Workers’ Party MP Jamus Lim (Sengkang GRC) shared a proposal in Parliament for making public transport free for the elderly and persons with disabilities in Singapore.
He argued that this would allow them to stay engaged and active, as well as encourage those who wish to keep on working to do so without having to spend part of their earnings on commuting.
In a speech on Wednesday (March 9), the MP, an associate professor of economics at ESSEC Business School, said that “the least that an inclusive and caring society can do for our seniors and disabled is to afford them the dignity to move around our beautiful city free of charge. Let them ride free.”
Responding, Transport Minister S Iswaran pointed out that the proposal to give free rides to elderly peple and those with disabilities, would impose a cost on taxpayers or commuters. And, with Singapore’s society ageing, this cost would only increase with time.
The financial burden this would add, the minister said, “is by no means insignificant,” adding that by 2030, the number of elderly and people with disabilities will rise to around 1.2 million.
The number of those who already carry concession cards that give them a discount for public transport already stands at 975,000. They pay only pay 55 per cent of adult fares.
Mr Iswaran did say, however, that he understood the Sengkang MP’s point.
”When Associate Professor Jamus Lim suggests making public transport free for seniors and persons with disabilities, we understand where he is coming from, yet don’t necessarily agree with where he suggests we go.”
Mr Iswaran explained that if this group gets free public transport, this would mean a 15 to 20 per cent increase to the $2 billion currently allotted for public transport subsidies. One billion of this is allocated for bus subsidies, and another billion is for train subsidies.
So, if the cost of paying for the WP MP’s proposal would be put on commuters instead, it would mean that fares for adults would rise by 30 to 40 cents on average. This, said Mr Iswaran, would be “up to 11 times the fare increase last year.”
The Public Transport Council, or PTC, recognises the need to ensure that fares are affordable for vulnerable commuter groups, said the minister.
“When fares are increased, PTC has apportioned less of the increase to concessionary commuter groups, and more to other adult commuters. But everyone pays a share, and those who can pay more, do so,” he said.
Prof Lim followed up by saying the extra needed to make public transport free for such groups would add only 3 or 5 per cent to the Transport Ministry’s current budget.
Mr Iswaran countered, saying that two-thirds of MOT’s budget goes on development expenditures, while the WP MP’s proposal is a recurrent operational subsidy of S$300 to $400 million. MOT’s budget has actually gone up in the past few years because of pandemic measures, said the minister.
Therefore, with all these taken into consideration, Mr Iswaran added, Prof Lim’s proposal would actually mean an increase in subsidies of around 20 to 25 per cent.
/TISG
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