Mr Gerald Giam Yean Song asked the Minister for Transport (a) whether the card-based ticketing (CBT) system for public transport will continue to indefinitely operate in parallel with the SimplyGo’s account-based ticketing system; and (b) if not, when does LTA plan for the CBT system to be fully decommissioned, including the concession cards for students, seniors and people with disabilities.
Mr Gerald Giam Yean Song asked the Minister for Transport (a) what is the total government expenditure to-date in developing the SimplyGo system for public transport; (b) what are LTA’s projected annual savings from the use of only the SimplyGo system on public transport as compared to the current simultaneous use of both SimplyGo and card-based ticketing (CBT) systems; and (c) whether LTA plans to pass these cost savings on to commuters in the form of fare rebates when the CBT systems are eventually decommissioned.
Ms He Ting Ru asked the Minister for Transport (a) what are the learning points from the reversal of the initial decision which mandated that SimplyGo will replace the card-based ticketing system in mid-2024 for fare payments on public transport; and (b) what steps will be taken to ensure that similar issues will be avoided in the future.
Mr Chua Kheng Wee Louis asked the Minister for Transport (a) whether plans to enhance the SimplyGo system will include the functionality to support a universal card that can be used for public transport, retail and motoring, such as that of the current EZ-Link and NETS FlashPay cards; and (b) whether such cards and the SimplyGo system will be made compatible with the new on-board units on vehicles under ERP 2.0.
Mr Dennis Tan Lip Fong asked the Minister for Transport (a) what are LTA’s longer term plans for the SimplyGo system, including in conjunction with the continual operation of the non-SimplyGo EZ-Link and NETS FlashPay cards; and (b) with the latest change of plans, what is the period of time for which LTA is expected to utilise the $40 million estimated expenditure for hardware replacement and system maintenance.
Mr Chee Hong Tat: Thank you, Sir. Mr Speaker, I will first provide a background on why we implemented the SimplyGo account-based ticketing (ABT) system since 2019. Next, I will go through the considerations for the Land Transport Authority (LTA)’s announcement on 9 January 2024 to sunset the card-based ticketing (CBT) system for adult commuters. Finally, I will explain why we decided on 22 January not to proceed with this original plan and how we move forward from here.
Before we had SimplyGo, commuters used stored value cards like EZ-Link cards and NETS FlashPay cards to pay their public transport fares. These cards work on a CBT system, where information like the card balance is stored on the card itself.
In 2016, LTA observed that more commuters were using contactless bank cards and mobile wallets for retail payments. Other major public transport systems were also starting to offer commuters the option of using these payment modes.
Our existing CBT system is unable to support bank cards and mobile wallets because these do not hold stored value, and transactions cannot be processed on the CBT card reader. To enable such payments, we needed an ABT system. In an ABT system, when commuters tap their card or smart device, their fares are computed at the backend, and not at the fare gates or bus card readers.
LTA started a pilot in March 2017 to allow payments by bank card via a new ABT system, which was subsequently scaled up into the SimplyGo system in 2019.
Since its launch in 2019, more commuters used SimplyGo over time. In December 2023, 41% of adult commuters were using bank cards and mobile wallets for public transport, while another 23% of adult commuters were using SimplyGo ABT stored value cards. In total, 64% or about two-thirds of adult commuters were using the SimplyGo ABT system in December 2023.
The proportion of adult commuters using SimplyGo has continued to increase after our announcement on 22 January 2024, when the public was informed that LTA would extend the CBT system for adult commuters till at least 2030. From 23 to 31 January 2024, about 9,000 adult commuters, or around 1,000 per day, have converted their CBT cards to the SimplyGo system. We now have close to 70% of adult commuters using SimplyGo in end January, with 44% using bank cards and mobile wallets and 25% using SimplyGo stored value cards.
Many commuters chose to use SimplyGo because of its benefits. For example, it allows commuters to use bank cards and mobile wallets for public transport, instead of carrying an additional card. If a registered user loses his SimplyGo stored value card, he can block it and protect the value in his account. Users can also top-up their SimplyGo cards for their family members via the app, without having the card physically present.
However, SimplyGo has its limitations too. It operates on the ABT system and hence it cannot display the fare deduction and card balance information at the fare gates and bus card readers, without causing delays to the flow of commuters. Commuters are able to view their transactions and balance by using the SimplyGo app or the ticketing machines at train stations and bus interchanges.
LTA is not aware of any current technical solutions to overcome the latency problem for ABT cards. Other public transport systems around the world, such as London and Hong Kong, face the same limitation with their ABT systems. Like us, their CBT systems can display fare deductions and card balances, but their ABT systems are currently unable to do so.
Sir, I will now explain the considerations for LTA’s 9 January 2024 announcement to sunset the CBT system for adult commuters from 1 June 2024.
LTA is currently operating three systems: the SimplyGo ABT system and two separate CBT systems developed at different times to support the adult cards and concession cards respectively. The two CBT systems are separate and the cards on each system are not compatible.
Like all IT systems, our CBT systems have a finite shelf-life. As the CBT system for adult commuters would reach end-of-life in 2024, LTA had to make a decision whether to extend the system, or to stop operating it after it reaches end-of-life.
To extend the system until at least 2030, LTA would need to spend an estimated $40 million to buy new hardware and equipment, and then operate and maintain the system over the next few years. This is a cost that LTA had wanted to avoid incurring by sunsetting the CBT system for adult commuters.
Between 2020 and 2023, LTA consulted different groups of commuters to gauge their readiness to transit to an ABT system. LTA also issued SimplyGo ABT cards to seniors, adults and students and gathered their feedback after they used the card for a few months. In total, LTA engaged over 1,000 commuters.
During these engagements, one of the feedback we received from seniors in particular, was that they were not very familiar with using the SimplyGo app and preferred to continue viewing fare deductions and card balances at fare gates and bus card readers. Based on this feedback, LTA decided not to shift concession card holders over to SimplyGo and instead retain the concession card CBT system for these commuters.
LTA also took on board feedback to improve the user experience for the app, such as enabling push notifications to alert app users when they make fare transactions and when their card balance is low. We also ensured that commuters who are not using the app could check their transactions and account balance using the ticketing machines at bus interchanges and train stations.
After observing that more adult commuters were coming on board the SimplyGo ABT system – I have mentioned earlier, two-thirds by December 2023 – LTA assessed that it could proceed to announce its plan to sunset the CBT system for adult commuters by 1 June 2024. It made the announcement on 9 January, with the intention of giving commuters sufficient time to make the transition before 1 June.
The 9 January announcement was met with strong reactions from commuters. While many have switched to using SimplyGo, LTA had under-estimated the strong preference of some commuters who wanted to continue seeing their fare deductions and card balances immediately at fare gates and bus card readers. After listening to the feedback from commuters, we understand their concerns and respect their preferences. We therefore decided not to proceed with the earlier decision to sunset the CBT system for adult commuters, so that commuters who prefer to have the option of using CBT EZ-Link cards or NETS FlashPay cards to pay for public transport can still do so.
With this change, there is no need for commuters to convert to SimplyGo. Those who find SimplyGo useful can switch over to the ABT system, while those who want to retain their current CBT cards can continue to do so. Commuters have a choice and can decide which system they prefer.
In making this decision, we will not be able to avoid the estimated cost of $40 million to maintain the adult CBT system till at least 2030. However, we will have an extended CBT system that can serve the needs of adult commuters who want to continue viewing their fares and balances at fare gates and bus card readers. The estimated cost of $40 million will be borne by the Government and will not affect public transport fares. We will also find ways to integrate the two CBT systems over time without affecting commuters and to reduce overall costs where possible.
I have tasked LTA to improve the features and user experience of SimplyGo and to find ways to overcome the technical challenge so that it could display fare deductions and card balances at the fare gates and bus card readers without slowing down the flow of commuters. There is currently no solution at the moment, but we will try our best. We will work with other Government agencies and we will work with industry experts to explore possible solutions.
Dr Lim Wee Kiak asked about fare errors. Sir, these can occur with both CBT and ABT cards, though the error rate is very low. When commuters encounter fare errors, they can surface their fare disputes to claim a refund.
With the extension of the concession card and adult CBT systems, both systems will be able to operate till at least 2030. And we retain the option for adult commuters and concession card holders to remain on the CBT system if they wish to do so. We do not have to make a decision now on whether to extend these systems beyond 2030.
In making the decision subsequently, important factors would include whether we can overcome the current technical limitations of the ABT system and which system commuters prefer to use. We will consult widely to understand the needs of different groups of commuters and carefully assess the costs and benefits.
In planning and implementing our next steps, the Ministry of Transport (MOT) and LTA will continue to spend public funds prudently. In areas where we can save money, we will try to reduce costs as much as possible. But where it is necessary to spend, we will do so.
Mr Gerald Giam Yean Song (Aljunied): Thank you, Mr Speaker. Sir, I use public transport for the vast majority of my journeys and I have been using SimplyGo for the past few years. It has always bothered me slightly that I cannot see the fare charge at the gates because I do not know if I am being overcharged. However, I am able to see the fare charge on the SimplyGo app almost immediately after I exited the fare gate. And the fact that the fare game can open immediately after the SimplyGo card is placed on the reader means that the signals are able to make a round trip to the server and back in a reasonable amount of time. So, can the Minister share exactly what is the latency, preferably in milliseconds, that prevents the fare balance from being shown at the gate?
Secondly, many commuters were upset that their user experience was being downgraded without the public consultation or benefit in return and that SimplyGo also cannot be used for motoring. So, instead of spending $40 million to extend the life of the card-based ticketing system for another six years, can LTA instead use that money to upgrade the SimplyGo system to overcome these technical constraints? LTA could, for example, extend the contract by just one more year while it irons out the usability issues and transitions the remaining 30% of users to the SimplyGo system.
And finally, could the Minister please answer my Parliamentary Question No 15 Parts (b) and (c), and share how much cost savings will be gained by having a fully ABT system and whether it can return these cost savings to commuters in a form of rebates?
Mr Chee Hong Tat: Mr Speaker, the issue about the fare gates, I had explained in my main reply that at the moment, the ABT technology does not allow the card balances and the fare deductions to be shown quickly. So, if you use a CBT card, because the information is stored on the card, you can tap it and then it will process it and it will show within half a second.
But with an ABT system – and this is not just in Singapore; this is so true in places like London and Hong Kong – you have to check with the backend what the information, is to be able to calculate what is the fare deduction and what is the balance. So, if you were to then wait for the information to be transmitted back to the fare gates or to the bus card readers, it could take several seconds. And this may be okay if the flow of commuters is very light, but it is going to cause delays and it is going to add to the queues, especially during periods when the volumes are higher, peak periods, for example.
So, because of that constraint, the ABT systems – not just in Singapore, but also elsewhere – are designed such that they do not display the balance information at the fare gate. I hope that answers Mr Giam’s question.
He has a second part to the question, which is then how come the person can tap and go out, and do we not then have information about the fares at the point of tapping? Sir, this is something which is a bit technical here. LTA would let the person tap out and then compute the balances at the backend and that will then be reflected on the app, as Mr Giam mentioned, with a short delay; not immediately. But the next time when the user taps in and assuming that user does not have sufficient balance after the last journey, this card will then be blocked. So, the user would be able to exit but if he or she does not top up the card before the next trip, then this card would not be able to be used for the next journey.
I do not want to go into too much technical details but I hope that answers Mr Giam’s question as to how this system operates. The whole purpose is to avoid causing a congestion and to slow down the flow of commuters because I think efficiency is very important for our commuters.
Sir, the consultation process that LTA has gone through, I had mentioned in my interview with the media that one lesson that we learned is we should have consulted more widely and hear the views of a wider group of commuters, and in particular, I think people who have concerns about this feature of being able to view their fare deductions and card balances at the fare gates and bus card readers, being taken away.
LTA did do some consultation with more than 1,000 commuters. Part of the exercise also involved giving adult commuters, seniors and students ABT cards for them to try and then to get their feedback after they have used it for a few months. So, this process did throw up some very useful feedback. I mentioned some of the changes that were made in my main reply, after we got the feedback from the commuters. So, I thank our commuters who participated in this exercise for sharing their views with us. But I think we under-estimated the strong preference of some commuters who want to retain this feature. So, I do acknowledge that if we had consulted more widely, we would have come across these views earlier on in the process.
Sir, the plan is not to stop here. Currently, the SimplyGo system indeed cannot be used for motoring, but we want to work towards enhancing the features and the user experience for SimplyGo. So that over time, just like today, your EZ-Link card can be used for retail, can be used for motoring and can be used for public transport, we also want to work towards SimplyGo being able to be used for all three – retail, public transport and also monitoring. But the process will take some time and that is why we need to extend the CBT system for adult commuters at this point in time because the system is reaching end-of-life in 2024.
We could, of course, extend by one year, as Mr Giam suggested, but I am not very confident that we will be able to find a solution in one year and having put in the hardware and the necessary equipment, we thought it is more prudent to plan, for the purposes of budgeting and planning, for it to run for at least a few years until at least 2030. That will give us time to be able to explore possible solutions together with industry experts and other Government agencies.
Mr Chua Kheng Wee Louis (Sengkang): Mr Speaker, two supplementary questions for the Minister.
The first is whether LTA has looked into this public transport system, such as that in Japan, which, as I understand, allows locals and foreigners to use travel cards integrated with the mobile wallet. And speaking from personal experience, I was able to use my phone, which is integrated with my mobile wallet, and it actually allows me to view the fare details instantaneously without any lag and, as I understand, this is even compatible with the express mode, meaning you do not even need a charge phone to use it.
The second question is actually on my Parliamentary Question No 19, that is, whether the plans to enhance the SimplyGo system include plans for a universal card which allows one to use it for public transport, retail, motoring, just as what the current EZ-Link and Flashpay cards can do and, importantly, whether it is compatible with the new onboard unit for ERP 2.0?
Mr Chee Hong Tat: Mr Speaker, I will start with the second question from Mr Chua. I had answered Mr Giam earlier on a similar point, that, over time, we do want to work towards having the SimplyGo card being able to be used for retail, public transport and also motoring.
On the first question, we do support mobile wallets, too. Under our SimplyGo, you can use your smart device, your phone, to be able to pay for public transport using SimplyGo. We will be interested to find out a bit more about the system in Japan. If there is a solution there and we can borrow some good ideas, we will be happy to do so.
Ministry of Transport
5 February 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=oral-answer-3406
Office of the Leader of the Opposition 