Singapore’s Obsession Stops Personal Car Growth

Every year millions of tourists flooded Singapore. Last year, there were about 16.4 million tourist arrivals or an increase of 7 percent over the previous year. While Singapore is only 719 square kilometers that has 5.6 million inhabitants.

Small areas with high populations make the government must work hard to divide the area for settlements, transportation routes, attractions to entertainment centers and businesses.

Recently the Singapore Land Transport Authority (LTA) announced it will reduce motor vehicle growth to 0 percent from 0.25 percent previously. The decline was motivated by the territory of mainland Singapore which is not possible to add roads.

“We have to reduce dependence on cars, because we can not continue to build roads,” said Singapore Prime Minister Lee Hsien Loong.

Currently, the highway already consumes about 12 percent of the mainland Singapore with the number of private vehicles reaching 600 thousand. The number of these vehicles is included for Uber and Grab services. Arrangement of the vehicle was immediately carried out by the government so as not to cause congestion. Without a long wait, the declining growth of this vehicle will be active in February 2018.

Keep in mind, with the policy does not mean the dealers in Singapore stop selling cars or motorcycles, but that the amount of cars entered or registered to the LTA is balanced by the number of cars that are no longer usable.

This rule applies only to Category A, B and D vehicles, according to Certificate of Entitlement (CEO). Class A vehicles are cars with engines below 1600cc, class B cars above 1600cc and class D are motorcycles.

This rule does not apply to Category C vehicles that include buses, public transport, or logistic freight cars. So growth in this category will remain at 0.25 percent until 2021 due to buses for public transportation while logistics vehicles are very important in domestic logistics distribution.

This policy of decreasing the growth of private vehicles is not the first time the Singapore government. Based on the Land Transport Authority report, before 2009 the growth of motor vehicles in Singapore reached 3 percent every year.

Entering 2009, the government began to cut by half to 1.5 percent each year. In 2012, Singapore again reduced vehicle growth to 1 percent. Then in 2015 until 2018, the government again pressed it to 0.25 percent.
From Special to General

The Singapore government wants its citizens to use public transport. This policy is supported by high car prices. For example Toyota Alphard 2.5 in Indonesia prices ranging from Rp900 million to Rp 1 billion. If sold in Singapore, the price can reach more than Rp2 billion. Not only the price of expensive vehicles in Singapore, spending after buying a car will be high.

Firstly, before signing up for a new vehicle, a Singaporean must own a COE or vehicle ownership letter and use of a 10-year road, and must pay a premium. Then the car must be registered and will cost 140 Singapore dollars.

There is also a second registration (ARF), an additional registration fee (PARF), customs duties, road taxes to special taxes imposed only on oil-fueled vehicles.

Not just provide expensive rates for cars, public transportation facilities were upgraded. Until 2019 there will be 99 new trains, including to fill the MRT line that is currently under construction. If previously there were only five MRT lines, the government now added one MRT line (Thomson-East Coast Line).

In addition, existing lines such as the North East Line, Circle Line and Downtown Line continue to be extended so as to increase the quota of MRT passengers who now reach 600 million per year. Singaporeans and tourists will also easily access Changi International Airport if the MRT project is completed, because it will provide three-way access. So far there is only one access by using the East West Line line.