From 28 December 2024, bus and train fares in Singapore will increase by 10 cents per journey for adult commuters and 4 cents per journey for approximately 2 million concession card holders. The Public Transport Council (PTC) announced this fare hike on 9 September 2024, following a fare review exercise. Additionally, the PTC will extend the student concession validity period for graduating cohorts to four months after they have completed their studies, benefiting around 75,000 students annually. In response to the fare increase, the Ministry of Transport (MOT) has announced an additional S$250 million in subsidies to support public transport services.
## Background
The fare adjustment for 2024 is driven by core inflation and wage growth in 2023, partially offset by a decrease in energy prices from their peak in 2022. The PTC has moderated fare increases over the past two years to reduce the impact on commuters, resulting in a deferred fare quantum of 15.6 per cent from previous fare review exercises. For 2024, the maximum allowable fare adjustment quantum is 18.9 per cent, but the PTC has granted an overall fare increase of 6.0 per cent to cushion commuters from the full impact.
## The formula
The fare adjustment formula for 2024 resulted in an output of 3.3 per cent, influenced by core inflation and wage growth. Despite the sustained increases in public transport operating costs, the PTC has moderated fare increases to lessen the burden on commuters. The deferred fare quantum from previous years stands at 15.6 per cent, and when added to the 2024 formula, the maximum allowable fare adjustment quantum is 18.9 per cent. However, the PTC has approved a 6.0 per cent fare increase for 2024, reducing the deferred fare quantum to 12.9 per cent for future consideration.
## The fares
The 6.0 per cent fare adjustment will see adult fares increase by 10 cents per journey, while concession card holders will experience a 4-cent increase per journey. Monthly passes will remain unchanged to help frequent public transport users manage their expenses. The PTC encourages adults and concession groups who travel frequently to consider purchasing monthly passes to cap their public transport costs. Graduating students whose concession eligibility ends on or after 28 December can enjoy an extended concessionary period of four months, benefiting around 75,000 students and their families.
## Government support
To support lower-income households, the MOT will provide Public Transport Vouchers (PTVs) worth S$60, an increase from the S$50 vouchers provided in 2023. These vouchers can be used to top up fare cards or purchase monthly passes. The income eligibility criterion for PTVs will also be raised, allowing households with a monthly income of not more than S$1,800 per person to qualify. This adjustment will enable an additional 60,000 households to benefit from the PTVs. The first stage of this exercise will commence by the end of 2024.
## Future implications
The fare increase and additional government subsidies aim to balance the rising costs of public transport operations with the need to keep fares affordable for commuters. The deferred fare quantum of 12.9 per cent will be considered in future fare review exercises, potentially impacting future fare adjustments. The extended concession period for graduating students and increased support for lower-income households reflect ongoing efforts to mitigate the financial impact on vulnerable groups.
