Expected Impact of Recent Announcement of Increase in Pricing Cap for School Bus Fares

5 Ms Denise Phua Lay Peng asked the Minister for Education (a) what is the expected impact of the recent announcement by the Ministry to allow an increase in the pricing cap of school bus fares of up to 13%; and (b) how can families of affected students, especially those with higher special education needs, be assisted.

The Minister of State for Education (Ms Gan Siow Huang) (for the Minister for Education): Mr Speaker, school bus fares are determined through a competitive bidding process, with a fixed pricing cap during the contract period. However, the recent increases in operating costs and manpower shortage have made it more challenging for school bus operators to sustain their operations. The Ministry of Education (MOE) is, thus, allowing school bus operators to increase the pricing cap of school bus fares for mainstream schools under existing contracts by up to 13%, with effect from 1 January 2024. This is part of the larger effort to keep the school bus sector sustainable and minimise the risk of disruptions and inconvenience to parents and our students.

In January 2023, school bus subsidy under the MOE Financial Assistance Scheme was raised from 60% of monthly school bus fares to 65%, to take into account rising school bus fares. In situations where the low-income families need more help, schools have been and will continue to provide additional financial support. For special education (SPED) schools, eligible students taking school bus services can apply for the Enabling Transport Subsidy administered by SG Enable. The subsidy was increased from 1 July 2022 to help defray the cost of school bus fares. SPED schools also provide further support to students who may require additional help.

We will continue to regularly review our support schemes and make further adjustments if needed.

Mr Speaker: Ms Denise Phua.

Ms Denise Phua Lay Peng (Jalan Besar): I thank the Minister of State for her comprehensive reply. I am very heartened that financial assistance is being given to the students who need help. Some students, especially those in primary school and those throughout the school years in SPED schools, have little choice but to use the school bus services, and some bus operators, due to manpower shortages and business cost increases, have already exited the industry. That has created quite a lot of issues on the ground.

I wonder if there is any way that MOE, beyond the current measures, can provide additional studies and support to deeply understand these issues on the ground, and see if, creatively, we can co-create some solutions to further help the students, the school leaders and the families.

Ms Gan Siow Huang: I thank the Member for her concern for our students. Indeed, we want to make sure that our students, who have no choice but to take the school bus, are able to afford the school bus fares. For those who require more assistance beyond what is in the baseline support, we welcome them to approach the schools and we will be very willing to provide them with the support.

MOE has also been in discussions with the school bus associations to better understand their operating models as well as their business challenges. Some of the measures that we have introduced in recent months will take time for the school bus sector to stabilise and consolidate. We will continue to work closely with the bus operators, so that there will be sufficient operators available to meet the needs of our schools.