Reduction sees S$36m drop in fare revenue a year for SBS, SMRT
TODAY file photo
SINGAPORE — The 1.9 per cent fare reduction announced by the Public Transport Council (PTC) today (Oct 23) translates to a drop in fare revenue of S$36.1 million a year for both public transport operators.
SBS Transit’s cut in fare revenue is S$15.7 million, while SMRT’s is S$20.4 million. The operators confirmed last month that they had made submissions to the council but did not divulge details.
Today, PTC chairman Richard Magnus said the operators were reasonable. “One operator said they have no objection to fare reduction. One operator said, maybe (PTC) should think about reducing the negative 1.9 (per cent allowable),” he said.
The PTC granted the full fare reduction that was allowable under the fare adjustment formula after examining ridership trends, factors impacting the fare formula and submissions of the operators.
“We are guided by the decisions of the Public Transport Council with regard to the 2015 fare review exercise,” said Ms Tammy Tan, SBS Transit’s senior vice-president of corporate communications.
SMRT's Vice President for Corporate Information & Communications Patrick Nathan said it has noted the PTC's decision to reduce fares.
As fares will be reduced in the 2015 fare review exercise, the operators are not required to contribute to the Public Transport Fund, which helps the needy.
In the last exercise in January where fares went up from April, SMRT gave S$8 million while SBS Transit gave S$5.5 million to the fund.
The Ministry of Transport said it will have about S$8 million as of March 2016. This amount excludes the S$7.5 million set aside to fund the 250,000 public transport vouchers for needy families for the 2014 fare review exercise.
It also excludes about S$17.5 million set aside for the SG50 Seniors public transport vouchers for over 700,000 senior citizens.
