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Singapore’s car growth rate to remain at 0% until January 2022

Singapore’s car growth rate to remain at 0% until January 2022

Traffic at a busy intersection in Singapore. (Photo: CNA/Jeremy Long)

SINGAPORE: Singapore will continue to freeze its vehicle population growth for another year due to uncertainty over travel demand patterns amid the COVID-19 situation, said the Land Transport Authority (LTA) on Thursday (Aug 13).

The growth cap for all private passenger cars and motorcycles – those in Categories A, B and D – will remain at 0 per cent per annum until the end of January 2022, said LTA.

Singapore announced in 2017 that it would cut the vehicle growth rate (VGR) to zero from 0.25 per cent per annum for private cars and motorcycles, citing "land constraints" and a commitment to "continually improve our public transport system". 

The zero growth rate, which took effect from February 2018, was set to be reviewed this year.

READ: COE prices likely to rise as vehicle growth rate cut to zero: Experts

READ: Zero vehicle growth rate will not affect COE prices significantly: MOT

"Given the uncertainty over how travel demand patterns will evolve amidst the COVID-19 situation, the Land Transport Authority will extend the validity of the current vehicle growth rate by one year until 31 January 2022," said LTA in a press release.

It added that the growth rate ensures that Singapore's vehicle population growth is "tempered and supports the development of a sustainable and liveable environment for Singaporeans”.


READ: Fewer COEs available from August to October

The growth rate for goods vehicles and buses in Category C remains unchanged at 0.25 per cent per annum.

LTA added that the extension of the current growth rate will not have any impact on the supply of Certificate of Entitlements (COEs), as the COE quota is determined largely by the number of vehicle deregistrations.

Source: CNA/dv


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