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Singapore to ban additional cars on the road next year

Singapore to ban additional cars on the road next year

The current growth rate of the vehicle number set by LTA is 0·25% per year, at which level it will remain until the end of January. Roads now take up twelve percent of the city's total land area.

Starting in February next year, the small city-state at the tip of the Malaysian peninsula will reduce the permitted annual growth rate of its passenger vehicle and motorcycle population from 0.25 per cent to zero.

Singapore is already one of the world's most expensive places to drive and own a vehicle, and things are set to get tougher from 2018.

A report by Deutsche Bank found that a new midsize auto will cost around $90,000 in Singapore. A limited number are made available via auction annually.

From the inception of the certificate of entitlement quota system in 1990 until 2009, Singapore restricted vehicle growth to 3.0 per cent annually.

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Currently, it factors in a growth rate of 0.25 per cent per year. After that date, apparently, one existing auto will need to be retired from service before a new vehicle will be allowed on the roadways. This includes Singapore's metro rail, which, like many rapid rail systems in major cities, has been suffering from significant delays.

Singapore has used these strategies for years to discourage the use of private cars-and some of the money raised goes to fund mass transit.

The agency added that the vehicle growth rate will be reviewed again in 2020. For this reason, there are only around 600,000 private cars in Singapore, which has a population of over 5.5 million people.

The certificate of entitlement scheme makes cars too expensive for your average Uber driver to own one. Even a relatively standard sedan can cost up to four times as much as it would cost in the United States.

The government will continue to invest $20 billion in new rail infrastructure, $4 billion to renew, upgrade and expand rail operating assets, and another $4 billion in bus contracting subsidies over the next five years to improve public transport, LTA said.


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