New methods of controlling vehicle ownership and usage in Singapore

Over the years Singapore has introduced several fiscal measures aimed at restraining car ownership and usage and thus preventing traffic congestion. Two new methods have recently been added: the Vehicle Quota System which limits the number of new vehicles registered each month and the Weekend Car Scheme which allows cars to be registered for use during off-peak hours only, with substantial financial savings to the owners. The Vehicle Quota System involves monthly public tenders for Certificates of Entitlement needed to register new cars. Over the past 30 months the cost of COE's has been increasing and now constitutes between 12% and 27% of the on-the-road price of a new car. The fluctuations in the COE premiums for different vehicle categories are presented and analysed. The initial problems and the recent modifications made as a result of public pressure are also described. It seems that the increases in COE premiums are likely to continue under strong economic growth conditions as the demand for cars is more income-elastic than price-elastic.