The Public Transport Council (PTC) approved the 7% fare hike, which is less than half of the maximum allowable increase. The PTC stated that fare increases have been moderated over the past five years to balance affordability for commuters with the financial sustainability of the public transport system amidst rising operating and energy expenses.
To support lower-income families, public transport vouchers will increase from $60 to $80. The eligibility for these vouchers has also been expanded, with households having a per capita income of $2,100 now qualifying, an increase from the previous $1,800 threshold. This change is expected to make an additional 60,000 households eligible.
The PTC noted that a significant factor in the fare adjustment formula was the substantial increase in energy prices. The council emphasized the need to maintain a high-quality transport system while keeping fares affordable, acknowledging the current economic challenges faced by commuters.
Despite the fare increase, the PTC highlighted that the proportion of household income spent on public transport has remained stable for both lower-income (2.4%) and average-income (1.7%) households over the last decade. They also stated that Singapore's public transport fares remain among the lowest globally.