Singapore to cut car population growth to zero from 2018
Singapore is already one of the world’s most expensive places to drive and own a car, and things are set to get a little tougher from 2018.
Starting in February 2018, the small city-state at the tip of the Malaysian peninsula will reduce the permitted growth rate of its passenger car and motorcycle population from 0.25 per cent per annum to zero.
It will continue to allow the commercial vehicle population to grow at a rate of 0.25 per cent per annum until the beginning of 2021, in an effort “to provide businesses more time to improve the efficiency of their logistics operations and reduce the number of commercial vehicles that they require”.
The Land Transport Authority (LTA), which manages the country’s roads, as well as its public transport infrastructure, says it is making the change due to “land constraints and competing needs”, which means there is “limited scope for further expansion of the road network”.
According to the LTA, 12 per cent of the city-state’s land is taken up by roads. The authority says over the next five years it will invest S$20 billion ($18.8 billion) in new rail infrastructure, S$4 billion ($3.8 billion) rail upgrades, and further S$4 billion ($3.8 billion) in bus subsidies.
Every vehicle purchased requires a certificate of entitlement (COE), which lasts for 10 years and a limited number are made available via auction annually. This system is combined with congestion pricing and a high automobile sales tax to discourage private car ownership.
An entry-level Toyota Corolla Altis sedan with a 96kW 1.6-litre engine costs S$104,988 ($98,705) inclusive of taxes and COE. In New South Wales, a base Corolla Ascent sedan with a 103kW 1.8-litre motor is $24,880 driveaway.
From the inception of the certificate of entitlement quota system in 1990 until 2009, Singapore restricted car growth to 3.0 per cent annually. From that point on, the small country has gradually reduced yearly growth to 0.25 per cent.
At the end of 2016, Singapore had a total vehicle population of 898,239. Out of that number 318,081 were passenger cars with engines up to 1.6 litres or with less than 97kW of power.
There were a further 283,137 cars with engines larger than 1.6 litres or with over 97kW of power. In addition to this, Singapore’s fleet also included 154,507 commercial vehicles and buses, and 142,514 motorcycles.
For context, Singapore has a population of around 5.6 million crammed into 719.1 square kilometres of land. According to the Australian Bureau of Statistics, the greater Sydney area has a population of a smidge over 5.0 million in an area roughly 12,367 square kilometres in size.
Cover image: Merlion by Marek Kubica on Flickr
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