Concession schemes for low income workers, persons with disabilities among fare review recommendations

The Fare Review Mechanism Committee (FRMC) announced Tuesday recommendations on public transport fares concessions, after completing and submitting its report to Minister for Transport Lui Tuck Yew.

Among the recommendations are two new concession schemes – one for low income workers and the other for persons with disabilities.

The FRMC also proposed that the government fund these two new schemes without imposing them as a financial burden on the Public Transport Operators (PTOs).

Other recommendations include enhancing benefits for existing schemes, such as free travel for below 7 years of age instead of using the current 0.9m height criterion and a Monthly Travel Pass (MTP) be made available to adult commuters to help frequent and heavy public transport users.

The FRMC also took into consideration the concerns of students from polytechnics and private institutions.

It recommended the extension of eligibility of current student concessions to Singaporeans studying full-time locally, including those who are studying in private institutions, and the adjustments to prices of the various student Monthly Concession Passes (MCP), with polytechnic students in particular enjoying a significant discount in the pricing for their MCPs.

(For more details of the enhanced benefits for the existing schemes, visit the FRMC's website.)

This is the first time the FRMC has recommended a public transport concessions framework for the government to consider, instead of leaving it largely to the PTOs to propose concessions schemes. Overall, up to one million commuters may potentially benefit from these recommendations if they are accepted and implemented.

Bearing the burden of concessions

The committee also proposed the Public Transport Council (PTC) to consider mandating the PTOs to contribute a portion of the fare increase they receive (the portion will range from 20 to 50 per cent of the expected increase in fare revenue for that year) to the Public Transport Fund.

The Public Transport Fund was set up to help needy families adjust to the impact of public transport fare increases.

Currently, the primary source of funding for the Public Transport Fund comes from the government.

In addition, the FRMC said the government could also continue to co-fund appropriate contributions to the Public Transport Fund, while financial penalties imposed on PTOs’ service lapses should also be channelled towards this Fund.

The committee, led by former Senior District Judge Richard Magnus and 13 other members of diverse backgrounds, was appointed by the Government in June 2012.

It consulted a diverse group of key stakeholders in the process of formulating its recommendations to improve fare concessions, the fare adjustment formula and the fare mechanism.

The FRMC also conducted a household survey, involving 4,600 households, for views on possible recommendations and suggestions before finalising its report.

For more details on the recommendations for fare concessions, the fare adjustment formula, the fare mechanism and the findings of the household survey, visit the FRMC’s website.

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