Minister Lui wrote that the PTC has been judicious in its assessment of fare adjustments and added that the fare cap system itself ensures that SMRT and SBS cannot increase fares beyond the cap.
"If there is no inflation and no wage increase for the year, the formula allows the PTC to impose a fare reduction of 1.5 per cent on the operators. Hence, they know they have to improve productivity and innovate," he noted.
"Such measures have helped to increase their revenue (and hence profits) through non-fare sources," Lui added. Full story
