LTA introduces measures to ease vehicle growth rate reduction

In light of the recent slow-down in vehicle deregisteration, Land Transport Authority (LTA) has announced a series of implementations for a more gradual reduction in vehicle growth rate. The measures will ease the transition to the reduced vehicle growth rate scheme. 

Announced in October 2011, vehicle growth rate will be reduced to 0.5% p.a. from August 2012, from the current 1.5% p.a. The new implementation, however, will see to a more gradual transition - growth rates will be pegged at 1.0% for the period between August 2012 to January 2013, before being further reduced to 0.5% p.a. from February 2013 to January 2015. This translates to around 390 more COEs allocated per month from August til next January. 

In addition, LTA will defer the adjustments for over-projections in 2008/09 for a year. Originally scheduled to take effect from August 2012, the adjustments (a number of 4,789 remaining) will now take effect from August 2013, spreading over a span of two years. The deferment will make available 266 more COEs for each month in the stated period.

With the two measures in place after a review on the growth reduction scheme, LTA believes that it will be able to better manage the growth of the local vehicle population.