Transport Minister explains why regular bus fare increases are needed

Transport Minister Mr. Lui Tuck Yew has spoken about the new bus contracting model in Parliament for the first time, stating that regular bus fare increases are required to keep the model working and financially sustainable.

Mr. Lui answered several questions posted by MPs on the new model. One of the key concerns is how much the Government will fork out to subsidise the model.

Mr. Lui has also said that operating costs has far exceeded fare increases which took place during the middle of the last decade.

In order to increase the quality of bus service, buses are also operated more frequently. This increases the operating costs, which in turn requires more subsidies from the Government. Hence, the Land Transport Authority (LTA) is currently working to map out a framework to decide the minimum demand required to operate a new route.

However, Mr. Lui did not give a specific amount of budget the authority is prepared to pour in as this will affect the overall bidding process.