The Public Transport Council (PTC) today (Aug 30) announced that there will be a fare reduction of 5.4%. The PTC however cautioned that the reduction is based on the old formula of calculation which will last only until the end of this year 2017.
PTC hinted that a second fare revision will be implemented following the implementation of a new fare calculation formula. The Transport Ministry agency previously commented that the existing fare calculation may not be accurate, which is why there is a need for a new formula. Many Singaporeans however expressed distrust and responded that it is likely the old formula was not profitable in view of the long-term slump in oil prices and that the government needs a new formula to raise fares.
Singapore’s second largest public transport operator, ComfrotDelgro, which owns SBS Transit operating the Downtown Line, posted a S$586.3 million revenue for the second quarter of 2017, S$5.7 million higher than a year ago. The group notably made a comment thanking the Singapore government for the new funding framework, where taxpayers monies were used to buy out all unprofitable portion of the transport business leaving the management only to ComfortDelgro and SMRT. SMRT CEO Desmond Kwek also expressed similar appreciation thanking the government for making his company profitable.