The Ministry of Transport (MOT) has announced that operating costs for public transport in Singapore has increased by an average of 7 per cent per year between the period from 2012 and 2021. However, this increase in cost has not been matched by growth in revenue.

One of the major sources of rising costs has been government subsidies, which currently stand at SGD2 billion yearly. Other factors include high energy costs as well as inflationary pressure in Singapore.

Although the government plans to spend around SGD60 million over the next 10 years to expand and renew the rail network, loss curtailing measures are already being undertaken. These include removing low-traffic bus routes in Bukit Panjang that were replaced by the Downtown Line as well as revising fare formulas for all public transport systems in Singapore.

The new fare formula will account for fluctuating factors like wages, energy and inflation. It is currently under review by the Public Transport Council (PTC) and is expected to be completed by the first half of 2023.