Distance-Based Fare System

Mr Seah Kian Peng asked the Minister for Transport (a) whether he will provide an update on the distance-based fare system for bus and rail transport and how this is affecting the revenues of the transport operators; and (b) whether the revenues of the transport operators have increased because of this change.

Mr Lui Tuck Yew: The revenues of the public transport operators (PTOs) have continued to grow. However, this is due entirely to increases in ridership and not the implementation of Distance Fares in July 2010. In fact, based on the PTOs' financial announcements, the average fares, which is fares collected per trip, have fallen since Distance Fares was introduced.

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Our latest data in August 2011 also shows that the number of commuters who benefited from Distance Fares has continued to increase. Overall, 72% of all commuters saw weekly fare savings compared to the 63% that was originally projected in 2009, and the 71% based on the data taken in January 2011. The figure for Senior Citizens is also higher at 78% in August 2011, compared to the 70% originally projected. This indicates that more commuters are making use of the flexibility provided by Distance Fares, and optimising their journeys by choosing the routes that best suit their preferences to reach their destination.