The transport operator reported a 70 percent drop in profits for financial year 2017, posting just S$26 million in after-tax profits.
SMRT has put the latest S$86 million loss down to falling ridership and lower average fares, reporting that these factors led to revenue declining from S$791 million to S$743 million.
In addition to this, operating expenses jumped from S$785 million to S$838 million, largely due to higher maintenance costs of the aging train network.
In March 2018, Transport Minister Khaw Boon Wan said in parliament that train fares will go up as operating costs rise.
“While transport fares must be affordable, we must be careful that they are not priced too cheaply, as maintaining a high quality transport system requires resources.”
Mr Khaw said that “cheap fares are popular, but they are not sustainable.”
He said that that Public Transport Council will work out a “fair and sustainable arrangement” in their review of transport fares.