by John Po and Sadat Osman
inSing.com - 4 June 2012 7:24 PM | Updated 8:07 PM
Singaporeans may have to pay more for public transport in
2013.
A lot will depend on a 13-member committee that will review the
fare adjustment formula and framework.
The Fare Review Mechanism Committee (FRMC) will be headed by
Richard Magnus, a former Senior District Judge for the Subordinate
Courts who stepped down in 2008. He also serves as the chairman on
the Casino Regulatory Authority and is part of the Public Transport
Committee (PTC) as well.
In March, Transport Minister Lui Tuck Yew said that there would
not be a fare adjustment this year because a review of the formula
and framework would have to be done first.
This means, the revisions in 2013 may mean higher fees (for
commutors) because fare adjustments are being skipped this
year.
“Together with my committee, our job as the FRMC is to review
the effectiveness of the current fare adjustment formula and to
propose improvements. We will be working towards a revised fare
review framework that will balance keeping public transport fares
affordable, especially for those from low-income households, while
ensuring that our Public Transport Operators (PTOs) remain viable
as commercial entities,” Mr Magnus said in the committee’s
blog.
Transport economist Michael Li from the Nanyang Business School
said he believes “fees will go up because the operators are
struggling.”
“To ease off the cost pressure, I suggest that the government
should create a dedicated fund that is used to neutralize the
external cost pressures and issues that are beyond the operators’
control. This kind of subsidy should be acceptable to the general
public because its intention is to maintain fare stability, which
is definitely less radical than the full nationalisation,” he told
inSing News.
He is also hoping the new revised formula will reflect the
service quality of each operator.
The committee’s website says it is seeking public feedback
before coming up with its recommendations.
Mr Magnus said: “On behalf of the Committee, I would like to
invite you to contribute to our review process by sending us your
suggestions on what would be key considerations as well as any
specific suggestions on how the fare formula and its implementation
can be improved.”
