In introducing the new car loan restrictions, the Monetary Authority of Singapore (MAS) had explained that the measures were necessary to encourage financial prudence among buyers and prevent buyers from over-extending themselves (“New limits on car loans”, Feb 26).

While it remains to be seen how the market will react to the new realities, I am concerned that the policy may in fact have the reverse effect on some segments of Singaporeans.

On one hand, impulsive young buyers who still perceive car ownership as a social status symbol will be tempted to throw all their cash savings into a car purchase.

For these buyers, instead of encouraging financial prudence, the measures have the opposite effect.

Meanwhile, families who need a car to transport their elderly dependents or their young children on a daily basis may be left with no other choice but to sacrifice their hard-earned savings for the down payment on a car.

Unless there are other viable alternatives that offer the same point-to-point convenience as a personal vehicle, there will always be many such Singaporeans who find it difficult to imagine life without a car.

In their case, it is not “financial imprudence” that is the problem; their seemingly irrational decision is being forced upon them by a situation that they have no control over.

I hope the Government will review its policy and adjust the restrictions over time so that the measures introduced will not hurt the very people it seeks to protect.