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SINGAPORE – Only 11 bus services, or three percent of all bus services here, were able to generate enough fare revenue to cover their operating costs ahead of the Covid-19 pandemic, the minister said on Friday (September 4). of Transportation, Ong Ye Kung.
But with the number of travelers dropping due to the impact of Covid-19, all 356 bus services are in the red as of July.
Mr. Ong, who was answering a question in Parliament from Mr. Dennis Tan (Hougang), added: “Before Covid-19, and as a result of better frequencies and service standards, 345 out of 356 public bus services they generate revenue from fees that cannot cover their operating costs and require government subsidies.
“This equates to a total of approximately $ 1 billion per year.”
The number of train and bus users dropped by 75 percent during the circuit break period from April to June. But even after the gradual lifting of circuit breaker measures, passenger numbers still hold at roughly 60 percent of levels compared to before Covid-19.
The Public Transport Council (PTC) said on Friday that public transport operators have been significantly affected by this drop in passenger numbers, especially as they had continued to operate trains and buses on pre-pandemic frequencies.
He said that with the further drop in revenue for public transport operators, he expects government subsidies to be even higher this year.
Before the pandemic, the government expected to spend about $ 1 billion to renovate and upgrade operational rail assets, and another $ 1 billion to subsidize public bus services annually for the next five years. This translates to more than $ 1 in allowances for each trip taken.
On the issue of subsidies, the Transport Ministry said it will continue to monitor the financial impact of the pandemic on public transport as the situation evolves.
He added that he will continue to seek ways to account for potential changes in passenger quantity trends and travel patterns as a result of Covid-19, while ensuring that passengers can continue to travel safely and smoothly. .
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