THE LAND TRANSPORT POLICY IN SINGAPORE : PAST, PRESENT AND FUTURE

Abstract

Over the past three decades, many tough measures were introduced by the government of Singapore to curb road congestion. These have been responsible for the relatively smooth-flowing traffic condition here. Among these policy measures are the world-renowned Area Licensing Scheme, which limits entry to the crowded city area during peak hours, and the current Vehicle Quota System, which directly restricts the growth of vehicles. In the near future, the full-scale implementation of the Electronic Road Pricing System is also expected to set a precedent in the world. While ensuring the efficiency and effectiveness of each policy measure introduced are the main concern of the government. issues such as equity and political cost are also increasingly gaining attention. The current Vehicle Quota System, while highly controversial, does have some built-in features aimed at balancing these diverse issues. The Weekend Car Scheme, in particular, signifies the government's recognition of the desire and aspirations of Singaporeans to own cars. The main emphasis of this dissertation is on the Vehicle Quota System, a policy measure that has generated great interests within the academic circle, and anxiety among the general public. Factors such as exchange rates and secondary market prices for the transferable COEs are found to be the most important determinants of the quota premium for each auction. Furthermore, the transferability and uniform-price features are found to support speculation, though they are not the only factors responsible for high COE prices. This dissertation ends by looking at some expected development in the future road transport system in Singapore.