The Fare Review Mechanism Committee (FRMC) has submitted its report on the new fare formula  and a public transport concessions framework for the Government to consider.

The FRMC, appointed by the government in June 2012, was led by former Senior District Judge, Mr Richard Magnus, and 13 other members of diverse backgrounds.

The FRMC also conducted a household survey, involving 4,600 households, for views on possible recommendations and suggestions before finalising its report.

Transport Minister Lui Tuck Yew said on his FB that he had read through the report and was "grateful to them for a thoughtful and balanced report". He added that the new proposed fare formula, if accepted, would apply from 2013 to 2017.

Below is a summary of the key recommendations:

1. Two new concessions: The government to subsidise the proposed concession schemes – one for low income workers and the other for persons with disabilities.

2. More fare concessions:

i) Free travel for children below 7 years of age instead of using the current 0.9-metre height criterion;

ii) Monthly Concession Pass (MCP) for senior citizens in addition to the current concessionary fares that they enjoy;

iii) Adjustments to prices of the various student MCPs to make them more beneficial to users, with Polytechnic students enjoying a significant discount in the pricing for their MCPs;

iv) Monthly Travel Pass (MTP) be made available to adult commuters to help frequent and heavy public transport users save on their monthly expenditures on bus and train rides and better assure fare affordability; and

v) Extension of eligibility of current student concessions to Singaporeans studying full-time locally, including those who are studying in private institutions.

3. Tracking of fare affordability: Additional indicator to track fare affordability for low income households.

4. Public Transport Fund: Public transport operators (PTO) to donate between 20 and 50 per cent of each fare rise to a fund for needy commuters.

Source: FRMC website

5. A more responsive Fare formula: The formula will have a new Energy Index (EI) component. The core Consumer Price Index (cCPI) will replace the previous CPI component to exclude some items, such as private transport and housing.

General Formula: Price Index - Productivity Extraction

Source: FRMC website

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More information: The Fare Review Mechanism Committee Report