The Straits Times: Government to slash vehicle growth rate to 0.5% in 2012

The Straits Times recently reported the government’s decision to cut Singapore’s annual vehicle population to 0.5 per cent over three years, beginning August 2012.

Government to slash vehicle growth rate to 0.5% in 2012

The Government has decided to reduce the annual vehicle population growth rate to 0.5 per cent, from the current 1.5 per cent.

The new rate will take effect in 2012, from August. In releasing details of what Transport Minister Lui Tuck Yew spoke about last week, the Land Transport Authority said on Friday that the current 1.5 per cent annual cap will remain for the first half of the new COE quota year starting in February.

Thereafter, it will be brought down to 0.5 per cent till January 2015. And after that, it will be subject to another review.

The LTA said the lowering of the growth ceiling is not expected to have a big impact on certificate of entitlement (COE) supply in the next few years, citing ‘an expected uptrend in vehicle deregistration numbers’ in the coming years.

COE supply is based on the number of vehicles deregistered as well as a vehicle-population growth rate determined by the Government.

Citing the age distribution of Singapore’s vehicles, the LTA pointed out that there were more than 100,000 that were now 10 years or older.

Cars, however, make up only 20 per cent of that cohort.

Image taken from …-Wink-…

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