In our system, rail operators collect fares directly from commuters*, while bus operators receive service fees from the Government.

Our rail operators are not making big profits. In recent years, there have been years where they are operating at a loss. In the most recent financial year, their total profit is less than 1% of the total fares collected. And this is after considering Government grants provided to support the operators’ efforts to improve rail reliability.

Meanwhile, like other businesses, rail operators have faced rising labour, energy and maintenance costs. Our rail network is also expanding to serve more passengers. Without regular fare adjustments to match these rising costs, operators will struggle to keep services running smoothly and pay competitive wages to public transport workers, much less make a profit.

Even with fare adjustments, commuters can be assured that rail operators will not make big profits, as their total profit is effectively capped at 5% of their revenue as part of their rail license. Additional profits, if any, will be channelled back towards renewing rail systems.

*with the exception of the Thomson-East Coast Line, which currently operates on a service-fee model.