SINGAPORE MOTOR-VEHICLE POLICY - REVIEW OF RECENT CHANGES AND A SUGGESTED ALTERNATIVE

This paper reviews recent developments in motor vehicle policy in Sing apore, viz. the motor vehicle quota and weekend car schemes as well as regulations on cars entering and leaving Singapore. The adoption of a vehicle quota system over and above tax restraints on car ownership h as made the job of the planner easier but has resulted in a great deal of price uncertainty in the motor vehicle market. The attendant resul t of price uncertainty has been speculation or rent seeking, necessita ting several adjustments to the rules for the vehicle quota scheme in an attempt to counter speculation. This paper proposes that the object of bidding should be changed from that of a right to purchase a new c ar to that of a car ownership right. This will eradicate the problem o f speculation as well as problems faced by firms in the motor vehicle distribution industry arising from the implementation of the current q uota system.