LTA announces landmark increase of additional 20,000 COEs
29 Oct 2024|8,578 views
Is additional reprieve for car-buyers set to come in Singapore?
The LTA made a surprise announcement on Tuesday afternoon (29 October 2024) that it will be injecting up to approximately 20,000 COEs into the existing quota pool, starting from February 2025. The injection will be done progressively, and will see the COEs spread out into the multiple categories under Singapore's Vehicle Quota System (VQS).
The LTA also reiterated that this does not change Singapore's vision for a car-lite future, with its concurrent, fresh announcement that nation's Vehicle Population Growth Rate (VGR) for Categories A, B and D will still be maintained at 0% per annum till 31 January 2028. The VGR for Category C, on the other hand, will remain at 0.25% per annum for the same period.
What makes this new update particularly significant is that these approximately 20,000 COEs are separate from those that the LTA has been relying on from its 'cut-and-fill' approach, which relies on 'borrowing' from future de-registrations to supplement current supply shortages. As such, they can effectively be considered as a one-time injection.
The last time the Government adopted a similar approach was back between 1997 and 2003, where it injected an extra 10,500 COEs on top of the allowable VGR for the period following the introduction of the ERP system.
The 20,000 additional COEs announced today, likewise, have apparently been made possible through the nation's enhanced ability to manage vehicle congestion.
Vehicle mileage has dipped by around 6% from 2019 to 2023, while Singapore's rail network has expanded in the same time by 18%, with further expansions still on their way.
The LTA is also crediting the gradual rollout of ERP 2.0, which relies on Global Navigation Satellite System (GNSS) technology, as a means through which congestion will be better managed in the years to come. One highlight is the possibility of "virtual gantries", which can be implemented in both a flexible and responsive manner.
Under ERP 2.0, local cars are required to be fitted with the new multiple-piece Onboard Unit (OBU). Approximately 150,000 new and existing vehicles have gotten their OBUs installed since November last year.
Further adjustments to the vehicle population may be possible in the future still, as new data and tools continue to be availed via ERP 2.0, including the potential introduction of distance-based charging.
While the sum of 20,000 additional COEs announced today is not to be understated, it's worth putting this figure into context against the number of vehicles already plying Singapore's roads.
The local motor vehicle population under the VQS stood at 961,324 as of end-2023 in context - meaning that the latest announcement represents an approximate 2% increase.
Is additional reprieve for car-buyers set to come in Singapore?
The LTA made a surprise announcement on Tuesday afternoon (29 October 2024) that it will be injecting up to approximately 20,000 COEs into the existing quota pool, starting from February 2025. The injection will be done progressively, and will see the COEs spread out into the multiple categories under Singapore's Vehicle Quota System (VQS).
The LTA also reiterated that this does not change Singapore's vision for a car-lite future, with its concurrent, fresh announcement that nation's Vehicle Population Growth Rate (VGR) for Categories A, B and D will still be maintained at 0% per annum till 31 January 2028. The VGR for Category C, on the other hand, will remain at 0.25% per annum for the same period.
What makes this new update particularly significant is that these approximately 20,000 COEs are separate from those that the LTA has been relying on from its 'cut-and-fill' approach, which relies on 'borrowing' from future de-registrations to supplement current supply shortages. As such, they can effectively be considered as a one-time injection.
The last time the Government adopted a similar approach was back between 1997 and 2003, where it injected an extra 10,500 COEs on top of the allowable VGR for the period following the introduction of the ERP system.
The 20,000 additional COEs announced today, likewise, have apparently been made possible through the nation's enhanced ability to manage vehicle congestion.
Vehicle mileage has dipped by around 6% from 2019 to 2023, while Singapore's rail network has expanded in the same time by 18%, with further expansions still on their way.
The LTA is also crediting the gradual rollout of ERP 2.0, which relies on Global Navigation Satellite System (GNSS) technology, as a means through which congestion will be better managed in the years to come. One highlight is the possibility of "virtual gantries", which can be implemented in both a flexible and responsive manner.
Under ERP 2.0, local cars are required to be fitted with the new multiple-piece Onboard Unit (OBU). Approximately 150,000 new and existing vehicles have gotten their OBUs installed since November last year.
Further adjustments to the vehicle population may be possible in the future still, as new data and tools continue to be availed via ERP 2.0, including the potential introduction of distance-based charging.
While the sum of 20,000 additional COEs announced today is not to be understated, it's worth putting this figure into context against the number of vehicles already plying Singapore's roads.
The local motor vehicle population under the VQS stood at 961,324 as of end-2023 in context - meaning that the latest announcement represents an approximate 2% increase.
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