MRT/Bus fares:Are they really that high?
Today, MRT/Bus fares are revised again. Boarding charges are raised 3 cents, thus minimum fare for MRT and bus(aircon) using EZlink are 71 cents each.
Here’s what i found in a 1987 newspaper article on SMRT fares when it was just opened.
fares ranged from S$0.50 to S$1.10.
eg.Clementi to Yio Chu Kang(during 1987,it was the longest distance travelled),fare is maximum $1.10
Thus, the compound annual growth rate for this route is about 1.6%p.a, a figure that i will consider fair enough.
in 1990,bus fares(aircon) were from 60 cents to $1.20.
in 2010,bus fares(aircon) will be from 71 cents to $1.94
Thus, the compound annual growth rate for this minimum bus fare is about 0.9%p.a,
For maximum bus fare, the compound annual growth rate is about 2.4%p.a.(this is a bit high)
So,why are people still complaining about high bus fare if the fare increase over the years don’t seem to be “extortionary” due to monopolistic transport system.
This is likely due to that wages have stagnanted over recent years, some even have their wages cut. Thus,bus/MRT fare increase in recent years has outrun wages growth/reduction, thus making people feel poorer whenever bus/MRT fares increase.
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