Commuter uncertainty over travel patterns hits sales of monthly pass

SINGAPORE — Producer Muhammad Farhan used to spend more than S$200 a month on public transport, making at least six trips a day travelling for work and to and from his home.

The Adult Monthly Travel Pass (AMTP) introduced last year thus came as a relief, offering unlimited travel on buses and trains for S$120 a month.

“I thought it was a good idea (to buy it), since I spend so much on public transport,” said the 27-year-old. “Now I feel more at ease when I travel on buses and trains.”

However, data suggest that Mr Muhammad is in the minority among heavy public transport users in buying the pass. Even though the Public Transport Council (PTC) estimated last year that 40,000 to 60,000 adult Singaporean and permanent resident commuters could benefit from the pass, only an average of 9,000 passes were sold monthly between July and December last year, somewhat less than the 16,000 Adult Monthly Travel Cards issued. There is no available figure on the total number of commuters who use public transport here.

The take-up rates were revealed on Wednesday, when the PTC announced that fares would go up 2.8 per cent this year. While transport analysts did not think it necessary to make the concession pass more affordable to benefit a bigger pool of commuters, some felt the numbers were low. This could be because of commuters being reluctant to spend money upfront if they are uncertain if savings are substantial.

Responding to TODAY’s queries on the take-up rate, the PTC noted the 16,000 cards issued so far and said the authorities’ fare data suggest that another 25,000 commuters, whose current monthly fare expenditure exceeds S$120, could benefit.

In setting the price of the AMTP, the PTC had noted that the adult passes available then — priced from S$170 to S$190 — did not attract many users. “The AMTP was, therefore, priced much lower at S$120 (S$50 to S$70 cheaper). It ensures that no commuter would have to pay more than $120 per month on public transport,” a spokesperson said.

She added: “Transit Link will continue to publicise and encourage those who travel on public transport extensively to consider applying for this travel pass.”

Transports analysts TODAY spoke to said the AMTP is suitable for those who make about three to four trips a day. While other cities offer more economical options for those who make fewer daily trips, these cities — such as New York City — do so because their transport fares are high, said Nanyang Technological University transport economist Walter Theseira.

Among heavy users, the take-up rate may be low, as commuters may be unable to determine their travel pattern every month.

National University of Singapore transport researcher Lee Der Horng said: “The moment you take up this card, it becomes (a) commitment,” he added. “So maybe people are not ready to do this.”

SIM University transport analyst Park Byung-joon said the savings must be substantial — and not merely equal or close to the cost of the pass. Concurring, Dr Theseira said: “I really doubt people who spend within 5 to 10 per cent of this amount (S$120) are going to be motivated to buy it given the … uncertainty of travel patterns. They may or may not exceed it.”

He noted that more heavy users may come on board if the price of the pass was lowered, but this could come at the expense of other commuters. “To balance the budget of the system, other (transport) users will have to pay more for it, (with costlier) individual rides or taxpayers having to pay more,” he added.