Singapore is one of the world’s most expensive places to own a vehicle. Due to the city’s land scarcity, as well as the billions of dollars planned in public transport investments, the capping of personal vehicle purchasing, seemed like the most appropriate solution.
Singapore has planned to cut permissible vehicle growth rate from 0.25 percent down to zero percent on certain vehicles. The rate will then be reviewed in 2020.
Already Singapore has a tight hold on the vehicle population. This is achieved by setting an annual growth cap. Through bidding systems, individuals can compete for the right to own and use a vehicle for a limited number of years.
Singapore has recorded a population increase of approximately 40 percent since 2000 to 5.6 million people. It was recorded in 2016, approximately 600,000 private and rental cars used the roads. This number includes vehicles used by ride-hailing services such as Uber.
Singapore is one of the world’s most dense populations with an extensive and already well developed public transport system. However, in order to compensate for this change, Singapore has expanded its rail network by 30 percent, added new routes, and increased capacity in its bus networks. The Singapore government will continue to invest $20 billion (Singaporean dollars) in new infrastructure, as well as $4 billion (Singaporean dollars) to renew, upgrade and expand rail assets.
While many neighbouring countries are unsure of the effect this change will have, it is likely to affect holiday goers and international residents who planned on hiring a vehicle when in the country. Find out more about what you need to know when driving overseas for your next holiday.