Outcome of Fare Review Exercise (FRE) 2026

Government provides enhanced Public Transport Vouchers to benefit more households.

1.         Over the past five years, the Public Transport Council (PTC) has moderated fare increases to strike a balance between keeping public transport fares affordable for commuters and ensuring the financial sustainability of Singapore's public transport system amid rising operating and energy costs. Commuters have been shielded from the full increase in costs, whenever fares were not fully adjusted by the quantum determined by the fare formula. Since FRE 2020, taxpayers have been funding this deferred quantum through government subsidies. The deferred fare quantum, which had peaked at 15.6% in 2023, was gradually reduced to 9.4% last year, or more than $200 million last year.

2.       For the 2026 FRE, the output from the fare adjustment formula is 5.3%. The substantial increase in energy prices between July 2025 and June 2026, due to the Middle East conflict, was the reason for the higher fare formula output compared to last year. Together with the deferred fare quantum from previous years, the total maximum allowable fare adjustment for the 2026 Fare Review Exercise is 14.7%.

3.       Balancing the need to keep the public transport system financially sustainable against cost-of-living concerns, PTC has decided to grant an overall fare increase of 7.0% for this year's FRE. This is less than half the maximum allowable fare adjustment quantum. This continues the measured approach taken by the PTC over the past few years to cushion commuters from the maximum allowable fare adjustment quantum, while gradually closing the gap between the cost of providing public transport and fares.

4.        To cover the deferred fare adjustment quantum, the Government will continue to provide additional fare subsidies, amounting close to $200 million in 2027. This is on top of the more than $2 billion in annual operating subsidies for public transport, as well as capital expenditures averaging $5 billion annually over the next five years.

What will change for commuters?

5.       The fare adjustments, which are applicable from 26 December 2026, are as follows:

Balancing Fare Affordability and Financial Sustainability

6.        Public transport fares in Singapore remain highly affordable. Over the past ten years, the share of monthly household income spent on public transport has remained low. The proportion of household income spent on public transport by lower income households has held steady at 2.4%. For average-income households, this proportion has also held steady at 1.7%. Relative to other cities, our public transport fares remain one of the lowest in the world (refer to Annex C).

7.        PTC will continue to monitor fare affordability closely to ensure that Singapore's public transport system remains both affordable for commuters and financially sustainable for the long term.

Support for vulnerable and heavier users

8.       To support lower-wage workers, the Government will absorb the card fare increase for Workfare Transport Concession Scheme (WTCS) cardholders. About 190,000 WTCS cardholders will see no change in their card fares, shielding them from the impact of this year’s fare adjustment.

9.      PTC will keep the prices of all monthly passes unchanged for FRE 2026,^[2] to help heavier users of public transport cope with the cost increases. There are currently about 126,000 monthly pass users. Monthly passes provide commuters who travel frequently and consistently throughout the month with the option to limit their monthly public transport expenditure. With the card fare adjustments and with monthly pass prices remaining unchanged this year, around 110,000 additional card commuters can potentially benefit by switching to a monthly hybrid pass to better manage their public transport expenses, with average fare savings of around $26 a month^[3]. PTC encourages heavy users of public transport, including adults and concession cardholders, to make use of the monthly passes to help them manage their transport expenditure. Commuters can track their travel expenditure using the SimplyGo app which is able to display their monthly spend and help them make an informed decision.

Supporting Lower-Income Households through the Public Transport Fund

10.       In tandem with any fare increase, public transport operators (PTOs) are required to contribute part of their increased fare revenue to the Public Transport Fund. The Government draws from the Fund to disburse PTVs to help lower-income households cope with fare adjustments. 

11.        For FRE 2026, PTC will require SBS Transit Rail and SMRT Trains to contribute 30% of their expected increase in revenue – a total of $23.94 million (SBS Transit Rail: $8.07 million; SMRT Trains: $15.87 million) to the Public Transport Fund.

12.       To cushion the impact of the fare increase, PTC has also recommended that the Government draw on the Public Transport Fund to provide additional support to cushion the impact of the fare increase for lower-income households. For FRE 2026, PTC is heartened to know that the Government will increase the PTV quantum from $60 to $80 and broaden the income eligibility criterion to benefit more households.

13.      “PTC is aware that every fare adjustment matters to commuters, especially when households are managing higher day-to-day expenses. This decision was therefore not one we took lightly. In determining this year’s fare adjustment, PTC sought to keep the increase manageable for commuters, while balancing the need to sustain the quality and reliability of our public transport system in the face of higher costs.

Our approach is not just about moderating the fare adjustment. It is also about providing more support where it can make a meaningful difference. The Government’s additional subsidies for the deferred fare quantum will help cushion all commuters from a higher fare adjustment. Holding the fares for WTCS cardholders will help to shield our lower-wage workers from this year’s fare increase, while enhancing the Public Transport Vouchers will provide additional support to lower-income households. We are also keeping monthly pass prices unchanged for commuters who use public transport frequently.

Ultimately, our responsibility is to keep public transport affordable for commuters today, while ensuring that our public transport system is of high-quality and is financially sustainable for the years ahead,” said Ms Janet Ang, Chairperson, Public Transport Council.

Annex A: Factsheet for Fare Review Exercise 2026

Annex B: Bus and Train Fare

Annex C: International Comparison of Public Transport Fares

Download PTC FRE Annex A, B & C [PDF, 605 KB] [PDF, 605.66 KB] ↗ (opens in new tab)

^[1] The increase in cash fares reflect the higher operating costs of cash handling. Less than 1% of all public transport journeys are paid in cash.

^[2] For the last exercise, PTC has previously reduced the prices of monthly passes for adults and seniors by up to 5%, while the Government similarly lowered the prices of monthly passes for Workfare Transport Concession Scheme cardholders and persons with disabilities.

^[3] This refers to card commuters who spend more than 10% monthly above their respective monthly hybrid pass and the associated savings.