The 5% transport fare hike is 'measured and considerate', say experts as commuters dismayed

While commuters have been left dismayed by the impending 5 per cent hike in transport fares, which came amid a slew of MRT breakdowns and delays, experts say the move was "measured and considerate".

The Public Transport Counci recently announced that adult commuters will pay nine to 10 cents more per journey, depending on the distance travelled, from Dec 27.

While express bus fares are rising by 40 cents for adults, the cost of monthly travel passes for adults and seniors will be reduced by up to 5 per cent.

The PTC noted that the 5 per cent increase in transport fares is below the maximum allowable quantum of 14.4 per cent. This follows a 6 per cent increase in 2024.

In response to queries from The New Paper, a spokesperson from SBS Transit cited manpower costs and high maintenance expenses as the main cost drivers, while noting fare adjustments may affect lower-income commuters.

"To help ease this impact, we will be contributing $3.52 million to the Public Transport Fund," the spokesperson added.

In a statement posted on SMRT's Facebook page, president of SMRT Trains Lam Sheau Kai said the rail operator is also contributing 20 per cent of projected additional fare revenue from the adjustment to the fund.

TNP has reached out to PTC for comment.

On the subreddit r/singapore, netizens expressed their displeasure as a post about the fare increases gained over 900 upvotes and 400 comments by press time. Some called the move "ridiculous", and "greedy", with others citing the recent MRT breakdowns.

Fare increase is 'measured', say experts

Transport analyst Terence Fan from Singapore Management University told TNP that the fare increase is "measured and considerate", noting actual that the increase is well below the ceiling.

"Many people may not actually experience an increase. They might even register a reduction in the transport fare," Prof Fan said, pointing out that the average commuter may end up paying only a few dollars more each month.

In particular, he emphasised that the price of monthly travel passes will be reduced by six dollars, which has not happened before. "For those who have been using public transport very heavily, it will actually translate into a small reduction in their monthly expense," Prof Fan said.

Walter Theseira, head of the urban transportation programme at the Singapore University of Social Sciences, said that the fare increase is not necessarily about boosting operator profits, but about keeping the cost-sharing balance between commuters and taxpayers stable.

"The fares are too low for operators to make profits from the fare, and today operators receive Government subsidies to cover the difference between fares and costs," said Prof Theseira.

"The money must come from somewhere, and if it doesn't come from your fares, it will definitely come from the taxpayer."

Balancing cost and reliability

Prof Theseira also emphasised the need to balance system costs with reliable service, pointing out that there is an inherent trade-off between the two. Ultimately, commuters and taxpayers pay for cost-ineffective increases in maintenance.

He added that an increase in emphasis on quality could explain the rising cost of maintaining the transport system, with the addition of new MRT lines and bus services in recent years, while ridership has not increased by as much.

Prof Fan echoed this, noting that rising energy costs, wages, and retail prices all contribute to the increase in fares.

He added that as the public transport network grows, service disruptions may appear more frequent: "We now have six lines instead of two. So if in the past, we only had one disruption a year, now we should expect one every two months."

Will transport fares continue to increase?

Both experts added that prices are likely to increase in the coming years, although Prof Fan noted that fare hikes are unlikely to rise above 9 per cent.

"Can we do better? Yes, I think so. But what we have now is already very good," he added.