School bus fares to rise by up to 13% in 2024 following January's hike of up to 7%

SINGAPORE — School bus services are expected to rise in 2024, after the Ministry of Education (MOE) announced on Thursday (Aug 24) that it is allowing operators to increase the pricing cap of school bus fares under existing contracts by up to 13 per cent.

This adjustment will help the sustainability of school bus services amid rising operating costs, the ministry said.

MOE noted that the pricing cap was last adjusted in January 2023 by up to seven per cent on existing contracts, but the latest hike was necessary due to rising cost pressures on the operators.

"This will significantly minimise the risk of disruptions and inconvenience to families should these incumbent operators be unable to sustain their operations, it said.

Operators will inform parents and guardians of any revisions to the bus fares from September.

Primary school pupils under MOE's Financial Assistance Scheme will continue to receive school bus subsidies that cover 65 per cent of their monthly school bus fares. The subsidy level was raised from 60 per cent in January.

The school bus sector here has been plagued with a shortage of drivers. The shortage has led to firms such as ComfortDelGro Bus to end their contracts with four schools early, The Straits Times reported in May.

MOE announced in June measures to tackle this shortage, including granting selected school bus operators to hire more foreign workers.

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This article was first published in The Straits Times. Permission required for reproduction.