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     FrontPage Edition: Wed 12 September 2007

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Yesterday   2007   2006   2005   2004   2003   2002   2001   2000   1999

1 to 2 cents increase in bus fares and no increase in rail fares

Source: www.ptc.gov.sg

1 to 2 Cents Increase in Bus Fares & No Increase in Rail Fares
 
From 1 October 2007, adult EZ-Link fares for buses will increase by between 1 to 2 cents. The Public Transport Council (PTC) has decided that there will be no increase to all rail fares.
In August 2007, the public transport operators SMRT Corp (SMRT) and SBS Transit (SBST) had applied to the PTC for an increase in bus and rail fares.
The PTC deliberated on the PTOs’ fare proposals and approved an overall fare increase of 1.8% for bus fares and no increase for rail fares this year, taking into account the fare adjustment cap formula introduced in 2005.
In its deliberations, the PTC considered Singapore’s economic outlook and the affordability of public transport. The economic outlook has been positive with the latest GDP growth forecast for 2007 revised upwards to 7 to 8% and the unemployment rate for June 2007 at 2.4%,1 the lowest in 5 years.
The public transport affordability indicator has been on a down-trend for the past 4 years, falling from 7.0% in 2003 to 6.5% in 20062, indicating that fares have remained affordable for the majority of commuters.
To further ensure that commuters’ interests are safeguarded, the PTC also made a reality check on the PTOs’ ROTA (Return on Total Assets) against companies with similar industry structures and risk profiles.
Taking into account these considerations and its mandate to balance the interests of commuters as well as the longterm viability of the PTOs, the PTC has decided to grant a fare increase on bus fares only.
Majority of Commuters See No Increase or Small Increase in Fares
The PTC approved a 1 to 2 cent increase in adult EZ-Link fares for buses. Senior citizen concessionary EZ-Link bus fares, which are flat fares pegged to the lowest adult EZ-Link fare band will also increase by 2 cents.
However, because they are flat fares, the same 67 cents fare will apply regardless of the distance travelled. There will be no increase to all rail fares, some EZLink adult bus fares, as well as cash fares for buses, child/student fares and the prices of monthly student/NS men concession passes.
The majority of commuters will see no increase or a small increase in fares. Taking into account all public transport (bus and rail) trips, 5 in 10 trips will see no increase (52%); 1 in 10 trips will see an increase of 1 cent (10%) and the remaining 4 in 10 trips (38%) will see an increase of 2 cents (Refer to Fact Sheet, paragraphs 8 to 10.)
Help for Low-income Families
While public transport fares remain affordable for most commuters, low-income families may need more help. The approach for helping such families has been to provide targeted help via community-led initiatives and work support schemes under MCYS/Community Development Councils as well as the Workfare Income Supplement Scheme.
The Government has also committed $10 million to a Public Transport Fund to be given out over three years to provide additional help to lower-income households.
Mr Gerard Ee, Chairman of the PTC said,
"The PTC has to strike a balance between safeguarding commuters’ interests and ensuring the financial viability of the public transport operators so that they can continue to improve their services over time and sustain their capital investments.
"As part of its deliberations, the PTC compared the PTOs’ ROTA against the prevailing ROTA figures of companies with similar industry and risk profiles. The comparison suggests that our rail industry is doing much better. Hence, on balance, the PTC decided against raising rail fares, to the benefit of commuters.
We have tried to keep fare increase small for as many commuters as possible but we know that any fare increase, no matter how small, would still be felt by commuters, especially those from needy families. Those who need additional help will receive help from the Government’s Public Transport Fund. The public transport operators will also chip in towards public transport vouchers to help low-income families cope with the fare increase."
Please refer to the Fact Sheet for more details.
Approved Bus Fare Adjustments
The approved bus fares, which represent the maximum fares that the public transport operators can charge, are set out in Annex A.
More.....
1 MOM’s seasonally adjusted unemployment rates from 2002 to 2006 are: 3.6%, 4.0%, 3.4%, 3.1% and 2.7%. The 2.4% unemployment rate is estimated for June 2007.

2 The Public Transport Affordability Indicator for the past 4 years: 7.0% (2003), 6.8% (2004), 6.6% (2005) and 6.5% (2006).

Source: www.ptc.gov.sg News Release 11 Sep 2007

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