Subsidy for public transport

Many people may not realise that public transport is subsidised in Singapore. The government pays for the huge cost of the infrastructure for the MRT system. The public is free from this high cost and has to pay for the operating cost plus the operator's profit margin. I was told that the bus opeators received quite significant subsidy (but details are not available to me). This is why train and bus fares are much cheaper than in some cities, such as London.

I feel that taxis should also be considered as public transport and should receive some subsidy, although not to the same extent as for buses and trains. This will make taxi fares less costly and encourage more people to take taxis, rather than to drive private cars.

A taxi can be used several times a day, and can replace 5 to 10 private cars. It create employment for taxi drivers and allows the commuter to relax, read or communicate on the mobile phone. This improves the productivity. There is less need to build more parking spaces for the private cars.

There may be a fear that lower taxi fares will entice people to use taxis instead of buses and trains. The impact is likely to be small, as taxis will still cost 3 to 5 times of the other modes of transport. The real impact wil be to reduce the demand for private cars. 

I hope that the policy makers will review their thinking and consider taxis as another form of public transport and be eligible for some subsidy or be relieved from some taxes or levies, such as ERP.

Tan Kin Lian