Current vehicle growth cap to continue until Jan 31, 2022
Given the uncertainty over how travel demand patterns will evolve amid the Covid-19 pandemic, the Land Transport Authority said it will continue with its current cap on vehicle population growth.
The current growth cap - at 0.25 per cent a year for commercial vehicles, and zero per cent for all others - was due to expire by the end of this certificate of entitlement (COE) quota year next January.
But the LTA said yesterday it will continue with the growth cap until Jan 31, 2022.
It said the growth rates ensure that "our vehicle population growth is tempered and supports the development of a sustainable and liveable environment for Singaporeans".
It added that the extension of the current vehicle growth rates will not have any impact on the supply of COEs, as the COE quota is determined largely by the number of vehicle de-registrations.
Transport Minister Ong Ye Kung said on Facebook that Covid-19 has "changed the way we travel, as more of us work from home, participate in online learning, and generally stay at home more".
He also noted that "more have taken to healthy modes (of travel) such as cycling".
The minister said "we should take the opportunity to reduce unnecessary trips, stagger working hours, and develop a more sustainable land transport system for Singaporeans - one that is greener, smarter and more inclusive in meeting the diverse needs of commuters".
Mr Ong said the LTA will review the vehicle growth rate next year, with the new rate to take effect from February 2022.
"I hope this also provides some stability and assurance for vehicle owners, businesses and dealers in the months ahead," he added.
The vehicle growth rate was 3 per cent a year initially under the 30-year-old COE system.
Later on, the rate was gradually revised downwards, till it reached zero per cent (for cars) two years ago. - THE STRAITS TIMES