Singapore will stop increasing the total number of cars on its roads next year, Bloomberg reports, citing the city state’s transport regulator.
The government will cut the annual growth rate for cars and motorcycles to zero from 0.25 percent starting in February, the Land Transport Authority said.
“In view of land constraints and competing needs, there is limited scope for further expansion of the road network,” the LTA said in a statement on its website. Roads already account for 12 percent of Singapore’s total land area, it said.
The city state is investing S$28 billion (US$21 billion) more on rail and bus transportation over the next five years, the regulator said.
Car owners are required to buy permits called Certificates of Entitlement which allow them to own their vehicles for 10 years.
These permits are limited in supply and auctioned monthly by the government. At the most recent offering last week, the permit cost S$41,617 for the smallest vehicles, Bloomberg said.
The LTA said the zero-growth target will affect vehicles in Categories A, B and D under its permit system – these include cars and motorcycles.
The growth rate of cargo vehicles and buses will remain at 0.25 percent per annum until March 2021 to give businesses time to improve the efficiency of their operations and reduce the number of commercial vehicles they require, the regulator said.
The limit on vehicle growth rate will be reviewed again in 2020.
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