The vehicle growth rate for cars and motorcycles will be reduced to zero come February 2018, said the Land Transport Authority (LTA) in a news release on Monday (23 October).
This group of vehicles, which belong in the A, B and D certificate of entitlement (COE) categories, will have their growth rate cut from the current level of 0.25 per cent per annum.
LTA said the move comes in view of Singapore’s land constraints and the continuing efforts to improve the nation’s public transport system.
“Today, 12 per cent of Singapore’s total land area is taken up by roads. In view of land constraints and competing needs, there is limited scope for further expansion of the road network,” said the authority.
Goods vehicles and buses, which are category C vehicles, will see their growth rate kept at 0.25 per cent per annum until the first quarter of 2021. This is to provide businesses with more time to improve the efficiency of their logistical operations and reduce the number of commercial vehicles that they require.
LTA added that the vehicle growth rate will be reviewed again in 2020 and that the upcoming adjustments are not expected to significantly affect the supply of COEs. This is because the COE quotas are determined largely by the number of vehicle de-registrations.
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.
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