Listed public transport operators (PTOs) SMRT Corp and SBS Transit have succeeded in their application to raise bus fares but not train charges. Bus fares will go up by one to two cents from Oct 1 after the Public Transport Council (PTC) approved a 1.8 per cent increase, but train fares will remain unchanged. The PTC said the majority of commuters will see no increase or a small increase. It said 52 per cent of all public transport trips by bus and rail will see no increase. But for 10 per cent, there will be a rise of one cent, while the remaining 38 per cent will see an increase of two cents. In August 2007, SMRT and SBS Transit - which is part of the ComfortDelgro group - had applied to the PTC to increase bus and rail fares. The council approved an overall fare increase of 1.8 per cent for adult EZ-link bus fares, but no rise for rail fares this year, after taking into account the fare adjustment cap formula introduced in 2005.

Analyst Comments: The Public Transport Council (PTC) has approved an overall fare increase of 1.8% for bus fares starting 1 October 2007. In our opinion, an increment should have already been assumed by the market, given the robust state of the economy.  

Fare increment in the previous 2 years was as follows:

		Average % increase Remarks 

1 Oct 2006 	1.7%	For both Rail and Bus fares 

1 July 2005 	2.4%	For both Rail and Bus fares