Wage increase wiped out by fare increase, etc?

After writing “Transport fares: Highest increase in history?” (Oct 30) – someone asked me – how will the average Singaporean family be affected?

Well. according to the article  “Bus and train fares to rise by 6 cents per trip from Dec 29: PTC” (Straits Times, Oct 30)”- “The adjustments will translate to an increase of $78.2 million in fare revenues for public transport operators for 2019. Out of that, train revenue will rise by $35 million – with SBS Transit seeing a $10.9 million increase and SMRT seeing a $24.1 million hike.

The remaining $43.2 million goes to the Land Transport Authority, which administers bus contracts.”

“A typical family using public transport on a daily basis here spends about 4.8 per cent of its disposable income on public transport” (“Singapore ranks 2nd in transport fare affordability“, Straits Times, Oct 24).

In this connection, in the programme ‘A Dialogue with DPM’ (CNA, Oct 28) – Tommy Koh said that 100,000 to 140,000 households (are) in absolute poverty and 20-25% of households in relative poverty’ – this may work out to about 290,000 (1.29 million households x 22.5%) households in relative poverty.

So, the average increase in transport fares per household may be about $70 to $80 a year ($78.2 million divided by 1.29 million – considering that higher income households may take lesser public transport).

Using the “spends about 4.8 per cent of its disposable income on public transport” – does it mean that a typical household with disposable income of about $1,600 ($2,000 less 20% employee CPF contribution), may spend about $76.80 ($1,600 x 4.8%) monthly on public transport.

Does this figure look kind of low, for the typical family, derived from “spends about 4.8 per cent of its disposable income on public transport”?

Since the real average increase in household income (excluding employer CPF contribution) was 2.2% per annum from 2007 to 2017 – does it mean that for a household with monthly income of $2,000 – the average annual increase per year, like for the last year, was about $35.20 ($2,000 less 20% CPF x 2.2%)?

So, the increase in transport fares may wipe out a few months’ of the real increase in income for the last year – and we have not even talked about the increase in water, electricity and food prices, etc.

As to “Each voucher is worth S$30, and may be used to buy or top up fare cards, or buy monthly concession passes” (“Public transport fare hike: S$9 million in vouchers to support 300,000 needy households” (Today, Oct 30) – I understand that the $30 transport voucher is typically only enough to cover about one year’s increase in fares.

What about all the previous years’ fare increase?

By the way, I understand that the transport voucher has remained at the same $30 for about 8 years already.

Uniquely Singapore!

 

Leong Sze Hian

 

 

 

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10 Responses to “Wage increase wiped out by fare increase, etc?”

  • opposition dude:

    Wait, there was an increase in household income? That’s news to me.

    I’m sure there are quite a few who have not seen their pay rise since 2016.

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  • rukidding:

    Pappy and their “tricks”…..”exposed” again !

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  • PC Ong:

    Now you all like to use statistics when it suit you. Let’s talk about the real situation on the ground then. Do you know most Singaporeans are very happy that we are having new trains and good air-con when travelling, especially when compared to the sad state of public transport in other developed countries? Therefore, most Singaporeans won’t even bother about the 6 cents increase in transport fares. It is a rounding error in most household budgets.

    The lowest income households continue to get govt subsidies to help with their transport fares. Those in the middle class (earning between $4k and $10k per month) have experienced wage growth annually of 4%/-5%. Even without this wage growth, the middle class has no problem coping. So what kind of difficulties are we talking about here with fares increase?

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  • RDB:

    @PC Ong has made himself a dumbass jackass once again! ONGRATS!!!

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  • "One born every minute":

    PC Ong:
    Now you all like to use statistics when it suit you. Let’s talk about the real situation on the ground then. Do you know most Singaporeans are very happy that we are having new trains and good air-con when travelling, especially when compared to the sad state of public transport in other developed countries? Therefore, most Singaporeans won’t even bother about the 6 cents increase in transport fares. It is a rounding error in most household budgets.

    The lowest income households continue to get govt subsidies to help with their transport fares. Those in the middle class (earning between $4k and $10k per month) have experienced wage growth annually of 4%/-5%. Even without this wage growth, the middle class has no problem coping. So what kind of difficulties are we talking about here with fares increase?

    PC Ong’s parents wasted their money on his education.

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  • Malaysia boleh Singapore bodoh:

    Another good reason for REGIME CHANGE.

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  • LIONS:

    With more sgs being MADE JOBLESS younger n younger in an ageing population whose life expectancy has increaded,and,in a HIGHER N HIGHER COL environment,with govt intent to COLLECT MORE MONEY for Squandering,I expect more ELDERLY N EVEN NOT-SO-OLD sgs committing suicides.

    Lee Ah Long has never suffered poverty n he does emphatise nor care to understand how his $ POLICIES are affecting already strained sg family stability in Sin City.

    He is heteby CERTIFIED UNFIT FOR DUTY.
    CSN DT TAN CHENG BOCK ISSUE HIM A MEDICAL CERTIGICATE?

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  • IB Ong:

    other developed countries got COE or not?

    PC Ong:
    Now you all like to use statistics when it suit you.

    when compared to the sad state of public transport in other developed countries?

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  • Bobo:

    Who is the con master of the world? I beg your pardon.

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  • Ng Choy Cheese:

    I don;t think that fares should increase. In fact it should go down. Because buses nowadays have this habit of stalling at bus stops for a few minutes then ramble along slowly.

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