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The two principal demand management tools for road traffic management are the Vehicle Quota System (VQS) and Electronic Road Pricing (ERP).

Vehicle Quota System (VQS)

The VQS was implemented in May 1990 to control the growth of the vehicle population at a sustainable rate. Under the VQS, Certificates of Entitlement (COEs) must be obtained through a process of competitive bidding before a vehicle can be registered.

Open Bidding of COEs was introduced in April 2002, after a trial in the second quarter of 2001. The online COE Open Bidding System was developed to provide a greater degree of transparency. It provides bidders with better access to information during the bidding process so that they can make more informed decisions.

Electronic Road Pricing (ERP)

The purpose of ERP is to moderate and spread out vehicle usage for a more optimal and congestion-free road network. The ERP system was launched in April 1998 to replace the former Area licensing Scheme (ALS) that was introduced in the Restricted Zone in 1975, and the manual Road Pricing Scheme (RPS) that was implemented on major expressways in the 1990s.

The pay-per-pass ERP system has the flexibility to charge different rates for different types of vehicles, different locations and different time periods. Since its implementation, traffic speeds are maintained at an optimal speed range of 45-65 kph for expressways and 20-30 kph for arterial roads and roads in the Restricted Zone.