Fare Regulation Framework
Public bus and train services are provided on a commercial basis, within the maximum fares approved by PTC. The Government does not provide direct subsidies for public transport operations.
To keep public transport fares affordable to the general public, public transport infrastructures such as MRT/LRT lines and bus interchanges are funded entirely by the Government. In addition, public buses are also exempted from COE (Certificate of Entitlement) payments. The Government also pays for the development and software cost of the contactless smartcard system. Therefore, bus and train operators are only responsible for operations, maintenance costs and investments in service improvements.
In regulating bus and train fares, the PTC carries out its statutory mandate to safeguard public interest by keeping fares affordable while ensuring the long-term financial viability of the public transport operators.