Starting December 28, 2024, adults using card payments for public transport in Singapore will see a fare increase of 10 cents per journey, marking a 6% rise in overall public transport fares. This adjustment was announced by the Public Transport Council (PTC) following its annual fare review on September 9, 2024. The increase will also affect concessionary fares for seniors, students, individuals with disabilities, and low-wage workers, which will rise by four cents per trip. Approximately two million commuters fall into this category.
For instance, an adult traveling from Tampines to Raffles Place on the MRT will pay $2.02, up from the current fare of $1.92. This fare hike follows a 7% increase in 2023, which was the largest recorded increase at 11 cents. Previous years saw smaller increments, with fares rising by 2.9% in 2022 and 2.2% in 2021. Notably, there was a fare freeze in 2020 to alleviate the financial burden on commuters during the COVID-19 pandemic.
The PTC clarified that the 6% increase is significantly lower than the maximum allowable increase of 18.9% for 2024, which includes a 3.3% adjustment for the current year and a deferred 15.6% increase from the previous year. This decision was influenced by rising core inflation and wage growth, although a notable drop in energy prices helped to moderate the fare hike.
In response to concerns about the rising cost of living, the PTC has stated that the government will provide an additional $250 million in subsidies to help offset the fare increase. This is in addition to the more than $2 billion in annual subsidies already allocated to maintain public transport services. Furthermore, an extra $900 million will be invested over the next eight years to enhance the bus network through the Bus Connectivity Enhancement Programme.
It is important to note that cash fares on buses will remain unchanged, as less than 1% of public transport transactions are made in cash. Additionally, the costs of adult monthly travel passes and monthly concession passes will not be affected, allowing frequent users to manage their expenses more effectively.
The fare increase has sparked mixed reactions among commuters. Some, like business consultant Albert Kwan, view the rise as justifiable given the improvements in MRT connectivity and the introduction of new lines. Others, however, express concern over the cumulative effect of fare hikes on their monthly budgets. Retired real estate consultant James Tan emphasized the need for service quality to match fare increases, while transport economist Walter Theseira noted that operational costs have been rising faster than fare adjustments.
To assist lower-income households, the government will distribute public transport vouchers worth $60 to families with a monthly income of up to $1,800 per person. This is an increase from the previous $50 vouchers and is expected to benefit an additional 60,000 households. The vouchers can be used to top up fare cards or purchase monthly passes and will be distributed in two phases.
As Singapore continues to navigate the challenges of rising costs and public transport demands, the PTC remains committed to balancing affordability with the need to cover operational costs. The council’s chairwoman, Janet Ang, emphasized the importance of managing fare increases while ensuring that public transport remains accessible to all Singaporeans.