Photo of Khaw Boon Wan from Yahoo

Transport Minister Khaw Boon Wan today (Mar 7) announced that he will be raising the public transport fares because it is too “cheap” and that the current fare formula is “inadequate”:

“We must be careful that fares are not priced too cheaply, as maintaining a high-quality transport system requires resources. Cheap fares are popular, but they are not sustainable. The current formula is inadequate, and the Public Transport Council (PTC) is reviewing it to take into account total costs.”

Transport Minister Khaw Boon Wan reminded Singaporeans to support the government in the coming fare hike:

“I am confident that they can work out a fair and sustainable arrangement. Please support the PTC when they make their recommendations.”

Minister Khaw Boon Wan also complained about rising operating costs after building more train lines and, without providing any statistics, lied that fares have gone down:

“It would be a disaster for public transport subsidies to spike against declining revenue. Over the past five years, improvements to public transport services have increased operating costs by about 60 per cent. One major contributing factor is the large increase in network capacity as we opened new lines and added more buses and trains. This huge cost increase has been borne by the Government. Against such rising cost, fares have gone down by 2 per cent over the same period. Every dollar spent on transport is a dollar less for other expenditure – like schools, healthcare and security.”

In Feb this year, SBS Transit reported a 50% increase in net profit after a 4% fare hike in Oct 2017.