Zero growth rate for cars and motorcycles extended for a year until Jan 31, 2022

SINGAPORE — The Land Transport Authority (LTA) said that it will extend the validity of the current vehicle growth rate by one year until Jan 31, 2022 due to the uncertainty over how travel demand patterns will evolve amid the Covid-19 pandemic.

In a media release on Thursday (Aug 13), LTA said that the growth rate of cars and motorcycles (Categories A, B and D) will remain at zero, while the growth rate of goods vehicles and buses (Category C) will be maintained at 0.25 per cent.

The extension is not expected to significantly affect the supply of certificates of entitlement, which is determined largely by the number of vehicle deregistrations, LTA added.

LTA said that the vehicle growth rate ensures that the vehicle population growth here is “tempered and supports the development of a sustainable and liveable environment for Singaporeans”.

Transport Minister Ong Ye Kung said that the LTA had planned to review the vehicle growth rate this year, to take effect from February 2021.

“In view of the uncertainties arising from Covid-19, I have asked LTA to take a bit more time to monitor and assess the impact of Covid-19 on travel patterns,” he said in a Facebook post.

“So LTA will review the vehicle growth rate in 2021, to take effect from February 2022.”

The growth rate of cars and motorcycles was cut to zero from 0.25 per cent from February 2018. In announcing the cut, the LTA said then that it was driven by land constraints and ongoing improvements to the public transport system.

The growth rate of goods vehicles and buses remained unchanged at 0.25 per cent then.

The rates were to last till Jan 31, 2021, and due to be reviewed this year.

The growth rate for cars and motorcycles has been steadily cut for the past decade. Prior to the cut in 2018, it was halved from 0.5 to 0.25 per cent in February 2015.