Sign up | Log in



Home  >>   Daily News  >>   Singapore News  >>Transport  >> Maximum allowed public transport fare increase in 2015 is 2.8%: Lui Tuck Yew
NEW UPDATES Asean Affairs 19 December 2014  

Maximum allowed public transport fare increase in 2015 is 2.8%: Lui Tuck Yew
SINGAPORE: Any increase in public transport fares next year will be lower than the original roll-over figure of 3.4 per cent. In an exclusive interview with Channel NewsAsia, Transport Minister Lui Tuck Yew said "the maximum that is allowed for this particular fare increase will be 2.8 per cent".
This figure results from deducting the fare adjustment quantum of -0.6 per cent, which is due mainly to a drop in energy costs. 
The Public Transport Council (PTC) began its annual fare review exercise last month, and results are expected to be announced by the first quarter of 2015.
The last review in Jan this year announced a fare increase of 6.6 per cent, to be adjusted in two steps. A 3.2 per cent hike was implemented in Apr, and the remaining 3.4 per cent carried forward to the current review. The rollover system was a recommendation made by the Fare Review Mechanism Committee in Nov 2013.
The fare formula is based on four components:
Core CPI inflation: This currently stands at 1.7 per cent, and excludes home and car prices.
Average wage increase, at 4.3 per cent
Energy index: This registered -12.6 per cent, due to a drop in energy costs in 2013. The energy index reflects the rising cost of power and fuel as a proportion of an operator's expenses.
Productivity index at 0.5 per cent, where operators share productivity gains with commuters.
These components have been given weightage of between 20 and 40 per cent - 40 per cent for core consumer price index (CPI), 40 per cent for wage index, and 20 per cent for energy index.
The fare adjustment quantum formula is as follows: CPI + Wages + Energy - Productivity = Fare Adjustment Quantum. So this year's fare adjustment quantum is -0.6 per cent.
Said Mr Lui: "Here we are using 2013, for this fare formula. We know that energy costs have come down, as compared to 2012, which is why for the most recent year, the index was actually -0.6. You may recall that it was 6.6 per cent, of which the most recent fare increase gave an upward revision of 3.2 per cent. So there was a 3.4 per cent that was carried over, and now taken together with the -0.6 per cent, which was derived using all the numbers in 2013, the maximum that is allowed for this particular fare increase will be 2.8 per cent."
The PTC also told Channel NewsAsia it will consider this fare adjustment of 2.8 per cent for the current review exercise. Public Transport Operators SBS Transit and SMRT have until Friday (Dec 19) to submit their applications to the PTC for a fare increase, subject to approval by the Council.
The Transport Minister stressed that the fare review must ensure public transport remains affordable. At the last review, concessions were introduced for low-income workers and those with disabilities, to balance the fare increase.
Observers say this move should continue. Said Chairman, Government Parliamentary Committee for Transport Cedric Foo: "There is a group of needy people that we must always pay attention to, and do whatever we can to help them. Median income may rise, but those stuck at the bottom decile may still struggle with even small fare increases. So I would like to see the public transport voucher and low-wage concessions as permanent features. People who are dealt a poor deck of cards from birth - persons with disabilities - I think they should always be helped."
The PTC has also been urged to cushion the impact of fare increases on senior citizens. In addition, the Government is looking at the possibility of introducing off-peak monthly passes for commuters.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            December 19, 2014 Subsribe Now !
• VN halts Australia fruit imports Subcribe: Asean Affairs Global Magazine
• LPEI to see higher export financing with weakening rupiah 
• Brunei,US in talks for possible joint energy ventures 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Indonesia to benefit from foreign investment, trade 
• Maximum allowed public transport fare increase in 2015 is 2.8%: Lui Tuck Yew 
Asean Analysis                    December  18, 2014

• Asean Analysis December 18, 2014
The virtue of strengthening domestic palm-oil market
Advertise Your Brand

Asean Stock Watch    December  18,  2014
• Asean Stock Watch-December 18 , 2014
The Biweekly Update
• The Biweekly Update  November 28, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand