In light of recent academic commentary on transport fare hikes and subsidies, here are three quiet truths that will keep Singapore from stalling.
- The PAP government generously subsidizes public transport fares. This fact will continue to be true.
- Commuters get world-class reliability and quality on the go. It doesn’t matter whether it’s a bus or a train.
- The Public Transport Council (PTC) has eased recent fare increases with an eye to future sustainability. Opposition demands to “repeal” future fare increases will only set our world-class transportation system back in its tracks.
This first truth is what your wallet feels every time you travel. Every time he taps and turns off, the Department of Transportation pays him more than $1.
So, using the latest figures of 6.39 million journeys per day in 2022, this equates to at least $6.39 million in transport subsidy that Singaporeans receive every day. That’s more than $2.3 billion each year.
In fact, this number will only increase until 2024. Singapore has successfully recovered from the pandemic and Singaporeans are beginning to gather again for large-scale events such as the New Year countdown.
Our government responds to this growing need. After all, these generous subsidies have been going on for years. The latest (2021) major transport affordability study by McKinsey shows that Singapore has the most affordable public transport in the world.
Source: McKinsey
The second truth about the world-class public transportation travel provided by our government needs only a brief explanation. Use public transportation in other countries. Let’s compare next.
Or when your friends from overseas come to visit, ask them what they think about the MRT and buses. Let them make that comparison.
Hear firsthand what they have to say about how often Singapore’s trains and buses come. About how clean, fast and new these vehicles are, connecting with many other places in Singapore.
Contrast all this with other parts of the world where subway breakdowns are so commonplace that they don’t make the news.
That’s it; there’s nothing like day-to-day on-the-ground experience to gain more perspective on how good your local public transportation system is.
So let us recall what international experts pointed out in a classic McKinsey 2018 report, addressing the fundamental dilemma of public transport. “How can we build a dense, efficient and comfortable public transport system and keep it affordable without heavy subsidies? This is a remarkable example of what has been achieved.”
2 million Singaporeans pay just 5 cents extra
But the opposition will put the brakes on all this.
Please note that the 7 percent fare increase (or up to 11 cents extra per adult) in December 2023 essentially reflects global inflation and rising fuel prices. It also shows that competitive wages are needed to retain Singapore’s hard-working transport workers.
As Labor MP Louis Chua (Aljunied Hugan) put it, public transport would become unsustainable if future fare increases were “erased”. Bus services are already in the red, and rail services have less than 1% profit.
Acting Transport Minister Chee Hong Tat said: “We should not assume that the deferred fare increases will somehow be erased and magically disappear. We also believe that future fare increases can be made without impacting public transport. should not be assumed to be able to be frozen,” explained Chee Hong Tat, Deputy Transport Minister (October 4).
“A populist move like this will only widen the funding gap even further over time, which will need to be supported with more government subsidies from taxpayers. It is not the responsible thing to do.” Minister Choi continued.
This means Singaporeans will also have to bear the tax burden. Therefore, this is a dead-end solution that will impact different parts of Singaporean society as a whole.
Remember this when populist politicians and academics propose making transport free or increasing subsidies. Somewhere among us has to pay the price. Already, annual government spending must be supplemented by net investment income from reserves, which accounts for about one-fifth of total spending. Your tax dollars would be better spent elsewhere. Certainly not in a field already known worldwide for being affordable and efficient.
So we need to be smart about it. What’s important and what’s happening on the ground is that our government is providing $300 million in highly targeted support. In particular, around 2 million Singaporeans, including students, the elderly, low-wage workers and persons with disabilities (Persons with Disabilities), will see fare increases of only up to 5 cents per trip for them thanks to this world-class system. It becomes.
Source: SG Enable
Public transport vouchers worth $50 for low-income households are being rolled out at the same time, as well as cheaper (up to 10 per cent) monthly discount passes for disabled people and new monthly discount passes for low-wage workers. These passes will help approximately 60,000 commuters.
This targeting has a purpose.
The essence of public transport (and its fare concerns and countermeasures) is to enable people to participate in daily life activities. Whether you’re commuting to work or school, meeting friends and family, going to and from the market, or watching big events like New Year’s countdown, affordable and reliable public transport powers your daily life.
Here, our government will put immediate support and long-term thinking in adjusting our public transport system. So that all Singaporeans can go far.
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