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Zero auto and motorcycle growth from February 2018
25 October 2017, 12:42 | Erma Lawrence
LTA scraps vehicle growth rate
However, it now says it will lower the vehicle growth rate from the current 0.25% per year to 0% from February.
Worldwide news agency Agence France-Presse (AFP) has published and circulated fake news that the Singapore Government will no longer allow cars on local roads. The country's population of 5.6 million is expected to rise to almost 7 million by then. The supply is limited, and certificates are distributed by auction.
LTA said in the press release that 12% of Singapore's land is already occupied by roads and warned there was "limited scope" for further expansion of the road network.
While owning a auto remains an aspiration for some, higher prices that could result from a tighter vehicle supply could mean more consumers ultimately keeping to the more economical option of taking public transport.
The annual vehicle growth rate for goods vehicles and buses will stay at 0.25% until the first quarter of 2021, LTA said.
Come February next year, the city-state will no longer allow any new vehicles into the country, citing land shortage and overcrowded roads.
The vehicle growth rate will be reviewed again in 2020. The island city-state also vowed to invest heavily in public transportation to help the city's growing population get around.
In addition to caps, Singapore has a deliberate policy of elevating the cost of owning a auto in an effort to reduce the number of vehicles on the road.
The zero growth approach for vehicles is bolstered by continued investment in Singapore's public transit projects.
These are expensive. And the bigger your auto, the more the certificate will cost.
Government statistics show the number of private vehicles fell from 540,063 in 2013 to 504,160 in 2016. The growth of Uber and Grab seem to be a major factor behind this rise. Even a relatively standard sedan can cost up to four times as much as it would cost in the United States.
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