The Land Transport Authority (LTA) has rolled out an incentive scheme to urge owners of old, pollutive diesel vehicles to go for newer models was met with poor response. Since its launch seven months ago, only 170 commercial vehicles had been replaced under this plan, known as the 'Early Turnover Scheme'.

With a total of 38,000 vehicles with emission standards below Euro 2 on our streets, the conversion rate is less than 0.5 percent.

The new scheme aims to replace these older vehicles with newer models that boast Euro 5 emission standards, and was a joint collaboration between LTA and the National Environment Agency, slated to run for two years.

The ministry links the low take up rate to the lack of suitable Euro 5 models on the market. Some of the popular marques, such as Toyota and Nissan, will only have a full range of Euro 5 models from January.

But industry players think otherwise. President of the Motor Traders Association, Glenn Tan, owes the low take up rate to the complexity of the scheme, and that the payouts are not generous enough. He told The Straits Times that these old vehicles can fetch a higher price on the second hand market than what the scheme is offering.