Government to cover 13% of fare revenues for school bus, care transport operators amid fuel cost pressures
With the support, transport operators are expected to keep fares stable over the three-month period from April to June.
Students boarding a school bus in Singapore. (File photo: Wee Teck Hian/TODAY)
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SINGAPORE: The government will provide three months of support to transport operators serving school students, people with disabilities, some seniors and patients, to help the sector cope with rising fuel costs.
The support - equivalent to 13 per cent of transport fare revenues - will cover services provided from April to June.
"This move is to help these transport service providers continue operating without disruption in the near term," the Ministry of Education (MOE), the Ministry of Social and Family Development (MSF) and the Ministry of Health (MOH) said in a joint media release on Thursday (Apr 9).
"With the support, operators should keep fares stable during this period."
The announcement builds on Tuesday's ministerial statement in parliament, where Acting Minister for Transport Jeffrey Siow said the government will temporarily co-fund cost increases for certain essential bus services to cushion the impact of the Middle East conflict on Singaporeans.
However, the ministries said fares may still have to rise if fuel prices remain elevated beyond the three-month support period.
"There are existing subsidies to support students, seniors, patients and persons with disabilities if they are not able to afford their transport," they noted.
SCHOOL BUSES, DISABILITY TRANSPORT
For the school bus sector, MOE will extend support to operators providing services for primary schools and special education (SPED) schools, covering periods when services are in operation.
"The support will also provide parents and caregivers with more reaction time to adjust their transport arrangements if needed, ahead of possible fare increases, should the fuel price situation not improve," the ministries said.
Students on the MOE Financial Assistance Scheme (FAS) will continue to receive subsidies covering 70 per cent of monthly school bus fares since January, up from 65 per cent previously. Those requiring additional help, or who do not qualify for FAS, can approach their schools.
SPED students eligible for MSF’s Enabling Transport Subsidy, administered by SG Enable, will continue to receive support. Those needing further assistance may also seek help from their schools.
In a notice to parents, MOE said bus fares may have to rise temporarily from Term 3 if fuel prices remain elevated. "MOE remains committed to ensure that school bus services can continue," it added.
MSF, on its part, will provide support to social service agencies delivering MSF-funded disability services and using the Enabling Transport Subsidy for transport to day activity centres and sheltered workshops.
The social service agencies must pass on the grants to their contracted transport operators.
From July 2026, the Enabling Transport Subsidy will be enhanced to extend support to more people with disabilities.
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SUPPORT FOR SENIORS AND PATIENTS
The health ministry will provide similar support to long-term care and community dialysis service providers offering regular transport for seniors and patients. These include MOH-funded senior care centres, medical escort and transport operators, day hospices and dialysis centres.
"Seniors and patients can be assured that the cost of care will continue to remain affordable," the ministries said
"As announced at Budget 2025, subsidies for long-term care services, which include transport services, will be enhanced from July 2026."
MOH and the Agency for Integrated Care will provide more details to service providers by the end of April.
The surge in fuel prices due to the war in the Middle East has pushed up operating costs for various businesses.
Targeted support for platform workers, private-hire car drivers and taxi drivers, as well as cost-of-living support for households, was also announced on Tuesday.
