Gov't plans to curb vehicle growth: Lui
Given Singapore's limited space for new roads, the government plans to further curb vehicle growth from next year, revealed Transport Minister Lui Tuck Yew.
This, however, has sparked discussion that the move will see Certificate of Entitlement (COE) prices rise higher.
Lui announced at a local media interview that the government plans to lower the annual growth rate of vehicles from its current quantum to a more sustainable level, reported Channel NewsAsia (CNA).
The new growth rate will be announced in October. It stands at 1.5 per cent currently.
Explaining the reason for the cut, Lui also said there are plans to halve the growth of road networks, which has stood at 1 per cent a year, over the last 10 years.
"You can't allow it (the vehicle quota) to grow at the rates in past years simply because the road networks are not expanding as what we have done before," he was quoted as saying.
"And there is also a limit to what we can do with regard to congestion pricing. So it's really trying to find a balance to these two measures," he said.
Associate Professor Anthony Chin, director of the Economic Executive Programme at the Singapore Centre for Applied and Policy Economics, was not convinced a cut in vehicle growth is necessary.
He wondered if the current speed of 62.3km/hr on expressways is not acceptable and pointed out that the problem that needs to be tackled is that of usage, which results in congestion, and not ownership.
With the lowered vehicle growth rates, it is also speculated that COE and car prices will increase because fewer COEs will be issued.
"Given the total COE number to be released is dependent on the growth allowed and the replacement of deregistered vehicles, even if we assume de-registration numbers remain constant, as per numbers from January-June 2011, every 0.5 per cent cut in the population growth will translate to a cut in COE numbers by around 10 per cent compared to the current COE quota," Ron Lim, general manager of sales and marketing from Tan Chong Motor told the broadcaster.
Lim added that higher COE prices will impact purchases and people will delay replacing their vehicles and the purpose of curbing vehicle population growth may not be truly met.
"This will mean an even tougher time for the auto retail industry and eventually higher ownership cost to car buyers and business," Lim said.
During the interview, Lui also said the government may tweak the timing of evening Electronic Road Pricing at some gentries along the CTE, Chinatown and Boat Quay areas. Details will be announced in October.
He also pledged to have a more "commuter-centric" public transportation system in Singapore. This includes doubling the number of households living within walking distance to a MRT station and providing more information on public transport arrivals and seating vacancies to commuters.
