Public Transport Fare Review 2023

The Public Transport Fare Review (FRE) 2023 sees an overall 7.0% increase in bus and train fares with effect from 23rd December 2023. Adult card fares for buses and trains are set to increase by 10 – 11 cents.

As published by the Public Transport Council (PTC) in April 2023, based on the new Public Transport Fare Adjustment Formula applicable from 2023 to 2027, the maximum allowable fare adjustment quantum to be considered for the 2023 Fare Review Exercise is 22.6%, inclusive of the deferred fare quantum of 10.6% from the 2022 FRE.

The PTC decided to grant a fare adjustment quantum of 7.0% to keep public transport fares affordable in this higher cost environment and carry over the remaining 15.6% to future FREs. This is made possible by the Government’s provision of an additional subsidy of about $300 million in 2023, which is higher than the $200 million subsidy provided after the 2022 FRE. This will help to mitigate the impact of the fare increase on commuters.

The Fare Review At A Glance:

From 23rd December 2023:

• Adults:
  Card fares to increase by 10 – 11 cents per journey.
  (10 cents increase for journeys equal to or less than 4.2km; 11 cents increase for journeys more than 4.2km)
  Cash fares to increase by 20 cents per journey.
  
• Children below 7:
  No change in fares; free travel for all.
• Students:
  Card fares to increase by 4 – 5 cents per journey.
  (4 cents increase for journeys equal to or less than 4.2km; 5 cents increase for journeys more than 4.2km)
  Cash fares to increase by 10 cents per journey.
  
• Senior Citizens:
  Card fares to increase by 4 – 5 cents per journey.
  (4 cents increase for journeys equal to or less than 4.2km; 5 cents increase for journeys more than 4.2km)
  Cash fares to increase by 10 cents per journey.
• Persons with Disabilities / Workfare Transport Concession Cardholders:
  Card fares to increase by 4 – 5 cents per journey.
  (4 cents increase for journeys equal to or less than 4.2km; 5 cents increase for journeys more than 4.2km)
  Cash fares for Persons with Disabilities to increase by 10 cents per journey.
  
• Monthly Concession Pass Holders:
  Adult Monthly Travel Pass – No Change
  Bus / Train Monthly Concession Passes – No Change
  Hybrid Monthly Concession Passes – Up to 10% off current Pass Prices ($4.50 – $9.50 lower)
  [NEW] Workfare Transport Hybrid Monthly Concession Pass – $96 ($32 less than the price of Adult Monthly Travel Pass)

Fare Adjustment Formula

PTC is a statutory board under the Ministry of Transport that regulates public transport fares. The board conducts annual Fare Review Exercises to adjust public transport fares, and new fares usually take effect in end-December.

The current Fare Adjustment Formula is as follows, and is applicable from 2023 to 2027:

Year 2023 Fare Adjustment Quantum = 0.5 cCPI + 0.4 WI + 0.1 EI – PC + C = 12.0%
Quantum carried over from the 2022 Exercise – 10.6%
FRE 2023 Maximum Allowable Fare Adjustment Quantum – 22.6%

The Fare Adjustment Formula is based on five components:

• Core Consumer Price Index (cCPI): Year-on-year change in core Consumer Price Index; 4.1% in 2022.
• Wage Index (WI): Year-on-year change in Wage Index measured by the Average Monthly Earnings (National Average); 6.7% in 2022.
• Energy Index (EI): Year-on-year change in Energy Index which is a composite index derived from diesel and electricity
  prices; 62.3% in 2022
• Productivity Contribution (PC): Set at 0.1%.
• Capacity Adjustment Factor (C): Based on actual and planned capacity improvements from 2020 to 2026; Set at 1.1%

Fare Adjustment Quantum granted for 2023: 7.0% (remaining 15.6% carried over to future FREs)

Highlights of Public Transport Operators’ Applications

SBS Transit applied for a fare adjustment of 22.6%, citing cost pressures arising from inflation, elevated energy prices, and competitive labour market as key challenges, while full rail ridership recovery to pre-COVID levels in the near term remains uncertain. In its latest
financial year, SBS Transit’s train segment reported a loss in several millions, even with Government support.

SMRT Trains applied for a fare adjustment of 22.6%. The operator cited cost pressures from slow recovery of public transport ridership in 2023 as compared to pre-COVID, elevated electricity cost, and expected increase in repair and maintenance costs, escalation of
material costs, and wage pressures in the tight labour market. For its latest financial year, SMRT Trains recorded an operating profit of $6.1 million, after taking into account Government support. PTC also noted that SMRT Trains reported a higher profit after tax and finance, due to the dividend income from its subsidiary SMRT TEL.

Fare Adjustments for Adults

Regular commuters paying adult fares via Card will see a 10 to 11 cent increase in bus and train card fares from 23 December 2023.

A consolidated list of new fares can be found on the PTC’s website.

Fare Adjustments for Concession Card holders:

Full-time students from Primary, Secondary and Tertiary institutions currently eligible for Student concession fares, Senior Citizens, Persons With Disabilities and Workfare Transport Concession cardholders will see a 4 to 5 cent increase in card fare for both bus and train from 23 December 2023.

A consolidated list of new fares can be found on the PTC’s website.

Monthly Concession Passes

A new Workfare Transport Hybrid Monthly Concession Pass will be introduced for Workfare Transport Concession Cardholders.

Prices for Hybrid Monthly Concession Passes will be reduced (except Adult Monthly Travel Pass).

Prices for all other Monthly Concession Passes will remain unchanged.

Prices of Monthly Concession Passes from 23 Dec 2023:

PTC Posters

External Links & References:

• 2023 Fare Review Exercise – Public Transport Council

Past Fare Review Exercises:

• Public Transport Fare Review 2022
• Public Transport Fare Review 2021
• Public Transport Fare Review 2020
• Public Transport Fare Review 2019
• Public Transport Fare Review 2018

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