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Pricing Cap Adjustment for Existing School Bus Contracts

Published Date: 24 August 2023 06:00 PM

News Press Releases

1. With effect from January 2024, the Ministry of Education (MOE) will be allowing school bus operators to increase the pricing cap of school bus fares under existing contracts by up to 13%. This adjustment will help schools by supporting the sustainability of school bus services in view of rising operating costs.

2. The pricing cap was last adjusted in January 2023 by 7%1. With the continued rising cost pressures experienced by school bus operators, further adjustment to the school bus fares in 2024 would be necessary. The adjustment in the pricing cap of up to 13% will give incumbent operators currently servicing schools the flexibility to raise their fares next year by up to the revised cap, if necessary, to support their provision of school bus services to students who need them. This will significantly minimise the risk of disruptions and inconvenience to families should these incumbent operators be unable to sustain their operations.

3. Bus operators will inform parents/guardians of any revisions to the bus fares from September 2023, so that they can take these into consideration when planning their child/ward's transport arrangements in the new school year. Primary school students on the MOE Financial Assistance Scheme will receive school bus subsidies that cover 65% of their monthly school bus fares. The subsidy level was raised in January 2023 from 60% to 65%. Those who require more support can continue to approach their schools for school-based assistance.

4. MOE will continue to monitor the situation, and work closely with schools and bus operators to ensure a sustainable school bus service model.


Footnotes

  1. In August 2022, MOE announced that pricing caps for school bus fares under existing contracts would be allowed to increase by up to 7% from January 2023. As announced by MOE in August 2022, the school bus fares for these incumbent operators were fixed for a number of years when the contract was first awarded, which if not allowed to be increased, could risk bus operators not being able to sustain their operations and thus terminating their bus services.