LTA is the central planner for the public bus network, and is responsible for designing an integrated public transport system where commuters are connected seamlessly across both bus and rail services.
LTA is also responsible for the overall financial viability of the public bus network under the Bus Contracting Model, which has been fully implemented since 2016.
Under this model, LTA contracts operators to run public bus services through a competitive tendering process. LTA determines the bus routes to be provided as well as the service standards. For instance, operators are required to ensure that during
peak periods, all buses are scheduled to arrive every 15 minutes or less, with at least half of these scheduled to arrive every ten minutes or less.
Bus operators bid for the contract to operate packages of bus services. Operators which are awarded the contracts are paid service fees to operate the bus services, while fare revenue is collected by the Government. There are currently four public bus operators – Go Ahead Singapore, SBS Transit, SMRT, and Tower Transit Singapore.
Over time, the Government will take over the ownership of all bus infrastructure and operating assets, which include depots and buses from existing operators. This will lower the barriers of entry to the market, attract new entrants, and facilitate
any transition from incumbent operators to new operators.
This model also allows the Government to respond and make adjustments to bus services, taking into account changes in commuter travel patterns and overall connectivity and resilience of our public transport network. The greater contestability in the bus industry can also spur innovation and efficiency, and incentivise operators to improve service quality.