Singapore to freeze number of cars in 2018

Government to cut car, motorcycle growth rate to zero from February 2018

There will be zero growth for vehicles in Categories A, B and D - covering cars and motorcycles - from February next year, down from the current 0.25 per cent annual growth rate.

It is also the reason why private cars in Singapore costs nearly four times as much as it does in the United States. The country's population of 5.6 million is expected to rise to almost 7 million by then. A limited number are made available via auction annually.

The body noted that the change is necessary as Singapore faces "limited scope for further expansion of the road network", with roads making up 12% of Singapore's land area. The number of new cars is already capped at 0.25% a year but starting next year even that minuscule number will fall to zero.

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"The adjustments to the vehicle growth rate are not expected to significantly affect the supply of COEs, as the COE quota is determined largely by the number of vehicle deregistrations", LTA said.

Goods vehicles and busses will not be capped and will be allowed to grow in number.

Singapore is already an incredibly expensive place to own a auto. The island city-state also vowed to invest heavily in public transportation to help the city's growing population get around.

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Singapore already had tight limits on the ownership and use of private passenger vehicles; now, it allows the number of cars to increase by just 0.25 percent per year. Singapore says it will revisit the vehicle growth rate in 2020. There are about 600,000 vehicles on the road in the city at present.

It is very expensive to own a auto in Singapore. Drivers need to buy a special certificate from the government - which can cost as much as 50,000 Singapore dollars ($37,000) - before they can hit the road. A vehicle in Singapore can cost four times as much as in the U.S. This includes Singapore's metro rail, which, like many rapid rail systems in major cities, has been suffering from significant delays.

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