Public transport fare hike: S$9 million in vouchers to support 300,000 needy households

SINGAPORE — The Government will be giving 300,000 lower-income households vouchers worth a total of S$9 million, to help these families cope with the latest fare increases by the Public Transport Council (PTC).

This is the largest such exercise to date since 2010.

In 2014, S$7.5 million worth of Public Transport Vouchers were made available to 250,000 lower-income families, and again in 2015. In 2011, S$4 million worth of vouchers were provided for 200,000 households.

No vouchers were given in other years because there were no fare hikes.

The Ministry of Transport and People’s Association said in a joint media release on Tuesday (Oct 30) that the Government will draw the latest S$9 million from the Public Transport Fund for this round of handouts.

Each voucher is worth S$30, and may be used to buy or top up fare cards, or buy monthly concession passes.

The PTC announced on Tuesday that from Dec 29, adults taking buses and MRT trains will have to pay six cents more for card fares, while single trip on trains and cash fares for buses will cost 10 cents more.

Students and senior citizens will pay up to one cent more in card fares for both forms of transport.

The price hike was announced after it concluded its fare review exercise for the year, with the fare changes amounting to an overall 4.3 per cent increase.

There will be no changes to the cash fares for students and senior citizens, or prices of monthly concession passes.

Needy households may apply for the vouchers at their neighbourhood community centres and clubs (CCs) from Nov 12 this year till Oct 31 next year.

Each successful household applicant is entitled to one voucher, and those that need more help may apply for extra vouchers through the CCs.

Mr Frankie Tan, 49, a warehouse assistant who lives in a rental flat at Teck Whye Crescent near Chua Chu Kang, takes between two and four bus rides a day. He told TODAY that the fare hikes seem “acceptable for now”, but he “cannot tell if this will affect (him) in the long term”.

Asked to comment on the latest changes, sociologist Tan Ern Ser from the National University of Singapore said that the financial impact of the price hikes would be “minimal” for lower-income families, particularly if they have access to other sources of financial support.

Working on the assumption that each adult spends 12 cents more a day, Associate Professor Tan said that this will work out to S$3.60 a month, which means that the S$30 voucher will absorb the increase for eight months.

A lower-income household with two adults earning a combined S$1,500 will then pay S$7.20 more each month — or about 0.5 per cent of their monthly income.

He added: “While the financial impact is minimal, it may reinforce the perception that the cost of living is on the rise again.” ADDITIONAL REPORTING BY WONG PEI TING