This story was printed from TODAYonline 
Thursday • January 31, 2008
Neo Chai Chin
chaichin@mediacorp.com.sg
CABBIEs
Worried about earnings
THE cut in road tax is welcome news for the taxi operators, but several cab drivers worry whether the rise in various charges will further affect their earnings.
The Taxi Operators' Associations (TOA) promised that the six operators would pass savings from the 15-per-cent reduction in road tax to their hirers.
But cabbies whom Today spoke to said the new Electronic Road Pricing (ERP) gantries and pricier charges would put another dent in their earnings — as some are still complaining of poor business after the recent fare hikes.
Taxi driver Mohamad Jenpire, 41, said that with potential flag-down customers deterred by the higher costs, he would be tempted to venture into the Central Business District (CBD) only when there are phone bookings.
The TOA estimates that road tax cuts would amount to $5 million in savings for taxi companies.
The group's adviser, Mr Seng Han Thong, urged the taxi companies to "plough back these savings into the taxi drivers' Medi-save accounts so that drivers can build up their Medisave funds".
MOTOR DEALERs
Higher COE prices likely
WHILE some dealers are optimistic about the policies' impact on vehicle sales, there are those who believe that car prices may go up as high as 30 per cent by next year.
The policies will affect driving habits more than car ownership, in this shift towards a "pay-as-you-use system", said Mr Glenn Tan, group chief executive of Motor Image, the distributor of Subaru vehicles here.
For example, car owners may take public transport during hours when ERP gantries are in operation.
Those who believe car prices may rise next year point to the fact that from May 2009, the Government will halve vehicle population growth to 1.5 per cent. Dealers told Channel NewsAsia that this will reduce the number of Certificate of Entitlements (COEs) — leading to higher prices.
Mr Neo Nam Heng, president of the Singapore Vehicle Traders Association, said that besides COE prices, car sales also depend on the economic outlook and foreign currency exchange rates — for example, the yen versus the Singapore dollar when it comes to Japanese imports.
"In the short term, I see no reason for COEs to go up. In the mid- to long-term, I see no impact on sales of high-end cars because high-end car buyers can afford it. Mid-range owners of cars costing between $50,000 and $100,000 can still afford it but they will have to change their driving habits. But budget buyers of low-end cars may switch to public transport," he said.
Said Mr Tan: "There'll always be a demand for cars, but if COE prices go up by $10,000 or more, car buyers may look for something cheaper."
Mr Mark Ng, co-owner of parallel importer Apricar, added: "What will happen is that car buyers will take variable costs like petrol and ERP charges into serious consideration before buying."
MOTORISTS
More incentives, please
WHILE the measures may result in reduced traffic congestion, the Automobile Association of Singapore (AAS) and some drivers are not sure whether the introduction of more ERP gantries will help alleviate traffic conditions in the targeted areas.
Sales manager Felix Lim, who takes the PIE to his workplace in Jurong West, said: "I think fuel charges are a better deterrent for motorists."
Student Jonathan Chua, 22, who drives to the National University of Singapore from his home in Katong, also has no plans to change his travel route just because of the ERP charges. "Taking a different route might also land me in a jam with other car users who switched routes."
AAS president Bernard Tay said the introduction of more ERP gantries "may result in slower traffic flow along the roads where the gantries are". He added that reductions in road tax and the Additional Registration Fee (ARF) "fall short of market expectations".
The AAS hopes that "more incentives can be given to motorists who also use public transport", such as providing more parking facilities and passenger drop-off points near public transport hubs.
The group also calls on the LTA to give car owners cash rebates on their vehicles' remaining Preferential ARF value, instead of offsetting upfront vehicle taxes for owners' next cars.
This would encourage more people to give up driving, or to scrap their cars earlier, said Mr Tay.