Chee Hong Tat: The S’pore government subsidises about S$1 for every trip a commuter takes
It’s been about four months since the public transport fare hike of 6% kicked in—commuters have been paying up to 10 cents more for each journey since December 28, 2024.
This marks the fourth consecutive year of fare increases. In 2023, adult card fares rose by as much as 11 cents, following hikes of up to five cents in 2022 and four cents in 2021.
Yet, at the same time, Singapore’s public transport system has continued to experience a series of service disruptions, including a major six-day-long East-West Line breakdown in September 2024, which impacted around 2.6 million passengers.
But if commuters are paying more and more each year, why aren’t service improvements more consistently visible? And is there a continued need for these fare adjustments?
Why do fares keep rising and how are they determined
Since 1998, public transport fares have been adjusted annually based on a fare formula designed to strike a balance between financial sustainability and affordability, according to the Public Transport Council (PTC).
The formula takes into account factors such as wage growth, energy prices, and the overall cost of operating the public transport system.
To ensure it stays relevant and responsive to shifts in the sector and broader environment, it is revised every five years.
However, in a recent episode of The Daily Ketchup, Transport Minister Chee Hong Tat said that the PTC doesn’t apply the fare formula strictly.
While the formula reflects real cost pressures, the resulting figures can sometimes be too high to implement fully—exceeding 10% in some years. Raising fares by that much would hurt affordability for commuters, he said.
“If you look at the fares, for the last few years, we didn’t follow the formula. We reduced the increase by quite a large number.”
Last year, for instance, fares rose by 6%, even though the formula indicated a higher adjustment—the shortfall was absorbed by the government, which had provided a top-up of S$200 million, on top of existing subsidies of S$1 billion each to keep Singapore’s bus network and train systems running.
“So for every trip taken [by a commuter], actually, the subsidy from the government for that commuter is about S$1.”
If the government doesn’t step in to cover this shortfall, it would create a permanent gap between fare revenue and operating costs—a situation that could undermine the long-term sustainability of the public transport system.
“We don’t want operators to persistently lose money, because if they do, they won’t be able to retain staff and build capabilities. Then, we will see more problems and reliability issues.”
Back in 2023, Mr Chee pushed back against suggestions in Parliament from MPs to freeze future fare hikes or eliminate subsidies for the shortfall, calling such moves “not sound” and “populist.” He warned that doing so would widen the funding gap and result in an even heavier burden on taxpayers in the future.
Improvements to Singapore’s public transport system
While public transport fares are primarily used to cover the rising costs of operating and maintaining the existing public transport system, the PTC adopted a new fare formula in 2023, which incorporated a fixed “capacity adjustment factor” of 1.1% each year to account for costs related to expanding the system.
The formula will apply till 2027, and it is based on actual and planned capacity enhancements to the network from 2020 to 2026.
But have commuters seen tangible improvements in Singapore’s public transport system?
There are certainly efforts underway—new MRT stations and lines have been rolled out over the years and are continuing to be progressively introduced.
For instance, by next year, the Circle Line will finally be completed, forming a full loop that reduces travel time and enhances connectivity for commuters along that route.
The Thomson-East Coast Line and Downtown Line will also be extended further, and between 2027 and 2029, stations along the Jurong Region Line will open in phases.
Looking ahead, the Cross Island Line is expected to commence operations in 2030. These projects aim to bring the MRT network closer to more residents, supporting the government’s goal of having 8 in 10 households within a 10-minute walk of a train station.
Meanwhile, improvements are also being made to Singapore’s bus network. Since the launch of the Bus Connectivity Enhancement Programme last year, the Land Transport Authority has introduced 11 new bus services to better connect estates across the island, including Woodlands, Punggol, and Tengah.
Additionally, 43 existing services have been enhanced with increased capacity or expanded coverage.
“The best replacement for a train disruption is another train line”
That said, there’s no denying that the recent MRT breakdowns have caused frustration and inconvenience to thousands of commuters.
Addressing these issues on the podcast, Mr Chee explained that part of the long-term solution lies in expanding the MRT network.
Currently, when disruptions occur, commuters are often forced to switch to buses because there “isn’t enough redundancy” within the train network. But buses simply don’t match the capacity or efficiency of trains.
“The best replacement for a train disruption is another train line,” he said.
With a more extensive and interconnected network, commuters will still be able to complete their journeys by switching to alternative train lines, making the overall system more efficient.
In addition to expanding the network, the government is also investing heavily in improving rail reliability.
Over the next five years, S$1 billion will be spent on enhancing the system’s infrastructure. This includes installing more sensors and adopting advanced technology for condition monitoring, allowing operators to detect early signs of wear and tear and carry out preventive maintenance before issues escalate into service disruptions.
It’s important to recognise that disruptions are, to some extent, inevitable—no train system is completely immune to issues.
Nonetheless, Singapore’s public transport system has come a long way. Just a decade ago, the MRT network faced frequent reliability problems, a fact acknowledged by then-Transport Minister Khaw Boon Wan.
At the time, trains averaged just 130,000 kilometres between failures—but today, that figure has improved dramatically, with Singapore’s trains now clocking millions of kilometres between delays.
With the continued rollout of new MRT lines, the expansion of the bus network, and significant infrastructure upgrades, these collective efforts will not only improve connectivity and efficiency but also position Singapore’s public transport system as one of the most reliable in the world.
- Read other articles we’ve written on Singapore’s current affairs here.
Also Read: Data shows Singapore MRT is more reliable than Hong Kong MTR—and has been for several years
Featured Image Credit: Screengrab from The Daily Ketchup
Wake Up Singapore founder among SDP candidates to go against PM Wong in Marsiling-Yew Tee GRC
The Singapore Democratic Party (SDP) has revealed its candidates for the Marsiling-Yew Tee GRC, where they will go against Prime Minister Lawrence Wong and his team for the upcoming 2025 General Election.
They are SDP’s organising secretary Jufri Salim, founder of alternative news site Wake Up Singapore Ariffin Sha, theatre director Alec Tok and former chief executive of Gulf Oil China Dr Gigene Wong.
SDP chief Chee Soon Juan introduced the candidates yesterday (April 14) after a walkabout at Marsiling Lane Market and Food Centre.
Mr Jufri has been a long-time member of the party; however, the remaining three candidates have been members of other opposition parties.
Mr Alec was a former candidate for Red Dot United (RDU), while Dr Gigene was a former candidate for the Progress Singapore Party (PSP) in the 2020 General Election.
Mr Ariffin, on the other hand, was the assistant secretary-general of the Singapore People’s Party before he reportedly resigned in 2020.
When asked if their candidacy would make residents question their loyalty or commitment as candidates, Dr Chee said: “The only thing I find relevant in this election is the loyalty to Singapore”.
He was also questioned about Ariffin’s criminal defamation charge last year, following the publication of a fabricated story about KK Women’s and Children’s Hospital.
Dr Chee dismissed concerns, stating, “Going forward into this election, let’s not get to the situation [of] character assassination, personal demonisation. That’s not keeping with a mature, civilised election.”
SDP feels “very at home” at the Marsiling-Yew Tee GRC
On contesting against PM Wong and his team in the Marsiling-Yew Tee GRC, Dr Chee emphasised that the party will focus on pressing bread-and-butter issues like the rising cost of living and migration.
He said that these are concerns the SDP has been campaigning for since the 2020 General Election.
“Despite telling [the Government] of the difficulties Singaporeans are facing and not to proceed with the increase in GST, the government has seen it fit to increase GST in 2023 and 2024,” Dr Chee said.
[PM Wong] must clearly articulate a plan that will take Singapore and address the people’s foremost concern, and that’s the huge rising cost of living in Singapore.
SDP chief Chee Soon Juan
Dr Chee also added that the party “feels very at home here (Marsiling-Yew Tee GRC)”, having contested in the constituency during the last two elections.
In both instances, they were defeated by the People’s Action Party (PAP), securing 31.27% of the vote in GE2015 and 36.82% in GE2020.
Check out our GE2025 microsite for the latest election-related news, find out which constituency you belong to, and more here.
Featured Image Credit: SDP Marsiling-Yew Tee GRC via Facebook
This 22 Y/O S’porean runs her own biz at Jewel Changi selling mochi doughnuts & matcha on tap
Success can be difficult to measure, but at just 22 years old, Alexan Tang has arguably achieved some form of it through her very own business, SugarBelly.
A specialty mochi doughnut shop, SugarBelly further gained attention thanks to its outlet in Jewel Changi Airport, which is possibly home to Singapore’s first matcha on tap.
Taking a chance on baking
Alexan’s own interest in baking started at the young age of 8, spending much of her childhood watching baking shows and recreating the recipes.
At the time, though, it was just a hobby. Little did she know it would turn into a career.
Recognising that she wasn’t the most academically inclined, though, Alexan decided to go all in on her passion for the arts and enroll in culinary school at At-Sunrice GlobalChef Academy at just 17 years old.
“Immersing myself in the professional F&B world and working with Michelin-starred chefs ignited a fire in me,” Alexan expressed. “I realised at a young age that F&B was the career I wanted to pursue wholeheartedly.”
Thus, she set out to create a dessert that Singaporeans had never experienced before. This eventually led her to create Singapore’s first local specialty mochi doughnuts brand, SugarBelly.
A sugary start
It all began with a dream. No, literally. Alexan had a dream where she envisioned the name “SugarBelly” with a pink and blue storefront.
She officially introduced SugarBelly’s mochi doughnuts to Singapore in 2023. The brand launched as a pop-up at International Plaza in April 2023, with the operations taking place in Alexan’s home kitchen.
Receiving an overwhelmingly positive response, the chef continued hosting pop-up events, including one at Takashimaya.
Emboldened by the successful pop-ups, Alexan knew it was time for a permanent location. She didn’t just want any location, though—she had her eyes set on Jewel Changi Airport, one of Singapore’s most iconic malls.
Filling a hole
In her line of work, Alexan noticed that many larger companies would mass-produce products in factories, then distribute them to outlets. The products would be displayed for too long and lacked freshness.
Deciding to make everything fresh and by hand, Alexan created her own recipe, which took about a year of research and development.
“At SugarBelly, everything is made fresh to order, handmade by our ‘pixie fairies,’ and you can even watch us craft each donut when you visit our physical outlet,” she said. “This allows SugarBelly customers the freedom to choose from a rotating selection of flavours, depending on demand.”
Since everything is made fresh on the day itself, Alexan has an early start to the day before heading to Jewel Changi to open the store and prepare for the morning rush. At 11:30AM, the rush begins, and it’s a constant flow throughout the day.
The 22-year-old is usually able to grab a quick five-minute snack break before diving back into preparing orders, taking orders, packing, and serving customers.
“I love interacting with our customers, asking about their day as I prepare their orders—it gives me the energy I need to keep going,” she shared. “Our day wraps up at 10PM, after which I check stock and clean the space for the next day.”
That’s not the end of Alexan’s day, though. Once home, she continues working on marketing, admin, and backend tasks until about 3AM.
Tapping into matcha
As a matcha fan, Alexan has tried numerous matcha lattes in Singapore. However, she felt like most of them lacked the creamy, rich, and bold flavour she was looking for.
“To me, a good matcha latte should have a strong, creamy matcha flavour that isn’t too sweet—exactly what we’ve perfected at SugarBelly,” she shared.
SugarBelly’s matcha latte can also be served with a house-made strawberry compote cooked fresh daily.
More than the drinks themselves, though, it’s how the drinks are served that’s unique—on tap.
“I thought it would be a unique experience, especially at Jewel Changi Airport, one of the country’s most iconic malls and a popular tourist destination,” Alexan explained.
For those concerned about the freshness, rest assured that the matcha is hand-whisked daily, made fresh in batches throughout the day.
While this is unique, Jewel Changi is home to many other innovative F&B offerings. Standing out against the many local competitors can’t be easy.
Yet, Alexan is confident in the fact that SugarBelly is offering something new as a specialty mochi donut and matcha-on-tap store.
“This was one of the key reasons I wanted to open my first physical outlet in a mall—to bring a fresh, unique concept to the space, rather than the usual Koi or Potato Corner that can be found in every mall across Singapore,” she argued.
“As a 22-year-old Gen Z entrepreneur, I’m determined to make my mark at Singapore’s most iconic mall, Jewel Changi.”
A hustler’s mentality
Currently, SugarBelly operates as a two-person team—Alexan and a full-time employee. But the young entrepreneur is working towards building a reliable team and finding people who genuinely fit the brand.
“I don’t want to just hire anyone to represent SugarBelly; I want to strategically build a team I can trust to uphold the standards and vision of a brand I’ve created from the ground up,” she explained.
Due to her high standards, the entrepreneur is working tirelessly without a break, from 8AM to 3AM daily. And she plans to keep going until she’s built a team that can execute the brand as well as she does.
Despite her hard work, Alexan admitted that she doesn’t know if she’s doing a good job growing the brand. At the same time, she often forgets to take breaks until her body can no longer handle it.
“I’ve been working 30 days straight since opening, juggling everything from marketing to operations, and learning from each mistake I make,” she confessed. “Entrepreneurship isn’t just about starting something—it’s about committing to it, especially when things get tough and when I feel like giving up.”
As an entrepreneur, Alexan recognises that many see it as an appealing path. However, many don’t realise that success isn’t guaranteed—it only comes after numerous failures, valuable lessons, and moments when you feel like giving up.
But she believes that the key is to always take that first step and not get caught up in overthinking the what ifs—every bit of preparation meets opportunity.
Even though the journey is arduous, Alexan is fully committed to growing SugarBelly.
She asserted, “I started working in F&B at the age of 16, and I plan to continue doing so for as long as I can—whether that’s until I retire or even beyond. I’m passionate about what I do and confident in my creations.”
Also Read: This HP smart printer proves that M’sian SMEs don’t have to break the bank for reliability
Featured Image Credit: SugarBelly
Do you make games, animations, or use metaverse tech? MDEC has RM5.7 mil you can tap into.
Malaysia’s digital creative industry has been maturing over the years, with a myriad of iconic animations, films, and video games over the years. Think iconic cartoons like Upin and Ipin, heart-wrenching movies like Abang Adik, exciting video game IPs like Gigabash, and countless other indie projects.
A “strategic economic industry with strong potential that continues to create high-value jobs, nurture local intellectual property, while driving export revenue”—that’s how the Malaysia Digital Economy Corporation (MDEC) CEO Anuar Fariz Fadzil described our local digital creative industry.
The potential they see is why MDEC is launching financial incentive programmes aimed at amping up industry development, strengthening the entire value chain from talent development to market access.
With this, they seek to position Malaysia as a globally competitive hub for digital content creation.
Specially devised programmes
It’s true that Malaysia’s digital content market has grown substantially over the years, but don’t take it from us. Just look at the figures.
The industry has posted RM87.25 billion in revenue and RM11.18 billion in export sales, while creating gainful employment for some 11,154 Malaysians within this industry since 2011.
“MDEC’s programmes are designed to support these talents by encouraging them to build on their strengths, explore innovative ideas, and turn their passion into commercially viable content for local and global audiences,” the CEO shared.
It was at the Digital Creative Industry Engagement Session 2025 where MDEC officially launched the new funding initiatives aimed at empowering local studios and digital content creators in key segments such as games, animation, and the metaverse.
The initiatives include:
1. The Digital Games Testbed Programme (DGTP)
Aimed at strengthening Malaysia’s games industry, RM3.5 million in funding has been set aside to go to at least five Malaysian game development companies, each eligible for up to RM700,000.
This programme is open to Malaysian-owned games studios with a proven track record and a clear IP expansion strategy.
DGTP is designed to encourage new game genres, enhance local studios, and foster international partnerships to position Malaysia as a competitive game development hub.
2. The Animation Shorts Challenge programme
A competition-based initiative, this challenge is designed to strengthen Malaysia’s animation industry by nurturing high-quality digital content.
Through structured competition and industry mentorship, this programme supports local creators in developing impactful animated short films with strong Intellectual Property (IP) potential.
The initiative will provide selected participants with expert guidance, bridging local talent with industry leaders to enhance skills, creativity, and global market readiness.
A total project fund of RM1.2 million will be allocated to support 12 trained participants and the development of 12 new animation short IPs.
3. Business in Metaverse Programme
This programme is designed to help Malaysian businesses leverage metaverse technologies for brand engagement and immersive commerce.
With a total funding of RM1 million, this programme will support 200 businesses, each eligible to receive up to RM5,000 to implement metaverse-based marketing strategies.
By integrating digital tools such as virtual storefronts, gamified marketing strategies, and branded digital assets, businesses can enhance customer engagement and increase brand visibility in the evolving metaverse landscape.
Readying Malaysia for the future
Announcing these programmes, Anuar reaffirmed MDEC’s commitment to advancing all facets of the digital economy, including nurturing local innovation, supporting local industry players, and building a resilient digital ecosystem while enabling jobs and opportunities.
Being tech-forward and future-ready is critical in keeping Malaysia on the global playing field, especially with so many changes happening in the world.
“The newly announced incentives are aimed at driving sustainable industry growth, attracting international investment and positioning Malaysia as a prominent player within the global digital creative landscape, which we already are,” the CEO concluded.
More information on the above initiatives, including application details and deadlines, can be found on the MDEC website, mdec.my.
Also Read: Why Brisbane & Gold Coast should be M’sian travellers’ top Aussie destinations in 2025
Featured Image Credit: MDEC
Singapore slashes 2025 GDP growth forecast to 0-2% as US-China trade war bites
Singapore’s Ministry of Trade and Industry (MTI) announced today (April 14, 2025) that they have cut the city-state’s GDP growth forecast for 2025 to “0.0 to 2.0%”, a downgrade from the 1% to 3% range they had previously set.
The cut follows concerns that the US-China trade war could induce a “far sharper economic slowdown.”
MTI’s assessment is that the external demand outlook for Singapore for the rest of the year has weakened significantly. This has led to a deterioration in the outlook of outward-oriented sectors in Singapore. In particular, the manufacturing sector is likely to be negatively affected by weaker global demand.
This, alongside softening global trade, will also weigh on the growth of the wholesale trade sector. The pullback in global trade will similarly dampen the growth of the transportation and storage sector through its drag on demand for shipping and air cargo services.
MTI on the GDP forecast cut
MTI added that the finance and insurance sector could simultaneously see weaker trading activity due to risk-off sentiments that will adversely affect the net fees and commission incomes of the banking, fund management, forex and security dealing segments.
The ministry also highlighted that the uncertain economic backdrop will likely dampen firms’ capital investment spending and constrain credit intermediation activity. Furthermore, the growth of payments firms could moderate in tandem with tepid business activity and lower consumer spending.
“Given the significant downside risks, MTI will continue to closely monitor global and domestic developments, and make further adjustments to the forecast if necessary.”
In the first quarter of 2025, the Singapore economy grew by 3.8% on a year-on-year basis, slower than the 5.0% growth in the previous quarter.
Acknowledging the concerns that Singaporeans may have on the uncertain economic environment, Singapore’s Prime Minister Lawrence Wong addressed Parliament on April 8, 2025, stating that a new task force will be formed to address the impacts of the US tariffs.
A rundown on President Trump’s new tariffs
On April 2, US President Donald Trump announced that he would impose a 10% blanket tariff on all goods coming into America from anywhere in the world, including Singapore.
The measures were supposed to take effect on April 9, but Trump backpedalled and declared a 90-day pause on the additional tariffs.
China was exempt from the pause, following past retaliations from the country and currently faces a 145% tariff.
In turn, China raised its tariffs on American goods to 125% last Friday (April 11), which took effect on April 12—marking its third retaliation in the escalating trade war between the two superpowers.
The Trump administration later excluded electronics such as smartphones and laptops from the reciprocal tariffs, which means they will not be subject to the 145% rate levied on China.
But hours later, it played down the exemptions, saying they are included in the semiconductor tariffs, which face a separate round of import tax, with President Trump warning that “no one is off the hook.”
- Read other articles we’ve written on Singapore’s current affairs here.
Also Read: Singapore acts swiftly as global trade war unfolds
Featured Image Credit: The Light Lab/Shutterstock
Singapore acts swiftly as global trade war unfolds
The world entered a turbulent period over the past few weeks, marked by rising protectionism and economic tension.
A trade war has broken out between the US and China, with both sides slapping high tariffs—up to 145%—on each other’s goods.
Even though the US has paused some of these, many tariffs are still in place, including a 10% universal rate and extra charges on goods like steel, aluminium, and cars.
As a small and highly globalised economy, Singapore is particularly exposed to these developments. With limited natural resources, the city-state relies heavily on international trade, investments, and global supply chains to sustain its economy.
The trade war is expected to dampen global demand for Singapore’s goods and services, reduce foreign investment, and slow wage growth. In some cases, businesses may relocate, leading to job losses and retrenchments.
The Ministry of Trade and Industry (MTI) today slashed Singapore’s 2025 growth forecast to “0.0 to 2.0%,” pointing to the US-China tariff war as a potential drag on global growth.
“It’s not fearmongering,” said Deputy Prime Minister Heng Swee Keat, addressing concerns about the government’s warnings on the ongoing tariff war.
He made the remark during a morning walkabout at Bedok 85 Fengshan in East Coast on April 12, in response to questions from members of the public.
Local support, global action
To counter these challenges, the Government has earlier rolled out Budget 2025, which included a strong package of cost-of-living support measures.
These include CDC and SG60 vouchers, and continued investment in SkillsFuture to help workers upskill. Businesses will receive help with trade financing and market diversification.
Earlier today, the Monetary Authority of Singapore (MAS) also eased the Singapore dollar policy by slowing the pace of the Singapore dollar’s trade-weighted appreciation, aiming to curb inflation and address rising risks to economic growth.
“MAS will continue with the policy of a modest and gradual appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) policy band. However, the rate of appreciation will be reduced slightly,” it announced on April 14.
The government has also assured the public that it stands ready to introduce further support if needed.
Prime Minister Lawrence Wong is engaging international leaders to forge a more stable and open global order. Domestically, Deputy Prime Minister Gan Kim Yong will lead a crisis task force to work with unions and businesses to protect jobs and recommend strategies to safeguard livelihoods.
Singapore will also deepen cooperation within ASEAN and strengthen ties with countries that support open and rules-based trade. These efforts aim to ensure the nation remains competitive and connected to global opportunities.
In Parliament, PM Lawrence Wong reassured Singaporeans not to panic.
“Do not fear. Now, more than ever, we will stay resolute and united. Our little red dot will continue to shine.”
- Read other articles we’ve written on Singapore’s current affairs here.
Also Read: As the US-China trade war rages on, how are S’porean bizs reliant on these markets affected?
Featured Image Credit: Richie Chan/ Shutterstock.com.jpg
