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 con gestion. Two new methods have recently been added: the ''Vehicle Quota System'' which limits the number of new vehicles registered each mont h and the ''Weekend Car Scheme'' which allows cars to be registered fo r use during off-peak hours only, with substantial financial savings t o 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 cons titutes 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 modificat ions 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-elas tic than price-elastic.