Since 1998, fare adjustments have been formula-driven exercises that try to strike a balance between ensuring public transport is affordable and operators remain viable. This year is no exception. But as it has done in recent years, PTC has tried harder to shield more vulnerable commuters from the latest fare increase – a record 7 per cent – which will take effect from Dec 28. The PTC has extended concessions to more commuters, with over half of Singaporeans now eligible for concessionary fares. This shows the fare revision mechanism is robust and disciplined, yet socially equitable. Still, there are improvements that can be made – such as addressing the lag between the data PTC uses to determine fare changes and the implementation date. Will operating subsidies creep upwards, as in places such as London and Luxembourg, which made public transport free this year? Quite possibly, if we want to maintain a world-class transport system and yet keep fares affordably low. What are the alternatives? One would be to adopt what Hong Kong and Tokyo do – allowing rail operators to realise appreciated land value around stations.... Continue Reading