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Roads occupy 12% of our land area, compared to around 13% for industry and 15% for housing. Given Singapore’s land constraints, we need to manage road space, as well as the number of vehicles using the roads or risk perennial grid-lock.
Launched in May 1990, the Certificate of Entitlement (COE) system has been effective in controlling the growth of the vehicle population. It requires motorists to bid for a COE through an online open auction.
The COE gives vehicle owners the right to own the vehicle for ten years.
We have been reducing the vehicle growth rate over the years.
Since February 2018, the vehicle growth rate has been zero for all categories except Category C for goods vehicles and buses (0.25 per cent). We will maintain the current rates until 31 January 2025.