The public transport system in Singapore is the main mode of transport for the majority of the population. It is important that public transport remains generally affordable and accessible, with measures to help various commuter groups through fare assistance schemes. Household surveys show that public transport has become more affordable as a proportion of monthly household income over the years. Public transport fares have increased, but at a much lower rate than increases in income. At the same time, increasing fuel costs and other changes in the public transport landscape since 2005 mean that the public transport industry faces declining long-term financial viability. If this continues, the system will not be sustainable. Eventually, a vicious cycle will set in – fewer resources for investments, leading to lower service standards, leading to resistance for fare increases – and all commuters will be affected. Hence, there is a need to review the existing fare review mechanism and propose improvements so that maintaining affordable public transport for commuters is balanced with the long-term viability of the industry.
Public transportation, fare mechanism, transportation costs, Singapore
Asian Studies | Public Economics | Transportation
Land Transport Authority
City or Country
PHANG, Sock Yong.
Affordable fares, sustainable public transport: The Fare Review Mechanism Committee Report. (2013). 1-86. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/2012
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Fare Review Mechanism Committee
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