Would S’pore commuters bear the cost of more buses?
Members of the public couldn't help but ask after the government announced it would spend $1.1 billion to add hundreds of buses to run along Singapore's streets.
Responding to several questions about this at a REACH dialogue on this year's budget on Wednesday evening, Minister of State for Finance and Transport Josephine Teo explained that the government's aim was to improve service in public transport, which suffered a big blow in December when a series of train disruptions affected hundreds of thousands of commuters.
In additional to the planned purchase of 800 more buses by the government and local transport firms, she said a rail extension or a new rail line would also be introduced each year leading up to 2016.
Teo noted concerns that operation costs will increase for public transport firms SBS Transit and SMRT given the need to pay for more fuel, more drivers and even more space at interchanges, but that government's purchase of 550 of the buses will help alleviate the burden of increase fares that could be handed down to commuters.
"Fares at some point will still have to be adjusted, we all know this," she said. "But if we were not to put in this injection, then the pressure on fares will be very, very heavy, and that is something we think is not very suitable at this point in time."
Asked whether the cost of the transport operators' own purchase of 250 of the additional 800 buses could be passed on to consumers in the form of raised fares, Teo maintained that the fare formula used by the Public Transport Council (PTC), which approves fare adjustments, is not impacted by the government's move to finance the purchase of the rest of the buses.
She also explained that increasing bus capacity was deemed a faster way to improve public transport service levels while rail capacity was gradually being built up.
"We think that what Singaporeans want is a quicker solution. They don't want to wait so long, so it's with Singaporeans' needs in mind that we assessed that the better, faster and more efficient way to do it is to partner the existing public transport operators to deliver the increased capacity. That's why it's done in partnership with them," she said.
Other issues
Addressing about 200 members of the public, business community and youth ambassadors alongside REACH chairman Amy Khor, Teo also fielded questions on other aspects of this year's budget such as measures to help the disabled and the silver housing bonus.
In particular, Teo paid special attention to explaining the measures in place for small and medium enterprises (SMEs), which she said are the "lifeblood" of Singapore's economy.
Noting that the nature of land-scarce Singapore, located in the heart of an emerging Asia, would mean that the country would always have a tight labour market, Teo said that the government aimed to help SMEs build their capabilities, and make them stronger and a more attractive option to employees five to 10 years on.
Turning to a related issue -- that of foreign workers -- Teo conceded the difficulties that many SMEs face with hiring local labour, but also acknowledged the reasons why local labour find the jobs unattractive, given their financial needs and skills training.
"To some extent, wages and work conditions have to improve, otherwise many Singaporeans will find it hard to enter certain jobs," she said. "But at the same time, we also need our workers to respond, to consider the fact that it's better to have a job than no job at all. It's better to pick up new skills, to go into sectors which are still hiring than to insist on being in a sector that is no longer hiring. So both sides need to make the adjustments."
Related news
Budget 2012 round-up: Singapore to reduce foreign worker inflow
