Singapore to stop increasing number of cars in February

Marco Green
October 24, 2017

Singapore's Land Transport Authority (LTA) announced it would cut its permitted vehicle growth rate from 0.25% per year to 0%, Reuters reports.

Category C vehicles - goods vehicles and buses - will still be allowed until 2021 to provide businesses more time to adjust their logistics operations and reduce the number of their motor fleet.

Singapore, whose population of 5.56 million has grown almost 40% since 2000, tightly controls the ownership and sale of vehicles through a bidding process and an annual growth rate that caps the total number of vehicles on the city-state's roads.

Based on the existing growth rate, the COE quota across all four categories for the period of November 2017 to January 2018 will be 25,913.

Almost 12 percent of land area in Singapore, one of the world's most expensive places to own a vehicle, is taken up by roads and officials want to ensure the most productive use of the remaining space.

The Land Transport Authority (LTA) is adopting a strict zero growth approach for all private passenger cars and motorcycles.

The LTA expects this move will not significantly affect the supply of Certificate of Entitlement (COE), which is predominantly determined by the number of vehicle de-registrations.

The number of COEs for Category C (goods vehicles and buses) will tumble the most, down 45.4 per cent to 1,456 (from 2,666 in August to October).

Singapore has an extensive public transport system. Category B will see its quota go up 7 per cent to 8,246 while Category D will see its quota go up from 2,862 to 3,053.

While owning a auto remains an aspiration for some, it's worth noting that the tightening supply of vehicles may lead to higher auto prices.

Raising the reliability and quality of public transport would also help a car-lite society to take shape here, added Dr Park.

Other reports by Click Lancashire

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