Covid-19: Public transport operators under significant financial stress, says Khaw Boon Wan

SINGAPORE — Public transport operators, some of which were already losing money in rail operations prior to the Covid-19 pandemic, are under significant financial stress, Transport Minister Khaw Boon Wan said on Tuesday (May 5).

In a written response to a parliamentary question, Mr Khaw said ridership has dropped by 75 per cent for buses and 84 per cent for trains, from the period before the outbreak.

Fare revenue has also dropped by about 80 per cent, said Mr Khaw, who was responding to a question from Nominated Member of Parliament Walter Theseira.

Associate Professor Theseira had asked how safe distancing measures have affected demand for public transport and the resulting financial impact on transport operators.

Mr Khaw said that public transport operators continue to incur operating costs owing to efforts to ensure safe distancing.

“Operating costs could have come down if supply was adjusted to match falling demand, but operators have largely preserved service capacity and headways to ensure that commuters can maintain safe distancing,” he added.

In fact, public transport operators are incurring additional costs due to the increased cleaning of buses, trains and public transport premises, said Mr Khaw.

Costs are also being incurred from protecting their staff with masks and face shields, as well as to cover the accommodation cost of Malaysian bus captains affected by Malaysia’s lockdown which prohibits Malaysians from travelling out of the country until May 12.

Public transport operators also incur costs from deploying transport ambassadors and enforcement officers to ensure safe distancing among commuters, added Mr Khaw.

“These costs would eventually have to be borne by operators and taxpayers, as they are not adequately covered by current fares,” said Mr Khaw, who noted that the operators are currently supported by Government relief measures such as the Job Support Scheme and rebates on property tax.

'FINANCING MODEL MAY CHANGE IF POST-PANDEMIC IMPACT ON PUBLIC TRANSPORT IS DRASTIC’

Assoc Prof Theseira also asked about plans to finance public transport should Covid-19 measures continue to affect demand for buses and trains in the near and medium term.

Mr Khaw said that the authorities will have to see how public transport evolves after the pandemic is over, and if demand for public transport returns to pre-outbreak levels.

“It is too early to determine the post-pandemic world and hence premature to assess its long-term impact on public transport financials. Suffice to say that the pandemic will reshape our economy, our way of life and how we move about,” he said.

Possible scenarios included more people continuing to work from home post-pandemic, and more people choosing to cycle as their mode of transport.

“If the impact is drastic, we may have to update the current financing model for public transport appropriately," he added.