MRT fares (updated)
The new distance fare system is out. Here’s an update on my April 20th post on whether the fares are too high.
Using the same example of Yio chu Kang to Clementi (the longest MRT route during 1987), the fare now is $1.75, which gives an annual compounded growth of 2% p.a., though higher than my previous calculation of 1.6% p.a.based on 2009 fares. It is still not unreasonable if income has increased at same pace or above.
However, are we getting the same service as 1987? Due to the overcrowding situation at peak hours, i will say the service is poorer.
SMRT should stop arguing with commuters over whether its trains are overcrowded and focus on improving its service, else commuters will see its fare increase as unreasonable.
But that’s a tall order for a monopoly.
Entry filed under: Investing. Tags: .