Vehicle Quota System still necessary for Singapore
Transport Minister Lui Tuck Yew has reiterated that the Vehicle Quota System (VQS) is necessary to keep the growth of Singapore's vehicle population at a sustainable rate.
SINGAPORE: Transport Minister Lui Tuck Yew has reiterated that the Vehicle Quota System (VQS) is necessary to keep the growth of Singapore's vehicle population at a sustainable rate.
Mr Lui said this in a written response to a parliamentary question from Chua Chu Kang GRC MP Low Yen Ling.
Ms Low asked if the ministry would consider reviewing the COE system in view of the rising cost of living.
She also asked for updates on the take up rate of car-sharing schemes.
There are currently three car-sharing companies in Singapore -- Car Club, WhizzCar and KahShare.
Mr Lui said there has been a sizeable increase from about 5,000 members in September 2011 to 6,450 in April 2012.
The number of cars used has also increased from 270, at over 100 locations, to 300 during the same time period.
Mr Lui said the Land Transport Authority would work closely with other agencies to see how it could further facilitate car-sharing.
MP Lim Biow Chuan also suggested two measures to improve the Vehicle Quota System.
These include implementing a "pay as you bid" scheme and prohibiting car dealers from bidding for COE and paying for the COE deposit on their customer's behalf.
But Mr Lui said these recommendations had been studied back in 1999 and recommendations not to implement them are still vaild today.
He said feedback gathered in the 1999 review from industry players revealed there were several drawbacks to the scheme.
He said vehicle buyers could bid for COEs themselves and have access to the same information as dealers under the open bidding system.
But, in most cases, buyers still preferred motor dealers to bid on their behalf for convenience and sometimes, to take advantage of better package deals.