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.