public transport expenses. There will be no changes to fares for commuters paying in cash.
Source: CNA/jx |
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# Singapore Raises Public Transport Fees By 10 cent
By [Shahrizal](https://www.businesstoday.com.my/author/shahrizal/)
September 9, 2024
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The Public Transport Council (PTC) has announced that bus and train fares will increase by 10 cents per journey for adult commuters starting December 28. This adjustment follows the council’s annual fare review exercise, which was disclosed on Monday (Sep 9).
For concession card holders, including students, seniors, and individuals with disabilities, fares will rise by 4 cents per trip. There will be no changes to fares for those using monthly passes. Overall, fares will increase by 6 per cent, a decrease from the 7 per cent hike last year when adult fares rose by 10 to 11 cents per journey.
In response to rising costs, lower-income households will receive public transport vouchers worth S\$60 each this year, an increase from the S\$50 vouchers provided last year. The eligibility criteria for these vouchers will also be adjusted to include households with a monthly income per person of up to S\$1,800, up from S\$1,600 previously. This change will benefit an additional 60,000 households.
Explaining the fare increase, the PTC noted that the decision was influenced by core inflation and wage growth in 2023, although these factors were partially offset by a decrease in energy prices from their peak in 2022. The PTC’s fare adjustment formula, which takes into account inflation, wages, and energy prices, suggested a 3.3 per cent increase in fares. However, the council opted for a 6 per cent rise, which is less than one-third of the maximum allowable increase of 18.9 per cent, including a deferred fare adjustment of 15.6 per cent from previous years.
Chairperson of the PTC, Janet Ang, explained that the deferred fare quantum of 15.6 per cent accumulated due to sharp increases in energy prices and elevated core inflation in 2021 and 2022. The PTC’s decision aims to mitigate the impact on commuters while ensuring the financial sustainability of the public transport system.
The current fare review marks the second under the new fare adjustment formula introduced in April last year, designed to keep fares affordable and less volatile by fixing certain components. The revised formula, applicable from 2023 to 2027, includes a fixed productivity contribution of -0.1 per cent and a capacity adjustment factor of 1.1 per cent. The core consumer price index (cCPI) and wage index (WI) both increased by 2.1 per cent, while the energy index (EI) decreased by 1.9 per cent, leading to a 3.3 per cent fare adjustment. This adjustment is added to the 15.6 per cent deferred adjustment from previous fare reviews, resulting in a maximum allowable increase of 18.9 per cent.
To address the deferred fare quantum, which will be carried over to the next review, the government will provide an additional S\$250 million subsidy in the coming year to moderate the fare increase while accounting for higher transport costs.
Both SBS Transit Rail and SMRT Trains had requested the full 18.9 per cent fare increase, citing inflationary pressures and slow recovery in ridership. SBS Transit’s train segment reported a significant loss despite government support, while SMRT Trains achieved an operating profit of S\$6.2 million with the same support.
The PTC encourages frequent travellers, including both adults and concession card holders, to consider monthly passes to manage their public transport expenses. There will be no changes to fares for commuters paying in cash.
Source: CNA/jx
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| Readable Markdown | The Public Transport Council (PTC) has announced that bus and train fares will increase by 10 cents per journey for adult commuters starting December 28. This adjustment follows the council’s annual fare review exercise, which was disclosed on Monday (Sep 9).
For concession card holders, including students, seniors, and individuals with disabilities, fares will rise by 4 cents per trip. There will be no changes to fares for those using monthly passes. Overall, fares will increase by 6 per cent, a decrease from the 7 per cent hike last year when adult fares rose by 10 to 11 cents per journey.
In response to rising costs, lower-income households will receive public transport vouchers worth S\$60 each this year, an increase from the S\$50 vouchers provided last year. The eligibility criteria for these vouchers will also be adjusted to include households with a monthly income per person of up to S\$1,800, up from S\$1,600 previously. This change will benefit an additional 60,000 households.
Explaining the fare increase, the PTC noted that the decision was influenced by core inflation and wage growth in 2023, although these factors were partially offset by a decrease in energy prices from their peak in 2022. The PTC’s fare adjustment formula, which takes into account inflation, wages, and energy prices, suggested a 3.3 per cent increase in fares. However, the council opted for a 6 per cent rise, which is less than one-third of the maximum allowable increase of 18.9 per cent, including a deferred fare adjustment of 15.6 per cent from previous years.
Chairperson of the PTC, Janet Ang, explained that the deferred fare quantum of 15.6 per cent accumulated due to sharp increases in energy prices and elevated core inflation in 2021 and 2022. The PTC’s decision aims to mitigate the impact on commuters while ensuring the financial sustainability of the public transport system.
The current fare review marks the second under the new fare adjustment formula introduced in April last year, designed to keep fares affordable and less volatile by fixing certain components. The revised formula, applicable from 2023 to 2027, includes a fixed productivity contribution of -0.1 per cent and a capacity adjustment factor of 1.1 per cent. The core consumer price index (cCPI) and wage index (WI) both increased by 2.1 per cent, while the energy index (EI) decreased by 1.9 per cent, leading to a 3.3 per cent fare adjustment. This adjustment is added to the 15.6 per cent deferred adjustment from previous fare reviews, resulting in a maximum allowable increase of 18.9 per cent.
To address the deferred fare quantum, which will be carried over to the next review, the government will provide an additional S\$250 million subsidy in the coming year to moderate the fare increase while accounting for higher transport costs.
Both SBS Transit Rail and SMRT Trains had requested the full 18.9 per cent fare increase, citing inflationary pressures and slow recovery in ridership. SBS Transit’s train segment reported a significant loss despite government support, while SMRT Trains achieved an operating profit of S\$6.2 million with the same support.
The PTC encourages frequent travellers, including both adults and concession card holders, to consider monthly passes to manage their public transport expenses. There will be no changes to fares for commuters paying in cash.
Source: CNA/jx |
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