Lawmakers at the Legislative Council meeting on Wednesday pointed out that despite MTR Corp recording a substantial fiscal surplus, it could still increase its fares, even if the decision is not in line with the public’s expectations.

Frank Chan-fan, Secretary for Transport and Housing, wrote in a reply that the government understands public concerns on MTR fares and will pay close attention to different views during the Fare Adjustment Mechanism (FAM) review.

The FAM of the MTR Corporation shall be reviewed every five years. Chan said the review will begin in the second half of 2022 as scheduled and is expected to conclude in the first half of next year.

The government plans to start public consultation in the third quarter of this year and will also consult the Legislative Council Panel on Transport to formulate a pragmatic and balanced proposal.

Chan noted that the current FAM has been adopted since the rail merger in 2007, and it is a direct-drive formula that uses figures published by the Census and Statistics Department to reflect local economic conditions; it is an open, objective, and transparent mechanism.