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How to move away from COE system

On our small island, a car is mostly not needed unless it is a tool of trade, in which case the person who needs it would likely be compensated by his company to own and use a car.

On our small island, a car is mostly not needed unless it is a tool of trade, in which case the person who needs it would likely be compensated by his company to own and use a car.

Having said that, if the Certificate of Entitlement (COE) system has to be changed to better meet the aspirations of various levels of our society, then I propose it be abolished, along with the Additional Registration Fee.

In its place, we could introduce a system where a person purchasing a car must buy one or three years of mileage allowance, which would be deducted via a satellite system or Electronic Road Pricing gantry, depending on the hour and area of use.

Usage during peak hours and to the Central Business District would be charged heavily, with minimal deductions for usage during non-peak hours and in non-congested areas. The cost differential versus public transport could be a factor of 10 or more.

If one uses up the allowance earlier, one then buys another one or three years of mileage, which could be set at, say, S$10,000 to S$20,000 per annum. It could be carried forward if unused.

The key is to make cars cheaper to buy but not to use. Road congestion would likely be reduced, as usage would be based more on needs due to the high cost. The less well-off could buy a small car, while the rich would not feel that they are being denied the fruits of their success.

This would motivate all to work hard, a fundamental value in our society. And while there is no perfect way if a change is desired, such a proposal is more likely to be win-win for all stakeholders.

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