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New financing restrictions too severe

07 Mar 2013|9,974 views

Several Members of Parliament (MP) continued to voice their concerns over the new financing restrictions set out by the MAS.

The MPs were concerned that the changes would benefit the well off rather than those who really need cars, and also severely hurt car dealers

Mr Singh, also concluded that the rich will benefit from the latest changes to the new car ownership policies as the latest changes do not address the high disposable income of the rich. That is because a larger household necessarily entails a lower disposable income set aside for the higher downpayment required.

Ms Lee Bee Wah (Nee Soon GRC) and Nominated MP Teo Siong Seng also raised the plight of used car dealers.

Ms Lee asked if the cut was so critical and so market sensitive that the Government was not able to give any advance notice.

Mr Teo, President of the Singapore Chinese Chamber of Commerce and Industry, said that if banks raised their interest rates in reaction to these curbs, some 1,000 car dealers would suffer heavy financial burdens. He asked if the Government would consider applying the financial restrictions to only new cars and not used cars, and waiving them for car importers.

He also asked for assistance schemes to support them, and for a six to 12 months' grace period for firms to adapt.

The recent severe curbs on car ownership continued to come under fire from some Members of Parliament (MP) yesterday.

They have called for more clarity on the actual intent of the measures, and also for more help to tide people over the changes.

Workers' Party MP Pritam Singh (Aljunied GRC) said that the announcement of a new higher tiered Additional Registration Fee (ARF) for luxury cars appears to continue with the theme of progressive taxation.

Mr Singh, also concluded that the rich will benefit from the latest changes to the new car ownership policies as the latest changes do not address the high disposable income of the rich. That is because a larger household necessarily entails a lower disposable income set aside for the higher downpayment required.

Ms Lee Bee Wah (Nee Soon GRC) and Nominated MP Teo Siong Seng also raised the plight of used car dealers.

Ms Lee asked if the cut was so critical and so market sensitive that the Government was not able to give any advance notice.

Mr Teo, President of the Singapore Chinese Chamber of Commerce and Industry, said that if banks raised their interest rates in reaction to these curbs, some 1,000 car dealers would suffer heavy financial burdens. He asked if the Government would consider applying the financial restrictions to only new cars and not used cars, and waiving them for car importers.

He also asked for assistance schemes to support them, and for a six to 12 months' grace period for firms to adapt.